2025: Investors gain N35.72trn as reforms fuel stock market surge

•Market capitalisation nearly N100trn in value

•Foreign portfolio transactions up 178.8%  YoY in 11months 

By Peter Egwuatu, Assistant Business Editor

After years of volatility driven by macroeconomic instability, foreign exchange distortions and policy ambiguity, the Nigerian capital market staged a powerful comeback that was anchored on reforms translating to wealth, confidence rebuilding, and renewed domestic and foreign participation.

By year-end 2025, the Nigerian Exchange Limited (NGX) had not only delivered strong returns of 51.2% but also undergone deep structural transformation.

A market that defied caution.

In 2025, the Nigerian stock market staged one of its strongest rallies in recent history, driven by renewed investor confidence, macroeconomic stabilization, improving foreign exchange conditions, rising foreign participation, and robust corporate earnings.

Although trading sentiment softened slightly toward the final weeks of the year, overall performance remained firmly bullish. Returns on the NGX placed Nigeria among the better-performing emerging markets globally in 2025, underscoring the scale of the turnaround.

Market capitalisation nearly N100 trn in value

The most visible sign of the rally was the surge in market value. Total market capitalization, which represents the total value of listed equities on the NGX, climbed to approximately N99.376 trillion, from N62.763 trillion at the beginning of the year, a 58.4% or N36.613 trillion Year-on-Year (YoY) increase.

Similarly, the NGX All-Share Index, ASI, the market’s primary performance gauge, rose from 102,926.40 points at the start of 2025 to 155,613 points at the close of trading on Wednesday, December 31, 2025, also representing a 51.2 % YoY gain.

For many investors, this translated into a rare combination: capital appreciation, renewed liquidity, and confidence that reforms were finally working.

Similarly, the NGX All-Share Index, ASI, the market’s primary performance gauge, rose from 102,926.40 points at the start of 2025 to 155,613 points at the close of trading on Wednesday, December 31, 2025, also representing a 51.2 % YoY gain.For many investors, this translated into a rare combination: capital appreciation, renewed liquidity, and confidence that reforms were finally working.How the rally built up The market’s ascent was not sudden, but steady and sustained. First quarter 2025, Q1’25: Between January and March, the market posted modest growth, with market capitalisation increasing by N3.5 trillion and the ASI gaining 2.7%.First Half (H1 2025): By the end of June, total market value had expanded by N13.2 trillion, while the ASI was up 16.5% relative to end-2024.Nine-month performance: By September, investor returns had grown by 38%, with market capitalisation adding N27.8 trillion since January.Taken together, 2025 ranked as one of the most bullish years for the Nigerian stock market, with returns consistently outperforming many global peers.Sectoral performanceSeveral sectors recorded strong gains. Consumer Goods, Banking, Insurance and Industrial Goods. These sectors posted robust index growth, particularly in the first half of the year.The oil and gas sector, however, was an exception, trending downward due to sector-specific pressures.What drove the market in 2025?

Macroeconomic stabilisation-Improved foreign exchange stability and macroeconomic policy reforms eased earlier distortions, restoring confidence among both domestic and foreign investors.A key catalyst was the Central Bank of Nigeria’s (CBN) first interest-rate cut in years, which reduced financing costs and encouraged capital inflows into risk assets.Investor participation and Foreign Portfolio InvestmentThe foreign capital returns also helped to boost the market. Foreign Portfolio Investment (FPI) surged, particularly in the first eight months of the year. FPI inflows increased significantly YoY, accounting for over 20.7% of total market activity. By 11 months of 2025, total foreign portfolio transactions stood at N2.19 trillion, a 178.8% YoY increase. Foreign inflows reached N1.12 trillion, up from N370 billion in 2024. Outflows rose to N1.009 trillion, from N415.13 billion the previous year. Foreign investors accounted for 21.6% of total market transactions, up from 17.6% in 2024, while domestic investors still dominated with 78.2%. Domestic investors remained highly active, sustaining trading volumes and market momentum. Corporate earnings, listings and capital raising Strong earnings by banks and major corporates underpinned equity valuations, while capital-raising activities strengthened balance sheets.New listings and introduction listings added depth and liquidity, reinforcing the market’s growth narrative.The rules that changed the gameInvestments and Securities Act (ISA) 2025. The most transformative development of 2025 was the replacement of the ISA 2007 with the ISA 2025, fundamentally reshaping Nigeria’s capital market framework.Expanded SEC powersThe Act significantly strengthened the Securities and Exchange Commission, SEC granting powers to investigate, enforce, and sanction misconduct such as insider trading, market manipulation, and fraud.

