The Nigerian equities market has extended its remarkable rally through the month of October 2025, recording a gain of N7.2 trillion as renewed investor confidence and steady macroeconomic reforms continue to lift market sentiment.

The sustained bullish momentum translated into a massive 7.4 per cent increase in market capitalisation, underscoring growing optimism among both domestic and foreign investors about the resilience and long-term potential of Africa’s largest economy.

Data from the Nigerian Exchange (NGX) revealed that as of the close of trading on Friday, October 31, 2025, the total market capitalisation of listed equities had risen sharply to N97.828 trillion, up from N90.580 trillion recorded at the end of September 2025. This represents a month-on-month gain of N7.238 trillion, reflecting one of the strongest single-month performances in recent years.

The benchmark All-Share Index (ASI) also posted a robust increase, climbing by 11,416.46 points or approximately 7.4 per cent to close at 154,126.94 points, compared to 142,710.48 points at the end of the previous month.

Market analysts attribute this sustained rally to a confluence of positive factors, particularly the government’s ongoing macroeconomic reforms aimed at stabilising the currency, attracting foreign capital, and improving fiscal transparency.

Recent policy measures, including the unification of exchange rates, the reduction of fuel subsidies, and renewed efforts to enhance the ease of doing business, have helped to strengthen market fundamentals and restore investor confidence.

In addition, strong third-quarter corporate earnings reports have further fuelled optimism, with several blue-chip firms posting impressive revenue and profit growth despite prevailing macroeconomic headwinds.

Key sectors such as banking, consumer goods, telecommunications, and energy have been at the forefront of the rally, buoyed by improved earnings quality, cost efficiency, and expanding market share.

The financial services sector, in particular, benefited from rising interest income and strategic balance sheet adjustments, while the oil and gas sector gained from better production output and stable global crude prices.

Investor appetite has also been supported by the relatively attractive valuations of Nigerian equities compared to other frontier and emerging markets. The market’s performance has positioned the NGX among the top-performing exchanges globally, reflecting renewed confidence in Nigeria’s reform-driven economic trajectory.

Institutional investors, pension fund administrators, and retail participants have all contributed to the surge in trading volumes, as the promise of higher returns continues to attract fresh capital inflows.

Market operators note that the October rally not only reflects improving fundamentals but also signals a broader shift in sentiment following months of cautious optimism earlier in the year. They argued that the reforms being implemented by the current administration are beginning to yield tangible results, fostering a more stable investment climate.

The consistent policy direction, coupled with corporate governance improvements across listed firms, has played a vital role in reinforcing transparency and sustaining market growth.

Looking ahead, analysts believe that if the momentum is maintained, the Nigerian equities market could break the N100 trillion mark in total market capitalisation before the end of the year.

However, they also caution that sustaining this growth trajectory will depend on continued policy consistency, exchange rate stability, and inflation management.

President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, said the sustained rally in the equities market reflects a growing sense of optimism and renewed investor trust in the direction of the economy under the current reform agenda.

He explained that the impressive N7.2 trillion growth in market capitalisation within a single month demonstrates that the Nigerian capital market is responding positively to the government’s macroeconomic policies, particularly those aimed at stabilising the exchange rate, improving liquidity, and fostering transparency in fiscal management.

Ajudua noted that the rebound in the market is not a mere short-term reaction but rather a signal of deeper structural recovery, driven by improved corporate earnings, strategic sectoral performance, and increasing participation from both institutional and retail investors.

He added that with listed companies posting solid nine-month results, investors now have stronger confidence in the profitability and resilience of Nigerian firms despite economic challenges.

He, however, urged regulators and policymakers to consolidate these gains by ensuring consistency in reforms, improving the investment climate, and strengthening market infrastructure to attract long-term capital

According to him, issues such as foreign exchange volatility, high transaction costs, and policy uncertainty must continue to be addressed to sustain investor enthusiasm.

Ajudua further called on listed companies to maintain strong corporate governance and transparency standards, as these remain the foundation for investor confidence and market integrity.