Nigeria's stock market climbed to a new high this week, extending its rally on the back of broad economic reforms, renewed investor confidence, and improving business sentiment across sectors.
The Nigerian Exchange Limited All-Share Index (NGX ASI) advanced by 1.01 per cent yesterday to close at 151,456.91 basis points, pushing market capitalisation to N96.13 trillion. The index has now gained 6.1 per cent this month and 47.2 per cent year-to-date, underscoring the strength of demand in blue-chip and mid-tier stocks.
Analysts say the rally reflects growing optimism among both institutional and retail investors, including small and medium enterprises (SMEs) increasingly participating in the market through investment funds and cooperatives.
They noted that reforms such as the liberalisation of the naira, removal of fuel subsidies, and stronger coordination between fiscal and monetary authorities have boosted liquidity and created a more predictable environment for businesses.
At the Financial Times Africa Summit 2025 in London, Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, said the coordinated reforms had rebuilt confidence in Nigeria's financial system and opened new financing opportunities for local businesses.
Read also,
"The resilience we are seeing in the market is a reflection of confidence—both from large investors and small businesses seeking alternative funding sources," Popoola stated.
Similarly, Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, highlighted that the new Investments and Securities Act 2025 was designed to strengthen corporate governance and transparency—key enablers for SME access to capital.
He said: "Robust regulation gives confidence to all market players, from institutional investors to small businesses, ensuring everyone can thrive within a transparent and disciplined financial system."
With improved market performance and increasing investor interest, experts believe that the reforms are gradually bridging the gap between the formal financial market and Nigeria's growing SME sector—creating opportunities for expansion, job creation, and inclusive growth.