How the rally built up 

The market’s ascent was not sudden, but steady and sustained. First quarter 2025, Q1’25:  Between January and March, the market posted modest growth, with market capitalisation increasing by N3.5 trillion and the ASI gaining 2.7%.

First Half (H1 2025): By the end of June, total market value had expanded by N13.2 trillion, while the ASI was up 16.5% relative to end-2024.

Nine-month performance: By September, investor returns had grown by 38%, with market capitalisation adding N27.8 trillion since January.

Taken together, 2025 ranked as one of the most bullish years for the Nigerian stock market, with returns consistently outperforming many global peers.

Sectoral performance

Several sectors recorded strong gains. Consumer Goods, Banking, Insurance and Industrial Goods. These sectors posted robust index growth, particularly in the first half of the year.

The oil and gas sector, however, was an exception, trending downward due to sector-specific pressures.

What drove the market in 2025?

Macroeconomic stabilisation-Improved foreign exchange stability and macroeconomic policy reforms eased earlier distortions, restoring confidence among both domestic and foreign investors.

A key catalyst was the Central Bank of Nigeria’s (CBN) first interest-rate cut in years, which reduced financing costs and encouraged capital inflows into risk assets.

Investor participation and Foreign Portfolio Investment

The foreign capital returns also helped to boost the market. Foreign Portfolio Investment (FPI) surged, particularly in the first eight months of the year. FPI inflows increased significantly YoY, accounting for over 20.7% of total market activity. By 11 months of 2025, total foreign portfolio transactions stood at N2.19 trillion, a 178.8% YoY increase. Foreign inflows reached N1.12 trillion, up from N370 billion in 2024. Outflows rose to N1.009 trillion, from N415.13 billion the previous year. Foreign investors accounted for 21.6% of total market transactions, up from 17.6% in 2024, while domestic investors still dominated with 78.2%. Domestic investors remained highly active, sustaining trading volumes and market momentum. Corporate earnings, listings and capital raising Strong earnings by banks and major corporates underpinned equity valuations, while capital-raising activities strengthened balance sheets.

New listings and introduction listings added depth and liquidity, reinforcing the market’s growth narrative.

The rules that changed the game

Investments and Securities Act (ISA) 2025. The most transformative development of 2025 was the replacement of the ISA 2007 with the ISA 2025, fundamentally reshaping Nigeria’s capital market framework.

Expanded SEC powers

The Act significantly strengthened the Securities and Exchange Commission, SEC granting powers to investigate, enforce, and sanction misconduct such as insider trading, market manipulation, and fraud.

The SEC can now compel records, access communication data, and initiate criminal proceedings in collaboration with the Attorney-General’s office.

Investor protection takes centre stage

Minimum fines of N20 million and prison terms of up to 10 years for promoters of Ponzi and prohibited schemes. Expansion of the Investor Protection Fund (IPF) to cover a broader range of losses. Restructuring of the Investments and Securities Tribunal (IST) to improve dispute resolution; Modernising market structure; Introduction of composite and non-composite exchanges.

Mandatory Legal Entity Identifiers (LEIs) for market participants.

A formal framework for commodities exchanges and warehouse receipt systems, supporting agricultural finance and price discovery were introduced,

New investment and capital raising channels

The ISA 2025 formally recognised and regulated crowd-funding platforms, private equity and venture capital Infrastructure financing instruments State and local governments were also empowered to raise funds through the capital market.

Technology, surveillance and settlement reforms

Deployment of AI-driven market surveillance for real-time fraud detection was included in the ISA 2025.

Other notable performance was the accelerated digital submissions, automated filings, and cybersecurity upgrades. Migration toward a T+2 settlement cycle, improving liquidity and aligning with global standards.

Digital assets enter the regulatory net

For the first time, virtual assets and digital investment contracts were recognised as securities under Nigerian law, bringing digital asset exchanges and service providers under SEC oversight.

For investors, regulators, and policymakers alike, 2025 marked the year reforms moved from paper to performance and confidence returned to Nigeria’s capital market.

Commenting at the end of trading yesterday on the Exchange, Temi Popoola, Group Managing Director/Chief Executive Officer, NGX Group, said: “the Nigerian capital market in 2025 demonstrated resilience despite domestic and global economic headwinds. 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.”

On outlook, Popoola , said: “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.”

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