Reforms, Collaboration Drive Stock Market Capitalisation to N100trn

A combination of economic reforms, collaboration among regulators and other stakeholders pushed the market capitalisation of nation’s stock market to N100 trillion, writes Goddy Egene

In a year marked by global monetary tightening, elevated geopolitical risk, and heightened macroeconomic uncertainty, Nigeria’s equity market delivered one of the strongest performances in the world in 2025. Far from accidental, this outstanding result emerged from a sustained sequence of purposeful reforms, deep institutional collaboration, and market confidence building that systematically repositioned the Nigerian stock market as a credible destination for capital.

The crescendo of these efforts came in early January 2026, when the Nigerian Exchange (NGX)’s equity market capitalisation officially surpassed the N100 trillion threshold, a symbolic yet powerful signal of renewed investor confidence and economic realignment.As global markets grappled with volatility, Nigeria’s All-Share Index(ASI) posted an impressive 51.19 per cent return, closing the year at 155,613.03 points, a performance that placed it among the top emerging and frontier equity markets globally.This spectacular outcome reflects not only resilient market fundamentals but also a deliberate, reform-driven approach to capital market development that has reshaped Nigeria’s investment landscape.

A Milestone that Reflects Confidence and Reform

Last week’s announcement from the Presidency captured the spirit and substance of the achievement.President Bola Ahmed Tinubu hailed the N100 trillion milestone as emblematic of a “new economic reality and rejuvenation,” paying tribute to corporate Nigeria, investors, regulators, and market operators.“With the Nigerian Exchange crossing the historic N100 trillion market capitalisation mark, the country is witnessing the birth of a new economic reality and rejuvenation,” the President stated, underscoring the progress the nation has made under his economic reform agenda.President Tinubu noted that Nigeria’s equity market outperformed key global benchmarks, including the S&P 500 and the FTSE 100, as well as several emerging-market peers. He urged broader domestic participation in wealth creation, arguing that deeper local engagement would sustain growth and strengthen the economy’s foundation.His comments highlight a broader strategic drive: to position Nigeria not just as a national market success story, but as a compelling investment destination for both domestic and global capital.

Reform as Strategy, not Rhetoric

At the heart of this transformation sits Nigerian Exchange Group (NGX Group), under the leadership of Group Managing Director and CEO Temi Popoola. Throughout 2025, NGX Group focused on embedding sustainable reform into market practice, enhancing infrastructure, strengthening governance, and deepening investor engagement.“Our focus has always been on creating a stable, trusted environment for capital mobilisation,” Popoola explained.“That requires deliberate reforms, collaboration across the ecosystem, and disciplined execution – not short-term gains.”This ethos translated into a series of well-targeted initiatives, including improvements to market infrastructure, wider access to capital raising tools, and strategic engagement with regulators and policymakers. The result was not a speculative rally, but a structural rally supported by deeper institutional participation, improved transparency, and diversified market access.NGX Group’s performance demonstrates that when markets function with clarity, predictability, and accountability, investor confidence follows. This was evident in the breadth and resilience the market displayed throughout 2025, despite persistent external shocks.

Performance Anchored in Structure and Depth

While the end-of-year rally captured headlines, it was the underlying fundamentals that told a more enduring story. Over 2025, total equity market capitalisation climbed sharply, adding approximately N36.6 trillion to close around N99.38 trillion—one of the most significant absolute gains recorded worldwide.Importantly, the advance was not driven by short-term speculation. Rather, increased participation from institutional investors, growing retail engagement, and improved market access through initiatives like NGX Invest broadened the investment base.NGX Invest, a digital platform designed to simplify public offer participation, played a critical role in bringing new investors and issuers into the primary market. By reducing friction in the capital-raising process and expanding access to new asset classes, it supported over N2.8 trillion in capital raised, including contributions to bank recapitalisation efforts.By prioritising structural soundness over speculative frenzy, the NGX demonstrated that long-term growth and depth trump short-term fireworks.

