Amid rising insecurity, a harsh operating environment, and other macroeconomic headwinds, the Nigerian stock market delivered one of its most remarkable performances in history last year, generating a capital gain of N37 trillion for investors.

Driven by sustained bullish sentiment, rising prices across a wide range of stocks, market capitalisation of the Nigerian Exchange (NGX) rose to N99.376 trillion by the end of the 2025 financial year, from N62.763 trillion at which it closed the year 2024, reflecting a robust appreciation in the value of listed equities and sustained bullish sentiment among market participants.

Similarly, the all-share index rose from 102,926.42 points to 155,613.03 points, representing a 51.188 per cent year-to-date return, one of the strongest yearly performances recorded in recent memory and a testament to renewed investor confidence and broad-based demand for Nigerian stocks.

With the development, shareholders yesterday urged the government to sustain and deepen ongoing reforms, warning that policy reversals and unfriendly fiscal measures could undermine the gains recorded in the market.

They urged authorities to prioritise policy consistency, improve security conditions, stabilise the foreign exchange market and reduce the cost of doing business, stressing that these are critical to attracting long-term investment and preserving the momentum in the equities market going into 2026.

A breakdown of market activities in 2025 showed that the consumer goods sector emerged as the standout performer, delivering a return of 128.9 per cent over the year.

The rally was driven by sharp price appreciation in key consumer stocks, led by Guinness Nigeria with a 398 per cent appreciation, followed by Champion Breweries, which rose 269 per cent, NASCON Allied Industries up 247 per cent, and Honeywell Flour Mills advancing 242 per cent. Cadbury Nigeria also recorded a strong rally of 160 per cent, while International Breweries gained 152 per cent and Nestlé Nigeria added 124 per cent over the period.

The resurgence in consumer stocks was largely attributed to a turnaround in earnings as companies rebounded from heavy foreign exchange (FX) losses recorded in prior financial years.

The insurance stocks also posted strong gains, with the sector rising by 73.8 per cent amid renewed investor interest. The rally followed policy reforms introduced under the Nigerian Insurance Reform Act of 2025, alongside higher minimum capital requirements for insurance operators.

Leading the sector’s advance were Sovereign Trust Insurance, which gained 275 per cent, AIICO Insurance up 165 percent, Custodian Investment rising 151 per cent and NEM Insurance advancing 145 per cent.

The industrial goods sector closed the year with a gain of 59.2 per cent, supported by outsized rallies in select counters. Beta Glass recorded a remarkable 527 per cent increase, Vitafoam gained 326 per cent, BUA Cement advanced 92 per cent, while Dangote Cement rose by 27 per cent during the year.

The banking stocks also ended 2025 firmly positive, with the sector posting a 39.3 per cent gain. Performance within the space was led by Wema Bank, which rose by 125 per cent, followed by Stanbic IBTC Holdings with a 74 per cent gain, First HoldCo up 71 per cent and GTCO advancing 59 per cent.

Trading activity in the banking sector was largely shaped by the industry-wide recapitalisation exercise, which required banks to raise fresh capital through placements, rights issues and public offers, driving heightened investor participation throughout the year.

Reacting to market performance, Group Managing Director and Chief Executive Officer of Nigerian Exchange Group, Temi Popoola, said the Nigerian capital market showed remarkable resilience in 2025, navigating both domestic and global economic headwinds to deliver a solid performance that reinforced investor confidence.

He explained that the market’s outcome highlighted the critical role of policy consistency, purposeful reforms and strategic collaboration in sustaining growth and strengthening confidence among participants.

Popoola noted that progress recorded during the year was supported by ongoing economic reforms and improvements in market structures, which helped provide a stable environment for capital formation.

He added that NGX Group’s sustained investment in technology was central to expanding market access, boosting transparency and enhancing operational efficiency across the capital market.

Looking ahead to 2026, Popoola said NGX Group would intensify engagement with regulators, issuers, market operators, policymakers and the broader financial ecosystem to maintain the positive momentum.
He expressed optimism about the outlook for the market and reaffirmed the Group’s commitment to positioning the Nigerian capital market as a key engine for economic growth and wealth creation, while advancing NGX Group’s vision of becoming Africa’s preferred exchange hub.

President of the NewDimension Shareholders Association of Nigeria, Patrick Ajudua, said the 50.9 per cent gain recorded by investors in 2025 was driven by stronger financial results from listed companies, stable economic policies, attractive dividend payouts and improved financial metrics that collectively boosted investor confidence in the capital market.

In 2026, Ajudua stressed the need to sustain ongoing structural reforms, ensure exchange rate stability and reduce the cost of doing business to support further market growth.

He added that policies considered unfriendly to investors should be avoided, calling for the withdrawal of capital gains tax on equities and a reversal of the withholding tax on share sales, which he noted had previously been removed before being reintroduced.

The immediate past chairman of the Ibadan Zone Shareholders Association of Nigeria, Eric Akinduro, said investor confidence remains central to the development of Nigeria’s capital market, noting that the current state of the stock market still presents significant potential for growth and attractive returns on investment.

He explained that government monetary policies aimed at moderating inflation have contributed meaningfully to the positive changes seen in the market, alongside broad market reforms and the ongoing recapitalisation of the banking and insurance sectors.

Akinduro added that these reforms had strengthened market depth, with more than 22 listed companies now valued above the N1 trillion market capitalisation threshold and total market capitalisation almost hitting the N100 trillion mark as of the end of 2025, describing the milestone as a significant improvement for the market.

Executive Director of Halo Capital Management Limited, Dr Paul Uzum, said market performance in 2026 will be shaped by a combination of fiscal, corporate and macroeconomic developments, including the planned introduction of a 25 per cent capital gains tax, the anticipated listing of the Dangote Refinery and evolving trends in global crude oil prices.

He added that political activities associated with the pre-election year are also expected to influence investor sentiment and trading patterns across the market.

Throughout 2025, the NGX All-Share Index, the benchmark gauge of market performance, advanced steadily, breaking through key psychological milestones as domestic and foreign investors repositioned their portfolios in response to improving macroeconomic conditions, corporate earnings growth and strategic sector rotations.

While domestic investors continued to dominate activity, contributing roughly 79–80 per cent of total transactions, foreign portfolio investment activity also expanded significantly during the year.

Foreign portfolio investments in equities rose notably, accounting for around 20.8 per cent of total NGX transactions by year-end, with offshore flows amounting to more than N1.28 trillion in the first 11 months of 2025, up from previous years and signalling a renewed appetite from international investors.