Nigerian Stock Market Booms in 2025, Boasting Largest Pool of Billion-Dollar Stocks
LAGOS, August 2, 2025 – The Nigerian Stock Exchange (NGX) has emerged as a powerhouse in 2025, with a record 11 publicly listed companies achieving market capitalizations exceeding $1 billion, marking the largest pool of billion-dollar stocks in the exchange’s history. This milestone, driven by a robust equities rally, reflects growing investor confidence in Nigeria’s largest and most liquid firms despite macroeconomic challenges like inflation and currency volatility.
As of April 30, 2025, these 11 companies surpassed the $1 billion threshold (approximately N1.55 trillion at an exchange rate of N1,550/$1), up from nine a year earlier, according to data from NGX filings and market close values. Leading the pack is Airtel Africa, with a market cap of N8.11 trillion, rebounding to profitability with a $661 million pre-tax profit after a turbulent 2024. BUA Foods follows at N7.52 trillion, fueled by strong profit margins in consumer goods, while Dangote Cement (N7.29 trillion) and MTN Nigeria (N5.09 trillion) maintain their dominance despite a 34% drop in Dangote’s value from last year. Other billion-dollar firms include Seplat Energy (N3.35 trillion), Geregu Power (N2.85 trillion), BUA Cement (N2.83 trillion), GTCO (N2.23 trillion), Zenith Bank (N1.96 trillion), Transcorp Power (N1.99 trillion), and Aradel Holdings (N1.947 trillion).
Seven additional companies, including International Breweries and Fidelity Bank, are nearing the $1 billion mark, with valuations between N1 trillion and N1.55 trillion. International Breweries saw a staggering 900% year-on-year valuation surge after recapitalization, while Fidelity Bank crossed N1 trillion following a 120% share price increase. This concentration of wealth underscores the dominance of “SWOOTs” (Stocks Worth Over One Trillion), which account for 84% of the NGX’s total market cap of N68.35 trillion as of May 9, 2025.
The NGX All-Share Index (ASI) has been a key barometer of this success, soaring to 137,913 points by July 29, 2025, with a 14.95% monthly gain and a 40.97% year-on-year increase. July marked a continuation of a bullish run, with blue-chip and mid-cap stocks like Nestlé Nigeria (up N440 per share), Presco (N275), and Okomu Oil Palm (N260) leading value appreciation. Rising oil prices and thriving agricultural exports, particularly in palm oil, have bolstered energy and agro-business stocks like Oando (529% YTD growth in 2024) and Okomu (64.44% growth in 2025).
Investor optimism is further fueled by strong corporate earnings and policies like dividend payouts and rights issues. For instance, Dangote Cement distributed N511 billion in dividends for 2023, while Airtel Africa paid out N276 billion, reinforcing their appeal. The NGX’s performance contrasts with global emerging markets, doubling the MSCI Emerging Markets EMEA Index’s 27% return over the past year.
However, challenges persist. Inflation, currency devaluation, and high interest rates have made investors cautious, favoring highly capitalized, dividend-yielding stocks. The banking sector, hit by a 2024 recapitalization mandate, lagged with only 20% YTD growth compared to the Oil and Gas Index’s 160%. Stocks like Dangote Sugar and NASCON, which tanked in 2024, show early signs of recovery in 2025 but face hurdles like rising debt and forex losses.
With Flutterwave and Dangote Oil Refinery planning to list, the pool of billion-dollar stocks could expand further. The NGX’s digital transformation and platforms like Chaka, Trove, and Bamboo have made investing accessible, with Nigerians starting with as little as N1,000. As Tolu, a Lagos-based investor, noted, “MTN shares turned my N5,000 into N8,000. It’s small, but it’s a start.” This surge in retail participation, combined with strong fundamentals, positions Nigeria’s stock market as a beacon of growth in Africa’s largest economy.
Sources: Nairametrics, Bloomberg, TradingView, African Markets, Pulse Nigeria