The Nigerian Exchange Group (NGX) has recorded an impressive 37.7 percent increase in its total market capitalisation, reaching N141.75 trillion as of the end of the third quarter of 2025. This surge marks one of the most significant expansions in Nigeria’s capital market history and underscores renewed investor confidence, driven by strong corporate earnings, improved economic outlook, and reforms in the financial sector.
Market analysts attribute the performance to increased participation from both local and foreign investors, a resurgence in blue-chip stock trading, and the listing of major companies and sovereign instruments that boosted overall market value. The rise, according to experts, reflects the resilience of the Nigerian economy in the face of inflationary pressures, currency volatility, and global economic uncertainties.
Data from the NGX revealed that the market capitalisation of equities rose from N102.95 trillion recorded at the beginning of 2025 to N141.75 trillion by October, representing a gain of N38.8 trillion in just ten months. This growth was largely driven by improved investor sentiment following the Central Bank of Nigeria’s monetary policy adjustments and the government’s renewed focus on economic reforms that target fiscal stability and private-sector development.
The Group Managing Director and Chief Executive Officer of NGX, Mr. Temi Popoola, hailed the remarkable performance, describing it as a reflection of Nigeria’s economic resilience and the continued confidence of investors in the capital market. He noted that the NGX remains a critical driver of economic growth, enabling companies to raise capital for expansion and job creation.
“The 37.7 percent growth in market capitalisation underscores the strong confidence investors have in Nigeria’s capital market. We have seen increased participation across sectors, particularly in banking, energy, industrials, and consumer goods. This achievement is a testament to our commitment to transparency, innovation, and investor protection,” Popoola said.
He explained that several landmark listings contributed to the surge, including new bond issuances, public offerings, and mergers within key sectors. According to him, these activities not only deepened market liquidity but also attracted long-term institutional investors seeking value and stability.
Popoola further revealed that the NGX is implementing new technological initiatives aimed at enhancing trading efficiency and accessibility. “Digital transformation is central to our strategy. We are improving market data systems, upgrading trading infrastructure, and expanding financial literacy to attract retail investors, especially young Nigerians,” he added.
Market analysts have linked the rise in capitalisation to strong corporate performance, particularly among listed firms in the banking, telecoms, and industrial sectors. Companies such as Dangote Cement, BUA Cement, MTN Nigeria, and major banking institutions posted impressive profits in the first nine months of 2025, driving share prices upward and boosting the overall market value.
Analysts from Vetiva Capital Management observed that the Nigerian equities market has benefitted from strategic investor inflows following the government’s fiscal and monetary policy alignment. “The capital market’s growth reflects a renewed investor appetite, supported by improved corporate governance and macroeconomic reforms. The NGX’s consistent performance signals stability and a potential rally heading into 2026,” the analysts said.
Similarly, economic experts at CardinalStone Partners noted that the positive momentum was sustained by the performance of financial institutions and large industrial conglomerates, which accounted for a significant share of total market gains. “Investors are increasingly optimistic about Nigeria’s long-term economic outlook. The combination of policy consistency, stable interest rates, and growing domestic participation has made equities more attractive,” the firm stated.
Foreign portfolio inflows have also rebounded in recent months, supported by the Central Bank’s efforts to stabilize the foreign exchange market and clear outstanding FX backlogs. This has boosted investor confidence and encouraged capital repatriation into the equities market.
In addition, pension fund administrators (PFAs) have continued to increase their holdings in listed securities, a move that has deepened market participation and strengthened liquidity. The National Pension Commission (PenCom) recently reported that pension assets rose to N20.6 trillion, with equities accounting for a significant portion of total investments.
Meanwhile, trading activity in the secondary market has intensified, with daily turnover levels consistently exceeding N20 billion. Investors have shown particular interest in the banking, oil and gas, and industrial goods sectors, where corporate results have surpassed expectations.
The NGX’s fixed income segment has also seen growth, with increased issuances of government and corporate bonds. The Debt Management Office (DMO) and several state governments have leveraged the capital market to raise funds for infrastructure projects, contributing to the market’s overall expansion.
Despite the impressive gains, analysts have advised investors to remain cautious amid global uncertainties and domestic inflationary pressures. They noted that while market fundamentals remain strong, external factors such as global oil prices and exchange rate movements could influence investor sentiment in the coming months.
Popoola, however, expressed optimism that the NGX will sustain its growth momentum through ongoing reforms, improved market infrastructure, and investor education. “We are confident that with continued government support and private sector collaboration, Nigeria’s capital market will remain a leading destination for both local and foreign investments,” he said.
As the year draws to a close, stakeholders in the financial sector have commended the NGX Group for maintaining high standards of transparency and corporate governance. They noted that the continued rally in market capitalisation demonstrates the effectiveness of reforms implemented to deepen Nigeria’s capital markets and enhance economic diversification.
With a market value now standing at N141.75 trillion, the NGX Group’s performance has positioned it as one of Africa’s most dynamic exchanges, reinforcing Nigeria’s status as a major investment hub on the continent.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate