Nigerian stocks deliver world’s second-best dollar returns, reclaim $21bn – Report

1. Market Value Recovery After Sharp Currency Devaluation Nigerian equities have recovered the market value lost following a sharp naira devaluation in 2024, surpassing the dollar‑value level seen before that policy shift. The benchmark index has climbed approximately 31 percent year‑to‑date in 2026, making Nigerian stocks one of the best‑performing emerging‑market equities globally. This rally has added roughly $21 billion in market capitalisation, lifting total capitalization to about $84 billion, around 58 percent larger than in January 2024 just before the devaluation. 2. Drivers Behind the Rally Stronger corporate performance and balance‑sheet repair among listed firms has made the market more attractive to investors following years of pressure from currency weakness. The naira has firmed against the dollar, contributing positively to equity returns measured in hard currency terms; it ranks among the world’s stronger performing currencies this year. Renewed foreign investor participation has been notable, with non‑Nigerian trading on the Nigerian Exchange reaching levels not seen in nearly two decades. 3. Broader Market Context Analysts point to ongoing structural reforms, including foreign‑exchange liberalisation and unification policies, which played a role in stabilising macroeconomic conditions and boosting investor confidence. � Politics Nigeria The performance significantly outpaces the broader emerging‑market and frontier indices, underlining a strong recovery narrative relative to peer markets. Strategic Considerations Moving Forward Sustainability of gains: The rally reflects both cyclical and structural improvements. To sustain and deepen capital market development, strategies could include: Enhancing market liquidity and breadth by encouraging IPOs and secondary listings in key sectors. Strengthening regulatory frameworks to support transparency, risk management, and investor protection. Expanding institutional participation, for example through pension fund reforms, to anchor long‑term capital. Continued macroeconomic stability efforts, particularly around FX and fiscal policy, to reduce volatility and attract durable inflows. These areas present opportunities for Nigeria to reinforce investor confidence and build a more resilient equity market ecosystem.