Investors Transact N10.68 Trillion Stocks in Seven Months on Improving Macro-economic Conditions

The Nigerian equities market has demonstrated robust performance in the first seven months of 2026, with investors transacting approximately N10.68 trillion in stocks. This figure marks a significant 126.01% increase compared to the N4.73 trillion recorded in the same period of 2025, placing Nigeria among the world's top-performing equity markets in dollar terms.

Domestic institutional investors were the primary drivers of this growth, transacting N6.71 trillion worth of shares, a 145.02% year-on-year rise from N2.74 trillion in the corresponding period of 2025. Retail domestic investors also contributed, selling N3.97 trillion in shares, up 99.8% from N1.99 trillion in the previous year.

Analysts attribute this market rally to several factors, including improving macroeconomic conditions, rising investor confidence, and reforms by capital market regulators. A key catalyst was the National Pension Commission's (PenCom) decision in February 2026 to increase equity limits for pension funds. This policy adjustment injected fresh liquidity into the market, leading to significant price appreciation in several blue-chip companies.

PenCom revised its investment regulations, raising equity allocation caps across various Retirement Savings Account (RSA) fund classes. For instance, RSA Fund I's equity allocation increased from 30% to 35%, and RSA Fund II from 25% to 33%. The market capitalization of listed stocks closed at N158.326 trillion as of July 31, 2026, an increase of N58.9 trillion or 59.32% from the previous year.

The strong performance in the first seven months of 2026 is one of the best in recent years for the Nigerian Exchange Limited (NGX). Gains were largely driven by price appreciation in banking, consumer goods, industrial, and oil & gas stocks. Market analysts further cited improved corporate earnings expectations and high yields on fixed-income assets as factors drawing liquidity into the market and positioning investors for the second half of 2026 earnings season.