The Nigerian stock market continued its bullish momentum last week, closing with a remarkable net capital gain of approximately ₦27 trillion, driven by increased participation from both foreign and domestic investors.
Market data from the Nigerian Exchange (NGX) showed a weekly gain of ₦2.16 trillion, pushing the year-to-date aggregate return to ₦26.87 trillion—already outpacing the total gains recorded in all of 2024 by more than ₦11 trillion.
The All Share Index (ASI), Nigeria’s benchmark stock performance indicator, climbed to 146,988.04 points by the close of trading on Friday, significantly higher than the 102,926.40 points at the beginning of the year. This represents a 42.81% return for investors, up from a full-year return of 37.65% in 2024.
With this performance, Nigeria is now ranked among the top five best-performing stock markets globally, surpassing returns from developed markets in Europe and the Americas.
The total market capitalisation of listed equities also reflected the strong upward trend, rising from ₦62.763 trillion at the start of the year to ₦93.296 trillion as of October 11—a 48.65% increase, or about ₦30.53 trillion in added value.
Analysts explained that the discrepancy between the ASI return and total market value was due to unadjusted figures from additional listings, which do not affect the index but increase market capitalisation.
The NGX’s ASI is considered Nigeria’s sovereign equity index and is closely tracked by both local and international investors.
A key driver of the market’s strong performance has been a sharp rise in foreign portfolio investments (FPIs). Data shows that foreign inflows reached ₦1.45 trillion in the first eight months of 2025—an impressive 121.67% increase over the ₦655.47 billion recorded in the same period last year.
According to the latest FPI report, inflows rose by 135.16%, while outflows increased by 110.33%. Total domestic transactions also surged by 93.72%, highlighting growing confidence among Nigerian investors.
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The proportion of FPIs in the Nigerian stock market rose to 21.01%, compared to 18.86% in the corresponding period of 2024.
Adding to the optimism, FTSE Russell, a global market classification body, recently placed Nigeria on its Watch List for a potential upgrade to Frontier Market status, a development seen as a nod to the country’s growing market depth and investor appeal.
According to Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management, the FTSE move signals renewed confidence in Nigeria’s market fundamentals.
“It reflects renewed confidence in Nigeria’s economic direction and is likely to attract increased foreign participation, improve liquidity, and deepen the capital markets,” Amolegbe said.
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He added that while macroeconomic challenges remain, particularly around foreign exchange stability and reform implementation, the upgrade watch “represents a turning point” for Nigeria’s capital market.
“This move represents a turning point and provides both a vote of confidence and a roadmap for sustained financial integration. If Nigeria stays the course, its stock market could witness a resurgence in investor activity and valuation growth in the coming years,” he added.
Analysts say that an improving macroeconomic environment, strong corporate earnings, and the stock market’s role as a hedge against inflation have helped sustain investor interest, particularly in key sectors such as banking, oil & gas, and telecommunications.
With Nigeria outpacing major global indices, including the UK and US markets (which posted average returns of around 15%), and surpassing many BRICS economies (excluding South Africa), the Nigerian Exchange appears to be on a solid path to becoming one of the world’s most attractive emerging investment destinations.
