Sixteen years after the devastating 2008 global financial crisis that sent shockwaves through Nigeria’s capital market, the Nigerian Exchange (NGX) has not only staged a complete recovery but also posted a historic milestone, reaching a record market capitalisation of ₦70.5 trillion as of May 30, 2025. This represents a staggering 347.5% increase from its previous pre-crisis peak of ₦15.64 trillion in March 2008.
Market analysts attribute this massive rebound to a combination of regulatory reforms, consistent corporate earnings, institutional support, and macroeconomic stability. These factors have restored investor confidence and repositioned the NGX as one of Africa’s most attractive investment destinations.
Key reforms, such as the demutualisation of the Nigerian Stock Exchange and the deployment of advanced digital trading infrastructure, have significantly improved transparency and market accessibility. According to operators, these developments have not only attracted new listings but also boosted foreign and domestic investor participation.
Prominent among the new listings contributing to the Exchange’s growth are telecom giants MTN Nigeria (listed in 2019) and Airtel Africa (listed in 2020). Both companies have expanded their market valuation and investor appeal. Also playing a significant role are the BUA Group’s two major subsidiaries — BUA Cement and BUA Foods — listed in 2020 and 2022, respectively.
As of May 30, 2025, the top four listed firms — Airtel Africa, Dangote Cement, BUA Foods, and MTN Nigeria — collectively command ₦30.16 trillion in market capitalisation, accounting for 43% of the entire NGX. Additionally, a second tier of heavyweights including BUA Cement, Nestlé Nigeria, Aradel Holdings, Geregu Power, Zenith Bank, GTCO, and FBN Holdings hold a combined market cap of ₦14.59 trillion, representing 20.8% of the total.
The participation of institutional investors — particularly pension funds — has provided long-term liquidity and stability to the market. With assets under management now exceeding ₦20 trillion, pension funds have been active in absorbing equity issuances and providing a steady capital inflow.
Corporate profitability has also underpinned the stock market’s rally. For instance, Nigeria’s five largest banks — First Bank HoldCo, UBA, GTCO, Access Holdings, and Zenith Bank — posted a combined profit before tax (PBT) of ₦5.1 trillion for the 2024 financial year, up 59.4% from ₦3.2 trillion in 2023. These gains were driven by high interest rates, FX revaluation benefits, and a surge in non-interest income. Their gross earnings also jumped from ₦9.6 trillion to ₦17.3 trillion year-on-year, reflecting improved resilience and profitability.
The broader economic environment has also played a crucial role. Rising oil prices, improved foreign exchange management, declining inflation, and increased efforts towards domestic refining and energy independence have supported investor optimism in Nigeria’s industrial and energy sectors.
Digital innovations have further transformed market participation. The widespread adoption of e-dividend systems, online trading platforms, and fintech integrations has expanded access to retail investors and reduced onboarding barriers. This, combined with a gradual influx of tech-oriented listings, is diversifying the NGX beyond its traditional sectors like banking, cement, and oil.
President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, lauded the capital market’s resurgence, calling it a reflection of renewed investor trust and improved market fundamentals. He highlighted the stabilisation of the naira as a crucial development, helping companies with foreign currency exposure recover from earlier losses. Ajudua also welcomed the Central Bank’s ongoing bank recapitalisation programme, which has sparked renewed interest in financial stocks and created opportunities for capital raising.
Ajudua added that many companies maintaining or increasing dividend payouts have further strengthened investor loyalty, encouraging broader participation in the equities space.
Stockbroker and investment banker Tajudeen Olayinka emphasised the influence of local institutional investors and enhanced regulatory frameworks. He pointed to the Securities and Exchange Commission (SEC) reforms that have led to the emergence of more asset management firms operating across mutual funds, retail, and institutional portfolios. This, he said, has deepened liquidity and broadened the investor base.
Olayinka also praised the NGX’s revised market microstructure, especially the rule requiring investors to hold at least 100,000 shares to influence price movements. This policy has limited the activities of speculative players and reduced price manipulation, ensuring a more transparent and stable trading environment.
In summary, Nigeria’s stock market has moved well beyond recovery into a new phase of expansion, driven by strong regulatory oversight, increased institutional engagement, corporate profitability, and digital transformation. With market capitalisation now standing at ₦70.5 trillion, the NGX is poised to attract even greater local and global investment in the years ahead.
