BREAKING: Nigerian stock market gains N4.43trn in two months

Investors that invested in the stock market section of the Nigerian Exchange Limited (NGX) have seen their investment rising by N4.43 trillion between January and February 2025, as demand for blue-chip companies quoted on the Exchange soar.  

The stock market that opened 2025 at N62.763 trillion, gained N4.43 trillion or 7.1per cent to close on Friday at N67.19 trillion. 

Capital market have expressed that the banking sector recapitalisation exercise, among others have impacted positively on the stock market in the first two months of 2025,

The Managing Director Arthur Steven Asset Management Limited (ASAM), Mr. Olatunde Amolegbe, had said the stock market growth in 2025 is underpinned by ongoing bank recapitalization efforts, new listings, and anticipated monetary policy easing by the CBN.

Amolegbe, highlighted Nigeria’s relative market attractiveness as a key factor in attracting increased FPI, provided stable policies are maintained.

He noted that the bank recapitalization process is set to boost investor confidence, while high-profile listings such as Nigerian National Petroleum Company Limited and Dangote Refinery are expected to enhance market liquidity and broaden investment opportunities.

The projected bullish trend in 2025 comes as investors position themselves ahead of 2024 fiscal year results and dividend declarations, particularly in the banking sector.

However, Amolegbe cautioned that the market’s performance will depend on critical factors such as the country’s economic growth trajectory, monetary policy direction, and corporate earnings results.

The firm, however, anticipated a shift toward equities as fixed-income yields decline, driven by the CBN’s likely adoption of a more accommodative monetary stance.

Despite lingering concerns over exchange rate volatility and inflation, conservative sectors such as banking, consumer goods, and industrials are expected to perform well, offering steady returns for investors.

Overall, his firm added that, “the 2025 outlook for the Nigerian stock market remains optimistic, bolstered by strategic reforms, policy adjustments, and improving investor confidence. While challenges such as exchange rate instability and inflation persist, key sectors are positioned to drive market performance and deliver strong returns for investors.”