Stocks off to upbeat start in 2026 as market cap nears N100trn

Nigeria’s equities market opened the year 2026 on a positive note as the market capitalisation nears N100trillion mark.

The NGX All-Share Index (ASI) rose by 0.57 percent to 156,492.40 or 879.40 points on Friday, the first trading day in January 2026 while market capitalisation rose to N99.9trillion.

Nigeria stocks began 2026 on a positive note in holiday-thinned trade as investors braced for a year set to test investors reactions to Nigeria’s new tax laws which became effective on January 1.

“The Nigerian equities market delivered strong performance in 2025, outperforming other local asset classes, driven by improved macroeconomic conditions, stronger earnings, higher dividends, and increased foreign participation.

“We remain constructive on equities in 2026, supported by ongoing reforms, improved investor confidence, and favourable yield dynamics. In the fixed income market, easing inflation and a more dovish policy stance supported receding treasury yields. Our outlook is anchored on the dynamics of fiscal borrowings and liquidity movement,” Meristem research analysts said.

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The rally capped year 2025 in which improving macroeconomic conditions and sustained market reforms combined to drive valuations, liquidity and investor participation.

Trading on Nigerian Exchange Limited (NGX), closed on December 31, 2025 with Nigeria’s capital market ranking among the strongest-performing globally.

“We remain optimistic about the opportunities ahead and committed to positioning Nigeria’s capital market as a key driver of economic growth and wealth creation,” Temi Popoola, CEO, NGX Group said, adding that the Group aims to strengthen its role as Africa’s preferred exchange hub.”

Looking ahead, NGX Group says it will prioritise deeper collaboration with regulators, issuers, market operators and policymakers, while continuing to invest in technology to sustain momentum and broaden market access.

By the end of the year, the NGX All-Share Index had risen 51.19 percent  to 155,613 points, up from 102,926 at the start of 2025. Total equity market capitalisation expanded by more than N36.6trillion,  while market capitalisation rose to N99.38trillion, one of the largest absolute increases recorded across global equity markets during the year.

Nigeria’s performance compared favourably with major developed and emerging markets, where equity index returns generally remained below 25 percent.

The MSCI All Country World Index posted gains of about 20 percent, underscoring the scale of Nigeria’s outperformance and the renewed attention it attracted from global investors.

The 2025 rally reflected a confluence of macroeconomic stabilisation and deliberate capital market reforms. Nigeria’s economy recorded growth of 3.13 percent , 4.23 percent and 3.98 percent in the first three quarters of 2025, while headline inflation slowed sharply to 14.45 percent in November, from 34.60 percent a year earlier. The naira also strengthened modestly, closing the year at N1,448.03 to the dollar, compared with N1,538 at the beginning of the year.

Market expansion was broad-based. As at December 31, 2025, equity market capitalisation stood at N99.38trillion ($68.74bn), while the fixed income market reached N51.48trillion ($35.61billion). Exchange-traded funds recorded particularly strong growth, with market capitalisation rising to N45.55billion, reflecting increasing product adoption and investor sophistication.

Trading activity also strengthened. Year-to-date equities turnover rose to N5.96trillion, while average daily value traded increased to N23.76billion, supported by price appreciation, solid corporate earnings, banking sector recapitalisation, new listings and ongoing improvements to market structure.