By Peter Omopo
Trading activity on the Nigerian Exchange (NGX) surged to an all-time high in 2025, with total turnover hitting N11.23 trillion, driven largely by a resurgence in foreign investor participation.
Market data showed that the value of equities traded more than doubled from N5.587 trillion in 2024 to N11.23 trillion in 2025, representing a 101 per cent increase and the highest annual turnover ever recorded by the Exchange.
The 2025 performance significantly outpaced previous years, with turnover recorded at N3.578 trillion in 2023, N2.324 trillion in 2022, N1.899 trillion in 2021 and N2.168 trillion in 2020.
Analysts attributed the sharp rise in trading activity to renewed interest from foreign portfolio investors, whose participation climbed to a four-year high. For the first time in several years, the market also recorded a net positive foreign flow, as capital inflows exceeded outflows, indicating growing confidence among overseas investors to retain funds in Nigeria.
The heightened activity coincided with a strong rally in Nigerian equities. By the close of 2025, the NGX All-Share Index (ASI) had delivered a full-year return of 51.19 per cent, translating into about N32.13 trillion in net capital gains and placing Nigeria among the world’s top five best-performing stock markets.
Reacting to the development, Group Managing Director of Nigerian Exchange Group (NGX Group) Plc, Mr Temi Popoola, said the performance reflected increasing confidence in the country’s economic direction despite prevailing domestic and global challenges.
“The Nigerian capital market in 2025 demonstrated resilience despite domestic and global economic headwinds,” Popoola said. “This performance underscores the importance of policy consistency, purposeful reforms and strategic collaboration in strengthening investor confidence and sustaining market growth.”
He noted that economic reforms and improvements in market structures helped create a stable environment for capital formation, while sustained investment in technology expanded access, enhanced transparency and improved operational efficiency across the market.
Popoola commended President Bola Ahmed Tinubu for providing policy clarity and reform momentum, which he said had helped restore investor confidence. He added that improved macroeconomic coordination and a clearer reform pathway had made the investment climate more attractive, assuring that the NGX Group would continue to work with regulators and market operators to attract quality listings, boost liquidity and expand retail participation.
Similarly, Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sehinde Adenagbe, attributed the market’s strong performance to ongoing government reforms.
He said Nigeria’s stock market had recorded significant growth since President Tinubu assumed office in May 2023, noting that the NGX All-Share Index rose by about 136 per cent between 2023 and 2025, alongside a sharp expansion in market capitalisation and stronger local and foreign participation.
Adenagbe added that deeper digitisation of the economy and capital market had broadened access for young investors, particularly through fintech platforms supported by the NGX Group.
According to him, improved macroeconomic conditions, enhanced liquidity and rising investor appetite contributed to the rally. He identified key drivers of renewed foreign inflows to include the Investment and Securities Act (ISA) 2025, Nigeria’s exit from the Financial Action Task Force (FATF) grey list and reforms in the foreign exchange market.
“Greater transparency and stability in the forex market have reduced pricing distortions and improved predictability for global investors and businesses,” Adenagbe said, adding that stable foreign exchange conditions had been widely cited as a factor behind increased capital flows into equities and other financial instruments.
However, he urged authorities to sustain the momentum by encouraging new listings, reviving underperforming state-owned enterprises and providing incentives for long-term institutional investors. He also called for clarity on the Capital Gains Tax regime, improved security and further structural reforms to maintain investor confidence.
In his remarks, Managing Director of GTI Capital, Mr Kehinde Hassan, said investor behaviour reflected growing confidence in Nigeria’s economic prospects, noting that equity markets often mirror a country’s global economic standing and that international investors are particularly sensitive to risk and stability.
