Investors in Nigeria’s equities market have reaped significant gains, with a cumulative return of 147% over the past decade, making it one of Africa’s top-performing markets, according to BusinessDay’s trend analysis of eight major African stock exchanges.
Egypt leads with a 10-year cumulative return of 351%, followed by Ghana at 121%, while South Africa (85%), Morocco (62%), Côte d’Ivoire (19%), and Botswana (11%) trailed behind. Kenya recorded a negative return of -12% over the same period.
Year-to-date, the Nigerian Stock Exchange (NGX) has grown by 35.25%, supported by strong buy-interest in the banking, insurance, and consumer goods sectors. This bullish activity has pushed the NGX All-Share Index to a record-breaking 101,129.09 points, with market capitalization soaring to ₦61.30 trillion as of December 20.
Temi Popoola, CEO of the Nigerian Exchange Group, attributed the market’s robust performance to a combination of factors, including strategic listings, macroeconomic reforms, and investor-friendly policies.
“Nigeria’s capital market has consistently stood out as a hub of resilience and innovation,” said Popoola. “High inflation has shaped investment strategies, making equity a preferred hedge. Strengthened regulatory frameworks and macroeconomic reforms have heightened the appeal of naira-denominated assets to both local and international investors.”
Reforms in critical sectors like oil and gas have also been transformative. Policies such as subsidy removal and exchange rate liberalization have boosted operational efficiency, enhancing the performance of listed companies and driving market dynamics.
Other African markets have also seen positive performances in 2024. Ghana led year-to-date gains with a 53.65% rise, followed by Côte d’Ivoire (28.11%), Kenya (31.73%), and Morocco (21.76%). South Africa posted a more modest 9.85% increase, while Egypt grew by 22.63% and Botswana by 12.54%.
Despite inflation hitting a 30-year high of 34.6% in November 2024, Nigeria’s stock market has remained resilient. Analysts attribute this to relative stability in the foreign exchange market and reforms aimed at enhancing transparency and investor confidence.
“The bullish markets align closely with strong economic indicators, including trade surpluses, improved capital importation, and increased foreign reserves,” analysts at Futureview noted.
Looking ahead to 2025, market experts anticipate continued growth, buoyed by stable macroeconomic conditions, increased liquidity, and sustained investor confidence. “The Santa Claus rally and buying interest in key sectors are expected to sustain the positive momentum,” Futureview analysts added.
As Nigeria continues to attract both domestic and foreign investors, its stock market remains a bright spot in Africa’s economic landscape, offering a wealth of opportunities for long-term growth and resilience.
