The Nigerian Exchange Limited (NGX) closed 2025 on a strong note as the total market value of listed equities, debt instruments, and Exchange Traded Funds (ETFs) soared to an unprecedented N149.7 trillion, buoyed by renewed investor confidence, improved macroeconomic stability, and the federal government’s increased use of the capital market to raise funds.
The figure represents a sharp increase of N40.5 trillion, or 37.03 per cent, from the N109.27 trillion recorded in 2024, underscoring what market operators described as one of the most resilient years for Nigeria’s capital market in recent times.
Analysts attributed the impressive expansion to a combination of foreign-exchange reforms that unlocked foreign portfolio inflows, the ongoing banking-sector recapitalisation exercise, a turnaround in corporate performance, and relative stability in the broader economy.
A breakdown of the data showed that equities remained the dominant driver of market capitalisation, accounting for about 66.2 per cent of the total value. The debt market followed with 33.7 per cent, while ETFs contributed a marginal 0.03 per cent.
Specifically, the equity market closed 2025 at N99.183 trillion, representing a gain of N36.4 trillion or 58 per cent from the N62.775 trillion recorded at the end of 2024. The debt market grew modestly, rising to N50.509 trillion, an increase of N4.04 trillion, or 8.7 per cent, over the N46.466 trillion posted in the previous year. The ETF segment also recorded notable growth, with market value closing at N42.845 billion, up by about N13 billion or 46.8 per cent from N29.919 billion in 2024
Currently, 25 federal government bonds are listed on the NGX, alongside 4 state and local government bonds and 19 corporate bonds and debentures. The Exchange also lists 150 equities, over 10 ETFs, and seven Eurobonds issued by the Central Bank of Nigeria (CBN) and the federal government.
Market analysts noted that strong corporate earnings and generous dividend declarations from 2024 full-year results, particularly from banks and cement manufacturers, played a key role in attracting investors seeking stable returns amid lingering macroeconomic uncertainties. They also observed that the federal government’s increased reliance on the capital market to bridge budget deficits helped deepen the debt segment and boost liquidity.
In recent months, several listed stocks recorded substantial month-to-date gains, reflecting renewed foreign investor interest driven by improving economic indicators and robust earnings performance.
The Managing Director of Financial Derivatives Company, Bismarck Rewane, had projected that Nigeria’s capital market capitalisation could grow by as much as 190 per cent, from about N91 trillion to N262 trillion by 2026. He argued that potential listings such as the Dangote Refinery, valued at roughly $32 billion, and a possible listing of NNPC Limited could transform the market.
According to Rewane, such developments could expand the stock market from about 20 per cent of GDP to nearly 80 per cent in the medium term, repositioning it as a dominant engine of capital formation. “The stock market is becoming a bigger source of national savings and corporate financing. These listings will alter the structure of the market and significantly influence growth,” he said.
Under the leadership of CBN Governor, Dr. Olayemi Cardoso, the economy has witnessed a gradual clearance of foreign exchange backlogs and improved stability in the FX market, developments that have reassured both local and foreign investors.
Strong corporate fundamentals also supported the rally, with several listed companies posting impressive earnings and others returning to profitability after prolonged losses.
The Vice President of Highcap Securities, David Adonri, noted that the 2025 rally was driven by renewed interest in fundamentally strong stocks such as Airtel Africa, Nestlé Nigeria Plc, Nigerian Breweries Plc, Cadbury Nigeria Plc, and MTN Nigeria Communications Plc.
“Having reacted, the market is expected to cool down until perhaps the third week in June, when half-year corporate expectations will start impacting prices positively or negatively, depending on the quality of information released,” he said.
Similarly, the Managing Director and Chief Executive of Globalview Capital Limited, Aruna Kebira, said the capital market delivered a resilient and generally positive performance in 2025, despite bouts of volatility and prevailing economic headwinds, reinforcing its growing role in Nigeria’s economic recovery.
Kayode Tokede
About the Author
