FX Stability, Capital Inflows Push Nigerian Stock Market to N26trn Gain in 8 Months
Nigeria’s stock market recorded a remarkable growth of N26.01 trillion in market capitalisation within the first eight months of 2025, as analysts linked the surge to foreign exchange stability, increased capital inflows, and improved corporate earnings. Market value rose from N62.76 trillion at the start of the year to N88.77 trillion by August 29, while the NGX All-Share Index advanced 36.31 percent year-to-date.
Experts attributed the rally to several key drivers, including the Central Bank of Nigeria’s bank recapitalisation programme, reforms in the insurance sector, and the resilience of domestic investors. The listing of Legend Internet Plc and strong interim results from listed companies further strengthened liquidity and investor confidence. Analysts noted that foreign portfolio investors also returned to the market on the back of FX stability.
According to Aruna Kebira, managing director of Globalview Capital Limited, the stock market benefitted from declining inflation and unattractive yields in the money market. “Investors are seeking better returns, and the capital market is providing that opportunity,” he said, adding that expectations of lower interest rates could sustain momentum in the coming months.
Similarly, APT Securities CEO, Kasimu Kurfi, projected that market capitalisation could surpass N100 trillion by year-end. He highlighted that zero FX losses in 2025, compared to N867 billion recorded between 2023 and 2024, had boosted investor confidence. He also credited the Nigerian Insurance Industry Reform Act and strong corporate fundamentals for attracting investors to the equities market.
Looking ahead, analysts believe that September’s performance will hinge on the release of half-year audited results from leading banks. If results surpass 2024 levels and dividends remain strong, market participation is expected to increase further, with blue-chip stocks such as Airtel Africa, MTN Nigeria, and Nestle Nigeria likely to lead the rally. Research firms also predict that policy easing could benefit manufacturing and consumer-driven sectors, positioning equities for sustained growth through year-end.
Source: Leadership