Nigeria’s stock market has emerged as the world’s best-performing equity market over the past year, overtaking South Korea after delivering a 67% return in U.S. dollar terms, a performance driven by economic reforms, improving currency stability and stronger corporate earnings, the head of the country’s securities regulator said.
Speaking to DNE Africa, Timi Agama, Director-General of Nigeria’s Securities and Exchange Commission (SEC), said the market’s rally reflected structural improvements rather than speculative trading.
“Nigeria doesn’t yet dominate the world in size. We dominate it in performance. Sixty-seven per cent in dollars, number one out of 92 exchanges. The world’s smartest capital is looking at Lagos,” Agama said.
According to market data, Nigerian equities have outperformed major global markets over the past 12 months, benefiting from policy reforms introduced by President Bola Tinubu’s administration, including foreign exchange liberalization, tighter monetary policy and measures aimed at restoring investor confidence.
Agama said those reforms had created a stronger foundation for the market than rallies driven by a single sector.
“This rally isn’t built on hype. It’s built on reform. Korea’s market stood on one leg, AI, and it buckled. Ours stands on reform, currency stability and real earnings. Legs like that don’t vanish overnight,” he said.
Despite the record performance, Agama cautioned investors against assuming the market would continue climbing uninterrupted.
“A market that rises on fundamentals can still correct. Anyone who tells you otherwise is selling you something,” he said.
The SEC is working to ensure the market’s recent gains translate into long-term growth by strengthening regulation and improving market infrastructure, Agama affirmed.
“Our job is to turn a good year into a good decade. A new securities law, T+1 settlement, and index reclassification are on the horizon. Performance got the world’s attention; institutions will keep it,” he said.
He also urged retail investors to exercise caution as rising markets often attract fraudulent schemes.
“Come in, but come in wisely. Invest through registered operators, diversify, think in years, not weeks. A rising market is exactly when fraudsters are loudest,” Agama noted.
Looking ahead, Agama said sustaining investor confidence would depend on maintaining reforms and strengthening market institutions.
“Nigeria has earned the world’s attention. Now we must earn its trust, permanently,” he said.
Analysts attribute the Nigerian market’s strong performance to a combination of macroeconomic reforms, improving foreign exchange liquidity, robust corporate earnings and renewed foreign investor interest after years of subdued participation. They note, however, that maintaining the rally will depend on continued policy consistency, inflation control and broader economic stability.
