By David Akinmola
The Nigerian stock market recorded a historic performance in 2025, delivering a return of 51.19 per cent, its strongest annual gain in 18 years, driven by renewed investor confidence, strong corporate earnings and sustained interest in banking and industrial stocks.
Data from the Nigerian Exchange Limited (NGX) showed that the All-Share Index (ASI) closed the year at a significantly higher level compared with its opening position, as market capitalisation expanded sharply, adding trillions of naira to investors’ portfolios.
Market operators attributed the rally to improved macroeconomic reforms, relative stability in the foreign exchange market, and robust earnings releases from listed companies, particularly in the banking, cement, and consumer goods sectors.
The banking sector emerged as one of the top performers, buoyed by recapitalisation expectations, improved profitability from higher interest rates, and foreign portfolio inflows seeking attractive valuations.
Industrial goods stocks also gained strongly, supported by infrastructure spending and resilient demand.
Analysts noted that the 2025 performance marked the best return since 2007, when the market witnessed a pre-global financial crisis boom, underscoring a renewed bullish cycle on the NGX.
Despite periods of volatility during the year, especially around policy adjustments and inflationary pressures, sustained local institutional participation and selective foreign buying helped maintain positive momentum.
Market watchers, however, cautioned that sustaining the rally in 2026 would depend on continued economic reforms, inflation moderation, exchange rate stability and consistent corporate earnings growth.
The NGX had closed 2024 with modest gains, making the 2025 rally a significant turnaround and reinforcing equities as one of the best-performing asset classes in Nigeria during the year.
