Why NGX stands out among global stock markets
By Aboki Forex —
The Nigerian Exchange Group (NGX) has become one of the world's most resilient and profitable stock markets, driven by bold economic reforms and a dramatic return of foreign portfolio investors. After a bleak 2023, the market's capitalisation has jumped from N63 trillion to N160 trillion.
From capital flight to comeback
In 2023, foreign portfolio investors fled Nigeria. The Central Bank of Nigeria (CBN) could not allocate foreign exchange to them for repatriation because reserves stood at just $33 billion. The naira was depreciating dangerously, trading as low as N1,700 to the dollar by 2024.
President Bola Ahmed Tinubu's decision to withdraw petrol subsidy initially made things worse. Food inflation spiralled as the cost of evacuating food items from rural farming communities tripled. But the reform also changed government finances. Before the subsidy removal, the three tiers of government shared N700 billion monthly from the federation account. They now share anything from N2 trillion monthly.
Reforms paying off
The extra revenue allowed the federal government to embark on massive infrastructure rehabilitation, creating jobs and growing the economy. In the first half of 2026, the economy grew at close to five per cent. Non-oil exports rose by 1,407, helping lift foreign exchange reserves from $33 billion to $52 billion in recent weeks.
The reserves can now fund over 12 months of imports. More importantly, the CBN can allocate foreign exchange for foreign portfolio investors to repatriate their proceeds. That triggered a massive return of these investors, who ploughed $20 billion into the NGX last year.
Record market capitalisation
The market's growth has been dynamic. On one frenzied day in the first quarter of 2026, capitalisation rose by a record N5 trillion. Even the bearish posture in the closing weeks of July 2026 could not deplete the gains, with the market growing back to N160 trillion.
Domestic investors now control a higher percentage of investments in the market, despite the dominant role of foreign investors. Two factors drive the invasion. First, rapid market growth delivers bountiful capital gains. GTBank recorded well over N50 gains in less than three months in 2025, and the NGX's annual return on investment is close to 60 per cent.
Second, listed companies pay attractive dividends. GTBank set a record in 2025 by paying N12.05 per share, the highest in the banking industry. Dangote Cement also reported a profit after tax of $730 million.
For Nigerian businesses and consumers, the stronger capital market and rising reserves mean improved confidence and more room for investment. The naira's stability now rests on sustaining these reform gains and keeping foreign investors engaged.