Nigeria’s stock market has emerged as the best performing equity market in the world in dollar terms this year, overtaking South Korea after a remarkable rally driven by economic reforms, improved investor confidence, and stronger foreign exchange stability.
According to Bloomberg data covering 92 global stock exchanges, Nigeria’s benchmark stock index has delivered a 67 percent return in dollar terms since the beginning of the year, slightly ahead of South Korea’s Kospi Index, which recorded a 66 percent gain.
The milestone comes as South Korea’s stock market faces mounting pressure. The Kospi has fallen more than 20 percent from its June peak, slipping into bear market territory as investors reduce exposure to artificial intelligence related stocks amid concerns about slowing demand and stretched valuations. The decline has also been worsened by a weaker South Korean currency against the US dollar.
Nigeria, however, has continued to attract investors as confidence grows in the country’s economic reforms, improved foreign exchange liquidity, stronger oil prices, and the gradual recovery of the naira, which has appreciated against the dollar this year.
Financial stocks have played a major role in the market rally, with several companies recording impressive gains. Fortis Global Insurance has emerged as one of the top performers, posting extraordinary returns that have significantly boosted the overall market.
Investor sentiment has also been strengthened after S&P Dow Jones Indices placed Nigeria on its watchlist for a possible upgrade from a Standalone Market to a Frontier Market by 2027. Such an upgrade could increase Nigeria’s visibility among global institutional investors and attract fresh foreign investment into the Nigerian Exchange.
The positive momentum was further reflected in recent trading, with the NGX All Share Index recording one of its strongest single day gains in weeks as market capitalisation increased by more than N3 trillion. Airtel Africa was among the major drivers of the rally after its shares surged by the daily maximum limit.
The latest performance highlights Nigeria’s growing appeal as an investment destination and underscores renewed optimism that ongoing reforms could continue to strengthen the country’s capital market in the months ahead.
