Stock market capitalisation hits N101 trillion

Nigerian equities hit another milestone yesterday as sustained demand by domestic and foreign investors pushed the total market capitalisation of all quoted equities above N100 trillion.

Aggregate market value of all quoted equities at the Nigerian Exchange (NGX) rose from its opening value of N99.938 trillion to close yesterday at N101.81 trillion, the first time Nigerian market reached the mark.

Nigerian equities have so far, in the first two trading sessions of this year, rallied net gain of N2.306 trillion, building on strong momentum that had seen the market closing with a full-year net gain of N32.13 trillion.

Average year-to-date return for the first two trading sessions stood at 2.32 per cent, sustaining a bullish outlook that placed Nigeria as one of the world’s five best-performing stock markets last year, with a full-year return of 51.19 per cent.

The All-Share Index (ASI)- the value based index that tracks all share prices at the NGX, rose by 1.74 per cent to close yesterday at 159,218.22 points as against its opening index of 156,492.36 points.

With more than nine advancers to every decliner, the rally at the market was driven by widespread bullish sentiment across the sectors as investors appeared to be taking early positions ahead of the release of the full-year audited results of quoted companies and resultant dividends.

Group Managing Director, Nigerian Exchange Group (NGX Group), Temi Popoola, said the N101.81 trillion attainment reflects growing confidence in the Nigerian capital market.

“The equities market capitalisation crossing the N100 trillion mark is a defining milestone for Nigeria’s capital market and a clear signal of renewed investor confidence as the year begins. It reflects the market’s growing depth, resilience, and ability to respond positively to improving macro-economic conditions and structural reforms,” Popoola said.

According to him, sustained collaboration between market stakeholders and regulators has played a key role in strengthening market credibility.

“Over the past two years, closer alignment between market operators, policymakers, and the Securities and Exchange Commission (SEC) has enhanced transparency, liquidity, and investor protection, reinforcing the Exchange’s role in mobilising long-term capital for economic growth,” Popoola said.

Chief Executive Officer, Nigerian Exchange (NGX) Limited, Jude Chiemeka, explained that the trading trend showed that the rally was supported by improving participation and selective demand across key sectors.

He said: “The breadth of the market tells a positive story. We are seeing strong participation across banking, industrial, and consumer stocks, alongside rising trading volumes, which suggests growing investor confidence and a more active market at the start of the year”.

The early positive start reinforced the outlook for the Nigerian equities market, after investors netted capital gain of N32.13 trillion in 2025.

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The ASI closed 2025 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.

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

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

‘’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 smoothed the onboarding of the youthful demography of the country, especially through the fintech gateway created by the NGX Group.

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, the 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.

“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,” Adenagbe said.

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

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

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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 the pre-election year to record its third consecutive positive performance in 2022, with a full-year average return of 19.98 per cent, equivalent to a net capital gain of N4.455 trillion. It had closed 2021 with an average return of 6.07 per cent, equivalent to net capital gains of N1.278 trillion. In the throes of the outbreak of the COVID-19 pandemic in 2020, it had recorded an 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 in  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 the opening value for 2022.