Nigeria dominates global exchanges with 30% growth in first quarter

Nigeria has solidified its position as a premier destination for frontier and emerging markets. With a 30 percent Year-to-Date (YtD) return in the first quarter of 2026, the Nigerian bourse is currently the second-best performing market globally, trailing only South Korea, which grew 44.3 percent.

While investors are rotating away from saturated developed markets like the S&P 500 and Nikkei 225, smaller exchanges are delivering outsized returns. Based on year-to-date performance data as of March 19, 2026, other top-performing global markets include: Japan (+6.8 percent), United Kingdom (+3.9 percent), Canada (+3.7 percent), Netherlands (+5.4 percent), Poland (+4.3 percent) and the United States (+1.4 percent).

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The NGX’s record-breaking run isn’t just luck; it is being fueled by a perfect storm of domestic policy and corporate health.

“There is clearly a rotation into emerging and frontier markets, and Nigeria is benefiting from that,” Temi Popoola, group managing director and CEO of Nigerian Exchange Group (NGX Group), told BusinessDay.

He noted that the performance of Nigeria’s market has been strong, so naturally, there is some excitement, but caution is important to keep the rally sustained.

“What we are seeing is not just about capital flows, it reflects improving fundamentals, policy direction, and stronger domestic market participation.

“The real test is sustainability. As long as reforms remain consistent and market transparency continues to improve, this momentum can be sustained. That is ultimately what long-term investors are watching,” Popoola said.

Sustained policy shifts by the Central Bank of Nigeria (CBN) and ongoing fiscal reforms have bolstered domestic investor confidence, even as global markets remain sensitive to geopolitical tensions.

Also, a high level of participation from domestic institutional and retail investors has shielded the local bourse from some of the volatility seen in international markets.

The NGX All-Share Index (ASI) and Market capitalisation appreciated by 1.39 percent to close the trading week on Wednesday, March 18, at 201,156.86 points and N129.126 trillion, respectively, from a low of 198,407.30 points and N127.361 trillion in the preceding week.

Despite a short trading week due to Eid holidays, the NGX gained N1.77 trillion in market capitalisation in three working days alone.

Nigeria’s 30 percent returns effectively triple the gains of many developed markets. This follows a record-breaking 2025, where the Nigerian market delivered a 51 percent annual return, making it one of the top-performing exchanges worldwide.
Earlier in January, the market crossed the N100 trillion mark, buoyed by renewed investor demand and broad-based gains across listed stocks. Since then, several stocks like MTN Nigeria, Dangote Cement, and BUA have grown in leaps and bounds.

The achievement is a milestone as the index officially crossed and sustained the 200,000-point threshold for the first time in history.

While the 30 percent mark is an incredible benchmark, analysts are watching for potential profit-taking as the market approaches the second quarter.

Read also: NGX-ASI crosses historic 200,000 mark

“We expect market sentiment to remain relatively cautious in the near term as investors assess recent market gains. Nonetheless, dividend expectations are likely to provide some support for select counters, as investors continue to position in stocks that have recently declared, or are expected to announce, full-year dividend payments,” Coronation Research analysts said in their recent note to investors.

“The Nigerian equities market is likely to sustain its bullish momentum, though the pace of gains may moderate. The oil and gas sector may attract attention given elevated global oil prices.

“Overall, the market’s structural bull run remains intact, supported by the CBN’s rate cut and improving macro visibility, but investors should remain alert to global risk-off sentiment and potential profit-taking as valuations stretch,” according to Lagos-based United Capital research analysts.