Collaboration as Sustainable Growth Engine

A standout element of Nigeria’s market resurgence has been collaboration across public and private sectors. Rather than operating in silos, NGX Group, the Securities and Exchange Commission (SEC), policymakers, market operators and issuers aligned behind a shared vision: deepen markets, broaden participation, and protect investors.This model transformed the ecosystem from a collection of independent actors into a coordinated capital market system working toward common objectives.Particularly notable is the collaboration between NGX Group and the SEC, led by Director-General Dr. Emomotimi Agama. Their alignment combined strong market infrastructure with a regulatory agenda centred on transparency, investor protection, and innovation.Agama emphasised the critical role of reforms in achieving market milestones, noting,“The N100 trillion milestone is a direct result of decisive reforms and an unwavering commitment to transparency and fiscal discipline.”He further stressed that strengthening oversight, improving governance standards, and expanding financial inclusion remain central to the SEC’s mandate to sustain market growth and resilience.The synergy between NGX Group and SEC has been a defining feature of 2025, bringing together regulatory discipline with progressive market development.

Capital Formation Beyond Secondary Markets

Though secondary market performance captured investor attention, the primary market’s role in financing economic activity cannot be understated. NGX Group facilitated approximately N6.49 trillion in capital raising across equity and fixed-income instruments in 2025, supporting infrastructure projects, enterprise expansion, and macroeconomic stability.This capital formation underscores the market’s evolving role, from trading venue to engine of economic financing and structural transformation.By supporting corporate and sovereign issuers, expanding product offerings, and facilitating institutional investments, the capital market became a funding lifeline for Nigeria’s broader growth agenda.

Social Stability as Part of Market Infrastructure

NGX Group broadened its reform philosophy beyond finance, recognising that long-term markets depend on social stability and inclusion. Initiatives like Project BLOOM (Bringing Life to Our Overlooked Minors), conducted with partners including the Lagos State Government and Health Emergency Initiatives, tackled child malnutrition in underserved communities.To date, the project has supported hundreds of children and caregivers, combining nutritional support with education and sustained care. Over half of beneficiaries have entered recovery, a testament to the impact of market-linked social investment.“True market growth is inseparable from social progress,” Popoola observed, pointing to the intrinsic link between societal wellbeing and investor confidence.

Technology, Sustainability,  Global Alignment

Technology was another central pillar of growth in 2025. Beyond NGX Invest, continuous upgrades to market systems enhanced settlement efficiency, increased accessibility, and reduced operational frictions. These digital investments helped knit together a more competitive, transparent, and efficient exchange, a prerequisite for deeper global integration.Simultaneously, NGX Group advanced its sustainable finance agenda through initiatives like the NGX Net-Zero Programme, developed with global partners to help listed companies transition toward sustainable operations and reduce greenhouse gas emissions.Temi Popoola summarised the broader aspiration:“We are building a market that is not only Africa’s largest by scale, but one recognised globally for its structure, credibility, and reform momentum.”

A Market Repositioned for the Long Term

By year-end 2025, Nigeria’s capital market had not only delivered strong returns, but also demonstrated renewed institutional maturity. Through disciplined governance, expanded access, strategic digital transformation, and a sustainability lens, the NGX Group has repositioned the market for deeper global integration.Looking ahead, NGX plans to intensify collaboration with regulators, issuers, and policymakers, while continuing to invest in technology and broaden participation. This forward-leaning agenda reflects a commitment to using capital markets as a catalyst for economic growth and wealth creation across Africa.“We remain optimistic about the opportunities ahead,” Popoola concluded, “and committed to positioning Nigeria’s capital market as a key driver of economic growth, wealth creation, and Africa’s preferred exchange hub.”In a global environment where credibility increasingly outweighs scale alone, the Nigerian reforms  have laid a foundation not just for recognition, but for enduring success.