Total market value on NGX rises by N35.3trn YoY

Daftar Isi

Growth in Nigerian Exchange Market Capitalisation

The Nigerian Exchange Limited (NGX) has experienced a significant increase in the overall market capitalisation of listed securities, with a year-on-year (YoY) growth of N35.3 trillion. As of November 2025, the total market capitalisation reached N141.3 trillion, compared to N106.03 trillion in November 2024. This growth reflects a strong recovery and increased confidence among investors.

Listed securities on NGX include a variety of financial instruments such as debt, stocks, and Exchange Traded Funds (ETFs). The debt market is composed of corporate bonds, Federal Government of Nigeria (FGN) bonds, and state and local government bonds. There are currently 25 FGN bonds listed on NGX, along with four state/local government bonds and 19 corporate bonds or debentures.

As of November 2025, the NGX lists a total of 150 stocks and over 10 ETFs. Additionally, the exchange has issued seven Eurobonds by the Central Bank of Nigeria (CBN) and the federal government. The stock market remains the largest contributor to the overall market capitalisation, accounting for about N91.086 trillion or 64.47 per cent of the total N141.3 trillion. The stock market added nearly N32 trillion YoY, increasing from N59.119 trillion in November 2024 to N91.086 trillion as of November 2025.

The debt market came in second, contributing approximately N50.168 trillion or 35.5 per cent of the total market capitalisation. The ETF market ranked third, with a contribution of N34.5 billion or 0.024 per cent. The debt market added N3.3 trillion YoY, rising from N46.884 trillion in November 2024 to N50.168 trillion as of November 2025. Meanwhile, the ETF market grew from N28.628 billion in November 2024 to N34.581 billion as of November 2025, gaining N5.95 billion YoY.

Factors Driving Market Growth

Several factors have contributed to the growth in the NGX's market capitalisation. These include the stability in the foreign exchange market, companies recovering from foreign exchange losses, improved market liquidity, capital inflow, dominance of domestic investors, increasing portfolio investment, the CBN's banking sector recapitalisation, and insurance sector reforms.

The stock market growth of N32 trillion YoY can be attributed to strong earnings by listed companies, massive inflow from retail investors, and a surge in demand for fundamental listed stocks on NGX. Analysts predict that the capital market capitalisation may grow by 190 per cent from its current N91 trillion to N262 trillion by 2026.

Key Market Predictions and Challenges

Bismarck Rewane, Managing Director of Financial Derivatives Company, highlighted that new entrants such as the Dangote Refinery, valued at about $32 billion, and potential listings of NNPC Limited could significantly impact the stock market. He noted that the stock market could grow from about 20 per cent of GDP to nearly 80 per cent in the medium-term, transforming it into a more dominant engine of capital formation.

However, achieving such expansion depends on macroeconomic stability, moderating inflation, and an interest-rate environment that supports investment. Rewane also emphasized the need to build an economy that works for Nigerians, noting that diaspora remittances remain a stabilising force but could weaken as global labour markets adjust to AI disruptions.

Kasimu Garba Kurfi, Managing Director and Chief Executive Officer of APT Securities and Funds Limited, projected that the market capitalisation is expected to surpass the N100 trillion mark by the end of 2025. This projection is based on foreign exchange stability, strong corporate fundamentals, and increased primary market activities.

Economic Policies and Market Stability

The CBN has continued its monetary policy tightening to stabilise the naira and inflation. Under Dr. Olayemi Cardoso, the Nigerian economy has seen gradual clearance of foreign exchange backlogs, restoring stability in the foreign exchange market and reassuring both local and foreign investors.

Listed corporate earnings on NGX have played a pivotal role, with major fundamental companies declaring impressive earnings. Capital market analysts noted that the nine months of 2025 corporate earnings reports, coupled with strong dividend declarations from the 2024 FY results, especially from the banking sector and cement manufacturing companies, have encouraged investors seeking returns in a volatile macro environment.

Domestic investors have been a major force behind the rally, but foreign investors are also increasing their participation in trading on NGX. Several stocks listed on the NGX have recorded strong month-to-date appreciation, reflecting heightened foreign investor confidence driven by improved macroeconomic indicators and robust corporate earnings.

Future Outlook and Market Momentum

Capital market analysts believe that sustaining this momentum in the remaining part of 2025 will depend on the continuation of stable and credible economic policies. David Adonri, Vice President of Highcap Securities, noted that the equities market has witnessed massive interest in recovering major stocks such as Airtel Africa, Nestle Nigeria Plc, Nigerian Breweries Plc, Cadbury Nigeria Plc, MTN Nigeria Communications Plc, and others, which have propelled the rally.

Kurfi identified key drivers of the 2025 market rally, including the elimination of foreign exchange-related losses by companies. In 2024, listed firms posted pre-tax FX losses of N507.2 billion, up from N359 billion in 2023, representing a combined N867 billion in losses. In 2025, there have been zero FX losses due to exchange rate stability, significantly boosting investor confidence.

The signing of the Nigerian Insurance Industry Reform Act (NIIRA 25) has triggered a rally in insurance stocks, while the CBN's bank recapitalisation programme has revived the primary market, attracting over N2 trillion in 2024, with similar volumes anticipated in 2025.

Aruna Kebira, MD/CEO of Globalview Capital Limited, stated that the stock market has shown a resilient and generally positive performance so far in 2025, despite some volatility and economic headwinds.