By Omoniyi David
The Nigerian capital market recorded one of its strongest performances in 2025, earning global recognition after delivering exceptional returns and attracting increased investor interest.
As attention shifts to 2026, analysts are assessing whether the rally can be sustained amid political and policy uncertainties.
The market closed 2025 with an average equities return of 51.19 per cent, placing Nigeria among the world’s top five performing stock markets.
The Nigerian Exchange All Share Index posted a net capital gain of N32.13 trillion, outperforming several major economies where average returns remained below 25 per cent.
Capital raising activities rose to about N7 trillion, reinforcing the market’s role as a key funding source for government and corporate expansion.
Trading volumes also hit record levels, supported by strong activity in both the primary and secondary markets.
The debt market remained resilient, with companies increasingly relying on capital market instruments amid high interest rates. Commercial paper issuances alone reached nearly N1 trillion, largely driven by private firms.
The positive momentum has extended into 2026, with equities valuation approaching N100 trillion despite early year spending pressures. Analysts, however, caution that the year presents a mix of opportunities and risks.
As a pre election year, 2026 will see heightened political activity alongside the first full implementation of new capital market and tax laws. While the reforms are expected to strengthen regulation, analysts warn that policy interpretation and execution could influence investor sentiment, especially foreign portfolio flows.
Market watchers are also focusing on banking and insurance sector recapitalisation, which is expected to drive equity issuances, mergers and acquisitions in the first half of the year.
Analysts say sustained policy stability and effective implementation will be critical in determining whether the market extends its rally or enters a period of adjustment.