Investor sentiment toward Nigerian assets has strengthened, with the Nigerian Exchange Limited (NGX) recording a market capitalization increase of ₦1.95 trillion in January 2025. The All-Share Index (ASI) rose from 102,926.40 points at the end of 2024 to 104,496.12 points by January 31, reflecting a 1.53% gain. Analysts attribute the positive market trend to government-led economic reforms aimed at stabilizing the financial sector and restoring investor confidence.
Thank you for reading this post, don't forget to subscribe!Reforms Driving Market Optimism
Nigeria’s ongoing policy adjustments, including foreign exchange liberalization and fiscal restructuring, have played a crucial role in boosting investor interest. The Central Bank of Nigeria (CBN) is also considering issuing a U.S. diaspora bond, targeting $1 billion in monthly remittances, which could further strengthen foreign capital inflows.
According to Dr. Olusegun Omisakin, Chief Economist at the Nigerian Economic Summit Group (NESG), Nigeria’s GDP growth could reach 5.5% if reform momentum continues. However, he cautioned that inefficient policy execution could slow growth to 3.4%, while a reversal of reforms might lead to a drop to 2.7%.
Foreign Investors Returning Amid Naira Stabilization
After months of hesitancy due to currency volatility, foreign portfolio investors are gradually re-entering the market as the naira shows signs of stabilization. The government’s strategy to enhance remittance inflows and attract international investors has further supported this renewed confidence.
Outlook: Sustained Growth Hinges on Policy Execution
Market analysts predict continued growth in Nigerian equities and fixed-income assets, provided policy consistency and reform implementation remain on track. The return of both local and foreign investors signals a more positive outlook for the Nigerian economy, reinforcing hopes for sustained market momentum throughout 2025.
