Nigeria’s equities market closed 2025 on a powerful note, delivering a +51.19% year-on-year return and outperforming the previous year’s +35.45% gain.
The market surged to an all-time high of 155,613.03 points, creating approximately N26.50 trillion in investor wealth and marking the year as one of the strongest recovery periods for domestic equities in recent history.
Improving macroeconomic conditions played a central role in the rally. Cooling inflation, a more supportive monetary stance, and stabilizing currency dynamics restored investor confidence. As sentiment improved, both domestic and foreign capital returned to the market in meaningful volumes.
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Trading activity strengthened significantly, with total traded volume rising to N164.76 billion units and transaction value reaching N10.54 trillion, compared with N124.30 billion units and N4.91 trillion recorded in 2024.
Notably, the rally on the Nigerian Exchange was largely driven by sector-specific policy actions and reforms. The announcement of the Nigerian Insurance Industry Reforms Act (NIIRA) in the third quarter (Q3) of 2025 served as a key catalyst, boosting trading momentum and investor participation.
BY addressing previous challenges such as low penetration rates and inadequate capital, the act aims to foster a more stable and inclusive insurance landscape. However, uncertainty surrounding capital gains taxation created intermittent volatility and triggered temporary withdrawals during the year.
Overview of 2025 Market Performance
The provided market performance table highlights how sectoral strength shaped overall returns:
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Industrial Goods Index (NGXINDSTR): +58.91%
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Banking Index (NGXBANK): +39.77%
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Insurance Index (NGXINS): +65.64%
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Consumer Goods Index (NGXCNSMRGDS): +129.57% — Best Performing Sector
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Oil & Gas Index (NGXOILGAS): +1.54% — Only Sector in Decline
Top Performing Stocks in 2025
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NCR: +1354.00%
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ASOSAVINGS: +542.20%
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EUNISELL: +496.78%
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BETAGLASS: +470.11%
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TIP: +432.00%
Weakest Performers
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VFDGROUP: 75.23%
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CONOIL: 51.65%
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SUNUASSUR: 48.84%
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OANDO: 39.09%
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JOHNHOLT: 37.10%
The image data obtained from Bamboo, a Nigerian fintech platform, reinforces a clear theme: sector fundamentals dictated performance, with consumer and insurance stocks leading the charge while oil and gas lagged amid structural shifts in the downstream industry.
Sectoral Drivers of 2025 Performance
Consumer Goods Lead the Market
Consumer goods emerged as the standout sector, supported by easing production costs, improved macro stability, and stronger corporate margins. Companies benefited from pricing adjustments, efficiency gains, and renewed demand.
Banking Sector Regains Momentum
Bank stocks recorded solid gains as investors responded to:
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Stronger earnings performance
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Ongoing recapitalization initiatives
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Improved dividend prospects
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Higher fee and commission income
Industrial and Agro-Based Growth
Industrial goods and agro-producers delivered strong results, particularly cement manufacturers and oil palm companies, which posted record earnings driven by pricing discipline, operational efficiency, and volume growth.
Oil & Gas Faces Structural Pressure
After two strong years, oil and gas stocks weakened due to intensified competition in the downstream segment. Industry dynamics shifted significantly following increased refining capacity and evolving supply arrangements, which compressed margins for several operators.
Market Valuation and Technical Indicators
Despite the strong rally, valuation metrics, suggested earnings, not speculation, powered the surge. The market’s price-to-earnings ratio compressed by 32.49% to 6.92x, indicating robust earnings growth across listed companies.
Technical indicators also pointed to sustained bullish momentum. The 30-day Relative Strength Index (RSI) averaged 67.42, showing the market remained in overbought territory for much of the year, reflecting persistent demand for equities.
Market Outlook for H1 2026
The outlook for Nigeria’s equities market points toward a continuation of the bullish cycle, supported by strengthening macroeconomic fundamentals. Cooling inflation, a strong currency, and declining interest rates are expected to enhance corporate earnings and restore dividend payouts across previously constrained sectors.
Lower fixed-income yields are already triggering asset reallocation into equities, as investors pursue higher risk-adjusted returns. The anticipated return of foreign portfolio investors is expected to deepen liquidity and reinforce market stability.
Market capitalization is also projected to expand, supported by large-scale bank recapitalization programs, potential new major listings from strategic industrial players, and increased institutional participation.
Overall, the market is transitioning from recovery to valuation rerating, suggesting that 2026 may represent the early phase of a broader structural expansion in Nigeria’s capital market.