After enduring a prolonged period of capital erosion, succour may have come the way of investors in the consumer goods sector of the exchange as the index returned over 100 per cent gain for the first time in 10 years, emerging the best performing so far in the year.
At the beginning of September 2025, the sector returned gains slightly above 80 per cent. However, a strong rally in key consumer stocks has propelled the index to 101.87 per cent as of the close of trading on October 17, 2025. It represented an increase of approximately 28 per cent within three weeks, an indication of growing investor confidence, strong corporate earnings, and improved macroeconomic conditions.
Data from the Nigerian Exchange Limited (NGX) showed that the consumer goods index outperformed all six other major sectoral indices, including the All-Share Index (ASI), industrial goods, oil and gas, insurance, banking, and ASeM. This is a significant turnaround, considering that the consumer goods sector was once the worst-performing on the exchange for many years.
A 10-year review of the sector’s performance indicated that the index closed the 2014 financial year with a negative return of 17.88 per cent. Losses continued in 2015 with -17.21 per cent, followed by -4.49 per cent in 2016.
Although there was a marginal recovery in 2017, with a 36.97 per cent gain, the trend reversed again in 2018 when the sector declined by -24.35 per cent. The year 2019 through 2022 were also marked by consistent losses of -22.26 per cent in 2019, -3.29 per cent in 2020, -2.26 per cent in 2021, and a marginal -0.06 per cent in 2022.
However, a shift began in 2023, following key macroeconomic reforms, coupled with greater currency stability and stronger consumer spending which triggered renewed investor interest in the sector.
These reforms translated into an impressive 90.39 per cent
turn in 2023. The momentum continued into 2024, with a 52.20 per cent gain and now 101.87 per cent yesterday, representing a cumulative gain of approximately 665 per cent in a decade.
When compared with others, the index has outperformed the ASI, which gained 44.74 per cent. Other indices lagged, with the industrial index recording 52.29 per cent, insurance achieving 79.61 per cent, banking gaining 40.01 per cent. Meanwhile, oil and gas remained in the red with a -1.87 per cent decline, highlighting the exceptional performance of the consumer goods sector.
This impressive rally is propelled by several heavyweights in the consumer goods space, especially Nestle, Honeywell flourmills, Northern Nigeria Flourmills, International Breweries, Nigerian Breweries and Vitafoam, each contributing significantly to the index’s unprecedented rise.
A look at the share price movement of these companies as of Friday, October 17, 2025 showed that Nestle began the year with a share price of N875 and has since gained 119 per cent on that price valuation, to close at N1,915.00 per share on Friday.
Similarly, Honeywell Flour Mills’ performance ranked above peers. The stock surged from N6.30 kobo in January to N22.15, reflecting a 252 per cent year-to-date gain. Northern Nigeria Flour Mills (NNFM) rose from N43.90 to N93.65, posting a 113 per cent increase and ranking 44th on the NGX in terms of YTD performance.
Also, International Breweries recorded a rise from N5.55 to N14.50, marking a 161 per cent increase. Nigerian Breweries also rose from N32.00 to N76.00 per share, a 138 per cent increase, ranking it 34th on the exchange this year.
In addition, Vitafoam Nigeria Plc stands out as one of the top performers on the NGX. The stock opened the year at N23 and has surged to N87 as of October 17, representing a 278 per cent increase, earning it the eight position in year-to-date performance on the exchange.
These improved stock performances are backed by strong financial results. Nestlé Nigeria posted a dramatic turnaround in 2025, reporting a N51.15 billion profit before tax in Q1, compared to the N252.5 billion pre-tax loss recorded during the same period in 2024. The company further improved in H1 2025, posting N88.4 billion in pre-tax profit.
Honeywell Flour Mills also rebounded from an N8.83 billion loss in the first nine months of 2024 to post a N12.28 billion pre-tax profit in the same period of 2025, ending in March.
International Breweries made a striking recovery as well, reporting a N26.4 billion profit before tax in Q2 2025, versus a N61.8 billion loss in the same quarter of 2024. This turnaround contributed to a total H1 2025 profit of N61.5 billion, compared to a staggering N150.2 billion loss a year earlier.
This financial rebound has reinforced investor optimism and validated the sector’s recovery. However, stakeholders are now calling for sustainable policies and reforms to ensure that the momentum is maintained.
President of NewDimension Shareholders Association of Nigeria, Patrick Ajudua said with investor sentiment revived and corporate fundamentals improving, the consumer goods sector is once again asserting its central role in Nigeria’s equity market narrative.
He praised the resurgence of the sector, while emphasising the need for policy continuity and investor-focused reforms to sustain the growth trajectory.
Ajudua further urged regulators and policymakers to build on the progress made by fostering an enabling environment for businesses in the sector, particularly those that are import-dependent and vulnerable to FX volatility.
