Naira Surge Sends Nigerian Stocks Soaring to Africa’s Peak
Atume Terfa
Nigeria’s stock market has roared back to life, propelled by a strengthening naira and renewed investor confidence, positioning the country’s equities among Africa’s top performers in dollar terms.
The rally comes as investors respond to signs of currency stability and ongoing economic reforms, lifting the Nigerian Exchange Limited (NGX) to a leading spot across the continent. The surge has recaptured much of the market value lost to past naira volatility, with equities outpacing many regional peers in recent weeks.
A firmer naira, backed by tighter foreign-exchange liquidity and strategic policy measures, has made Nigerian assets increasingly appealing to both local and international investors. The NGX’s performance, when measured in dollars, has climbed to the upper echelons of African markets, fuelled by broad gains across major sectors and strong demand for heavyweight stocks.
Banking, telecoms, and consumer goods firms have anchored the momentum, with several companies now valued in the trillions of naira as investors chase steady earnings and dividend returns. Reports indicate that over two dozen firms on the exchange have surpassed the trillion-naira market capitalisation mark, highlighting concentrated growth in financial and industrial stocks.
The week-to-week momentum has also been impressive. In a recent week alone, investors added over N8 trillion to market value, lifting the NGX All-Share Index and signalling a remarkable shift in market sentiment toward stocks with solid fundamentals and earnings potential.
Analysts, however, caution that while the rally and currency gains are encouraging, sustaining this momentum will require deeper economic reforms and steady capital inflows. For now, the stronger naira combined with heightened investor appetite has catapulted Nigeria’s bourse to the forefront of African equity markets, a striking recovery from past volatility and a clear sign that confidence in the country’s financial markets is on the rise.
