The Nigerian Stock Exchange (NGX) achieved a significant milestone on January 5, 2026, as its market capitalization crossed the N100 trillion mark, closing at N101.80 trillion. This surge signifies increased investor confidence and strong performance across key sectors, marking a positive start to the year for the Nigerian capital market.

What you should know

The market capitalization represents the total value of all outstanding shares of publicly traded companies. Crossing the N100 trillion mark demonstrates the growing depth and resilience of the Nigerian capital market. This also reflects the increased participation from both domestic and foreign investors.

The last time the market experienced such strong positive momentum was in early 2023, prior to the policy changes enacted by the new administration. Market analysts suggest this current surge is a result of renewed confidence in the government's economic policies and structural reforms.

Market Performance

According to the NGX, the rally was driven by strong buying interest in stocks such as Cadbury Nigeria, Fidson Healthcare, and Champion Breweries. This trend reflects the traditional 'January Effect,' where the market experiences increased activity early in the year.

Investor sentiment strengthened, with market breadth improving significantly. Seventy-three equities recorded gains against only eight decliners, signaling widespread participation in the rally. However, the value of transactions declined by 25.57 percent to N18.57 billion across 56,606 deals, even as total volume traded rose by 58.13 percent to 695.64 million shares.

Year-to-date equities turnover has increased to N43.52 billion, indicating a continued bullish trend. This surge in equities turnover suggests increased trading activity and investor engagement in the market.

Executive Commentary

Temi Popoola, GMD/CEO of Nigerian Exchange Group, stated that the equities market capitalization crossing the N100 trillion mark is a defining milestone for Nigeria’s capital market. He added that this milestone serves as a clear signal of renewed investor confidence as the year begins, reflecting the market’s growing depth, resilience, and ability to respond positively to improving macroeconomic conditions and structural reforms.

Jude Chiemeka, CEO of Nigerian Exchange Limited, highlighted the positive breadth of the market. He noted strong participation across banking, industrial, and consumer stocks, alongside rising trading volumes. This suggests growing investor confidence and a more active market at the start of the year.

Context and Implications

This milestone has significant implications for the Nigerian economy, potentially attracting more foreign investment and boosting overall economic growth. Increased market capitalization can also lead to greater liquidity and stability in the market, benefiting both investors and listed companies.

Investors should closely monitor the performance of key sectors, particularly banking, industrial, and consumer goods, as they appear to be driving the current rally. They should also pay attention to any shifts in investor sentiment and macroeconomic conditions that could impact market performance.

Market watchers believe that continued implementation of sound economic policies and structural reforms will be crucial in sustaining this positive momentum. Furthermore, increased participation from both domestic and foreign investors will be essential for maintaining a vibrant and growing capital market.