Nigerian Capital Market Soars to ₦139.82 Trillion — FX Reforms, Strong Earnings Drive Growth
The Nigerian Exchange Limited (NGX) has witnessed remarkable growth in 2025, as total market capitalisation of stocks, debt instruments, and Exchange Traded Funds (ETFs) hit ₦139.82 trillion by July 2025. This represents a ₦30.55 trillion increase (27.96% YtD) from ₦109.27 trillion at the end of December 2024.
Key Drivers of Growth
1. Foreign Exchange Reforms – Stability in the FX market has eliminated massive losses previously posted by companies (₦867bn FX losses in 2023–2024 reduced to zero in 2025).
2. Banking Recapitalisation – The CBN’s recapitalisation push has boosted investor appetite, reviving the primary market with inflows of over ₦2 trillion.
3. Insurance Sector Reform (NIIRA 2025) – Triggered a strong rally in insurance stocks.
4. Corporate Earnings & Dividends – Strong H1 2025 reports, especially from banks and cement makers, attracted both retail and institutional investors.
5. Increased Domestic & Foreign Participation – While domestic investors remain dominant (48.18% of June trades), foreign portfolio inflows are rising (27.08% in June, or ₦1.12 trillion).
Market Composition (as of July 2025)
• Equities: ₦88.44 trillion (63.25% of total market cap)
• Debt Market: ₦51.35 trillion (36.73%)
• ETFs: ₦32.3 billion (0.02%)
Major Equities Boosters
• MTN Nigeria: Market cap ₦9.91 trillion (11.2% of equities market).
• Dangote Cement: ₦8.9 trillion (10.08%).
• Airtel Africa: ₦8.68 trillion (9.8%).
Together, these three giants account for over 31% of the equities segment.
Expert Outlook
• Kasimu Garba Kurfi (APT Securities): Projects market cap to surpass ₦100 trillion equities-only benchmark by end of 2025, driven by FX stability, strong corporate fundamentals, and active primary markets.
• David Adonri (Highcap Securities): Sees cooling off in the near term, but expects renewed activity when H1 corporate earnings begin to shape investor sentiment.
• Aruna Kebira (Globalview Capital): Notes resilience of the market despite economic headwinds, with reforms and recapitalisation providing long-term optimism.
Takeaway for Investors
• The NGX’s growth story in 2025 is anchored on stability + reforms + earnings.
• With most stocks still trading below intrinsic value, there’s room for further price appreciation.
• Investors should watch out for banking recapitalisation plays, insurance reforms, and blue-chip stocks like MTN, Dangote Cement, and Airtel Africa as market drivers.
⚡ Bottom Line: The Nigerian capital market is on a strong upward trajectory in 2025, and while short-term corrections may occur, the medium- to long-term outlook remains bullish if reforms and macroeconomic stability continue.
The Nigerian Exchange Limited (NGX) has witnessed remarkable growth in 2025, as total market capitalisation of stocks, debt instruments, and Exchange Traded Funds (ETFs) hit ₦139.82 trillion by July 2025. This represents a ₦30.55 trillion increase (27.96% YtD) from ₦109.27 trillion at the end of December 2024.
Key Drivers of Growth
1. Foreign Exchange Reforms – Stability in the FX market has eliminated massive losses previously posted by companies (₦867bn FX losses in 2023–2024 reduced to zero in 2025).
2. Banking Recapitalisation – The CBN’s recapitalisation push has boosted investor appetite, reviving the primary market with inflows of over ₦2 trillion.
3. Insurance Sector Reform (NIIRA 2025) – Triggered a strong rally in insurance stocks.
4. Corporate Earnings & Dividends – Strong H1 2025 reports, especially from banks and cement makers, attracted both retail and institutional investors.
5. Increased Domestic & Foreign Participation – While domestic investors remain dominant (48.18% of June trades), foreign portfolio inflows are rising (27.08% in June, or ₦1.12 trillion).
Market Composition (as of July 2025)
• Equities: ₦88.44 trillion (63.25% of total market cap)
• Debt Market: ₦51.35 trillion (36.73%)
• ETFs: ₦32.3 billion (0.02%)
Major Equities Boosters
• MTN Nigeria: Market cap ₦9.91 trillion (11.2% of equities market).
• Dangote Cement: ₦8.9 trillion (10.08%).
• Airtel Africa: ₦8.68 trillion (9.8%).
Together, these three giants account for over 31% of the equities segment.
Expert Outlook
• Kasimu Garba Kurfi (APT Securities): Projects market cap to surpass ₦100 trillion equities-only benchmark by end of 2025, driven by FX stability, strong corporate fundamentals, and active primary markets.
• David Adonri (Highcap Securities): Sees cooling off in the near term, but expects renewed activity when H1 corporate earnings begin to shape investor sentiment.
• Aruna Kebira (Globalview Capital): Notes resilience of the market despite economic headwinds, with reforms and recapitalisation providing long-term optimism.
Takeaway for Investors
• The NGX’s growth story in 2025 is anchored on stability + reforms + earnings.
• With most stocks still trading below intrinsic value, there’s room for further price appreciation.
• Investors should watch out for banking recapitalisation plays, insurance reforms, and blue-chip stocks like MTN, Dangote Cement, and Airtel Africa as market drivers.
⚡ Bottom Line: The Nigerian capital market is on a strong upward trajectory in 2025, and while short-term corrections may occur, the medium- to long-term outlook remains bullish if reforms and macroeconomic stability continue.
