Nigerian Stock Market Surges N6.8 Trillion in January as Blue-Chip Stocks Lead Recovery
The Nigerian Exchange Limited (NGX) started 2026 on a high note, adding N6.8 trillion or 6.8% to its market capitalization in January to close at N106.15 trillion. Investor confidence surged, led by strong demand for 23 blue-chip companies, which collectively account for nearly 88% of the total market value, signaling a renewed optimism in the nation’s capital markets.
Leading the pack was BUA Foods Plc, which overtook MTN Nigeria Communications Plc and Dangote Cement Plc to become the most capitalized stock on the NGX. Trading at N798.90 per share, BUA Foods closed January with a market capitalization of N14.38 trillion, reflecting a remarkable 91% increase in profit after tax for 2025. MTN Nigeria followed closely with N12.01 trillion, supported by a nearly 12% stock price rise as the company returned to profitability in 2025.
Other top performers included Dangote Cement (N10.7 trillion), Airtel Africa (N8.53 trillion), and BUA Cement (N6.2 trillion). Analysts note that these companies, spanning sectors like telecommunications, FMCG, oil and gas, and banking, continue to dominate the market, underpinned by their strong track records, dividend consistency, and financial stability. Investors, including foreign and high-net-worth players, have shown sustained interest due to undervaluation in the past and favorable macroeconomic conditions.
Experts, however, caution that the market remains heavily concentrated, with just 23 of over 140 listed companies driving the bulk of capitalization. David Adonri, Vice Chairman of Highcap Securities, advocates for more large companies to list on the NGX to boost liquidity, deepen the market, and foster broader economic growth. Similarly, Omordion Ambrose of InvestData Consulting highlights the “keyman” risk of over-concentration and urges privatized enterprises and multinationals to consider listing to diversify and strengthen the market.
Despite these warnings, the outlook remains positive, with ongoing economic reforms, infrastructure investments, and energy sector improvements expected to sustain investor enthusiasm. The historic January peak has also attracted global attention, with analysts suggesting that continued stability, security, and reform implementation will be key to maintaining momentum in Nigeria’s capital market.
source: This day