Nigerian stocks ship world’s second-best greenback returns in 2026, recuperate $21bn
Nigerian equities have delivered the world’s second-best greenback returns this yr, rising 31 % in 2026 and recovering about $21 billion in market worth misplaced after the naira devaluation in 2024.
Market capitalisation on the Lagos change has climbed to about $84 billion, roughly 58 % increased than ranges recorded earlier than the forex collapse.
Bloomberg reported on Tuesday that Nigeria’s benchmark index has surged 31 % this yr.
“The rally far outpaces the 11% acquire within the broader emerging-market index and the 6.4% advance in a gauge of frontier-market stocks,” the publication mentioned.
Analysts attributed the features to improved company earnings, a firmer naira and renewed investor confidence.
Olabode Williams, analyst at SBG Securities Ltd., mentioned firms affected by the naira’s fall have stabilised their stability sheets and returned to profitability.
“Firms hit by the naira’s fall have shored up their stability sheets and returned to profitability. Numerous traders are actually pricing in progress, and the market is responding positively,” he mentioned.
“The rally exhibits that Nigerian equities are more and more engaging to each native and overseas traders, particularly after years of underperformance,” he added.
The naira has additionally strengthened, recording a greater than seven % acquire in opposition to the greenback this yr and rating because the world’s second-best performing forex amongst these tracked by Bloomberg.
“Inventory features have additionally been underpinned by a firmer naira, now the world’s second-best performing forex this yr of these tracked by Bloomberg with a greater than 7% advance in opposition to the greenback,” Bloomberg mentioned.
International participation has risen alongside the rally, with information from the Nigerian Change Group displaying that non-Nigerian buying and selling in native equities reached a 19-year excessive in 2025.
Transactions by overseas traders tripled to N2.65 trillion ($1.97 billion) from N852 billion within the earlier yr.
Gloria Fadipe, analyst at CSL Stockbrokers Ltd., a unit of FCMB Group Plc, mentioned the market may exceed $100 billion this yr if main listings proceed.
“If these listings occur, we may see as much as 34% capital features this yr,” she mentioned, referring to the deliberate listings of Aliko Dangote’s refinery and fertiliser plant.
Bloomberg mentioned the rebound follows broader {economic} reforms, together with the unification and liberalisation of the foreign-exchange market underneath President Bola Tinubu.
“The devaluation was a part of President Bola Tinubu’s push to unify and liberalise the foreign-exchange market and herald funding,” the report mentioned.