The Nigerian Exchange Limited (NGX) marked a remarkable 37.65% annual growth in its All Share Index (ASI) for 2024, continuing its impressive recovery from previous years. Starting the year at 74,773.77 basis points, the NGX ASI closed at 102,926.4 points, signaling robust market performance.
Market capitalization saw a substantial increase, opening 2024 at N40.918 trillion and ending the year at N62.763 trillion. This positive growth reflects a striking turnaround for Nigeria’s stock market, especially after the challenging years from 2015 to 2019, analysts note.
The early 2010s were marked by the crash of oil prices and the 2016 recession, but the 2020s have ushered in a period of remarkable growth for Nigeria’s equity markets. Since 2020, the NGX ASI has seen a phenomenal return of 283.45%, growing from 26,842.07 points at the close of 2019 to 102,926.4 points by December 2024.
Significant years include 2020, 2023, and 2024, with many investors flocking to equities in search of higher real returns amid a tough fixed-income environment. A key factor driving the stock market’s performance has been the depreciation of the naira, influenced by the macroeconomic reforms of the Central Bank of Nigeria (CBN) and the Federal Government, which have attracted foreign capital. Inflow of foreign investment, which stood at just 4% in mid-2023, had risen to an average of 16% by November 2024.
New listings of high-profile companies have also energized the market. Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods are among the notable additions to the stock exchange, broadening the range of blue-chip stocks available to investors. This influx of listings has seen market capitalization surge by N49.97 trillion, from N12.79 trillion at the close of 2019 to N62.76 trillion in December 2024.
At the end-of-year closing ceremony, NGX CEO Jude Chiemeka, represented by Abimbola Babalola, Head of Trading and Products, expressed gratitude to key stakeholders such as the stockbroking community and regulatory bodies. He highlighted the significant activity in the secondary market during 2024, thanking the CBN, Ministry of Finance, and the Securities and Exchange Commission for their effective policies and oversight.
The Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON) also acknowledged the crucial role stockbrokers play in driving market growth and reiterated their commitment to advocating for policies that improve market development.
Despite the impressive growth, challenges persist. According to Proshare’s 2025 market outlook, Nigeria’s capital market still faces high transaction costs, information asymmetry, monetary tightening, low trading volumes, and wide bid-ask spreads, all of which hinder liquidity. However, there is optimism that the listing of national assets, such as NNPC, could unlock liquidity and attract both domestic and foreign investment.
Temi Popoola, Group Managing Director/CEO of Nigerian Exchange Group, reflected on the resilience and growth of Nigeria’s capital market. He praised the strong performance of blue-chip companies, which have been key to driving returns even during challenging economic periods. The shift towards equities as a hedge against inflation, coupled with strategic new listings, has boosted market activity.
Popoola also pointed to the transformative impact of policy reforms, particularly in the oil and gas sectors and currency devaluation, which have improved operational efficiency and contributed to the market’s strong performance. Looking ahead to 2025, Popoola remains optimistic that continued reforms and a stable macroeconomic environment will sustain the market’s growth, improve liquidity, build investor confidence, and create long-term value for market participants.
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