Capital market investors net N30 trillion gains in Q1
By Taofik Salako, Deputy Group Business Editor The Nigerian equities market delivered a net capital gain of N29.17 trillion in the first quarter as increased demand from domestic and foreign
By Taofik Salako, Deputy Group Business Editor
The Nigerian equities market delivered a net capital gain of N29.17 trillion in the first quarter as increased demand from domestic and foreign investors sustained price rally during the three-month period.
Trading data provided by the Nigerian Exchange (NGX) yesterday indicated that the market closed the quarter with average year-to-date return of 29.35 per cent, already more than half of 51.19 per cent recorded for the whole of 2025.
This implies that investors have seen additional capital gains of N29.17 trillion over the past three months, more than 90 per cent of N32.13 trillion recorded as monetary equivalent of capital gains for the whole of 2025.
With this, Nigeria ranks among the three best-performing stock markets globally and further affirms its rating as leading frontier market.
Experts were unanimous that the market performance was driven by improving macroeconomic outlook, citing rising foreign inflows and notable tendency by foreign investors to retain more trading funds in the country.
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The All Share Index (ASI)- the value-based common index that tracks all share prices at the NGX, closed yesterday at 201,287.78 points as against the year’s opening index of 155,613.03 points, representing an increase of 29.35 per cent.
The ASI, a weighted value index, doubles as the Nigeria’s sovereign equities index and it is widely regarded as the barometer for the economy and a reliable gauge of investors’ sentiment.
Aggregate market value of all quoted equities at the stock market also rose from the year’s opening value of N99.376 trillion to close yesterday at N129.210 trillion, representing an increase of N29.834 trillion. The minor difference between the ASI and aggregate market value reflects yet-to-be-fully absorbed or unadjusted effect of new shares listed during the period.
Market pundits attributed the strong performance renewed investors’ confidence buoyed by appreciable corporate earnings, foreign portfolio inflows and steadily predictable foreign exchange system.
Analysts said stability in the foreign exchange market, declining inflation and higher dividend expectations were rebalancing portfolios in favour of quoted shares.
A sample of corporate earnings reviewed yesterday showed that companies, across the sectors, were on record rebound while several others consolidated their growths.
In the manufacturing sector, Unilever Nigeria Plc recorded significant growths in sales and profitability in 2025, with net profit rising from N15 billion in 2024 to N32 billion. Key extracts of the audited report and accounts of Unilever Nigeria for the year ended December 31, 2025 showed that turnover rose by 43 per cent to N214 billion as against N150 billion recorded in the corresponding period of 2024. Gross profit rose by 62 per cent to N90 billion.
Cadbury Nigeria grew sales by 31 per cent from N129.17 billion in 2024 to N168.66 billion in 2025. The company saw a rebound from pre-tax loss of N28.3 billion in 2024 to pre-tax profit of N17.36 billion in 2025. Net profit stood at N8.97 billion in 2025 as against net loss of N22.22 billion in 2024.
Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Temi Popoola, said the market performance was a sign of growing confidence in Nigeria’s capital market.
He said: “Nigeria’s ongoing reforms are strengthening domestic capital formation, and the market is responding positively. Increased participation by local investors, improving corporate fundamentals, and continued market modernisation are reinforcing the role of the capital market as a catalyst for long-term wealth creation and sustainable economic growth”.
According to him, reforms by the President Bola Ahmed Tinubu’s administration were already strengthening domestic capital formation and positioning the country for deeper global investment partnerships.
Drawing comparisons with countries such as Indonesia, Brazil and India, Popoola noted that economies that implemented structural reforms often witnessed strong domestic capital mobilisation and strengthened corporate balance sheets.
According to him, Nigeria is currently experiencing a similar trend as local investors and corporates increasingly respond to policy reforms.
He said: “The real test of reforms is what local capital does and how domestic corporates respond. In Nigeria today, local capital is playing a very strong role. Markets were up more than 50 per cent last year, issuers are raising new capital, retail investors are returning to the market, and corporate balance sheets and governance standards are improving”.
Managing Director, Globalview Capital Limited. Mr. Aruna Kebira attributed the bullish momentum to the strong fundamentals of listed companies, particularly in the manufacturing sector.
He noted that improved stability in the foreign exchange market and a gradual decline in inflation have further strengthened market sentiment.
According to him, current government policies have continued to reinforce a positive investor outlook, driving increased participation and boosting demand for manufacturing stocks.
He pointed out that attractive return on investment in equities has remained a key factor drawing investors into the market.
He expressed optimism that the successful completion of banking recapitalisation would see banking stocks providing further impetus for the rally.
