Nigerian Stocks Achieve Second-Best Dollar Returns in 2026

In 2026, Nigerian stocks delivered the world's second-best dollar returns, with a remarkable 31% increase, recovering $21 billion in market value lost due to the naira's devaluation in 2024. The market capitalization of the Lagos Exchange climbed to $84 billion, approximately 58% higher than previous levels following a currency collapse.

According to a Bloomberg report, Nigeria's benchmark index surged, far outpacing the 11% gain of the broader emerging market index and the 6.4% advance of frontier market stocks. Analysts, including Olabod William from SBG Securities Ltd, attributed this gain to improved corporate earnings, a firmer naira, and renewed investor confidence.

The naira's stabilization has positively impacted companies' balance sheets and profitability. Foreign participation in the Nigerian equity market reached a 19-year high in 2025, with foreign investor transactions tripling to N2.65 trillion ($1.97 billion) from N852 billion the previous year.

Gloria Fadip from CSL Stockbrokers Ltd noted that major listings, including Aliko Dangote's refinery and fertilizer plant, contributed to this rebound, which followed broader economic reforms under President Bola Tinubu's administration.