NGX Market Capitalisation Soars Past N120 Trillion!
Foreign Investors Fuel Equities Boom as Debt and ETFs Ride the Wave
The Nigerian capital market just hit a major milestone! As of May 2025, the total market capitalisation on the Nigerian Exchange (NGX)—spanning equities, debt instruments, and ETFs—surged past N120 trillion, closing at a staggering N121.35 trillion. This marks an 11.05% growth from N109.27 trillion recorded at the end of 2024.
What’s behind this impressive climb? A mix of strong corporate earnings, foreign exchange reforms, and renewed foreign investor interest have turned the tide for the Nigerian market.
️ How the Market Broke Down in May:
• Equities:
The equities market continued to lead, contributing 58.07% (N70.47 trillion) of the total capitalisation. It gained N7.7 trillion in just five months, buoyed by solid Q1 earnings, foreign demand for quality stocks, and easing inflation.
A major catalyst? Airtel Africa, which alone added N810.3 billion in May and now contributes N8.92 trillion (12.65%) to the NGX equity market value! It remains the most capitalised stock, followed by BUA Foods (N7.92 trillion) and Dangote Cement (N7.42 trillion).
• Debt Market:
Debt instruments—including corporate bonds, FGN bonds, state and local bonds—made up 41.91% (N50.85 trillion) of the total. This is up from N46.45 trillion at the end of 2024.
Currently, there are:
• 15 bonds issued by the CBN and FGN
• 4 state-issued bonds
• 21 corporate bonds/debentures
• Exchange Traded Funds (ETFs):
Though a small player, ETFs added N25.5 billion (0.02%) to the overall capitalisation.
What’s Driving This Growth?
• Foreign Investors Are Back:
The April 2025 Domestic and Foreign Portfolio Investment (FPI) report showed foreign investors now account for 32.32% of total market transactions, up from 13.77% in April 2024. That’s more than double last year’s activity!
• Strong Corporate Results:
Earnings season played a huge role. Major companies, especially banks and cement manufacturers, posted strong Q1 results. Many of them declared robust dividends from their 2024 profits, drawing in yield-hungry investors.
• Inflation Eases Slightly:
Nigeria’s inflation rate cooled to 23.71%, thanks to a rebasing by the NBS and tighter monetary policy by the CBN.
• Confidence in Reforms:
Ongoing FX reforms and policy adjustments from the CBN have improved investor sentiment and strengthened the naira.
Looking Ahead: What to Expect in June?
Experts like David Adonri (Highcap Securities) and Aruna Kebira (Globalview Capital) agree that while the market has been resilient, a cool-down period is likely before the half-year earnings season kicks in later in June.
Key drivers to watch:
• The continued momentum from banking sector recapitalisation
• Policy consistency and macroeconomic reforms
• Dividend announcements and Q2 earnings guidance
• Trends in the fixed income space, which may attract or divert capital
Lets Discuss:
• Do you think the equities rally can be sustained into Q3?
• Are current valuations justified, or is the market overheating?
• Will foreign investors continue to increase their stake if inflation stays high?
Foreign Investors Fuel Equities Boom as Debt and ETFs Ride the Wave
The Nigerian capital market just hit a major milestone! As of May 2025, the total market capitalisation on the Nigerian Exchange (NGX)—spanning equities, debt instruments, and ETFs—surged past N120 trillion, closing at a staggering N121.35 trillion. This marks an 11.05% growth from N109.27 trillion recorded at the end of 2024.
What’s behind this impressive climb? A mix of strong corporate earnings, foreign exchange reforms, and renewed foreign investor interest have turned the tide for the Nigerian market.
️ How the Market Broke Down in May:
• Equities:
The equities market continued to lead, contributing 58.07% (N70.47 trillion) of the total capitalisation. It gained N7.7 trillion in just five months, buoyed by solid Q1 earnings, foreign demand for quality stocks, and easing inflation.
A major catalyst? Airtel Africa, which alone added N810.3 billion in May and now contributes N8.92 trillion (12.65%) to the NGX equity market value! It remains the most capitalised stock, followed by BUA Foods (N7.92 trillion) and Dangote Cement (N7.42 trillion).
• Debt Market:
Debt instruments—including corporate bonds, FGN bonds, state and local bonds—made up 41.91% (N50.85 trillion) of the total. This is up from N46.45 trillion at the end of 2024.
Currently, there are:
• 15 bonds issued by the CBN and FGN
• 4 state-issued bonds
• 21 corporate bonds/debentures
• Exchange Traded Funds (ETFs):
Though a small player, ETFs added N25.5 billion (0.02%) to the overall capitalisation.
What’s Driving This Growth?
• Foreign Investors Are Back:
The April 2025 Domestic and Foreign Portfolio Investment (FPI) report showed foreign investors now account for 32.32% of total market transactions, up from 13.77% in April 2024. That’s more than double last year’s activity!
• Strong Corporate Results:
Earnings season played a huge role. Major companies, especially banks and cement manufacturers, posted strong Q1 results. Many of them declared robust dividends from their 2024 profits, drawing in yield-hungry investors.
• Inflation Eases Slightly:
Nigeria’s inflation rate cooled to 23.71%, thanks to a rebasing by the NBS and tighter monetary policy by the CBN.
• Confidence in Reforms:
Ongoing FX reforms and policy adjustments from the CBN have improved investor sentiment and strengthened the naira.
Looking Ahead: What to Expect in June?
Experts like David Adonri (Highcap Securities) and Aruna Kebira (Globalview Capital) agree that while the market has been resilient, a cool-down period is likely before the half-year earnings season kicks in later in June.
Key drivers to watch:
• The continued momentum from banking sector recapitalisation
• Policy consistency and macroeconomic reforms
• Dividend announcements and Q2 earnings guidance
• Trends in the fixed income space, which may attract or divert capital
Lets Discuss:
• Do you think the equities rally can be sustained into Q3?
• Are current valuations justified, or is the market overheating?
• Will foreign investors continue to increase their stake if inflation stays high?