Nigerian Equities Post Global Second-Highest Dollar Returns in 2026
Nigerian equities have emerged as one of the top-performing assets globally this year, delivering the second-highest dollar returns worldwide after recording a 31 per cent gain in 2026.
Data reported by Bloomberg shows that the country’s benchmark index has significantly outperformed broader emerging and frontier market gauges, which posted gains of 11 per cent and 6.4 per cent respectively within the same period.
The strong rally has helped the market recover an estimated 21 billion dollars in value that was wiped out following the sharp devaluation of the naira in 2024.
Total market capitalisation on the Nigerian Exchange Group now stands at approximately 84 billion dollars, representing an increase of about 58 per cent compared to levels recorded before the currency slump.
Market analysts link the surge to improved corporate earnings, relative currency stability and renewed investor confidence. Olabode Williams of SBG Securities Limited noted that several companies previously impacted by the currency depreciation have strengthened their financial positions and returned to profitability, prompting investors to price in stronger growth prospects.
He observed that the renewed momentum reflects growing interest from both domestic and offshore investors, especially after a prolonged period of weak performance in the equities market.
Support for the rally has also come from the foreign exchange market. The naira has appreciated by more than 7 per cent against the United States dollar this year, ranking among the best-performing currencies tracked globally.
The currency rebound has further bolstered investor sentiment and reinforced gains on the stock market.
Foreign participation has risen sharply alongside the upturn. Trading data from the Nigerian Exchange indicates that non-Nigerian transactions reached their highest level in nearly two decades in 2025. The value of foreign trades tripled to 2.65 trillion naira, equivalent to about 1.97 billion dollars, up from 852 billion naira recorded a year earlier.
Gloria Fadipe of CSL Stockbrokers Limited, a subsidiary of FCMB Group Plc, projected that the market could exceed a 100 billion dollar valuation this year if planned listings linked to the Dangote refinery and fertiliser projects materialise.
She estimated that such developments could drive capital gains of up to 34 per cent.
The rebound in equities comes amid sweeping economic reforms introduced by President Bola Tinubu, including measures aimed at liberalising and unifying the foreign exchange market to attract investment and stabilise the economy.
