The Nigerian Exchange (NGX) achieved a historic milestone in July 2025, crossing 102,000 points for the first time, driven by robust performances in banking, telecom, and oil sectors. Stocks like Zenith Bank, MTN Nigeria, and Dangote Cement recorded 25% gains, fueled by economic reforms, including the Central Bank of Nigeria’s (CBN) forex liberalization. The NBS reported a 15% increase in foreign portfolio investment, reaching $2 billion in Q2 2025, after the CBN cleared $7 billion in forex backlogs.
The rally reflects investor confidence in Nigeria’s stabilized Naira (₦1,450/$) and declining inflation (18%, down from 33% in 2024). The NGX’s All-Share Index grew 30% year-on-year, outperforming many African markets. The Securities and Exchange Commission (SEC) launched a digital trading app, increasing retail investor participation by 40%. However, analysts warn of risks from global economic volatility, with oil prices fluctuating at $80 per barrel.
The CBN’s monetary policies, including a 15% interest rate, have supported market liquidity, but high borrowing costs challenge SMEs. The government’s ₦28 trillion 2025 budget, with 10% for capital projects, is expected to sustain growth. Investors are advised to diversify into tech and agriculture stocks to hedge against volatility. The NGX’s success signals Nigeria’s economic resilience, with projections of 105,000 points by Q1 2026.
Source: BusinessDay
Link: https://businessday.ng/
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