Nigeria Stock Market Emerges Strongest in Africa, NGX Nears N126 Trillion, Investors Gain N82bn
- Nigeria's stock market leads Africa with a 34.39% dollar return this year, with close N126 trillion
- Stock market capitalisation nears N126 trillion as investor confidence surges amid naira's rally in all markets
- Experts reveal that currency stability drives Nigeria's attractiveness for foreign portfolio investments
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s stock market has emerged as Africa’s strongest performer in U.S. dollar terms this year, outpacing major continental peers despite lingering macroeconomic pressures at home.
Year-to-date, the Nigerian equities market has delivered a 34.39 percent return in dollar terms, placing it ahead of other key African exchanges from a foreign investor’s perspective.
Source: Getty Images
The performance reflects a combination of strong share price growth and improved currency stability, both of which have helped restore investor confidence.
In local currency terms, the market is up 25.30 per cent so far this year, driven largely by sustained buying interest in banking, consumer goods and industrial stocks.
NGX nears N126 trillion as investors gain
The rally has pushed the market capitalisation of the Nigerian Exchange Limited close to N126 trillion, reinforcing its status as one of the continent’s most attractive equity destinations, according to a report by MarkeForces Africa.
In one of its strongest weekly showings in recent history, investors gained about N8.14 trillion at the close of trading last week.
According to a report by Daily Sun, the surge underscores renewed appetite for Nigerian equities as both domestic and foreign investors reposition their portfolios.
Analysts say the stronger performance in dollar terms highlights the role of exchange rate stability and increased foreign portfolio participation. For global investors, currency movements often make the difference between modest gains and standout returns.
Currency dynamics reshape Africa’s rankings
Across Africa, exchange rate trends have significantly influenced how markets rank in global comparisons.
Tanzania currently leads the continent in local currency performance with a 40.65 percent year-to-date gain.
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However, when those returns are converted into dollars, Nigeria moves ahead, illustrating how currency stability can reshape relative standings.
Zimbabwe has also experienced currency-related pressures that have dampened its appeal in dollar terms, even where nominal gains appear strong.
In contrast, Southern African markets like Zambia have shown how currency appreciation can amplify dollar returns even when local gains are moderate.
These shifts demonstrate that, beyond corporate earnings and stock valuations, currency dynamics now play a decisive role in attracting cross-border capital flows.
Reforms, policy tightening boost confidence
Market operators attribute Nigeria’s performance to improving macroeconomic signals, including tighter monetary policy aimed at curbing inflation and stabilising the foreign exchange market.
Although inflation remains elevated and economic reforms continue to weigh on businesses and households, investors appear to be positioning for anticipated medium-term recovery gains.
In a global environment marked by higher interest rates in advanced economies, emerging markets must offer compelling risk-adjusted returns to attract capital.
Nigeria’s current trajectory suggests investors are increasingly convinced of that value proposition.
NGX RegCo issues investor advisory
Amid notable price movements in some listed stocks, NGX Regulation Limited issued an advisory urging investors to remain disciplined and rely on verified information.
The advisory forms part of the regulator’s routine market surveillance activities aimed at ensuring fairness, transparency and orderly trading. Investors were encouraged to base decisions on company fundamentals, financial performance and overall risk profile rather than speculation.
Commenting on the development, NGX RegCo CEO Olufemi Shobanjo emphasised that maintaining a level playing field remains the Exchange’s top priority. He noted that sustainable investment outcomes are built on sound fundamentals, not market rumours.
Source: UGC
As the Nigerian market consolidates its position as Africa’s top dollar performer, attention will remain on policy consistency, currency stability and corporate earnings to determine whether the rally can be sustained in the months ahead.
Investors’ wealth rises by N1.27trn, NGX equities rally
Legit.ng earlier reported that the Nigerian equities market extended its strong performance run on Thursday, February 5 as investors’ wealth rose by N1.27 trillion, driven by strong buying interest in large- and mid-cap stocks.
The rally pushed the benchmark NGX All-Share Index (ASI) up by 1.18% to 170,005.36 points from 168,030.18 points recorded in the previous session.
Market capitalisation also increased to N109.13 trillion, reflecting the fresh inflow of funds into equities.
Source: Legit.ng
