In a stunning display of resilience, the Nigerian stock market defied significant macroeconomic challenges to deliver an historic performance in 2025, generating a staggering N37 trillion in capital gains for investors. This remarkable achievement unfolded against a backdrop of rising insecurity and a difficult operating environment, highlighting renewed confidence in the nation's equities.
A Year of Record-Breaking Growth
Sustained bullish sentiment propelled the market capitalisation of the Nigerian Exchange (NGX) from N62.763 trillion at the end of 2024 to N99.376 trillion by the close of 2025. This represents a massive appreciation in the value of listed companies. Mirroring this surge, the benchmark NGX All-Share Index jumped from 102,926.42 points to 155,613.03 points, delivering a robust year-to-date return of 51.188 per cent.
This performance stands as one of the strongest in recent memory and signals broad-based demand for Nigerian stocks. Following this development, shareholders have called on the government to sustain and deepen ongoing economic reforms. They warned that policy reversals or unfriendly fiscal measures could jeopardise these hard-won market gains.
Sectoral Performance: Consumer Goods Lead the Charge
A detailed review of 2025 market activities reveals standout performances across key sectors. The consumer goods sector was the top performer, delivering an astounding 128.9 per cent return. This rally was powered by spectacular gains in major stocks:
- Guinness Nigeria: 398% appreciation
- Champion Breweries: 269% gain
- NASCON Allied Industries: 247% increase
- Honeywell Flour Mills: 242% advance
- Cadbury Nigeria: 160% rally
Analysts attribute this resurgence to a turnaround in corporate earnings as companies recovered from heavy foreign exchange losses recorded in previous years.
The insurance sector also posted strong gains, rising by 73.8 per cent, fueled by the Nigerian Insurance Reform Act of 2025 and higher capital requirements. Leaders in this space included Sovereign Trust Insurance (up 275%) and AIICO Insurance (up 165%).
Industrial goods closed with a 59.2 per cent gain, highlighted by a phenomenal 527 per cent surge in Beta Glass and a 326% rise in Vitafoam. The banking sector ended firmly positive with a 39.3 per cent gain, driven by an industry-wide recapitalisation exercise. Wema Bank led with a 125% increase.
Leadership and Shareholder Perspectives
Temi Popoola, Group Managing Director of Nigerian Exchange Group, stated that the market demonstrated remarkable resilience in 2025. He emphasised that policy consistency, purposeful reforms, and strategic collaboration were critical to sustaining growth and strengthening investor confidence. Popoola added that NGX Group's technology investments were central to enhancing market efficiency and transparency.
Looking ahead to 2026, Popoola expressed optimism and reaffirmed the commitment to position the Nigerian capital market as a key engine for economic growth and wealth creation in Africa.
Patrick Ajudua, President of the NewDimension Shareholders Association, credited the market's performance to stronger corporate financial results, stable policies, and attractive dividends. For 2026, he stressed the need to sustain reforms, ensure exchange rate stability, and reduce business costs. He specifically called for the withdrawal of capital gains tax on equities.
Eric Akinduro, former chairman of the Ibadan Zone Shareholders Association, noted that investor confidence remains central to market development. He highlighted that government monetary policies and sectoral recapitalisation have strengthened market depth, with over 22 companies now valued above N1 trillion.
Dr. Paul Uzum of Halo Capital Management projected that 2026 performance will be shaped by fiscal policies, the potential listing of Dangote Refinery, and global oil price trends. He also noted that political activities in the pre-election year could influence investor sentiment.
Throughout 2025, foreign portfolio investment activity expanded significantly, accounting for around 20.8% of total NGX transactions by year-end. Offshore flows exceeded N1.28 trillion in the first 11 months, signalling renewed appetite from international investors.
