By Juliet Ezeh
Foreign investors are staging a strong comeback to Nigeria’s equity market as renewed confidence in economic reforms and currency stability fuels a powerful rally that has added $21 billion in value to listed companies.
Data reported by Bloomberg shows that Nigerian stocks have delivered the world’s second-best dollar returns in 2026, with the benchmark index climbing 31 percent. The performance significantly outpaces gains recorded across broader emerging and frontier markets.
Market capitalisation on the Nigerian Exchange Group has now risen to approximately $84 billion, representing a sharp recovery from losses triggered by the naira devaluation in 2024. The rebound reflects a 58 percent increase in dollar terms compared to levels recorded before the currency adjustment.
Analysts say the turnaround is closely linked to sweeping foreign exchange reforms introduced under the administration of Bola Tinubu, which unified and liberalised the currency market to attract investment and improve transparency. The naira has strengthened by more than 7 percent against the dollar this year, ranking among the best-performing currencies tracked globally.
The currency’s relative stability has provided a foundation for improved corporate earnings, particularly among firms that were heavily exposed to foreign exchange volatility during the devaluation period. Market watchers note that many companies have restructured their balance sheets, restored profitability and regained investor trust.
Foreign participation has surged alongside the rally. Trading data indicates that non-Nigerian transactions in local equities reached a 19-year high in 2025, with volumes tripling year-on-year. The renewed inflows suggest that international portfolio managers are once again viewing Nigeria as an attractive frontier market opportunity after years of subdued activity.
Further upside potential may come from anticipated large-scale listings. Plans to float shares of major industrial assets, including the 650,000-barrel-per-day refinery and fertiliser operations linked to industrialist Aliko Dangote, could push total market capitalisation beyond the $100 billion mark if completed this year.
Financial analysts argue that the current rally represents more than a short-term rebound. They see it as a signal that structural reforms, stronger earnings performance and improving macroeconomic indicators are gradually repositioning Nigeria’s capital market as a competitive destination for both domestic and global investors.
With investor sentiment strengthening and currency volatility easing, the Nigerian stock market appears to be entering a new phase of recovery one driven by reform momentum, renewed liquidity and growing confidence in the country’s long-term economic trajectory.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.