Kayode Tokede
Buoyed by renewed investor confidence, impressive corporate earnings, and foreign exchange reforms, the overall market capitalisation of securities listed on the Nigerian Exchange Limited (NGX) rose by about N65.4 trillion in the first eight months of 2026.
The three major categories of securities on the Exchange are equities, bonds and Exchange Traded Funds (ETFs).
Statistics obtained by THISDAY showed that the overall market capitalisation of listed securities closed August 2026 at N215.09 trillion, up by N65.4 trillion, or 43.7 per cent, from N149.735 trillion at the end of December 2025.
A breakdown showed that equities accounted for the bulk of the increase, with market capitalisation rising by N58.5 trillion, or 59.04 per cent, to N157.7 trillion at the end of August 2026, from N99.183 trillion in December 2025.
Similarly, the market capitalisation of bonds listed on the NGX increased by about N5.9 trillion, or 11.7 per cent, to N56.3 trillion in August 2026, from N50.409 trillion at the end of 2025.
The market capitalisation of ETFs also rose by N6.39 billion, or 14.9 per cent, to N49.236 billion from N42.845 billion in December 2025.
Data obtained from the NGX further showed that the total market capitalisation of the Non-Interest Finance Board stood at N1.36 trillion in August 2026.
The Exchange also included Commercial Papers (CPs) among its debt securities for the first time in August 2026.
Other securities in the debt market include corporate bonds/debentures as well as federal, state and local government bonds.
According to the statistics, the market capitalisation of commercial papers stood at N71.15 billion, while that of corporate bonds/debentures increased by 50.11 per cent to N1.34 trillion in August 2026, from N893.9 billion at the end of 2025.
The federal government’s debt securities rose to N54.32 trillion in August 2026, from N49.32 trillion at the end of 2025, representing an increase of about 10.1 per cent.
For state and local government securities, market capitalisation rose 91.13 per cent to N571.05 billion in August 2026, up from N298.77 billion at the end of 2025.
The NGX has recorded significant growth so far in 2026, driven largely by the Central Bank of Nigeria’s (CBN) foreign exchange reforms, banking sector reforms, stronger corporate earnings, and renewed investor confidence.
Relative stability in the foreign exchange market has also contributed to improved foreign capital inflows into the country.
In addition, increased government borrowing to finance the 2026 budget boosted activity in the debt market, with some of the instruments listed on the NGX through the Debt Management Office (DMO).
The NGX Group attributed the bullish trend to greater regulatory clarity, macroeconomic reforms and growing confidence among domestic and foreign investors.
These developments have strengthened the Nigerian capital market’s performance.
NGX Group Managing Director, Temi Popoola, attributed the growth to deliberate structural reforms, increased collaboration with the Securities and Exchange Commission (SEC), and improved investor protection.
He said the Group’s investments in digital access platforms, including NGX Invest, as well as partnerships with exchanges in other African and Asian markets, reflected its strategy to deepen market participation and expand its reach beyond Nigeria.
According to Popoola, the initiatives aim to build a future-ready capital market capable of exerting greater continental and global influence.
Market analysts also identified improved investor confidence, macroeconomic reforms and stronger corporate performance as major drivers of the rally.
They noted that the resurgence in foreign portfolio investment, improved company fundamentals, and oversubscribed public offerings indicated a more resilient and increasingly attractive Nigerian capital market.
Vice-President, Highcap Securities Limited, David Adonri, said the stock market had attracted considerable interest in 2026, particularly in recovering major stocks such as Airtel Africa Plc, Nestlé Nigeria Plc, Nigerian Breweries Plc, Cadbury Nigeria Plc and MTN Nigeria Communications Plc.
According to him, renewed interest in the stocks contributed significantly to the market rally.
Adonri said the Initial Public Offering (IPO) of Dangote Refinery could raise the equities market capitalisation from about N160 trillion to approximately N225 trillion.
He attributed the projection to the refinery’s estimated valuation of N65.22 trillion, which, if realised at listing, could make it the largest company by market capitalisation on the NGX.
Managing Director/Chief Executive Officer of Globalview Capital Limited, Aruna Kebira, told THISDAY that the stock market had demonstrated resilience and generally positive performance in the first eight months of 2026, despite episodes of volatility and prevailing economic headwinds.
He identified banking sector recapitalisation, strong corporate earnings, moderation in inflation, improved investor confidence, and increased transaction volumes as major factors driving the market.
On expectations for the remainder of 2026, Kebira said the outlook for the Nigerian stock market remained cautiously optimistic.
He identified the continued impact of economic reforms, momentum from the banking sector recapitalisation exercise, half-year corporate earnings, regulatory reforms and stability in the fixed-income market as factors likely to shape market performance during the remainder of the year.