Nigeria’s equity market closed 2025 on a notably bullish note, with premium-listed stocks on the Nigerian Exchange outperforming the broader market and reinforcing investor confidence in companies with strong governance, liquidity, and scale. Data from the Nigerian Exchange (NGX) shows that the NGX Premium Index delivered superior returns relative to the benchmark All-Share Index (ASI), highlighting the value investors placed on high-quality stocks during the year.
The NGX Premium Index ended 2025 at 15,493.2 points, representing a full-year gain of 59.40%, or 5,773.4 points. The index began the year at 9,719.8 points and decisively broke through the psychologically important 15,000-point level as the year progressed. This rally was supported by robust trading activity, with more than 32 billion shares exchanged in premium stocks over the course of the year, reflecting sustained investor interest.
By comparison, the broader All-Share Index also recorded an impressive performance, rising by 51.19%, or 52,686.6 points, to close the year at 155,613 points. While the overall market delivered strong gains, the Premium Index clearly outpaced it on a year-to-date basis, underscoring the resilience and appeal of Nigeria’s top-tier listed companies amid shifting macroeconomic conditions.
Third-quarter momentum powered the rally
A significant portion of the Premium Index’s outperformance was driven by a strong third-quarter rally, particularly in July. During the month, the index surged by 26.74%, helping to lift total Q3 performance to an 18.19% return—the strongest quarterly showing of the year. Market analysts attribute this momentum to a combination of improved investor sentiment, earnings optimism, and selective foreign portfolio inflows into fundamentally strong stocks.
The NGX Premium Index is designed to track companies that meet stringent listing requirements, including a minimum free float of ₦40 billion, market capitalisation of at least ₦200 billion, and a corporate governance score of no less than 70%. These thresholds are intended to enhance transparency, liquidity, and investor confidence, making the index a barometer for high-quality equities on the Nigerian market.
Broad-based gains across premium stocks
Performance in 2025 was largely broad-based, with seven of the eight premium stocks ending the year in positive territory. This contrasts with more uneven outcomes in other segments of the market and reflects the defensive strength of premium stocks during periods of volatility.
One of the lower-ranked performers among the premium cohort was Seplat Energy, which finished seventh with a modest gain of 1.91% for the year. Seplat closed 2025 at ₦5,809 per share, up slightly from its opening price of ₦5,700.
Although the 2025 performance paled in comparison to its exceptional 146.75% rally in 2024, when trading volume reached 29 million shares, Seplat still managed to stay in positive territory. Trading activity moderated in 2025, with about 19.2 million shares exchanged, reflecting a more measured investor approach.
Seplat’s year in review
Seplat’s price action during the year was relatively mixed. The stock was largely flat in the first half of 2025, with notable volatility in May when it declined by 12.91% to ₦4,964. This was followed by a rebound of 9.78% in June, which lifted the share price to ₦5,450. From July through September, prices stabilised, suggesting a period of consolidation.
October brought renewed optimism, as the stock gained 10% to reach ₦5,917. However, mild pullbacks in November and December trimmed those gains slightly, leaving the year-end price at ₦5,809.
Fundamentally, Seplat delivered a strong operational performance. The company reported a nine-month post-tax profit of ₦146.6 billion, more than double the ₦52.7 billion recorded over the same period in 2024. Its current market capitalisation stands at approximately ₦3.3 trillion, accounting for about 3.36% of the NGX’s total equity market value of ₦99.9 trillion.
What it means for investors
The strong showing of the NGX Premium Index in 2025 reinforces the growing preference for well-governed, highly capitalised stocks in Nigeria’s equity market. As macroeconomic reforms continue and market depth improves, premium stocks are likely to remain a focal point for both domestic and foreign investors seeking stability, liquidity, and long-term value.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
