Nigeria’s equity market is becoming increasingly concentrated in a handful of major companies, with nine firms accounting for about 68 per cent of the Nigerian Exchange (NGX) market capitalisation, valued at N157.74 trillion as of August 31, 2026. The development comes as the NGX continues its strong performance, with the All-Share Index rising to 244,199.39 points, representing a 56.93 per cent year-to-date gain.
The nine companies, each with a market capitalisation of at least N5 trillion, had a combined value of N107.59 trillion by the end of August. Their combined market value increased by N46.69 trillion between December 2025 and August 31, representing nearly 80 per cent of the N58.36 trillion increase recorded in the overall NGX equity market capitalisation during the period. Airtel Africa, Dangote Cement and MTN Nigeria emerged as the biggest contributors, jointly adding N28.53 trillion.
Airtel Africa led the group with a market capitalisation of approximately N23.68 trillion, followed by Dangote Cement at N17.45 trillion and MTN Nigeria at N16.94 trillion. The growing dominance of these large-cap stocks means movements in a relatively small number of companies can significantly influence the overall performance of the NGX. Analysts say their liquidity, visibility and strong investor interest have helped reinforce their position in the market.
The banking sector has also recorded significant growth, with the combined market capitalisation of 12 listed banks increasing from N16.12 trillion in December 2025 to N28.4 trillion by August 2026. This represents a 56.8 per cent increase and accounts for about 18 per cent of total NGX market capitalisation. Analysts attributed the strong performance of banking stocks partly to expectations around the sector’s recapitalisation programme, improved earnings and renewed investor appetite.
Vice chairman of Highcap Securities Limited, David Adonri, said the dominance of large-cap stocks reflects the structure of Nigeria’s economy and the strong investor interest in telecommunications, banking, cement and infrastructure-related businesses. He said greater participation in mid- and small-cap stocks, improved corporate performance and new listings would help deepen market diversification. InvestData Consulting Limited CEO, Ambrose Omordion, also noted that high share prices contribute significantly to the market capitalisation of major stocks, while stressing that the dynamics and volatility of megacap stocks differ from those of smaller companies.
source: Leadership