Nigeria’s biggest listed companies have climbed to a record N54.3 trillion in combined market value, or about $40.2 billion, as investors pour money into blue-chip stocks amid hopes of stronger foreign participation and improving economic reforms.
- Nigeria’s top-tier stocks hit a record N54.3 trillion ($40.2 billion), led by MTN Nigeria, Dangote Cement and major banks.
- Investors are pouring money into Nigeria’s biggest listed companies as reforms and improved FX liquidity boost confidence.
- MTN Nigeria became the exchange’s most valuable company, while Zenith Bank crossedthe N5 trillion mark.
- Despite inflation and currency risks, demand for large dividend-paying stocks continues to power Nigeria’s market rally.
The Premium Board of the Nigerian Exchange (NGX), home to eight of the market’s largest and most liquid companies, now accounts for 38.8 percent of the exchange’s total equity market capitalisation of N140.5 trillion.
The rally shows investors are concentrating on large companies seen as safer bets in an economy still battling high inflation, expensive borrowing costs and currency volatility.
MTN Nigeria is now the most valuable company on the exchange after its shares rose more than 60 percent this year, lifting its market value to N17.23 trillion ($12.7 billion).
Dangote Cement followed with a valuation of N14.34 trillion ($10.6 billion), supported by continued demand for building materials and strong investor confidence.
Seplat Energy has also posted strong gains, reaching N6.26 trillion ($4.6 billion), while Zenith Bank became the first listed Nigerian lender to cross the N5 trillion mark after its shares more than doubled this year.
Other major gainers include Lafarge Africa, First Holdco, United Bank for Africa and Access Holdings.
Investors have also been positioning for a gradual return of foreign funds after reforms in Nigeria’s foreign-exchange market improved dollar liquidity and eased concerns over capital repatriation.
Many offshore investors cut exposure in previous years when they struggled to move money out of the country due to FX shortages.
Analysts say any sustained improvement in liquidity could attract more frontier-market and emerging-market funds back into Nigerian equities.
Still, risks remain. Inflation is high, interest rates are elevated and further naira weakness could weigh on company earnings.
For now, however, Nigeria’s biggest companies are benefiting from investors seeking scale, resilience and dividend income.
