Stock market liquidity doubles as NGX records most successful quarter ever

Nigeria’s stock transactions rose to N4.14 trillion in the first quarter of 2026, the highest quarterly value in the country’s history. This surge highlights a massive increase in liquidity, with the single-quarter value nearly doubling the N2.23 trillion recorded during the same period in 2025. This performance signals a profound shift in market participation across the nation.

In January, the Nigerian Exchange Limited (NGX) recorded equities deals worth N861.9 billion. These transactions rose to N1.54 trillion in February and reached N1.74 trillion by March.

According to a summary of equities transactions as of 31 March, local investors reached a high of N3.606 trillion, representing 86.94 percent of the total deal value, while foreign investors accounted for N541.99 billion.

The surge was primarily driven by the final phase of the banking sector recapitalisation, which concluded on March 31. This was supported by robust corporate earnings for the 2025 full year and the historic moment when the All-Share Index (ASI) crossed the 200,000-point mark. These factors cemented the position of the NGX as one of the top-performing markets globally.

“The Nigerian capital market is undergoing a structural turnaround,” said Lagos-based Comercio Partners research analysts.

The analysts noted that the Nigerian Exchange Group is extending its daily trading hours, effective April 27 2026, from 9.30am to 4pm. While operational in design, the analysts stated that the change reflects a deeper adjustment in market architecture driven by improving liquidity and shifting investor participation.

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“We expect the move to extend trading hours to impact overall market dynamics,” said research analysts at Lagos-based CardinalStone, led by Philip Anegbe. The team noted that the development allows investors more time to respond to corporate disclosures and economic data, leading to improved asset pricing. The change also broadens the scope for retail participation by providing a longer window to engage the market.

A longer trading window also creates better conditions for lower intraday price volatility. With the potential for higher trade volumes, the exchange is expected to see improved liquidity and narrower bid-offer spreads. This alignment with international trading cycles is specifically designed to deepen market activity and sustain the momentum seen in early 2026.

The extended trading window arrives alongside broader improvements in Nigeria’s market positioning. Following an upgrade by FTSE Russell, Nigeria will move from “Unclassified” to “Frontier Market” status, effective September 21, 2026. This reclassification restores the country’s place within global benchmark indices and signals progress in foreign exchange market functionality and settlement reliability.

Comercio Partners research analysts noted that these factors directly influence foreign portfolio allocation decisions. During the first quarter, foreign investors inflowed N221.62 billion into the Nigerian market but outflowed N320.37 billion. On a monthly basis, the NGX polls trading figures from market operators regarding both domestic and foreign portfolio investment (FPI) flows.

Domestic institutional participation reaches new highs

Domestic retail investor deals reached N1.449 trillion, while domestic institutional investors—such as pension funds—accounted for transactions worth N2.157 trillion during the same period. By March 31, total transactions at the nation’s bourse increased month-on-month by 13.10 percent. Comparing March 2026 to March 2025 (N1.1155 trillion) reveals that total transactions increased by 56.38 percent.

The record volume shift in the first quarter of 2026 indicates that the market has transitioned from a speculative environment to one driven by deep-seated regulatory changes.