Investors in the Nigerian stock market closed last weekend with a net capital gain of N27 trillion, as renewed interest from both foreign and local investors continues to boost the demand for equities.
According to data from the Nigerian Exchange (NGX), the market recorded a weekly gain of N2.16 trillion, bringing total year-to-date capital gains to N26.87 trillion — already surpassing the entire N15.41 trillion recorded in 2024 by a wide margin.
The All Share Index (ASI), which tracks the overall market performance, now stands at 146,988.04 points, a 42.81 per cent rise from the year’s opening index of 102,926.40 points. This positions Nigeria among the top five best-performing stock markets globally in terms of return on investment.
With the market capitalisation hitting N93.3 trillion, up from N62.76 trillion in January, the market has gained 48.65 per cent in value so far this year. The slight difference between market value and ASI return is linked to unadjusted values from new listings on the Exchange.
Analysts attribute the bullish trend to increasing foreign portfolio inflows and consistent participation by local investors. Reports show that foreign portfolio investments (FPIs) jumped to N1.45 trillion within the first eight months of 2025 — a 121.67 per cent increase compared to the same period in 2024.
This sharp rise was driven largely by inflows, which grew by over 135 per cent, while domestic transactions also rose by 93.72 per cent. Foreign participation now accounts for 21.01 per cent of total market activity, up from 18.86 per cent last year.
Adding to the momentum, FTSE Russell has placed Nigeria on a Watch List for a potential upgrade to frontier market status, signalling renewed international interest in the country’s financial markets.
Speaking on the development, Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management, said the upgrade watch is a strong indicator of growing confidence in Nigeria’s macroeconomic direction.
“If the country sustains its current reforms, we could see even more foreign inflows, increased liquidity, and deeper capital market activities,” he said.
Economic experts have also credited ongoing fiscal reforms for the market’s resilience. According to Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), major reforms like fuel subsidy removal and exchange rate unification have significantly boosted government revenue and public investment capacity.
He highlighted improvements in tax compliance and collections from VAT and Company Income Tax, as well as better subnational funding for agriculture and infrastructure.
“Despite inflation and exchange rate pressures, we are already seeing the early gains of reforms in fiscal stability and revenue generation,” Yusuf said.
He also noted that newer tax measures are now offering relief to producers and low-income earners through exemptions and zero VAT on essential items like food and medicines.
Meanwhile, analysts at CardinalStone predict that Nigerian firms will continue to post strong earnings, supported by moderating inflation, naira stability, and improved policy direction from the Central Bank of Nigeria (CBN).
With global markets battling uncertainty, Nigeria’s stock market appears to be on a strong upward path — offering investors both at home and abroad a promising destination for returns.
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