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The Nigerian Exchange (NGX) delivered a 47.43 percent return in the first half of 2026, making it Africa’s second-best performing major stock market behind only Ghana and outperforming the average return recorded across six leading African exchanges.
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Strong corporate earnings, banking recapitalisation, improving foreign exchange conditions and renewed investor confidence fuelled the rally, with the NGX All-Share Index gaining more than 73,800 points within six months.
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Nigeria’s equity market has also attracted growing global attention after emerging as the world’s best-performing stock market in dollar terms in early July and securing a place on S&P Dow Jones Indices’ 2027 watchlist for possible Frontier Market classification.
July 21, (THEWILL) — The Nigerian Exchange (NGX) has emerged as Africa’s second-best performing major stock market after delivering a remarkable 47.43 percent return during the first half of 2026, reinforcing Nigeria’s position as one of the continent’s strongest equity markets despite elevated interest rates and ongoing economic reforms.
Data compiled from six of Africa’s leading stock exchanges showed that only the Ghana Securities Exchange outperformed Nigeria during the period, while the NGX significantly outpaced markets in Egypt, Kenya, Morocco and South Africa.
The comparison, based on benchmark index performance between December 31, 2025, and June 30, 2026, highlights the growing appeal of Nigerian equities as investors continue to reward companies with strong earnings, resilient balance sheets and attractive dividend prospects.
Nigeria’s strong performance also extended a rally that began in 2023, supported by improving macroeconomic conditions, stronger foreign exchange market stability and sustained demand for fundamentally sound stocks across the banking, telecommunications, industrial goods and oil and gas sectors.
Nigeria Outpaces Most African Markets
Among the six exchanges reviewed, the Ghana Securities Exchange recorded the strongest performance, delivering a 67.90 percent return during the first six months of the year as improving macroeconomic stability, declining inflation and stronger investor confidence boosted equity valuations.
Nigeria followed closely with a 47.43 percent gain after the NGX All-Share Index climbed from 155,613.03 points at the end of 2025 to 229,419.18 points by June 30, adding more than 73,800 points within six months.
Egypt ranked third with a 20.70 percent return, narrowly ahead of Kenya, whose benchmark index advanced 20.14 percent during the period. Morocco and South Africa were the only markets to record losses, declining by 3.34 percent and 4.76 percent respectively as investors remained cautious amid weaker economic growth and global market uncertainty.
Overall, the six exchanges generated an average return of 24.68 percent, meaning Nigeria’s performance was almost twice the group average and substantially ahead of most of its continental peers.
Beyond returns, Nigeria also recorded the highest benchmark index level among the exchanges reviewed at 229,419.18 points, although index values are not directly comparable because each exchange uses different base years and calculation methodologies.
Earnings, Banking Reforms Drive Investor Confidence
Analysts attribute the Nigerian market’s strong performance to a combination of robust corporate earnings, improved foreign exchange liquidity and the continued implementation of banking sector recapitalisation, which has strengthened investor confidence in financial stocks.
Several listed banks have reported record profits in recent months, while industrial and telecommunications companies have also posted resilient earnings despite a high interest-rate environment.
The progress recorded in stabilising the foreign exchange market has further encouraged investors, reducing currency-related uncertainty and improving confidence in Nigerian assets.
Nigeria’s impressive performance has also attracted international recognition. According to Bloomberg data covering 92 stock exchanges worldwide, the Nigerian equity market became the world’s best-performing stock market in dollar terms in early July 2026 after delivering a 67% year-to-date dollar return, overtaking South Korea.
The market is also drawing increasing attention from global index providers. S&P Dow Jones Indices has placed Nigeria on its 2027 watchlist for a possible reclassification from a Standalone Market to a Frontier Market, a move that could significantly improve the country’s visibility among global institutional investors and potentially unlock fresh foreign portfolio inflows.
While the Johannesburg Stock Exchange remains Africa’s largest exchange by market capitalisation, its weaker first-half performance demonstrates that market size alone does not determine returns. Instead, investors have increasingly rewarded markets where improving economic fundamentals, stronger corporate performance and policy reforms have combined to create attractive investment opportunities.
If current earnings momentum, foreign exchange stability and ongoing reforms continue into the second half of the year, market analysts believe the Nigerian Exchange could remain among Africa’s top-performing equity markets through the end of 2026.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
