PenCom Policy Review Sparks N15.53 Trillion Nigerian Stock Market Rally in 14 Sessions

Nigeria’s equities market recorded a remarkable surge, adding about N15.53 trillion in value over 14 consecutive trading sessions. The rally was driven by strong investor appetite, improved liquidity conditions, and renewed confidence across key sectors on the Nigerian Exchange Limited (NGX). Market capitalisation rose sharply from N129.81 trillion on April 7 to N145.33 trillion by April 24.

The bullish momentum saw several listed companies post significant gains. Aradel Plc led the pack in price appreciation, followed closely by Lafarge Africa, National Salt Company, Stanbic IBTC Holdings, and UAC of Nigeria. During the same period, Seplat Energy crossed the N10,000 per share milestone, while Nigerian Breweries successfully broke above the N1 trillion market capitalisation mark, reinforcing the strength of large-cap stocks.

Market operators attributed the sustained rally largely to liquidity inflows triggered by the National Pension Commission (PenCom)’s upward review of equity investment limits introduced in September 2025. The revised policy allowed Pension Fund Administrators (PFAs) to allocate more funds into equities, significantly boosting institutional participation in the market.

The managing director of APT Securities and Funds Ltd., Malam Garba Kurfi, noted that the policy shift made equities more attractive compared to other asset classes. He added that foreign portfolio investors also increased exposure to major blue-chip stocks such as Airtel Africa, MTN Nigeria, Dangote Cement, BUA Cement, GTBank, and Zenith Bank, further strengthening market demand. According to him, improved corporate earnings and strong dividend yields—particularly in the banking sector—also supported the sustained rally.

However, analysts warned that despite the strong performance, investors should remain cautious. The chief operating officer of InvestData Consulting Ltd., Ambrose Omordion, described the rally as largely earnings-driven but advised a medium- to long-term investment outlook, noting that not all listed equities are backed by strong fundamentals. Similarly, Dr. Benneth Eze of the Chartered Institute of Stockbrokers highlighted risks such as profit-taking, potential interest rate adjustments, and global economic uncertainties, which could trigger short-term market corrections even as momentum remains positive.

source; LEADERSHIP