Sixteen years after the 2008 global financial crisis that triggered a major downturn in Nigeria’s capital market, the Nigerian Exchange (NGX) has not only recovered but significantly surpassed its previous record by 347.5 per cent.
As of May 30, 2025, the market capitalisation of listed equities soared to ₦70.5 trillion, representing 347.5.5 per cent increase from its pre-crisis peak of ₦15.64 trillion in March 2008.
The Nigerian stock market, which was severely impacted during the 2008–2009 global meltdown, has recorded renewed investor confidence in recent years, driven by a combination of domestic policy reforms, resilient corporate earnings, and improved macroeconomic fundamentals.
Market operators said improved transparency and reforms at the NGX, including demutualisation and the adoption of advanced trading infrastructure, have attracted both local and foreign investors.
They pointed out that regulatory reforms, such as the demutualisation of the Exchange, improved corporate governance frameworks, and the adoption of advanced trading platforms, have made the NGX more attractive to both local and international investors. New listings have played a significant role in boosting the Nigerian Exchange (NGX) market capitalisation to ₦70 trillion, contributing both fresh equity value and investor interest.
Checks by The Guardian showed that over the last few years, the NGX has witnessed a resurgence in primary market activity, with several high-profile companies debuting on the Exchange and adding trillions of naira in capitalisation.
MTN Nigeria and Airtel Africa 2019 and 2020, these telecom giants have continued to expand their valuations significantly and remain major contributors to the NGX’s total market capitalisation.
BUA Group entities including BUA Cement, BUA Foods companies have also added substantial weight. BUA Cement, listed in 2020 while BUA Foods, listed in 2022.
As of the close of trading on Friday, May 30, 2025, the top four listed firms – Airtel Africa, Dangote Cement, BUA Foods and MTN Nigeria hit N30.16 trillion, accounting for 43 per cent of the entire market capitalisation.
Other top trading firms currently enjoying value from the investment market are BUA Cement, Nestle, Aradel, Geregu Zenith, GTCo and FBN Holdings with combined market capitalisation of N14.59 trillion representing 20.8 per cent of NGX market capitalisation. Institutional interest, particularly from pension funds whose assets under management now exceed ₦20 trillion, has provided much-needed long-term capital and liquidity.
Also, the earnings strength of Nigeria’s leading corporations has also played a key role. Banks, telecommunications giants, cement manufacturers, and consumer goods companies have delivered consistent returns, drawing significant investor inflows.
Firms such as Dangote Cement, Zenith Bank, MTN Nigeria, and Nestlé Nigeria have not only dominated market capitalisation but have also helped drive broad-based growth across key sectors.
The top five Nigerian banks posted a combined profit before tax (PBT) of N5.1 trillion for the 2024 financial year, a 59.4 per cent increase from N3.2 trillion recorded in 2023.
The top five banks – First HoldCo, United Bank for Africa (UBA), GTCO, Access Holdings and Zenith Bank –achievedpre-tax profit of N5.1 trillion, largely driven by high interest rate earnings, foreign exchange revaluation gains and strong non-interest income growth.
Data from their financial statements also showed that the five tier-1 banks’ pretax earnings rose from N1.1 trillion in 2022 to N3.2 trillion in 2023, indicating the banks’ ability to adapt and thrive in a dynamic economic environment.
Besides, the combined gross earnings of the top five lenders rose from N9.6 trillion in 2023 to N17.3 trillion last year, representing an increase of 80 per cent.
Rising oil prices, combined with a renewed push for domestic refining and energy independence, have bolstered confidence in industrial and oil-adjacent equities. These macroeconomic factors, supported by better foreign exchange management and improving inflation indicators, have made Nigerian assets more attractive than they were a decade ago.
In addition, innovations in digital onboarding, remote trading, and the widespread adoption of the e-dividend system have expanded retail participation and reduced barriers for new investors. With fintechs and tech-focused companies gradually making their way to the Exchange, the NGX is experiencing a diversification beyond its traditional sectors, signalling a new era of growth.
President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, has attributed the Nigerian capital market’s historic recovery to growing investor confidence, improved liquidity, and stability in foreign exchange. He made the remarks while reacting to the market’s recent performance, which saw the Nigerian Exchange (NGX) market capitalisation hit a record ₦70 trillion.
According to Ajudua, the recovery is unprecedented and stems from a renewed belief in the capital market as a vital engine for driving economic growth and long-term sustainability.
He explained that improved public sector spending has had a cascading effect on private sector activity, encouraging a cycle of investment that is reflecting positively in equities performance and valuations.
Ajudua also stated that the stabilisation of the naira following earlier devaluation was a critical factor in boosting market confidence. He noted that the relatively stable exchange rate has reduced the negative impact of currency fluctuations, allowing listed companies—particularly those with foreign exchange exposure—to recover from earlier losses and reposition for growth.
He further pointed out that the ongoing bank recapitalisation directive from the Central Bank of Nigeria has injected fresh momentum into the market, attracting investor interest in financial stocks and opening the door for capital raising activities and potential new listings.
In addition, Ajudua praised many listed companies for maintaining or increasing their dividend payouts, which he said has further deepened investor trust and broadened participation in the equities market.
Investment banker and stockbroker Tajudeen Olayinka has attributed the continued surge in Nigeria’s capital market to the active participation of local institutional investors and the implementation of robust regulatory frameworks by the Securities and Exchange Commission (SEC) and the Nigerian Exchange Plc (NGX).
Olayinka explained that reforms by the SEC have led to the emergence of more asset management companies, which now manage portfolios across retail, institutional, and mutual fund classes. This, he noted, has deepened liquidity and enhanced long-term participation in the equities market.
He also pointed to the NGX’s current market microstructure as a key contributor to improved market integrity. The requirement for investors to hold a minimum of 100,000 units before influencing price movement, he said, has significantly reduced the possibility of market manipulation.
This safeguard, according to Olayinka, ensures a more orderly and transparent trading environment, curbing the influence of speculative players who previously distorted price movements.
