Nigerian equities records 5th consecutive year gain

In the final trading day of the year, the bears dominated the domestic bourse as the NGX All-Share Index (ASI) shed 22 basis points to settle at 102,926.40 basis points.

However, the local bourse maintained positive tragectory as it closed the year 2024 bullish, the fifth consecutive annual gain, having appreciated in value by 37.65 percent within the year.

The All Share Index (ASI) closed 2024 with an impressive annual growth of 37.65 percent settled at 102,926.40 basis points..

In summary, equities investors earned N21.85 trillion in 2024 as the market capitalisation closed the year at N62.76 trillion.

Over the year, high-profile listings have energized trading activities on the exchange, providing investors with a broader range of blue-chip stocks. Notable entries include Geregu Power Plc, Transcorp Power Plc, Aradel Holdings, and BUA Foods.

These listings have propelled the market capitalization from N12.79 trillion at the end of 2019 to N62.76 trillion as of December 2024, representing a meteoric increase of N49.97 trillion.

At the Closing Gong Ceremony marking the end of 2024 trading activities on Tuesday, NGX’s Chief Executive Officer, Mr. Jude Chiemeka, represented by the Head of Trading and Products, Mr. Abimbola Babalola, commended key stakeholders, including the stockbroking community represented by the Chartered Institute of Stockbrokers (CIS) and the Association of Securities Dealing Houses of Nigeria (ASHON).

“The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders. Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalization process,” he said.

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CIS President and Chairman of Council, Mr Oluropo Dada, and ASHON Chairman, Mr Sam Onukwue, represented by the 2nd Vice Chairman, Mrs. Ify Rita Ejezie, emphasized the pivotal role of stockbrokers in driving capital market growth. They reiterated their commitment to advocating for policies that enhance market development.

Despite the impressive growth, challenges remain. According to Proshare’s 2025 market outlook, Nigeria’s capital market continues to grapple with high transaction costs, information asymmetry, monetary tightening, low trading volumes, and wide bid-ask spreads, all of which stifle liquidity. However, the report underscores the potential of leveraging the equity market through the listing of national assets, such as NNPC, to unlock liquidity and stimulate domestic and foreign investment.

Temi Popoola, GMD/CEO of Nigerian Exchange Group, reflected on the market’s resilience and growth trajectory: “Nigeria’s capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors. The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity.”

He further highlighted the transformative impact of policy reforms: “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants.”

Nigerian Exchange Limited (NGX) has marked a remarkable turnaround, breaking away from the poor performance of the 2015–2019 period to thrive in the 2020s. Following the oil price crash in 2015 and the ensuing recession in 2016, the 2020s have ushered in a period of unprecedented growth for Nigeria’s stock market.

Since 2020, the NGX All-Share Index (ASI) has delivered a stellar return of 283.45 percent, climbing from 26,842.07 basis points at the end of 2019 to 102,926.40 basis points as of December 2024.

Standout years include 2020, 2023, and 2024, as investors sought higher real returns from equities amid negative yields in the fixed-income markets.

The depreciation of the naira, driven by macroeconomic reforms by the Central Bank of Nigeria (CBN) and the Federal Government, has significantly boosted the performance of the stock market. Foreign capital inflow has steadily increased, rising from a low of 4 percent in mid-2023 to an average of 16 percent by November 2024.

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