Nigeria’s capital market delivered one of its strongest performances in decades in 2025, with the Nigerian Exchange Group steering a rally that placed the country among the best-performing equity markets globally. Trading on Nigerian Exchange Limited, the operating exchange of Nigerian Exchange Group Plc, closed on December 31, 2025 with headline indicators reflecting robust investor confidence, improving macroeconomic fundamentals, and the impact of sustained market reforms.
At the centre of the rally was the NGX All-Share Index (ASI), which surged by 51.19% over the year to close at 155,613 points, up sharply from 102,926 points at the start of 2025. This exceptional performance translated into a massive expansion in equity market capitalisation, which grew by more than ₦36.6 trillion to ₦99.38 trillion by year-end. In absolute terms, this ranks as one of the largest increases recorded by any equity market worldwide in 2025.
Nigeria’s outperformance stood out clearly against global peers. While many developed and emerging markets struggled to deliver double-digit returns, most major equity indices ended the year with gains below 25%. Even the widely tracked MSCI All Country World Index, which captures performance across developed and emerging markets, rose by about 20% over the same period. Against this backdrop, Nigeria’s 51% rally drew renewed attention from international portfolio investors seeking exposure to high-growth frontier and emerging markets.
The strong market showing reflected a convergence of macroeconomic stabilisation and deliberate capital market reforms. Nigeria’s economy recorded steady growth throughout the year, with gross domestic product expanding by 3.13%, 4.23% and 3.98% in the first three quarters of 2025 respectively. Inflation, which had been a major headwind in previous periods, moderated significantly, falling to 14.45% in November 2025 from 34.60% a year earlier. The naira also showed signs of stabilisation, closing the year at ₦1,448.03 to the US dollar, compared with about ₦1,538 at the beginning of the year.
These improving fundamentals provided a more supportive environment for asset pricing and capital formation. NGX Group intensified engagement with policymakers, regulators, issuers, market operators and investors to ensure that macroeconomic gains translated into deeper liquidity, fairer valuations and broader participation across the market.
According to Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, the 2025 performance underscored the importance of consistency in economic policy and sustained reforms. He noted that despite domestic and global economic headwinds, the Nigerian capital market demonstrated resilience, supported by purposeful reforms and strategic collaboration among stakeholders. Continued investment in technology and market infrastructure, he added, expanded access, enhanced transparency and improved operational efficiency.
Growth during the year was broad-based across asset classes. By December 31, 2025, equity market capitalisation stood at ₦99.38 trillion (approximately $68.74 billion), while the fixed income market reached ₦51.48 trillion ($35.61 billion). Exchange-traded funds (ETFs) recorded particularly strong momentum, with market capitalisation rising to ₦45.55 billion, reflecting growing investor sophistication and increased adoption of diversified investment products.
Trading activity also strengthened significantly. Year-to-date equities turnover climbed to ₦5.96 trillion, while average daily value traded rose to ₦23.76 billion. This increase was supported by rising share prices, resilient corporate earnings, recapitalisation efforts in the banking sector, new listings, and ongoing enhancements to market structure.
Beyond secondary market gains, capital formation remained a core focus. During 2025, the Exchange facilitated ₦6.49 trillion in capital raising by government and corporate issuers through a mix of equity and fixed income instruments. These funds played a critical role in financing infrastructure projects, supporting business expansion and improving fiscal sustainability.
Looking ahead, NGX Group says it will continue to deepen collaboration with regulators, issuers and policymakers, while accelerating investment in technology to sustain momentum and broaden access. With tax reforms and further market-friendly policies expected to unlock additional value, the Group aims to position Nigeria firmly as Africa’s preferred exchange hub and a key driver of long-term economic growth and wealth creation.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
