Nigerian equities delivered the second-best dollar-denominated returns globally last year, bouncing back strongly to recapture $21 billion in market value, a new report has revealed.
According to the Knight Frank Wealth Report 2026, Nigerian stocks surged ahead of peers across several emerging and frontier markets, driven by improved investor confidence and sustained foreign portfolio inflows. The performance placed Nigeria just behind Saudi Arabia in terms of global dollar equity returns in 2025.
The report said the Nigerian Exchange NSE All-Share Index rose significantly in dollar terms last year, helping the market regain nearly $21 billion in value that had previously been wiped out by dollar depreciation and capital flight. Analysts said strong corporate earnings from blue-chip banks and oil-related stocks were key contributors.
“Nigerian equities produced some of the most attractive returns for global investors in 2025,” the report stated, adding that improving macroeconomic stability and policy certainty boosted capital inflows.
The Nigerian market’s turnaround comes after several years of volatility linked to currency pressures, inflationary headwinds and fluctuating oil revenues. Market watchers say renewed interest from foreign investors helped lift the exchange’s performance metrics.
In dollar terms, the 21 per cent growth in market value — driven by rising equity prices and stronger demand for securities — places Nigeria among a handful of markets that outperformed global benchmarks, according to the report.
The report’s findings offer some relief to investors who had faced heavy losses during the peak of currency volatility. They also coincide with broader efforts by policymakers to stabilise Nigeria’s foreign exchange market and encourage investment in key sectors.
