…Market Cap rises by N36trn, highest annual increase on record
Nigeria’s stock market delivered a historic triumph in 2025, with equities surging 51.19 per cent despite fierce headwinds from Naira devaluation, soaring inflation, and global economic pressures—outpacing the previous year’s 37.65 per cent gain.
Market capitalisation rocketed by a record N36.62 trillion to reach N99.4 trillion, up from N62.76 trillion in 2024, marking the most significant annual increase on record and consolidating its bullish performance from 2024.
After a slow start to the year, market activity picked up, driven by robust corporate earnings, dividend payments, improved currency stability, and bargain hunting in fundamentally sound stocks. Initially, investors had rotated into fixed-income securities, attracted by elevated yields amid tight monetary conditions, but sentiment improved as the year progressed.
Similarly, the Nigerian Exchange (NGX) Limited All-Share Index (ASI) rose by 51.19 per cent from 102,926.40 points on December 31, 2024 to 155,613.03 points on December 31, 2025.
Based on performance in 2025, local investors continued to dominate activities on the NGX by 83.4 per cent.
Meanwhile, foreign investor participation improved modestly to 21.2 per cent, though it remained below long-term historical averages. Total foreign portfolio inflows rose sharply by 182.0 per cent to N1.1 trillion in 2025, while outflows increased by 99.6 per cent to N909.6 billion. This resulted in a net positive foreign portfolio balance for the first time in three years (N208.2 billion), reflecting improved foreign exchange liquidity, clearer policy direction, relative exchange rate stability, and renewed confidence among foreign investors in Nigerian assets.
On key corporate actions that influenced the NGX’s performance for the year include: TotalEnergies divested its 12.5 per cent interest in the Bonga oilfield to Shell in a $510.0 million transaction, raising Shell’s ownership stake to 67.5 per cent and UACN acquisition of CHI Limited (makers of Chivita & Hollandia).
With regulatory approval received, significantly expanding its FMCG footprint; the listing of Legend Plc, adding N11.3 billion to capitalisation; Tolaram Group’s N104 billion acquisition of a 58.0 per cent stake in Guinness Nigeria is progressing through a mandatory takeover offer; the delisting of MRS Oil, Union Homes Savings & Loans, Goldlink Insurance and Aso Savings & Loans from the NGX.
The chairman of the Nigerian Exchange (NGX) Group Plc, Umaru Kwairanga stated that the Nigerian capital market recorded a commendable performance in 2025, attributing the gains to reforms, more decisive corporate actions and resilient market participation.
Speaking on this, the group managing director/chief executive officer, NGX, Temi Popoola, stated that “the Nigerian capital market in 2025 demonstrated resilience despite domestic and global economic headwinds. This performance highlights the importance of policy consistency, purposeful reforms, and strategic collaboration in fostering investor confidence and driving 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.”
Commenting on the development, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion stated that the stock market in 2025 maintained positive momentum over stability in the foreign exchange and impressive filings by listed companies.
Afrinvest Limited said, “Overall, 2025 recorded strong market participation, marked by sustained bullish sentiment punctuated by periodic profit-taking. Investor activity was buoyed by reform-driven developments, the implementation of key policies, and rising market awareness, collectively driving elevated trading volumes.”
The research firm noted that “Emerging and Frontier markets outperformed with returns of 27.7 per cent and 36.5 per cent, respectively, supported by improved global liquidity and renewed investor appetite for higher-growth economies. African equities led the global market with an average return of 39.7 per cent, underpinned by stronger investor confidence and improved currency stability. At the same time, the NGX-ASI extended its bullish run, rising 45.2 per cent YTD as of mid-December 2025.
“After a subdued start due to high fixed-income yields, sentiment improved on the back of robust earnings, dividends, policy support, and bargain hunting, resulting in heightened market participation, with July and September standing out as peak activity months driven by strong earnings releases and increased interest in insurance stocks following the enactment of the NIIRA Act.”
