NGX Rally Signals Homegrown Confidence as Global Capital Eyes Nigeria
Nigeria’s equities market delivered a defining statement in 2025: local investors took charge, confidence deepened, and global capital quietly began to circle.
At the heart of this momentum was the Nigerian Exchange Group (NGX), which recorded one of its strongest years in recent history—driven overwhelmingly by domestic participation, resilient corporate earnings, and renewed faith in Nigeria’s long-term economic fundamentals.
Local Capital Takes the Lead
According to NGX Chairman Umaru Kwairanga, domestic investors accounted for about 80% of total transaction value in 2025, a powerful signal of homegrown conviction in Nigerian assets.
Foreign investors, while still cautious, contributed around 21%, underscoring a slow but meaningful return of offshore interest amid global uncertainty and lingering FX concerns.
“This participation highlights strong local confidence alongside emerging foreign investor interest,” Kwairanga noted—an assessment that captures the market’s dual narrative of resilience at home and curiosity abroad.
A Standout Year for Equities
The NGX All-Share Index surged by approximately 49.2% by December 24, placing Nigeria among Africa’s best-performing equity markets in 2025. This rally was not speculative froth; it was anchored in earnings strength, sector leadership, and disciplined capital allocation.
Total market capitalisation expanded steadily, with equities alone contributing over ₦98 trillion, representing roughly 65% of total market value—a testament to investors’ preference for listed companies with transparent governance and durable balance sheets.
Sectoral Engines of Growth
Market depth was powered by a familiar but formidable quartet:
- Banking – buoyed by recapitalisation momentum and balance-sheet expansion
- Consumer Goods – benefiting from pricing power and brand resilience
- Industrial Stocks – driven by infrastructure and manufacturing demand
- Telecommunications – reflecting Nigeria’s digital scale and data-driven future
Together, these sectors formed the backbone of the NGX’s 2025 rally.
Primary Market Awakens
Beyond secondary market gains, the primary market reasserted itself. New listings and capital raises climbed to an estimated ₦6.34 trillion, largely fuelled by strategic bank recapitalisation and renewed issuer confidence.
This resurgence signals a healthier capital-raising environment—one where companies increasingly see the NGX not just as a trading venue, but as a credible platform for long-term funding.
Foreign Capital: Cautious but Curious
Foreign portfolio investment recorded year-on-year growth, with some months delivering double-digit increases. Yet overall participation remained modest relative to domestic flows.
Why the restraint? Persistent concerns around macroeconomic stability, FX liquidity, and policy clarity continue to shape foreign risk appetite. Still, the direction of travel is positive: Nigeria is back on the radar.
What 2026 Demands
Looking ahead, the NGX’s strategic priority is clear—consolidate gains and globalise relevance.
The next phase requires:
- Deeper, more diversified foreign inflows
- Policy consistency and FX transparency
- Stronger investor protections and market infrastructure
- Broader participation from retail and institutional investors
The objective, as Kwairanga puts it, is to build “a more competitive, inclusive and globally attractive capital market.”
BRANDECONOMY Insight
The 2025 NGX story is not merely about numbers—it is about confidence transfer. Domestic investors stepped in where foreign capital hesitated, proving that Nigerian capital can anchor Nigerian markets. As macro reforms mature and FX risks normalise, foreign investors are likely to follow the trail already blazed by locals. The smart money signal is clear: Nigeria’s equity market has re-priced risk—and opportunity is back on the table.
