Buoyed by FG’s Reforms to Stabilise Economy, Nigerian Stock Market Gains N28.52 Trillion in 11 Months

*Nigeria’s daily petrol consumption rose to 56.7m in October, says NMDPRA

Kayode Tokede

The Nigerian stock market gained N28.52 trillion in the first 11 months of 2025, buoyed by the reforms in the foreign exchange market and other measures by the federal government to stabilise the nation’s economy.The stock market section of the Nigerian Exchange Limited (NGX), which closed trading in 2024 at N62.763 trillion, gained 45.45 per cent, or N28.52 trillion, to close at N91.286 trillion as of November 28, 2025.The NGX All-Share Index closed November 28, 2025, at 143,520.53 basis points, up 40,94.13 basis points, or 39.44 per cent, from the 102,926.40 basis points, the index’s closing level in 2024.

At the just-concluded November 2025 closing of trading activities, the market capitalisation, however, depreciated by N6.54 trillion, or 6.7 per cent, from the N97.829 trillion it closed at in October 2025, down to N91.286 trillion on November 28, 2025.Consequently, the NGX ASI declined by 10,05.93 basis points, or nearly 6.88, to 143,520.53 basis points from 154,126.46 basis points when the primary NGX index closed for trading in October 2025.

In November 2025, Nigeria’s stock market suffered one of its most significant one-day losses, dropping by N4.6 trillion amid investors’ profit-taking in highly capitalised listed companies on the Exchange.Capital market analysts attributed the downward movement in the stock market to investor sentiments driven by President Donald Trump’s threat of military action in Nigeria and the federal government’s implementation of the Capital Gains Tax (CGT). In a post on Truth Social, Trump said he had instructed the Pentagon to “prepare for possible action” and also threatened immediate suspension of U.S. aid to Nigeria.

President Bola Tinubu rejected Trump’s allegation of Christian genocide and designation of Nigeria as a country of particular concern (CPC), calling them a misrepresentation of Nigeria’s “consistent and sincere efforts to safeguard freedom of religion and belief for all Nigerians”.

Speaking with THISDAY, Investment Banker & Stockbroker, Tajudeen Olayinka, said the N4.6 trillion drop in market capitalisation was against the backdrop of Trump’s threat and introduction of CGT by 2026. Olayinka stated: ‘’The combination of these two factors has played a significant role in investors’ profit-taking in highly capitalised stocks on the NGX.

Speaking on the overall stock market performance this year, Group Managing Director/Chief Executive Officer, NGX Group, Mr. Temi Popoola, described the milestone achievement as a reflection of growing investor confidence and the Exchange’s strategic focus on deepening market participation.

“Crossing the 151,000-point threshold is a testament to the strength and adaptability of our market. It demonstrates how local and international investors continue to see value in Nigerian equities despite global headwinds,” said Popoola.

“At NGX Group, we are committed to driving innovation, transparency, and market expansion to sustain this growth trajectory. This milestone reinforces our belief that the Nigerian capital market remains a critical enabler of economic transformation.”

Analysts have attributed the 39.44 per cent growth in stock market performance in the first 11 months of 2025 to stability in the foreign exchange market, companies recovering from foreign exchange losses, market liquidity, capital inflow, the dominance of domestic investors, increasing portfolio investment, the Central Bank of Nigeria (CBN)’s banking sector recapitalisation, and insurance sector reforms.

So far in 2025, the stock market has seen the Monetary Policy Committee of the CBN reduce the Monetary Policy Rate to 27 per cent, marking the first cut since the COVID-19 pandemic in 2020.

Also, the yield on Nigerian Treasury Bills (NTB) has dropped to 15 per cent as of November 2025 from 18.00 per cent.

During the 11 months under review, several NGX-listed stocks recorded strong month-to-date appreciation, reflecting heightened foreign investor confidence driven by improved macroeconomic indicators and robust corporate earnings.

Analysts stated that the impressive corporate earnings reports for the first nine months of 2025, among other factors, encouraged investors seeking high returns in a volatile macro environment.

The Managing Director, Globalview Capital Limited, Mr. Aruna Kebira, told THISDAY that the stock market in the 11 months of 2025 witnessed a decline in inflation figures, and the CBN’s cut in interest rate to 27 per cent from 27.50 per cent.

“Those parameters alone gave the capital market investors a moment of respite in the nine months of 2025.

“The yields in the money market are not looking as attractive as they were in 2024, making discerning investors in search of better yields consider the capital market as their investment destination.

“In the last MPC, the MPR was reduced, including other metrics. This sends positive signals that, as the inflation figure and money market yields are downward-looking, the MPC would have a reason to lower the MPR further, which is not always fixed-income-friendly.

“If the various issuers demonstrate a performance higher than the corresponding period of 2024 and declare an impressive interim dividend, the stock market will move to appreciate their prices.

“I also see an improvement in the liquidity around the stock market arena, which will boost market participation and invite the bull into the market,” he added.