NGX Market Capitalisation Surges Past ₦120trn as Foreign Investment Floods In
The Nigerian Exchange (NGX) has reached a new milestone, with its combined market capitalisation of debt, equities, and Exchange Traded Funds (ETFs) hitting ₦121.35 trillion as of May 2025. This marks an 11.05% year-to-date increase from ₦109.27 trillion recorded in December 2024. The equities market led the charge, making up 58.07% of the total, followed by the debt market at 41.91%, while ETFs contributed a modest 0.02%. The surge is largely attributed to increased foreign investor participation, spurred by ongoing foreign exchange reforms by the Central Bank of Nigeria (CBN).
The equities market alone has gained ₦7.7 trillion in the first five months of 2025, rising from ₦62.77 trillion at the end of 2024 to ₦70.47 trillion. This growth was supported by robust earnings from listed companies and renewed interest from foreign investors in high-performing stocks. Notably, Airtel Africa played a significant role, adding nearly ₦810 billion in market capitalisation in May alone and maintaining its position as the most capitalised stock on NGX with ₦8.92 trillion. It was trailed by BUA Foods and Dangote Cement.
January and February 2025 saw strong upward momentum in the equities market, with combined gains of over ₦4.4 trillion. March recorded a slight dip as investors shifted to money market instruments, but the market recovered in April and surged in May. The strong performance in May was largely attributed to investor demand for blue-chip stocks like Airtel Africa, buoyed by easing inflation (now at 23.71%) and stable macroeconomic conditions following the National Bureau of Statistics’ rebasing exercise.
Analysts highlight that impressive Q1 corporate earnings and strong dividend declarations—especially from the banking and manufacturing sectors—further boosted investor confidence. While domestic investors have been dominant, foreign investors have significantly increased their stake, contributing 32.32% of the ₦2.71 trillion in total transactions as of April 2025—up from just 13.77% in April 2024. This shift reflects growing trust in Nigeria’s economic recovery and the effectiveness of recent policy reforms.
Looking ahead, market experts suggest cautious optimism for June 2025. They anticipate a cooling period ahead of mid-year earnings releases, which could drive further market activity depending on company performance. According to analysts, sustaining the market rally will require stable economic policies, continued banking sector momentum, and improved investor sentiment. Despite prevailing challenges, the NGX’s resilience so far this year points to a strengthening capital market environment.
Source: This day