Nigeria’s Equities Market Hits N6.92 Trillion in 2025 — Highest in 18 Years as Investor Confidence Surges
The Nigerian equities market has recorded its strongest performance in nearly two decades, with transactions on the Nigerian Exchange (NGX) hitting N6.92 trillion between January and August 2025. This represents the highest trading value in 18 years, more than doubling the N3.47 trillion recorded in the entire year of 2024. Analysts say the rally signals renewed investor confidence, strengthened liquidity, and growing participation among local and retail investors.
Out of the total value traded, domestic investors dominated with N5.46 trillion (79%), while foreign investors contributed N1.45 trillion (21%). Monthly figures showed steady momentum, with trading values climbing from N607 billion in January to a remarkable N1.815 trillion in July, before moderating slightly to N908 billion in August. Financial analyst Abiola Rasaq noted that the surge reflects “a broad improvement in liquidity across the capital market,” as both institutional and retail investors continue to increase their exposure to equities.
Market analysts attribute the bullish sentiment to a mix of strong corporate performance, improved access to trading platforms, and growing interest from young investors. “Domestic retail investors accounted for about one-third of market liquidity, showing renewed appetite for stocks,” Rasaq said. He added that the five consecutive years of positive returns on the NGX All Share Index have validated equities as a superior investment option compared to fixed-income assets, despite the high-interest-rate environment.
The market’s growth is also supported by technological innovation among stockbrokers, which has made trading easier and more accessible. Improved investor confidence, a more stable foreign exchange market, and increased portfolio allocations from pension fund managers — now investing over 11 percent of their assets in equities — have further fueled the momentum. However, experts note that in dollar terms, the N6.92 trillion traded translates to around $4.7 billion, which remains below historical highs when adjusted for inflation and exchange rates.
Looking ahead, analysts at Coronation Research expect the bullish trend to continue into the Q3 2025 earnings season, driven by strong earnings expectations and improved market fundamentals. While short-term volatility may persist, they project a constructive medium-term outlook, supported by attractive valuations and resilient corporate performance across key sectors. As Nigeria’s capital market deepens, investors appear increasingly optimistic that the equities rally is far from over.
source: Business day