Investors net N32tr gain at stock market

Investors in Nigerian equities closed 2025 with a net capital gain of N32.13 trillion, sustaining the country as one of the world’s five best-performing stock markets.

The benchmark index for the Nigerian stock market, the All Share Index (ASI) of the Nigerian Exchange (NGX) ended yesterday with a full-year return of 51.19 per cent, equivalent to net capital gain of N32.13 trillion.

The performance at the Nigerian market more than doubled returns across several advanced and emerging markets, including the United States (U.S.), United Kingdom, Germany, France and China where average indexed returns were below 25 per cent.

The MSCI All Country World Index- a global index that tracks large-cap stocks across developed and emerging markets, closed the year with average return of about 20 per cent.

Group Managing Director, Nigerian Exchange Group (NGX Group), Mr. Temi Popoola, said the sustained rally at the stock market underscored investors’ confidence in the country’s macroeconomic outlook.

He said: “The Nigerian capital market in 2025 demonstrated resilience despite domestic and global economic headwinds.

“This performance underscores the importance of policy consistency, purposeful reforms, and strategic collaboration in strengthening investor confidence and sustaining market growth.

“During the year, efforts to advance economic reforms and improve market structures helped support a stable environment for capital formation, while our continued investment in technology played a critical role in expanding access, enhancing transparency, and improving operational efficiency across the market”.

The ASI closed the year at 155,613.03 points as against the year’s opening index of 102,926.40 points. Aggregate market value of all quoted equities rose from 2025’s opening value of N62.763 trillion to close the year at N99.376 trillion, representing an increase of 58.34 per cent or N36.61 trillion. The difference between the ASI and aggregate market value was due to additional listings recorded during the year.

Popoola said the NGX would remain focused on deepening partnerships with regulators, issuers, market operators, policymakers, and the wider financial ecosystem to sustain the bullish momentum.

“We are optimistic about the opportunities ahead and committed to positioning the Nigerian capital market as a key driver of economic growth and wealth creation, while advancing NGX Group’s vision as Africa’s preferred exchange hub.”

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr. Sehinde Adenagbe, said the market performance has strong correlation with the economic reforms of the current government.

Adenagbe said: “There is no gain saying that since President Tinubu took office in May 2023, Nigeria’s stock market has experienced strong growth and renewed investor interest.

Advertisement

“The NGX All-Share Index more than doubled, rising by around 136 per cent between 2023 and 2025, with market capitalisation expanding sharply and local and foreign participation strengthening”.

He added that further digitisation of the economy and the capital market has smoothen the onboarding of the youthful demography of the country, especially through the fintech gateway created by the NGX Group, which has tremendously increased inclusiveness in the market.

According to him, the market performance reflected improved macroeconomic conditions, liquidity, and investor appetite.

He said: “We believe that these strong performances signal enhanced market confidence, partly driven by broader economic measures under the administration”.

He highlighted the enactment of the Investment and Securities Act (ISA) 2025 signed into law by President Tinubu, removal of Nigeria from the Financial Action Task Force (FATF)’s “grey list” and the reforms in the foreign exchange (forex) market as major impetus for the market.

According to him, the transparency and stability in the forex market have helped to reduce distortions, improving the predictability of pricing for foreign investors and businesses.

“Stable forex conditions have been widely cited as a contributor to increased foreign capital flows into equities and other financial instruments,” Adenagbe said.

He, however, called for more supportive policies that encourage new listings, including moribund state-owned-enterprises that can be turned around as well as incentives for long-term institutional investment.

Adenagbe said: “We also need more structural reforms, coordinated implementation, market infrastructure improvements and inclusive growth measures to sustain momentum and position Nigeria as a competitive driver of national economic growth and development.

“The issue surrounding the Capital Gains Tax (CGT) should be revisited to give the market clarity. More intentional approaches are needed to stamp out insecurity and acts of terrorism from the country as investors want to put their resources in secured environment.”

Managing Director, GTI Capital, Mr. Kehinde Hassan, said investors appeared confident about the outlook for the Nigerian economy.

He noted that the stock market is the closest reflection of a country’s global economic rating as investors are sensitive to risks.

The double-digit 51.19 per cent return in 2025 marked the sixth consecutive bullish run for the Nigerian market. The ASI had made the top global chart in 2024 with average return of 37.65 per cent, equivalent to net capital gain of N15.4 trillion.

The ASI had closed 2023 as one of the three best-performing markets globally. Average return for Nigerian equities in 2023 stood at 45.90 per cent, equivalent to net capital gains of N12.81 trillion.

The market had broken its well-known previous cycle of decline in pre-election year to record its third consecutive positive performance in 2022, with full-year average return of 19.98 per cent, equivalent to net capital gain of N4.455 trillion. It had closed 2021 with average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion.

Advertisement

In the throes of the outbreak of COVID-19 pandemic in 2020, it had recorded average return of 50.03 per cent, representing net capital gains of N6.483 trillion.

ASI closed 2023 at 74,773.77 points as against its opening index of 51,251.06 points for the year. It had opened 2022 at 42,716.44 points.

Aggregate market value of all quoted equities had also risen from 2023’s opening value of N27.915 trillion to close the year at N40.918 trillion. It had recorded N22.297 trillion as opening value for 2022.