Kayode Tokede

Nigeria’s stock market climbed to a new high this week, extending its rally on the back of broad economic reforms and improving investor sentiment.

The Nigerian Exchange Limited All-Share Index (NGX ASI) advanced 1.01 per cent yesterday to close at 151,456.91 basis points, pushing market capitalisation to N96.13 trillion.

The index has now gained 6.1 per cent this month and 47.2 per cent year-to-date, underscoring the strength of demand in blue-chip stocks across key sectors.

The market’s advance underscores renewed investor confidence and the resilience of Nigeria’s capital markets amid a shifting macroeconomic environment. Analysts noted that the rally reflects sustained demand for blue-chip stocks in the banking, industrial, oil and gas, and consumer goods sectors, a trend buoyed by reform-led optimism, improving foreign exchange liquidity, and a more stable economic outlook.

The rebound coincides with a broader policy reset that has redefined Nigeria’s economic outlook. Measures such as the liberalisation of the naira, the removal of fuel subsidies, and closer coordination between fiscal and monetary authorities have begun to restore a degree of macroeconomic stability, even as inflation remains elevated.

These themes dominated discussions at the Financial Times Africa Summit 2025 in London, where Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, joined a panel titled “Nigeria’s Economic Journey: Crisis, Recovery, and Risk.”

Popoola noted that much of the market’s resilience can be traced to a “wave of coordinated reforms” that have rebuilt confidence in the country’s financial architecture. “The strength we’ve seen in the market has been driven largely by reforms, from the President’s economic agenda to decisive actions by the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), PENCOM, and other regulators,” he said. “These efforts have created the right foundation for investor confidence and renewed market activity.”

Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama, echoed similar sentiment, pointing to the Investments and Securities Act 2025 as a turning point for governance and regulatory transparency in the market.

“The new law was crafted to reflate the economy by providing clarity, certainty, and discipline in our markets. Robust regulation has been central to restoring market integrity and investor trust, providing the transparency required to anchor long-term capital formation in Nigeria,” he said.

Other participants, including Patience Oniha, Director-General of the Debt Management Office, and Will Straw, Chief Executive of King’s Trust International, observed that the next phase of Nigeria’s reform journey lies in ensuring that the gains in stability and capital inflows translate into broader, inclusive growth for households and businesses.

The summit underscored that Nigeria’s near-term trajectory depends on maintaining reform discipline and deepening private sector participation.

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