Nigeria's capital market has recorded one of its strongest growth phases in recent history, with the Nigerian Exchange Limited (NGX) adding more than N130 trillion in market value during the first three years of President Bola Tinubu's administration.
The performance, which analysts say has been driven by reforms aimed at stabilising the economy and restoring investor confidence, has seen the market capitalisation of listed equities rise from N28.845 trillion in May 2023 to N160.509 trillion as of 29 May 2026. This represents a gain of N131.664 trillion, or 456.45 per cent, over the period.
The rally has been supported by strong performances in banking, industrial and consumer goods stocks, as investors responded positively to key policy measures, including foreign exchange market reforms, fiscal adjustments and efforts to strengthen the financial sector.
Data from the NGX showed that the All-Share Index (ASI), the benchmark gauge of market performance, surged by 372.66 per cent during the period under review, rising from 52,973.88 points on 28 May 2023 to 250,385.47 points on 29 May 2026.
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Market analysts attributed the gains to a combination of macroeconomic reforms and regulatory initiatives that helped reposition the capital market and improve its attractiveness to both local and foreign investors.
Among the major policy actions that shaped the market were the removal of fuel subsidies and the unification of the foreign exchange market in 2023, the banking sector recapitalisation programme launched in 2024, the enactment of the Investment and Securities Act 2025, the transition to a T+2 settlement cycle and the extension of trading hours on the Exchange.
The chief executive officer of Sofunix Investment and Communications, Sola Oni, said the Tinubu administration's economic reforms had significantly influenced the positive trajectory of the capital market.
According to him, reforms such as fuel subsidy removal, foreign exchange liberalisation, banking recapitalisation and fiscal restructuring have strengthened investor confidence and stimulated renewed activity on the NGX.
"These policies improved investor confidence, boosted activity on the Nigerian Exchange and attracted renewed interest from both local and foreign institutional investors," Oni said.
He noted that the stock market's impressive growth reflected investors' confidence in the government's willingness to address structural economic challenges that had constrained growth for years.
However, Oni cautioned that while the reforms have delivered substantial gains for investors, they have also imposed significant short-term economic costs on many Nigerians.
"Inflation, naira depreciation and rising living costs have weakened consumer purchasing power and placed pressure on several businesses, particularly those dependent on imports," he said.
He added that although the capital market had benefited from improved sentiment and reform expectations, the broader population was yet to fully experience the benefits.
"While the market has responded positively, the long-term success of these reforms will depend on whether they translate into broader economic stability, job creation and improved living standards for ordinary Nigerians," he said.
Also commenting on the market's performance, the Managing Director of APT Securities and Funds Limited, Alhaji Kasumu Kurfi, said many of the reforms introduced under the current administration were likely to endure beyond the present political cycle.
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According to him, policies that have strengthened institutions, enhanced market confidence and attracted investment are unlikely to be reversed.
"Nobody is likely to reverse reforms that have improved confidence in the market and strengthened the economy. The direction from here is forward," Kurfi said.
The strong performance of the NGX over the last three years underscores the growing role of the capital market as a barometer of investor sentiment and a key channel for mobilising long-term capital.
Despite ongoing concerns over inflation and the cost of living, analysts believe sustained implementation of economic reforms and continued market deepening could help maintain investor confidence and support further growth in Nigeria's capital market.
