Nigerian Stocks Surge Amid Economic Reforms, Investor Confidence Rises

Investor sentiment towards Nigerian assets has notably improved, with the Nigerian Exchange Limited (NGX) experiencing a market capitalization increase of ₦1.95 trillion in January 2025, attributed to significant government-led economic reforms. The All-Share Index rose by 1.53%, reflecting growing confidence among foreign portfolio investors amidst signs of naira stabilization. Major banks have also raised over ₦1 trillion from the stock market to meet new capital requirements, with the NGX Banking Index up 12.24% since early January. Analysts suggest that continuing reforms and policy consistency are crucial for sustaining this positive momentum. Additionally, Nigeria's sovereign risk spread has dropped to its lowest level since January 2020, enhancing its appeal to investors. Overall, expectations for economic growth and increased foreign investment are shaping a more optimistic outlook for Nigeria's financial markets in 2025.