Nigerian stocks beat South Korea to become world’s best in dollar terms
Nigerian equities have overtaken South Korea to become the world’s best-performing stock market in dollar terms this year, with a 67% return.
Nigerian equities have emerged as the best-performing stock market globally in dollar terms this year, overtaking South Korea. According to data compiled by Bloomberg across 92 global stock exchanges, Nigeria’s benchmark stock index has returned 67% in dollar terms year-to-date, edging past South Korea’s Kospi index, which has gained 66%.
South Korea’s equity market has come under pressure in recent weeks, with the Kospi index entering a technical bear market after falling 22% from its June 19 peak. The decline reflects growing investor concerns over the sustainability of demand for AI-related stocks, which had previously fuelled one of the strongest rallies in global markets. The weakness has also been compounded by currency pressures, with the South Korean won losing 5% of its value against the US dollar since the start of the year.
In contrast, Nigeria’s stock market has rallied strongly on the back of improving macroeconomic conditions, ongoing economic reforms, firmer oil prices and improved foreign exchange liquidity. The naira has appreciated by approximately 4% against the dollar since January, further boosting returns for foreign investors.
Financial services stocks have been among the strongest performers on the Nigerian Exchange. Among the standout performers is Fortis Global Insurance Plc, which has generated returns of about 1,400% in dollar terms this year. Unlike South Korea’s market, where technology and AI-linked stocks play a dominant role, Nigerian-listed companies have limited direct exposure to the AI sector, shielding the market from the recent global technology sell-off.
Investor optimism has also been bolstered by recent developments from S&P Dow Jones Indices, which added Nigeria to its 2027 watchlist for a possible reclassification from a “Standalone” market to a “Frontier” market. A return to Frontier Market status would increase Nigeria’s visibility among international institutional investors and potentially attract fresh capital inflows.
On July 8, 2026, the NGX All-Share Index advanced 2.27% to 242,459.98 points, while total market capitalisation increased by ₦3.45 trillion to ₦155.59 trillion. The rally was largely driven by Airtel Africa, whose shares rose by the maximum daily limit of 10% to ₦5,801.40.
This mirrors the 2020-2021 stock market rally, when Nigerian equities delivered strong returns as foreign investors returned to the market. The mechanism was different then, but the result was the same: Nigeria proved it could compete with the best.
The winners: Nigerian investors who have seen their portfolios grow; foreign investors who have earned strong dollar returns; and the Nigerian Exchange, which has gained global visibility. The losers: South Korean investors who have seen their market enter bear territory, and Nigerian investors who missed the rally.
Bottom Line: Nigeria is the world’s best-performing stock market in dollar terms. That is not a fluke. That is a signal that the reforms are working.