Stock market hits ₦160tn, NGX projects ₦230tn by year-end

NGX leadership briefed President Tinubu that total equity market capitalisation surged from ₦30 trillion in May 2023 to ₦160 trillion, with projections of ₦230 trillion by end of 2026.

During a delegation visit by the Nigerian Exchange Group (NGX) to the State House, NGX leadership briefed President Tinubu that total equity market capitalisation surged from ₦30 trillion in May 2023 to ₦160 trillion. Corporate executives projected market capitalisation could reach ₦230 trillion before the close of 2026, driven by new enterprise listings and financial sector recapitalisations.

The surge in market capitalisation reflects growing investor confidence in the Nigerian economy. The increase from ₦30 trillion to ₦160 trillion in just over three years is a remarkable achievement. The projection of ₦230 trillion by year-end suggests that the momentum is expected to continue.

This echoes the 2020 stock market rally, which also saw significant gains. The mechanism then was different, but the result was the same: a growing capital market.

The winners: investors, who have seen their portfolios grow; and the NGX, which has facilitated the growth. The losers: the Nigerian public, who have yet to benefit; and the government, which must sustain the momentum.

Bottom Line: The stock market has hit ₦160 trillion. The target is ₦230 trillion. The question is whether the growth is sustainable.