Nigerian Stock Market’s Remarkable 2024: Unlocking Growth Potential for 2025
The Nigerian stock market achieved an extraordinary 37% year-to-date (YTD) gain in 2024, marking it as one of Africa’s top-performing financial markets. However, sustaining this success in 2025 will require deliberate efforts from policymakers, regulators, and market participants. Here’s a detailed breakdown of the achievements and challenges ahead:
Key Highlights of 2024
• Market Capitalization Surge:
NGX’s market capitalization rose by ₦21 trillion to ₦61.912 trillion as of December 27, 2024, reflecting a 33.3% YTD increase from ₦40.918 trillion at the start of the year.
• Record-Breaking Transaction Value:
The total transaction value hit ₦4.91 trillion by November 2024, marking a 51.9% increase compared to ₦3.23 trillion in November 2023. This surpassed the previous peak of ₦3.97 trillion recorded in 2007.
• Exceptional Stock Performances:
Many stocks achieved extraordinary growth:
• Juli Pharmacy: +1646%, from ₦0.59 to ₦10.30.
• Sunu Assurance: +717%, from ₦1.10 to ₦8.99.
• Oando Plc: +541%, from ₦10.59 to ₦67.35.
Other big gainers include Conoil (+362%), RT Briscoe (+310%), and Julius Berger (+261%).
Challenges to Address in 2025
1. High Inflation:
Inflation reached 34.6% in 2024, eroding purchasing power and reducing investment inflows. The Central Bank of Nigeria (CBN) raised interest rates multiple times to combat inflation, reaching 27.50% by November 2024.
2. Market Liquidity:
Limited liquidity continues to hinder market growth. Operators call for policies to encourage retail investor participation, financial literacy campaigns, and improved access to trading platforms.
3. Macroeconomic Uncertainty:
Persistent inflation, exchange rate volatility, and high borrowing costs remain key threats.
4. Investor Confidence:
Addressing these issues is crucial to maintaining investor trust and sustaining market momentum.
️ Recommendations for Sustained Growth
• Collaborative Policymaking:
Policymakers and regulators must work together to create a stable and investor-friendly environment.
• Encourage Multinational Listings:
The government should promote listings from multinational companies to deepen market liquidity.
• Support Local Enterprises:
Strengthening the capital market to assist micro, small, and medium-scale enterprises is vital for long-term growth.
• Focus on Corporate Recovery:
Recovery by companies affected by FX losses is expected to positively impact the secondary market.
Looking Ahead
With strategic interventions, the NGX has the potential to achieve even greater heights in 2025. Operators believe that achieving a 15% inflation rate and fostering a more investor-friendly terrain will be pivotal for success.
The remarkable growth in 2024 is a testament to Nigeria’s resilience, and with coordinated efforts, the stock market is poised for a brighter future.
The Nigerian stock market achieved an extraordinary 37% year-to-date (YTD) gain in 2024, marking it as one of Africa’s top-performing financial markets. However, sustaining this success in 2025 will require deliberate efforts from policymakers, regulators, and market participants. Here’s a detailed breakdown of the achievements and challenges ahead:
Key Highlights of 2024
• Market Capitalization Surge:
NGX’s market capitalization rose by ₦21 trillion to ₦61.912 trillion as of December 27, 2024, reflecting a 33.3% YTD increase from ₦40.918 trillion at the start of the year.
• Record-Breaking Transaction Value:
The total transaction value hit ₦4.91 trillion by November 2024, marking a 51.9% increase compared to ₦3.23 trillion in November 2023. This surpassed the previous peak of ₦3.97 trillion recorded in 2007.
• Exceptional Stock Performances:
Many stocks achieved extraordinary growth:
• Juli Pharmacy: +1646%, from ₦0.59 to ₦10.30.
• Sunu Assurance: +717%, from ₦1.10 to ₦8.99.
• Oando Plc: +541%, from ₦10.59 to ₦67.35.
Other big gainers include Conoil (+362%), RT Briscoe (+310%), and Julius Berger (+261%).
Challenges to Address in 2025
1. High Inflation:
Inflation reached 34.6% in 2024, eroding purchasing power and reducing investment inflows. The Central Bank of Nigeria (CBN) raised interest rates multiple times to combat inflation, reaching 27.50% by November 2024.
2. Market Liquidity:
Limited liquidity continues to hinder market growth. Operators call for policies to encourage retail investor participation, financial literacy campaigns, and improved access to trading platforms.
3. Macroeconomic Uncertainty:
Persistent inflation, exchange rate volatility, and high borrowing costs remain key threats.
4. Investor Confidence:
Addressing these issues is crucial to maintaining investor trust and sustaining market momentum.
️ Recommendations for Sustained Growth
• Collaborative Policymaking:
Policymakers and regulators must work together to create a stable and investor-friendly environment.
• Encourage Multinational Listings:
The government should promote listings from multinational companies to deepen market liquidity.
• Support Local Enterprises:
Strengthening the capital market to assist micro, small, and medium-scale enterprises is vital for long-term growth.
• Focus on Corporate Recovery:
Recovery by companies affected by FX losses is expected to positively impact the secondary market.
Looking Ahead
With strategic interventions, the NGX has the potential to achieve even greater heights in 2025. Operators believe that achieving a 15% inflation rate and fostering a more investor-friendly terrain will be pivotal for success.
The remarkable growth in 2024 is a testament to Nigeria’s resilience, and with coordinated efforts, the stock market is poised for a brighter future.