The Nigerian Exchange (NGX) has recorded stronger performance in 2025, showing resilience despite economic headwinds and periodic market dips.
By the end of September, the All-Share Index (ASI) closed at 142,377.56 points, representing a year-to-date (YtD) gain of 38.33 percent. This outpaces the 31.88 percent gain achieved in the same period of 2024, confirming renewed investor confidence in Africa’s largest economy.
Market analysts attribute the positive run to improving macroeconomic indicators, rising corporate earnings, and foreign portfolio inflows following Nigeria’s reforms in the foreign exchange and oil sectors. The recovery of the naira, declining inflation, and improved GDP growth have also boosted investor sentiment.
“The stock market’s momentum reflects renewed optimism about Nigeria’s economic direction,” said investment analyst, Tunde Adebayo. “Corporate profits in banking, telecoms, and consumer goods have driven strong equities performance, supported by policy clarity from government.”
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The bullish trend, however, has not been without volatility. Even as the market climbed higher, profit-taking activities and sectoral dips emerged, particularly in the oil and gas segment where price fluctuations weighed on listed companies. Experts warn that such dips are natural in a rallying market and present opportunities for strategic investors.
“Bullish markets don’t mean a straight-line rise,” explained stockbroker, Hauwa Danladi. “Investors must expect corrections, which create fresh entry points for long-term positions.”
Despite the gains, challenges remain. Liquidity constraints, global oil market uncertainty, and the lingering effects of high interest rates continue to pressure segments of the market. Nonetheless, the NGX has shown resilience, with the banking and manufacturing indices leading advances, while insurance stocks posted mixed results.
The strong YtD growth places Nigeria among the top-performing stock markets in Africa for 2025. International rating agencies have also noted the progress, citing improved fiscal health and rising non-oil revenues as supportive factors for equity growth.
Looking ahead, analysts predict continued momentum in the last quarter, especially if macroeconomic stability persists and listed firms sustain strong earnings. However, they caution retail investors to exercise discipline, diversify their portfolios, and avoid panic selling during temporary market corrections.
With the ASI pushing new highs, market stakeholders say the NGX’s performance underscores investor confidence in Nigeria’s economic reforms and positions the bourse as a leading frontier market destination.