The first half (H1) of 2025 marked a period of significant momentum in Nigeria’s capital market. Unlike previous cycles driven by short-term speculation, the growth in H1 is a testament of structural reforms, diversified asset classes, and greater macroeconomic stability.
In the world rattled by war, inflation, and erratic trade policies, some of the savviest investors are quietly shifting their attention back to countries like Nigeria with higher yields.
As of end of June 2025, the total market capitalisation of NGX-listed instruments, including equities, fixed income, and ETFs, rose to N126.73 trillion, a 16 percent increase from N112.60 trillion at the start of the year.
Equities led this surge, growing from N62.76 trillion to N75.95 trillion in the review period, while fixed income instruments held steady at N50.56 trillion.
Exchange-traded funds (ETFs) saw renewed interest, rising to N25.79 billion, driven largely by expanding retail investor activity.
Read also: Top 5 best-performing sectors in the NGX in H1 2025
The Nigerian capital market undergoes transformative shift, driven by innovation, macroeconomic reforms, regulatory collaboration, and global engagement.
At the helm of this evolution is Temi Popoola, Group Managing Director and Chief Executive Officer, Nigerian Exchange Group (NGX Group), whose visionary leadership is repositioning Nigeria as a magnet for long-term, sustainable investment in Africa.
Temi Popoola attributed this performance to a strategic focus on liquidity, investor trust, and strong collaboration with the Securities and Exchange Commission.
“We have worked closely with the Securities and Exchange Commission (SEC) to promote transparency, strengthen investor protections, and accelerate innovation in listings and product development. Our goal is to create an inclusive, globally competitive capital market,” he said.
NGX Group, together with its subsidiaries, Nigerian Exchange Limited (NGX), the listing and trading platform, NGX Regulation (NGX RegCo), the regulatory arm, and NGX Real Estate (NGX RelCo), is championing deeper market development, broader access to capital, and enhanced investor confidence, actively shaping market direction at the group level, deepening strategic partnerships, promoting innovation, and influencing policy to accelerate the growth and resilience of Nigeria’s capital market.
During the period under review, NGX facilitated over N4.63 trillion in capital raised by corporates and governments across multiple asset classes, delivering real financing for infrastructure, growth, and innovation.
This momentum builds on reforms and innovations introduced in the previous year, most notably the launch of NGX Invest, a platform designed to democratise access to primary market investments.
The platform has already supported significant market activity, including over N2 trillion raised toward the banking sector recapitalisation.
Charlie Robertson, head of macro-strategy at FIM Partners and author of Fastest Billion and The Time Travelling Economist said,
“Africa like much of emerging markets (EM), does well when the dollar is weak… and when Trump isn’t paying them much attention”.
“Good to see some African equity markets powering ahead this year: Egypt (+16 percent in US dollars); Nigeria (+22 percent in US dollars); Kenya (+39 percent); and Morocco up 45 percent (I didn’t expect that),” Robertson added.
Foreign portfolio investors (FPIs) in the Nigerian equities market traded N996.03 billion worth of stocks in five months to May 2025, more than double N458.29 billion seen in the corresponding period of 2024.
David Adonri, vice chairman at Equity Capital Solution Limited, highlighted that “the equities market appreciated by 16.6 percent in H1 2025, with Q2 contributing 13.6 percent. Stabilising interest and exchange rates have renewed investor appetite, particularly among foreign portfolio investors.”
Sector indices also reflected this positive trend. The NGX Consumer Goods Index climbed by 51.21 percent, the NGX Pension Index rose 19.32 percent, and the NGX Banking Index gained 18.06 percent, underscoring broad-based market resilience.
Beyond Nigeria’s borders, NGX Group is extending its leadership across Africa and into global markets. Its investment in the Ethiopian Securities Exchange (ESX) signals a long-term vision for regional capital market integration.
At the same time, the Group is advancing discussions with the Shanghai and Hong Kong Stock Exchanges on dual listings and capital access frameworks to connect Nigerian enterprises with deeper global liquidity.
“We are committed to building a market that enables cross-border capital flow and unlocks growth for African businesses,” Popoola noted.
Nigeria and other major African stock markets are beneficiaries of weakening dollar as President Donald Trump’s sweeping tariffs puts global investors in cautious mood.
