Abstract：The Nigerian stock market experienced a significant surge in the first two months of 2025, with investors gaining ₦4.43 trillion. Behind this bullish trend, policy adjustments, market expectations, and capital flows played a crucial role.
At the beginning of 2025, the Nigerian stock market witnessed strong growth, with the All-Share Index (ASI) rising from 102,926.40 points to 107,821.39 points, marking a 4.76% increase.
During the same period, market capitalization grew by ₦4.43 trillion, reaching ₦67.193 trillion. Several sector indices performed well, with the NGX Lotus II Index leading the gains at 11.23%, followed by the NGX Premium Index at 7.76%, and the banking sector index rising by 7.49%. This bullish trend resulted in substantial profits for investors and heightened market optimism.
Policy Adjustments Fuel Market Growth
The strong performance of the stock market was closely linked to monetary policy adjustments by the Central Bank of Nigeria (CBN). With inflation declining, the CBN significantly lowered Treasury bill rates, prompting investors to shift more capital into equities.
Additionally, banking sector capital restructuring, new stock listings, and stable market policies further strengthened investor confidence. Notably, the listing of major corporations such as the Nigerian National Petroleum Company (NNPC) and Dangote Refinery enhanced market liquidity, attracting additional investments.
Future Market Outlook and Key Considerations
Market analysts generally expect the positive trend in the Nigerian stock market to continue in 2025, especially as corporate earnings and dividend declarations for the 2024 fiscal year are set to be released.
However, investors still need to monitor key factors such as national economic growth, the direction of monetary policy, and corporate earnings performance. Furthermore, exchange rate fluctuations and inflationary pressures may continue to impact the market.
