The Nigerian Exchange (NGX) has cemented its position as one of Africa’s strongest-performing equity markets, delivering an impressive 47.43% return in the first half of 2026. According to data comparing six of the continent’s major stock exchanges, Nigeria ranked second only to Ghana, outperforming key markets such as Egypt, Kenya, South Africa, and Morocco. The rally highlights growing investor confidence in Nigeria’s economy and reinforces the stock market’s reputation as a major destination for both local and foreign investors.
The strong performance saw the NGX All-Share Index climb from 155,613.03 points at the end of 2025 to 229,419.18 points by June 30, 2026, adding more than 73,800 points within six months. Analysts attribute the surge to robust corporate earnings across major sectors, including banking, telecommunications, industrial goods, oil and gas, as well as continued progress in the banking recapitalization programme. Improved foreign exchange market conditions also played a significant role in boosting market sentiment.
Across Africa, equity markets generally enjoyed a positive first half of the year, with four of the six major exchanges posting gains. Ghana led the continent with a remarkable 67.9% return, while Nigeria followed closely behind. Egypt and Kenya also recorded healthy growth of 20.7% and 20.14% respectively. In contrast, South Africa and Morocco ended the period in negative territory, reflecting weaker investor sentiment and economic challenges that weighed on market performance.
Nigeria’s achievement is even more notable considering that market size did not determine returns. While the Johannesburg Stock Exchange remains Africa’s largest exchange by market capitalization, it recorded the weakest performance among the markets reviewed. Nigeria’s strong showing underscores the impact of economic reforms, improving investor confidence, and sustained demand for fundamentally strong stocks despite the country’s high-interest-rate environment.
The momentum extends beyond Africa. Recent Bloomberg data ranked Nigeria as the world’s best-performing stock market in dollar terms in early July 2026, driven by a stronger naira, improved foreign exchange liquidity, and ongoing economic reforms. Adding to the optimism, S&P Dow Jones Indices has placed Nigeria on its 2027 watchlist for a potential upgrade from a Standalone Market to a Frontier Market, a move that could attract more international investors and further strengthen the country’s capital market in the years ahead.
source: nairametrics
