Nigeria Overtakes Morocco as Africa’s Second-Largest Stock Market Amid Record Rally
Nigeria has climbed to become Africa’s second-largest stock market, overtaking Morocco after a remarkable rally that has transformed the Nigerian Exchange Limited (NGX) into one of the continent’s top-performing financial markets. New data from Afridigest, based on figures from African Markets, showed that the NGX reached a market capitalization of $117 billion as of May 15, 2026, trailing only South Africa’s Johannesburg Stock Exchange, which remains the continent’s largest at $1.5 trillion.
The achievement marks a significant leap for Nigeria, which ranked third in Africa in 2025. Analysts say the market’s rapid growth has been fueled by a combination of foreign exchange reforms, strong corporate earnings, increased foreign investor participation, and the successful recapitalisation of the banking sector. The exchange has also benefited from Nigeria’s Frontier Market classification, helping attract fresh investment into the country’s equities market.
Afridigest noted that Nigeria’s stock market capitalization has expanded nearly fivefold since 2023, driven by renewed confidence among both domestic and international investors. Banking stocks have played a major role in the rally, supported by sector-wide reforms and stronger balance sheets. Despite the impressive growth, the platform pointed out that the market remains relatively small compared to the size of Nigeria’s economy, representing just 35 percent of the country’s $377 billion GDP.
The NGX has also emerged as Africa’s best-performing stock market in 2026, with the All-Share Index delivering a 69.4 percent return in dollar terms by the end of May. Market experts attribute the strong performance to regulatory reforms aimed at improving liquidity and investor confidence. These include pension reforms that expanded equity investment limits, stricter capital requirements for pension fund administrators, the adoption of a T+1 settlement cycle, and extended trading hours on the exchange.
While South Africa continues to dominate the continent’s capital markets, Nigeria’s rise highlights growing investor interest in African equities. Morocco’s Casablanca Stock Exchange now ranks third with a market capitalization of $111 billion, followed by Egypt at $81 billion and Botswana at $75 billion. According to Daba Finance, African stock markets delivered some of their strongest performances in recent years, supported by easing inflation, currency stability, and renewed global appetite for frontier and emerging market assets.
source: Business day