The Nigerian equities market witnessed a remarkable surge in July 2025, with investors recording a staggering gain of N12.5 trillion in market capitalisation over the 31-day period.

This unprecedented monthly increase reflects renewed investor confidence, largely spurred by a combination of favourable macroeconomic reforms, policy clarity from the monetary authorities, strong corporate earnings, and an improving foreign exchange landscape.

According to data from the Nigerian Exchange Limited (NGX), the total market capitalisation of listed equities rose from N75.951 trillion at the close of trading on June 30, 2025, to N88.424 trillion by the end of July, representing a N12.5 trillion or 14 per cent gain month-on-month.

This is one of the largest single-month gains in recent years, highlighting the return of bullish sentiment across key sectors.

The All-Share Index also appreciated by 19,884 points or 16 per cent to 139,863.52 from 119,978.57 recorded at the end of June 2025.

Market analysts attribute the rally to a mix of internal and external drivers. Domestically, the Central Bank of Nigeria (CBN) has continued to pursue policies aimed at stabilising the naira and curbing inflation, which fell slightly in June for the first time in several months. These developments, combined with renewed inflow of foreign portfolio investments, have eased pressure on the FX market and strengthened investor appetite for Nigerian assets.

In addition, the release of impressive half-year financial results by several blue-chip companies in the banking, consumer goods, industrial, and oil & gas sectors further fuelled buying interest. Notably, firms such as Dangote Cement, BUA Foods, Lafarge, Nestle, NASCON, Nigerian Breweries, Champion Breweries, and Cadbury posted double- or triple-digit growth in profit after tax (PAT), affirming the resilience of Nigerian corporates in a volatile economic environment.

Three cement-producing giants — Dangote Cement, BUA Cement, and Lafarge Africa — achieved a combined Profit After Tax (PAT) of N833.2 billion during the period ended June 30, 2025, culminating in an increase of approximately 229.1 per cent when compared to the N253.2 billion posted in the same period of 2024.

In addition to robust profit growth, the three companies’ revenue for the period rose to N3.2 trillion, up from N2.5 trillion recorded in the corresponding period of 2024, translating to a 28 per cent increase.

Additionally, many companies under the Fast-Moving Consumer Goods (FMCGs) sector returned to profitability, posting robust earnings in the unaudited first half (H1) of 2025 performance after years of battling steep losses and weakened profit margins due to a volatile exchange rate environment.

Nestlé Nigeria Plc reported a pre-tax profit of N88.4 billion in the first six months of 2025, a significant recovery from the N252.5 billion pre-tax loss posted during the same period in 2024. This turnaround was supported by a 43 per cent rise in revenue, which climbed to N581.1 billion from N406 billion in H1 2024.

Cadbury Nigeria Plc also recorded a strong turnaround. The company rose from a pre-tax loss of N13.9 billion in H1 2024 to a pre-tax profit of N14.5 billion in the first half of 2025, representing a 205 per cent recovery.

Its revenue rose from N51 billion to N77 billion over the same period. Notably, in Q2 2024, Cadbury had posted a N3.43 billion pre-tax loss, a substantial improvement from the N19.47 billion loss recorded in the same quarter of 2023.

Nigerian Breweries Plc returned to profitability with a pre-tax profit of N88.42 billion in H1 2025, reversing the N85.2 billion loss recorded during the first half of 2024. The turnaround was aided by a robust second-quarter performance, where it recorded a pre-tax profit of N43.87 billion compared to a loss of N33 billion in Q2 2024.

Revenue for the second quarter climbed by 40.8 per cent year-on-year to N354.51 billion from N251.76 billion in Q2 2024, lifting total H1 revenue to N738.14 billion, a 54 per cent increase over the previous year.

Overall, July 2025 will be remembered as a defining month for Nigeria’s capital market, one that signaled a potential turning point for investor optimism and long-term capital formation.

The N12.5 trillion gain, while impressive in its own right, is also a reflection of the growing confidence that the Nigerian economy is back on a path of sustainable recovery.

Market operators believe the trend could persist into August if the macroeconomic environment remains stable and policy direction continues to inspire confidence. However, they also caution that profit-taking may moderate the pace of gains in the short term.

An independent investor, Amaechi Egbo, described the recent rally in Nigeria’s capital market as a clear reflection of the growing alignment between macroeconomic optimism and robust corporate performance.

According to him, the equity market’s upward trajectory is not accidental but rooted in increasingly positive investor sentiment, which is being fuelled by clearer monetary policies, a more stable exchange rate environment, and strong earnings posted by many listed companies across critical sectors of the economy.

Egbo observed that investors are gradually beginning to price in the long-term benefits of the structural reforms being implemented by the current administration.

These reforms, he said, have started to reshape market expectations and restore investor confidence, both locally and internationally.
He noted that if the present policy direction is sustained, Nigeria stands a good chance of consolidating its position as one of the best-performing frontier markets by the end of 2025.
He explained that the sharp rebound in market capitalisation and sustained rise in the All-Share Index (ASI) have had a significant positive effect on the financial standing of investors across different categories.

Retail investors, pension funds, and institutional stakeholders with heavy exposure to equities have recorded substantial portfolio gains.

Egbo emphasised that beyond boosting individual and institutional wealth, the market’s resurgence also offers a critical cushion for both government and corporate entities aiming to raise capital through public offers or bond issuances, as improved investor confidence reduces risk perception and enhances participation.

In his view, the current bullish trend could mark the beginning of a new cycle of capital formation, which is vital for long-term economic development.

He stressed that the equities market, when properly supported by consistent and transparent policies, can serve as a strategic platform for funding national growth while offering returns to investors.