Investors Gained N30tn From Nigeria’s Stock Market In Three Month

……..Index Jumps 29.35% Amid Recapitalisation Drive, Strong Earnings

The Nigerian equities market recorded a historic rally in the first quarter of 2026, delivering an estimated N29.83trn in capital gains to investors, as a surge in banking sector recapitalisation, improved corporate earnings, and increased investor participation drove bullish sentiment across the bourse.

Data from the Nigerian Exchange Limited (NGX) showed that the benchmark All-Share Index (ASI) rose sharply by 29.35 per cent year-to-date, climbing from 155,613.03 points at the beginning of the year to 201,287.78 points by the end of March, marking the highest level ever recorded in the history of the local stock market.

Similarly, market capitalisation expanded significantly from N99.38trn to N129.21trn within the same period, accounting for a gain of N29.83trn and reflecting renewed investor confidence and a growing preference for equities as a hedge against inflation and macroeconomic instability.

Market analysts attributed the strong performance to a combination of regulatory reforms, accommodative monetary conditions, and robust domestic investor activity. Central to the rally was the ongoing banking sector recapitalisation exercise initiated by the Central Bank of Nigeria (CBN), which set new minimum capital requirements of N500bn for international banks and N200bn for national banks, with a compliance deadline of March 31, 2026.

In response, banks aggressively tapped the capital market through rights issues, public offers, private placements, and listings by introduction. These activities injected substantial liquidity into the equities market, drawing in both institutional and retail investors.

CBN Governor, Olayemi Cardoso, disclosed that approximately 32 banks successfully met the new capital thresholds, collectively raising about N4.61trn in fresh capital. The recapitalisation drive not only boosted trading volumes but also strengthened the financial resilience of the banking sector, positioning it to better withstand future economic shocks.

Economic experts have described the exercise as one of the most impactful in recent history. The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, noted that the recapitalisation programme has delivered significant positive spillovers to the capital market without the disruptions previously associated with similar exercises, particularly in terms of employment and banking operations.

Further supporting the equities rally was the decline in yields across money market instruments, which fell below 2024 levels. This development prompted investors to reallocate funds into equities in search of higher returns, thereby increasing demand for listed stocks.

Strong corporate earnings, especially within the banking and consumer goods sectors, alongside attractive dividend expectations, also contributed to sustaining the upward momentum of the market throughout the quarter.

Commenting on the outlook, the Chairman of NGX Group Plc, Umaru Kwairanga, had emphasised that the market’s strong performance underscores the importance of regulatory clarity, macroeconomic stability, and consistent policy direction in fostering long-term growth.

He noted that the Exchange’s strategic priorities for 2026 are focused on coordinated reforms involving regulators, issuers, investors, and market operators aimed at deepening liquidity, strengthening market integrity, and enhancing resilience.

Kwairanga also urged investors to adopt long-term, diversified investment strategies, while highlighting the growing role of technology in expanding access to the capital market and increasing participation across different investor segments. He further stressed that environmental, social, and governance (ESG) considerations are becoming increasingly critical in attracting global capital to emerging markets such as Nigeria.

In a similar vein, the Group Managing Director and Chief Executive Officer of NGX Group, Temi Popoola, had reaffirmed the Exchange’s commitment to sustaining the current momentum through deeper collaboration within the financial ecosystem.

He stated that NGX Group would continue to strengthen partnerships with regulators, policymakers, issuers, and other stakeholders to enhance market development and position Nigeria’s capital market as a key driver of economic growth and wealth creation.

Popoola added that ongoing investments in technology have significantly improved transparency, operational efficiency, and market accessibility, reinforcing the Exchange’s ambition to emerge as Africa’s preferred exchange hub.

Despite persistent macroeconomic challenges, including inflationary pressures, foreign exchange volatility, and political uncertainties, the Nigerian stock market’s performance in the first quarter signals strong underlying resilience and a positive outlook for the rest of the year, provided current reforms and investor confidence are sustained