The Nigerian equities market has recorded a remarkable N26.01 trillion growth in market capitalisation within the first eight months of 2025, driven by multiple macroeconomic and sectoral factors. Analysts attribute the surge to foreign exchange stability, improved liquidity, stronger corporate earnings, and rising capital inflows.
Market capitalisation, which opened the year at N62.76 trillion, climbed to N88.77 trillion as of August 29, while the NGX All-Share Index (ASI) advanced by 36.31 per cent year-to-date, rising from 102,926.40 points at the end of 2024 to 140,295.50 points.
The rally has been supported by the return of domestic investors, portfolio inflows, the Central Bank of Nigeria’s (CBN) bank recapitalisation initiative, and reforms in the insurance sector. The listing of Legend Internet Plc and successful capital raising by several banks also strengthened investor confidence.
According to Aruna Kebira, managing director of Globalview Capital Limited, the market has benefitted from easing inflation and unattractive money market yields.
“Yields in the money market are no longer appealing compared to last year, so investors are shifting to equities for better returns,” he said. Kebira added that with inflation moderating and the Monetary Policy Committee (MPC) retaining key rates, the market could see further gains if policy easing occurs.
He projected that September’s performance will hinge on banks’ half-year results. “If issuers report stronger earnings and declare impressive interim dividends, we should see another rally, supported by improved liquidity,” he noted.
Kasimu Kurfi, managing director of APT Securities and Funds Limited, forecast that market capitalisation could exceed N100 trillion by year-end. He highlighted the elimination of FX losses, which had cost listed companies N867 billion between 2023 and 2024, as a major confidence booster. Kurfi also cited the Nigerian Insurance Industry Reform Act (NIIRA 25), which sparked gains in insurance stocks, and the CBN’s recapitalisation drive that attracted over N2 trillion in 2024, with similar inflows expected this year.
Vice president of Highcap Securities, David Adonri, said the rally has been fuelled by renewed demand for blue-chip stocks such as Airtel Africa, Nestle Nigeria, Nigerian Breweries, Cadbury Nigeria, and MTN Nigeria.
Analysts at Cordros Research also believe the MPC’s decision to pause interest rate hikes could sustain momentum. “We expect investors to rotate into sectors like manufacturing, which stand to benefit from lower financing costs, improved input dynamics, and stronger consumer demand,” the firm stated.
