The All Share Index of the Nigerian Exchange Limited (NGX) ended 2024 with a remarkable 37.65% annual increase.
The positive has signaled a noteworthy recovery, overcoming the dismal performance of the 2015–2019 timeframe to prosper in the 2020s.
Nigeria’s stock market experienced unparalleled growth in the 2020s, following the fall of the 2015 oil price and the subsequent recession in 2016.
The NGX All-Share Index (ASI), which rose from 26,842.07 points at the end of 2019 to 102,926.40 points as of December 2024, has produced an impressive return of 283.45 percent from 2020. In the face of falling yields in the fixed-income markets, investors expected greater real returns from stocks in 2020, 2023, and 2024.
The Central Bank of Nigeria (CBN) and the Federal Government’s macroeconomic policies have caused the naira to depreciate, which has greatly improved stock market performance. From a low of 4 percent in mid-2023 to an average of 16 percent by November 2024, foreign capital inflow has climbed steadily.
High-profile listings have also increased trading activity on the market, giving investors access to a wider selection of blue-chip equities. Among the noteworthy additions are BUA Foods, Aradel Holdings, Transcorp Power Plc, and Geregu Power Plc. The market capitalization has risen dramatically from N12.79 trillion at the end of 2019 to N62.76 trillion as of December 2024, a rise of N49.97 trillion, thanks to these listings.
Jude Chiemeka, the CEO of NGX, along with Abimbola Babalola, the Head of Trading and Products, commended important stakeholders at the Closing Gong Ceremony, which marked the end of 2024 trading activities. The stockbroking community was represented by the Association of Securities Dealing Houses of Nigeria (ASHON) and the Chartered Institute of Stockbrokers (CIS).
“The secondary market saw a lot of activity in 2024, which is a result of our trading licence holders’ hard work. We value the CBN’s and the Federal Ministry of Finance’s significant policymaking, and complementary macroeconomic foundations played a key role. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalization process,” he said.
The importance of stockbrokers in promoting capital market expansion was underlined by CIS President and Council Chairman Oluropo Dada and ASHON Chairman Sam Onukwue, who were represented by Ify Rita Ejezie, the second vice chairman. They reaffirmed their determination to support laws that promote the growth of the market.
There are still difficulties in spite of the remarkable expansion. Nigeria’s capital market is still beset by issues that hinder liquidity, including high transaction costs, information asymmetry, monetary tightening, low trading volumes, and huge bid-ask gaps, according to Proshare’s 2025 market outlook. Nonetheless, the paper emphasises how listing national assets like NNPC may leverage the equity market to provide liquidity and attract both global and local investment.
The stability and growth trajectory of the market were underlined by Temi Popoola, GMD/CEO of Nigerian Exchange Group: “Nigeria’s capital market has continuously provided investors with worthwhile possibilities, demonstrating its durability and inventiveness. Despite difficult economic cycles, our blue-chip firms’ impressive performance over the last ten years has been a major contributor to gains. Because of inflationary pressures, stocks are now a desirable hedge, and well-timed new listings have greatly increased market activity.
He also emphasized how policy reforms have a transformative effect: “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies.”
“As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants,” they added..
