July 2025 turned out to be a turning point for Nigeria’s capital market when the Nigerian Exchange (NGX) saw a huge rise that added N12.5 trillion in worth to listed stocks.
This remarkable market surge indicates a new surge of investor confidence based on good policies, strong corporate earnings, and better economic data.
Market capitalization increased by 14% in just one month, from N75.95 trillion at the end of June to N88.42 trillion at the end of July, according to NGX statistics. Reflecting more trading activity and rising investor confidence, the AllShare Index (ASI) rose sixteen percent to close at 139,863.52 points.
Market analysts argue that several major events caused this increase. At the home front, the Central Bank of Nigeria (CBN) has been trying to steady the naira and manage inflation, which slightly fell in June.
Particularly when greater foreign portfolio inflows alleviate currency pressure and increase liquidity, these macroeconomic measures have regained interest from local as well as international investors.
Major companies’ release of semiannual financial reports assisted in the formation of more bullish pattern velocity. Businesses including consumer goods, beverages, and cement demonstrated high profit margins despite past economic instability.
With N833.2 billion overall after tax, Dangote Cement, BUA Cement, and Lafarge Africa’s 229 percent extraordinary growth over the last year.
Quick consumer goods (FMCG) are also making a spectacular comeback. From a N252.5 billion loss in H1 2024, Nestlé Nigeria rebounded to a N88.4 billion profit in the same period of 2025; Cadbury Nigeria swung to a N14.5 billion profit after suffering a N13.9 billion loss a year earlier.
Better Q2 results and rising demand helped Nigerian Breweries reverse a previous N85.2 billion loss to show an H1 2025 profit of N88.42 billion.
The July rebound of the equity market implies growing optimism for Nigeria’s general economic recovery. Analysts anticipate the market to keep on its growth path as long as existing measures are kept in place and financial policy stays steady.
According independent investor Amaechi Egbo said the latest rise came from enhanced openness in economic policy, stronger corporate fundamentals, and better exchange rate management. He underlined investors were beginning to price in the longrun advantages of the current changes from retail investors to institutional funds.
Egbo also noted that this momentum improves Nigeria’s prospects of being among the top-performing frontier nations by year’s end. Improved market attitude presents the federal government and private firms an chance to raise money through equities and bonds with reduced risk premiums; hence, the ripple effect surpasses profittaking.
July’s amazing results highlighted the requirement of the stock market as an instrument for capital creation and economic growth as well as helped to increase individual and institutional wealth. If this upward trend keeps up, Nigeria’s capital market may be on track for a record-breaking year.
