Nigerian Stock Market Achieves Global Milestone with 31% Surge in 2026
Nigeria's equity market has emerged as a standout performer on the global stage in 2026, delivering remarkable returns that have captured international attention. According to a Bloomberg report published on February 17, 2026, Nigerian stocks have surged by an impressive 31% this year, ranking as the world's second-best performer in dollar-denominated returns.
Market Capitalization Soars to $84 Billion
The Nigerian Exchange Group has witnessed a dramatic recovery, with total market capitalization now reaching approximately $84 billion. This represents a substantial 58% increase compared to levels recorded before the currency's collapse in 2024. The market has recovered an estimated $21 billion in value since the turbulent period of naira devaluation.
This performance significantly outpaces broader market indices, with Nigeria's 31% gain dwarfing the 11% advance recorded by the emerging-market index and the 6.4% increase seen in frontier-market stocks. The rally marks a dramatic turnaround for a market that suffered heavy losses following the sharp naira devaluation of 2024.
Naira Strength Fuels Investor Confidence
The stock market rally has been reinforced by a strengthening currency, with the naira gaining more than 7% against the US dollar this year. This makes it the world's second-best performing currency among those tracked by Bloomberg. Currency stability has historically been a key concern for foreign investors in Nigeria, and the current appreciation has eased fears about capital erosion while improving sentiment toward local assets.
Analysts attribute much of the recovery to improved corporate performance, with companies that were battered by the naira's steep fall having strengthened their balance sheets and returned to profitability. With earnings stabilizing, investors are increasingly pricing in growth prospects, supported by improved liquidity conditions and clearer policy direction.
Foreign Investors Return in Force
Foreign participation in Nigeria's equities market has climbed sharply, with data from the Nigerian Exchange Group showing that non-Nigerian trading in local stocks hit a 19-year high in 2025. Transactions tripled to 2.65 trillion naira, up from 852 billion naira the previous year. This renewed foreign appetite signals growing confidence in Nigeria's reform trajectory and macroeconomic outlook.
The resurgence follows sweeping economic reforms introduced by President Bola Tinubu, including the liberalization and unification of Nigeria's foreign-exchange market. While the earlier devaluation was painful, it was part of efforts to attract investment and restore market transparency.
Potential for Further Growth
Market analysts believe the rally could extend further, especially if planned mega listings materialize. Expectations are building around potential public offerings of refinery and fertilizer businesses owned by Aliko Dangote. If those listings proceed, market capitalization could surpass the $100 billion mark this year, with projections of up to 34% capital gains.
The parallel market has also shown strength, with the naira recording a strong rebound to N1,390 per dollar on February 16, 2026, representing a 2.16% gain compared to the previous trading session. This movement reflects renewed confidence and improved dollar liquidity in the informal market.
With stronger corporate earnings, a firmer naira, and renewed foreign participation, Nigeria's equity market has firmly returned to the global investment spotlight, demonstrating resilience and growth potential that continues to attract both domestic and international investors.
