Nigeria crosses N100trn market cap on January effect

Nigeria has crossed the N100trillion equities market capitalisation mark. The record feat at the close of trading on Monday January 5, 2026 happened as Nigerians brace for a year set to test investors reactions to Nigeria’s new tax laws which became effective on January 1.

The stock market recorded the highest daily rally into 2026, as the NGX All Share Index (ASI) rose by 1.74 percent at the close of trading to 159,215.48 points.

“As the market enters the first full week of 2026, we expect the current momentum to persist, driven by ‘January Effect’ and continued portfolio rebalancing,” Lagos-based Vetiva Research analysts said in their January 5 note to investors.

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They further noted that “market activity will likely be dictated by institutional investors repositioning their holdings in tier 1 banking tickers and dividend-yielding stocks ahead of the full-year earning season”.

The value of listed stocks on the Nigerian Exchange Limited (NGX) increased to N101.806trillion on Monday as investors in 56,632 deals exchanged 695,648,356 shares valued at N18.566billion. The market has risen this year by 2.32 percent on investors continued portfolio rebalancing.

Temi Popoola, Group Managing Director/Chief Executive Officer, Nigerian Exchange Group (NGX Group) while reacting to this feat on Monday January 5 said “the equities market capitalisation crossing the N100 trillion mark is a defining milestone for Nigeria’s capital market and a clear signal of renewed investor confidence as the year begins”.

He said the feat reflects the market’s growing depth, resilience, and capacity to respond positively to improving macroeconomic conditions and structural reforms.

“Over the past two years, closer alignment between government policy and capital market development has strengthened transparency, liquidity, and participation, creating a more efficient and investable ecosystem. These reforms have enhanced the Exchange’s role in mobilising capital to support enterprise growth and broader economic development,” Popoola told BusinessDay.

“At NGX Group, we are focused on sustaining this momentum by deepening market infrastructure, leveraging technology and partnerships, and advancing sustainable finance initiatives to position Nigeria’s capital market as a leading destination for long-term investment in Africa,” he added.

The stock market’s performance on the first full trading week of 2026 builds on the strong rally seen in 2025, when the market recorded a full-year return of 51.19percent, well above the 37.65 percent achieved in 2024.

“We expect positive sentiment to persist in the near term as the new year opens, supported by portfolio rebalancing, bargain hunting in fundamentally strong names, and continued positioning ahead of full-year earnings releases and dividend announcements,” Coronation Research analysts said in their January 5 note.

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“The equity market is expected to remain positive but selective, supported by improving business confidence and strong momentum in consumer goods, banking, and insurance stocks. However, gains may moderate as investors take profits after recent advances and await fresh catalysts,” according to United Capital research analysts in their investment view on Monday January 5.