Nigeria Among Africa’s Top 6 Stock Markets in 2025 — NGX Rides High with 27.84% YtD Gain
The Nigerian stock market has officially joined the ranks of Africa’s top-performing exchanges in 2025, delivering an impressive 27.84% Year-to-Date (YtD) return as of July 18.
This performance places the Nigerian Exchange Limited (NGX) alongside five other continental leaders, with the NGX All-Share Index (ASI) soaring from 102,926.40 basis points at the start of the year to a record 131,585.66 basis points.
Where Nigeria Stands on the Continent
According to data obtained by THISDAY, Malawi leads Africa’s stock market performance with a staggering 229.85% YtD return, followed by Lusaka Securities Exchange (Zambia) and the Ghana Stock Exchange with 154.45% and a yet-to-be-specified YtD return respectively.
Nigeria ranks fourth, powered by strategic reforms and rising investor confidence. Meanwhile, Mauritius (-1.81%) and Zimbabwe (-8.95%) were tagged the worst-performing African exchanges so far in 2025.
The Drivers Behind Nigeria’s Rally
Several key policy reforms have propelled NGX’s outstanding performance:
• Removal of fuel subsidies
• Unification of the foreign exchange windows
• Adoption of a floating Naira
• CBN’s banking sector recapitalisation directive
These changes, although initially met with uncertainty, have begun to deliver long-term stability and attracted significant foreign investment. Particularly, the inflow of offshore capital has returned, supported by improved transparency in foreign exchange management.
Additionally, strong corporate earnings, especially in the banking and industrial goods sectors, have reinforced investor confidence. Income-focused investors have been drawn by generous dividends, even amidst a volatile macroeconomic backdrop of currency depreciation and inflation.
Market Activity Highlights
The financial services sector dominated activity, accounting for over 66% of trading volumes in the review period. Analysts note that sentiment, reforms, and expectations for future earnings have kept investor appetite alive.
“Investors are positioning for a brighter future,” said Mr. Tajudeen Olayinka, a respected investment banker and stockbroker. “This explains why the market remains resilient despite high interest rates.”
Mr. David Adnori, Vice President of Highcap Securities Limited, added that “the reforms introduced by President Bola Tinubu have rekindled hope among market participants and energized trading activities.”
Looking Ahead: What to Expect in H2 2025
Despite the stellar YtD performance, analysts are tempering expectations for the second half of the year. With several banks raising fresh capital to meet CBN’s recapitalisation directive, market momentum may slow slightly.
Olayinka forecasts a more balanced market, as investors navigate rights issues and share offers while repositioning their portfolios.
Conclusion:
Nigeria’s rise into the Top 6 African stock markets is a testament to reform-driven growth, corporate resilience, and a reawakening of investor confidence. As H2 unfolds, stakeholders will be watching closely to see whether the NGX can sustain this impressive momentum and deepen its position as one of the continent’s most dynamic exchanges.
The Nigerian stock market has officially joined the ranks of Africa’s top-performing exchanges in 2025, delivering an impressive 27.84% Year-to-Date (YtD) return as of July 18.
This performance places the Nigerian Exchange Limited (NGX) alongside five other continental leaders, with the NGX All-Share Index (ASI) soaring from 102,926.40 basis points at the start of the year to a record 131,585.66 basis points.
Where Nigeria Stands on the Continent
According to data obtained by THISDAY, Malawi leads Africa’s stock market performance with a staggering 229.85% YtD return, followed by Lusaka Securities Exchange (Zambia) and the Ghana Stock Exchange with 154.45% and a yet-to-be-specified YtD return respectively.
Nigeria ranks fourth, powered by strategic reforms and rising investor confidence. Meanwhile, Mauritius (-1.81%) and Zimbabwe (-8.95%) were tagged the worst-performing African exchanges so far in 2025.
The Drivers Behind Nigeria’s Rally
Several key policy reforms have propelled NGX’s outstanding performance:
• Removal of fuel subsidies
• Unification of the foreign exchange windows
• Adoption of a floating Naira
• CBN’s banking sector recapitalisation directive
These changes, although initially met with uncertainty, have begun to deliver long-term stability and attracted significant foreign investment. Particularly, the inflow of offshore capital has returned, supported by improved transparency in foreign exchange management.
Additionally, strong corporate earnings, especially in the banking and industrial goods sectors, have reinforced investor confidence. Income-focused investors have been drawn by generous dividends, even amidst a volatile macroeconomic backdrop of currency depreciation and inflation.
Market Activity Highlights
The financial services sector dominated activity, accounting for over 66% of trading volumes in the review period. Analysts note that sentiment, reforms, and expectations for future earnings have kept investor appetite alive.
“Investors are positioning for a brighter future,” said Mr. Tajudeen Olayinka, a respected investment banker and stockbroker. “This explains why the market remains resilient despite high interest rates.”
Mr. David Adnori, Vice President of Highcap Securities Limited, added that “the reforms introduced by President Bola Tinubu have rekindled hope among market participants and energized trading activities.”
Looking Ahead: What to Expect in H2 2025
Despite the stellar YtD performance, analysts are tempering expectations for the second half of the year. With several banks raising fresh capital to meet CBN’s recapitalisation directive, market momentum may slow slightly.
Olayinka forecasts a more balanced market, as investors navigate rights issues and share offers while repositioning their portfolios.
Conclusion:
Nigeria’s rise into the Top 6 African stock markets is a testament to reform-driven growth, corporate resilience, and a reawakening of investor confidence. As H2 unfolds, stakeholders will be watching closely to see whether the NGX can sustain this impressive momentum and deepen its position as one of the continent’s most dynamic exchanges.