…YtD ASI growth at 51.19%
Year 2025 is a remarkable one for Nigeria’s stock investors who saw their investments rise by 51.19 percent as against 37.65 percent in 2024.
Also, the market’s value rose by N36.62trillion in 2025 as capitalisation reached N99.4trillion as against 2024 low of N62.76 trillion.
Speaking on this feat in 2025, Temi Popoola, Group Managing Director/Chief Executive Officer, Nigerian Exchange Group (NGX Group), stated that “the Nigerian capital market in 2025 demonstrated resilience despite domestic and global economic headwinds”.
He noted that”This performance underscores the importance of policy consistency, purposeful reforms, and strategic collaboration in strengthening investor confidence and sustaining market growth”.
“During the year, efforts to advance economic reforms and improve market structures helped support a stable environment for capital formation, while our continued investment in technology played a critical role in expanding access, enhancing transparency, and improving operational efficiency across the market.
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“As we look ahead to 2026, NGX Group remains focused on deepening partnerships with regulators, issuers, market operators, policymakers, and the wider financial ecosystem to sustain this momentum. We are optimistic about the opportunities ahead and committed to positioning the Nigerian capital market as a key driver of economic growth and wealth creation, while advancing NGX Group’s vision as Africa’s preferred exchange hub,” Popoola noted.
According to Lizzie Kings-Wali, CEO, 4Stone Capital Limited, “All Naira-denominated assets were repriced in 2025 and this can be broadly justified by the lagged effect of 2023/24 devaluation of the Naira as well as the inflationary pressure”.
“The equity market rallied notwithstanding the average yield of 20 percent on fixed income assets. Real estate portfolio and other alternative assets, including commodities, also delivered strong returns in the year. That been said, I remain cautiously optimistic on Nigerian equites, given its discounted valuation to peer emerging and frontier markets.
“For instance, the NGX All Share index is still priced at barely 8x Price to earnings ratio, compared to 16.5x and 12.1x P/E of the MSCI Emerging and Frontier Market indices respectively. Financial Services stocks, especially tier-1 banks are incredibly cheap, with the likes of Zenith Bank and United Bank for Africa trading at over 55 percent discounts to their respective book values and low single digit forward P/E of 4x. I am bullish on industrials like Dangote Cement”, she added.
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“As inflationary pressure eases and consumer purchasing power improves, I believe the fast-moving consumer goods stocks should see upward rerating. Given the prognosis for lower interest rates, investors may be better-off to lock-in current high yields on fixed income securities, as the inverted yield curve reinforces the expectation for lower yield environment in 2026,” Kings-Wali noted.
“Whilst fiscal deficit and elevated level of public sector borrowing may seem counter intuitive to my expectation of lower yield, the risk-off sentiment of banks and increased money supply would support my outlook. I would expect money supply and lower inflation to taper likely return on alternative assets, including real estate,” she said.
