Onome Amuge
In 2025, despite tight monetary policy, high fixed-income yields, and ongoing macroeconomic uncertainty, Nigeria’s equity market delivered remarkable wealth creation driven not only by index heavyweights but also by a wide range of old-economy companies, turnaround stocks, and previously overlooked names.
By December 22, 2025, no fewer than 40 listed companies on the Nigerian Exchange Limited (NGX) had returned more than 100 per cent to investors, a performance that contrasts with the caution that dominated market sentiment at the start of the year. While the NGX All-Share Index (ASI) itself posted a robust year-to-date gain of 48.12 per cent, the scale of outperformance among select stocks indicates that 2025 will be remembered less for the headline index number and more for its stock-picking opportunities.
At the top of the leaderboard was NCR Nigeria, whose 1,354 per cent rally redefined what was possible on the local bourse within a single calendar year. The stock’s performance underscored a recurring theme of 2025: corporate restructuring stories and balance sheet improvements were rewarded far more aggressively than passive exposure to the market.
Other notable gainers included Beta Glass, which advanced by 470.11 per cent, and Mutual Benefits Assurance, up 408.20 per cent. Champion Breweries rose 339.63 per cent, while Eunisell Interlinked climbed 315.15 per cent.
Consumer goods, long considered a challenging segment due to inflationary pressures and weak consumer purchasing power, also produced outsized winners. Guinness Nigeria rose 312.38 per cent, Vitafoam Nigeria gained 311.30 per cent, and NASCON Allied Industries appreciated by 254.07 per cent.
The financial services sector was another major beneficiary of the year’s rally. Insurance stocks, in particular, enjoyed renewed relevance following regulatory reforms. Sovereign Trust Insurance gained 255.36 per cent, AIICO Insurance rose 174.83 per cent, Custodian Investment added 105.26 per cent, and NEM Insurance advanced 131.05 per cent. Analysts linked the renewed interest to expectations of recapitalisation, consolidation and stronger underwriting discipline following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
Banking and diversified financial plays also posted solid returns. Wema Bank gained 108.89 per cent, while NPF Microfinance Bank rose 119.30 per cent, reflecting investor confidence in niche banking models and digital-led growth strategies.
In the industrial and infrastructure space, Julius Berger appreciated by 119.75 per cent, buoyed by sustained public and private sector construction activity. UPDC rose 223.90 per cent, while Ikeja Hotels gained 203.11 per cent, pointing to a gradual recovery in real estate and hospitality amid improving business confidence.
Market activity in early 2025 was subdued as investors gravitated towards fixed-income instruments offering attractive real yields amid tight monetary conditions. However, sentiment shifted decisively as the year progressed. Improved currency stability, stronger-than-expected corporate earnings and consistent dividend payments encouraged investors to rotate back into equities, particularly stocks trading below intrinsic value.
Afrinvest Limited observed that overall market participation strengthened steadily, marked by sustained bullish sentiment punctuated by periodic profit-taking. According to the research firm, reform-driven developments, policy implementation and rising market awareness collectively drove higher trading volumes across the year.
July emerged as a defining moment, with trading volumes rising to their highest levels for the year. This rally was driven by aggressive buying in fundamentally strong stocks following earnings releases, alongside heightened interest in insurance equities after the NIIRA 2025 was signed into law. September also recorded a notable pickup in activity, supported by renewed confidence across key sectors.
One of the most striking features of 2025 was the breadth of the rally. From agriculture-linked stocks such as Presco (up 205.26 per cent) and Okomu Oil (149.77 per cent), to ICT and telecoms plays like MTN Nigeria Communications (165.85 per cent) and CWG (144.16 per cent), gains were spread across the market.
Even transportation and aviation-related stocks, often sensitive to macroeconomic volatility, delivered strong returns. ABC Transport rose 156.01 per cent, Caverton Offshore Support Group gained 128.45 per cent, while aviation handling companies such as NAHCO and SAHCO appreciated by 137.79 per cent and 164.42 per cent respectively.
Looking into 2026, Afrinvest projects a constructive outlook, forecasting a 40.9 per cent gain in the NGX-ASI under its base case scenario. The projection is anchored on expectations of sustained price and naira stability, gradual monetary policy easing, improved corporate earnings, and elevated pre-election liquidity.
Additional upside could come from aggressive capital mobilisation by insurance companies and pension fund administrators, as well as anticipated landmark listings such as Dangote Petrochemicals. However, analysts caution that risks remain, including renewed inflationary pressures, foreign exchange volatility, weak foreign portfolio participation and delays in expected listings.
