Nigerian stocks post lower annual return, gain N21.84trn in market cap
The Nigerian stock market finished 2024 with a lower return compared to the previous year, official data shows.
The benchmark stock index rose by 37.65 percent to close at 102,926.40 basis points on Tuesday, compared to a return of 45.90 percent in 2023, according to data from the Nigerian Exchange Limited (NGX). The total market value of equities increased to N62.76 trillion from N40.92 trillion.
The depreciation of the naira, driven by macroeconomic reforms by the Central Bank of Nigeria and the Federal Government, significantly boosted the performance of the stock market, the NGX said in a statement.
At the Closing Gong Ceremony marking the end of 2024 trading activities, NGX’s Chief Executive Officer, Jude Chiemeka, represented by the Head of Trading and Products, Abimbola Babalola, commended key stakeholders, including the stockbroking community represented by the Chartered Institute of Stockbrokers and the Association of Securities Dealing Houses of Nigeria.
“The year 2024 witnessed significant activity in the secondary market, a testament to the efforts of our trading license holders. Complementary macroeconomic fundamentals were instrumental, and we appreciate the impactful policymaking by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth banking recapitalisation process,” he said.
CIS President and Chairman of Council, Oluropo Dada, and ASHON Chairman, Sam Onukwue, represented by the 2nd Vice Chairman, Ify Rita Ejezie, emphasized the pivotal role of stockbrokers in driving capital market growth. They reiterated their commitment to advocating for policies that enhance market development.
Temi Popoola, GMD/CEO of Nigerian Exchange Group, reflected on the market’s resilience and growth trajectory: “Nigeria’s capital market has proven itself as a hub of resilience and innovation, consistently offering valuable opportunities for investors. The strong performance of our blue-chip companies over the past decade has been a key driver of returns, even amid challenging economic cycles. Inflationary pressures have made equities an attractive hedge, and strategic new listings have significantly boosted market activity.”
He further highlighted the transformative impact of policy reforms: “Macroeconomic shifts, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, coupled with the liberalization of exchange rates, have enhanced operational efficiency and contributed to the robust performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, enhance investor confidence, and deliver long-term value for all market participants.”
