Market Recovers $21bn Lost After Naira Shock as Foreign Investors Flood Back to Lagos….
Nigerian equities are staging one of the most dramatic turnarounds in global markets this year, delivering the world’s second-best dollar returns and reclaiming billions in value wiped out during the naira’s sharp devaluation two years ago.
The benchmark index of the Nigerian Exchange Group has surged 31 percent in 2026, far outpacing many of its global peers. The rally has restored roughly $21 billion in market value lost in the aftermath of the 2024 currency collapse, pushing total market capitalisation on the Lagos bourse to about $84 billion, nearly 58 percent above pre-devaluation levels.
According to a report by Bloomberg, Nigeria’s gains dwarf the 11 percent rise recorded by the broader emerging-market index and the 6.4 percent advance in frontier-market stocks.
Earnings Rebound, Confidence Returns
Market analysts say the rebound is being powered by stronger corporate earnings, balance-sheet repairs and a currency that has regained stability.
Olabode Williams, an analyst at SBG Securities Ltd., noted that companies battered by the naira’s steep fall have restructured and returned to profitability. With growth expectations building, investors are once again willing to take positions in Nigerian assets.
“The market is responding positively because investors are now pricing in sustained earnings recovery,” he said, adding that both domestic and offshore players are re-engaging after years of underperformance.
Naira Among World’s Top Performers
The currency story has also shifted dramatically. The naira has strengthened by more than 7 percent against the dollar this year, ranking as the second-best performing currency globally among those tracked by Bloomberg. The firmer exchange rate has amplified equity gains for foreign investors, boosting dollar-denominated returns.
Foreign Investors Pour Back In
Renewed confidence is evident in trading data. Non-Nigerian participation in local equities climbed to a 19-year high in 2025, with total foreign transactions tripling to 2.65 trillion naira ($1.97 billion) from 852 billion naira the previous year, according to exchange figures.
The surge suggests international funds are once again viewing Nigeria as a viable high-yield frontier play, particularly as macroeconomic reforms begin to show results.
$100 Billion Market in Sight?
Further upside may lie ahead. Gloria Fadipe of CSL Stockbrokers Ltd., a unit of FCMB Group Plc, said the market could exceed $100 billion in capitalisation if planned mega listings materialise.
Among the anticipated offerings are Dangote Refinery, the 650,000-barrel-per-day refinery owned by Aliko Dangote as well as his fertiliser plant. Should those listings proceed, analysts estimate capital gains of up to 34 percent this year.
Reform Dividend
The rally follows sweeping economic reforms introduced by President Bola Tinubu, including the unification and liberalisation of Nigeria’s foreign-exchange market. The controversial devaluation that initially rattled markets is now being viewed as a foundational reset aimed at restoring investor confidence and attracting foreign capital.
With a strengthening currency, rebounding corporate profits and heavyweight listings on the horizon, Nigeria’s stock market is rapidly transforming from a cautionary tale into one of 2026’s most compelling investment stories.
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