The overall market capitalisation of the Nigerian Exchange Limited (NGX)-debt, equities and Exchange Traded Fund) crossed the N120trillion mark to N121.35 trillion in May 2025, amid a hike in foreign investors inflow.

This is about 11.05 per cent or N12.08trillion Year-till-Date growth when compared to N109.27 trillion overall market capitalisationyear end December 2024. 

For the debt market, it is made up of corporate Bonds/Debentures, FGN Bonds and State and Local Bonds.

Currently, there are 15 listed bonds on NGX issued by the Central Bank of Nigeria (CBN) and Federal Government of Nigeria; four States bonds and 21 corporate Bonds/Debentures. As of May 2025, a total of 150 companies are listed on the NGX.

Equities market contributed about 58.07 per cent or N70.470 trillion of the N121.35 trillion total market capitalisation and continues to dominate transactions on NGX. NGX transactions has been greatly impactedby foreign investors taking advantage of the foreign exchange reforms by the CBN. 

The Debt market came second, contributing about 41.91 per cent or N50.851 trillion as of May 2025, while ETF ranked third with 0.02per cent or N25.5billion contribution to the overall N121.35 trillion in the period under review.

For the equities market, it has appreciated by N7.7 trillion in the first five months of 2025 to close at N70.470 trillion from N62.774 trillion it closed 2024, while the debt market moved from N46.446 trillion in December 2024 to N50.851 trillion as of May 2025.

The equities market growth of N7.7 trillion in the first five months of 2025 can be attributed to strong earnings by listed companies, and foreign investors’ demand for fundamental stocks.

A breakdown of equities market capitalisation revealed that, in January 2025, it appreciated by N1.95 trillion, and in February 2025, it appreciated by N2.48 trillion to close at N67.193 trillion.

In March 2025, the equities market was down by N936 billion as investors shifted attention to money market instruments.  In addition, it gained N239.03 billion in April 2025 from N66.257 trillion it opened for trading to close at N66.496 trillion.

However, the equities market gained N3.97 trillion buoyed by investors’ demand for Airtel Africa Plc that added N810.3billion by market capitalization.

Out of the N70.470 trillion market capitalisation of listed equities as of May 2025, Airtel Africa contributed N8.92 trillion or 12.65 per cent, to maintain its position as most capitalised listed company on NGX.

Airtel Africa was followed by BUA Foods Plc and Dangote Cement and with a market capitalisation of N7.92 trillion and N7.42 trillion, respectively. 

In the five months under review, Nigeria’s inflation showed signs of easing, currently at 23.71per cent amid the rebasing exerciseby National Bureau of Statistics (NBS).

So far this year, the CBN has continued its monetary policy tightening to stabilise the naira and inflation.

Listed corporate earnings on NGX also played a pivotal role with major fundamental companies declaring impressive earnings in the first quarter (Q1) ended March 2025 and others migrated to profit generation.

Capital market analysts noted that the corporate earnings reports of Q1 2025, coupled with strong dividend declarations from the 2024 FY results, especially from the banking sector, cement manufacturing companies, encouraged investors seeking returns in a volatile macro environment.

Although domestic investors were a major force behind the rally, foreign investors are closing gap by increasing their statke on NGX.

The latest Domestic and Foreign Portfolio Investment (FPI) report released by the NGX last month indicated that as of April 30, foreign investors contributed 32.32 per cent out of N2.71 trillion total transaction as against 13.77 per cent of the N1.89 trillion reported April 2024.

In the first five months under review, several equities listed on the NGX have recorded strong month to date appreciation, reflecting heightened foreign investor confidence driven by improved macro-economic indicators and robust corporate earnings.

Capital market analysts noted that sustaining this momentum in the rest of 2025 will depend on the continuation of stable and credible economic policies.

The Vice President, Highcap Securities, David Adonri noted that the equities market so far in 2025 has witnessed massive interest in the recovering major stocks such as Airtel Africa, Nestle Nigeria Plc, Nigeran Breweries Plc, Cadbury Nigeria Plc, MTN Nigeria Communications Plc, and others which propelled the May rally.

“Having reacted, the market is expected to cool down until perhaps the third week in June when half year corporate expectations will start impacting the market positively or negatively, depending on the kind of price sensitive information that inundates the market,” he said.

On his part, the MD/CEO, Globalview Capital Limited, ArunaKebira, in a chat with THISDAY said the stock market has shown a resilient and generally positive performance during the first five months of 2025, despite some volatility and economic headwinds.

He listed banking sector recapitalisation, corporate earnings, inflation moderation, investor confidence and increased transaction volume as the major drives of the stock market in the first five months of 2025.

On expectation for June 2025, he said the outlook for the Nigerian stock market in June 2025 remains cautiously optimistic, considering several factors such as; continued impact of reforms, banking sector momentum; half year earnings season, regulatory reforms  and  fixed income market stability.