The Nigerian stock market has emerged as Africa’s best-performing equity market in 2026, marked by rising valuations.
According to reports, the Nigerian exchange delivered a remarkable 34.4% year-to-date return in dollar terms as of February 20, 2026. This comes as the naira currently trades at N1,333 to 1 dollar.
This significant performance marks a major jump from last year, when the market ranked fourth on the continent, signaling renewed global confidence in Nigeria’s capital markets.
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According to market data highlighted in a chart by Businessday, Nigeria leads a strong cohort of African exchanges experiencing positive momentum. Tanzania follows closely with a 33.4% return, while Zimbabwe posted 31.9%.
Other notable performers include Ghana (28.6%), Egypt (21.7%), and Zambia (19.5%). Markets in Uganda (18.1%), BRVM (16.7%), Kenya (12.4%), and Namibia (12.4%) complete the top ten.
Nigeria’s stock market rally has been supported by a combination of macroeconomic and market-specific factors. A stronger naira has enhanced dollar-denominated returns, making the market more attractive to international investors. At the same time, improving liquidity conditions and increased foreign portfolio inflows have reinforced bullish sentiment across key sectors.
In recent years, the Nigerian stock market has transitioned from cautious recovery to sustained expansion, positioning itself as one of Africa’s most dynamic investment destinations.
Recall that in 2025, the exchange market, reached a historic milestone by crossing the N100 trillion mark for the first time. This achievement reflects renewed investor confidence and the resilience of the Nigerian capital market. The market capitalization rose from N99.94 trillion to N101.81 trillion, driven by strong demand from both domestic and foreign investors.
Investor sentiment has remained upbeat this year, with continued price rallies and expanding trading volumes signaling confidence in listed companies’ earnings potential. The surge in transactions also reflects growing participation from both institutional and retail investors seeking higher returns amid shifting macroeconomic conditions.
With foreign investors gradually returning to the market, valuation recovery has accelerated, pushing equity prices higher. One of the clearest indicators of the market’s growth is the rapid expansion of total market capitalisation. The value of listed equities has climbed sharply, reaching historic highs and adding trillions of naira within short periods.
This expansion demonstrates not only rising share prices but also increasing depth in the market as more capital flows into Nigerian equities. Many listed companies have reported stronger revenues and profitability with a growing share price. Also, better earnings typically support higher share valuations, encouraging sustained investor demand.
Notably, the significant growth of the Nigerian stock market, comes amid a new wave of retail participation, as young Nigerian investors increasingly turn to the market to build wealth. Interest among young Nigerians has intensified alongside growing conversations about stock investing across digital communities and social platforms.
On X (formerly Twitter), market updates, share price movements, and investment education content now circulate widely online, contributing to a gradual shift in financial awareness. Some analysts note that informal peer-to-peer knowledge sharing across social media has become a major driver of retail market entry.
Outlook
Nigeria’s leadership in Africa’s equity performance rankings underscores the country’s rising prominence as an investment destination. If current trends persist, the Nigerian market could sustain its appeal as a gateway for capital seeking exposure to Africa’s largest economy.
For observers of Africa’s financial landscape, the development highlights how currency stability, policy direction, and investor confidence can rapidly reshape capital market performance across the continent.