Nigeria holds on as Africa’s top stock market despite N9.8 trillion sell-off
By Aboki Forex —
The Nigerian stock market has lost nearly N10 trillion in value this month as investors rushed to lock in profits after a long rally. But the correction has not knocked Nigeria off the top of Africa’s equity rankings.
Data from African Markets shows the Nigerian Exchange Limited delivered a 59.5 percent return in US dollar terms year-to-date as of June 24, 2026. That is the highest among 17 African stock exchanges tracked. Nigeria has held the lead for three weeks in a row.
Macroeconomic reforms and a more stable naira are reshaping the country’s investment story. Ghana came second with a 57.7 percent dollar return. Zimbabwe followed at 40.5 percent, then Rwanda at 38.8 percent, Tunisia at 35.8 percent, and Tanzania at 32.7 percent.
In local currency terms, Nigeria posted a 51.1 percent gain. That is second only to Ghana’s 69.2 percent return.
This is not the first time Nigeria has led the continent this year. The NGX was the best-performing stock exchange in February with a 34.4 percent gain before extending its lead again in June.
The ranking marks a big turnaround. Only a year ago, the market was struggling with currency volatility and weak foreign investor confidence.
Robust corporate earnings and banking sector reforms have fuelled equity gains. But analysts say the biggest difference this year has been the naira. Unlike previous rallies that were eroded by steep currency depreciation, the relative stability of the naira has preserved equity gains in dollar terms. That makes Nigerian assets more attractive to foreign investors.
For global fund managers, returns are measured in dollars, not naira. Nigeria is now offering both strong equity performance and reduced currency risk.
“The naira’s appreciation has amplified dollar returns,” said Gbolahan Ologunro, associate portfolio manager at First Asset Management.
The naira ranked as Africa’s second-best performing currency. Its resilience has helped Nigeria weather recent global volatility better than many of its African peers. While the conflict in the Middle East drove up oil prices and rattled financial markets for the past four months, Nigeria has been less exposed than many fuel-importing economies. The Dangote Refinery has helped by reducing dependence on imported fuel.