Nigerian Exchange Limited (NGX) released a report stating that total stock market transactions increased by 43.3% from N1.89 trillion in the first four months of 2024.
As the exchange recorded a ninth consecutive day of gains, Nigerian stocks skyrocketed to a record high, backed by an improving economic status for the West African country.
The Lagos-based Nigerian all-share index increased by 0.4% on Monday, continuing its longest run of daily gains since March 2024. Over the last 52 weeks, its local currency returns have increased by 27%, outpacing the 13.5% rise in the Morgan Stanley Capital International Emerging Markets (MSCI EM) Europe, Middle East, and Africa Index during the same period.
Kato Mukuru, head of research and CEO of Emerging and Frontier Capital, stated that investor confidence has increased due to recent naira (Nigerian currency) stability, local tax reforms, and capital inflows this month in London by Guarantee Trust Holding.
Mukuru added that nobody saw that the naira had dropped to 1,531 per dollar in July, to levels around 1700 naira per dollar in late November.
Investors have shuffled their portfolios after lower inflation readings that gave them hope that central banks will lower interest rates later this year, which made the stocks more appealing.
Smaller value stocks helped surge the market, with notable gains from companies like Beta Glass, which increased by 400%, and FTN Cocoa Processors and Honeywell Flour Mill Plc, which have increased by over 300%.
Among the major stock exchanges, MTN Nigeria has risen about 100%, outstripping Bua Foods, which rose 10.6%, Airtel Africa, which surged 7.1%, and Dangote Cement, which has decreased by 10%.
Nigerian Exchange Limited (NGX) released a report stating that total stock market transactions increased by 43.3% from N1.89 trillion in the first four months of 2024.
Unlike last year, when foreign transactions made up around one-seventh of the market’s transactions, Foreign Portfolio Investments (FPIs) make up one-third of the Nigerian market.
The latest report shows that the total foreign transactions increased by 162.6% to N877.12 billion in the first four months of 2025 from N334.01 billion last year.
There is a significant increase in the foreign exchange market due to reforms introduced to improve market stability, transparency, and compliance.
It was a part of the larger plan to improve monetary policy to promote economic growth and provide a more stable foreign exchange market.
Central Bank of Nigeria (CBN) maintained the Monetary Policy Rate (MPR) to control inflation and stabilize the naira.
Analysts stated that the Nigerian stock market is showing less volatility amid a new era of uncertainty characterised by rising global tensions and tariff threats. It makes the emerging market investors seek markets that are relatively immune to changes in US President Donald Trump’s tariff policies.
On the flip side, local investors have shown high hunger for listed stocks, as seen by transactions of N1.84 trillion in 2025 compared to N1.56 trillion in 2024, a 17.7% rise.
The percentage of domestic investors dropped from 86.23% of total market turnover in the first four months of 2024 to 67.68% in the first four months of 2025.
Foreign inflows increased by almost 209% to N420.3 billion in the first four months of 2025.
On the other hand, outflows increased from N119.81 billion in 2024 to N457 billion in 2025, a 130.64% rise.
Between 2023 and 2024, Foreign Portfolio Investment (FPI) transactions at the NGX doubled, from N410.62 billion to N852.03 billion. NGX reached its record turnover of N5.587 trillion in 2024 due to foreign transactions and strong local demand.
Capital market analysts state that the Nigerian stock market’s optimism was due to international investors, continuous economic reforms, the companies’ strong earnings, ongoing banking recapitalisation, and the oil sector reforms.
