Investors in Nigeria’s stock market smiled to the bank in September 2025, as market capitalization surged by N1.8 trillion on the back of reforms introduced by the Central Bank of Nigeria (CBN). The reforms, which included a reduction in the Monetary Policy Rate (MPR) from 27.5% to 27%, boosted investor confidence and triggered a fresh appetite for equities. Analysts say this shift in monetary policy encouraged traders to move funds from fixed-income securities into stocks, seeking higher returns.
Figures from the Nigerian Exchange Limited (NGX) revealed that the total market capitalization climbed from N88.769 trillion in August to N90.580 trillion in September, representing a significant boost for investors. The NGX All Share Index (ASI), another key indicator, also gained 1.7%, rising to 142,710.48 points from 140,295.50 points, underscoring the market’s resilience amid broader economic challenges.
Market watchers explained that the rally was fueled by renewed investor interest in large-cap stocks, with companies such as ARADEL (up 9.82%), Fidelity Bank (5.26%), Nigerian Breweries (2.38%), and Transcorp (8.48%) driving market momentum. While profit-taking activities and global economic uncertainty had previously weighed on performance, September saw a wave of fresh buying in fundamentally strong equities, reflecting optimism about corporate results and sector-specific growth prospects.
However, the market breadth painted a mixed picture. Despite the gains, the NGX recorded 31 losers compared to 28 gainers, signaling that not all sectors benefited equally from the rebound. Analysts believe that although the market outlook remains positive, volatility is still expected in the short term, as domestic inflation, exchange rate fluctuations, and global oil prices continue to play a major role in shaping investor decisions.
Looking ahead, experts from InvestData Consulting noted that the equities market is “poised for a cautious continuation of recovery.” They highlighted that macroeconomic factors and government policy direction would remain key drivers of market sentiment. For investors, September’s performance offered a reminder that the Nigerian stock market remains an attractive destination for those willing to balance risk with opportunity.
source: vanguard