July 10 (THEWILL) — Nigeria has emerged as the world’s best-performing stock market in dollar-denominated returns, overtaking South Korea, as improving foreign exchange stability, strong equity performance, and ongoing market reforms continue to boost investor confidence.
The recognition comes from S&P Dow Jones Indices (S&P DJI), which also placed Nigeria on its Frontier Market Watchlist, signalling growing confidence in the country’s capital market reforms despite the absence of a formal market reclassification.
At the close of trading on July 8, the Nigerian stock market had recorded a 55.81 percent year-to-date return, outperforming major global peers in dollar terms.
The strong performance reflects not only gains in share prices but also a modest recovery of the naira, allowing foreign investors to retain more of their investment returns instead of losing gains to currency depreciation.
By contrast, South Korea’s benchmark Kospi Index has slipped into technical bear territory after falling about 22 percent from its June peak amid weakening sentiment around technology stocks. The South Korean won has also weakened against the US dollar, reducing returns on dollar-denominated investments.
S&P DJI said Nigeria’s inclusion on the watchlist follows a series of reforms aimed at strengthening market transparency, improving regulatory oversight and enhancing operational efficiency. However, the index provider noted that consistent policy implementation and sustained operational resilience would remain important before any decision on Frontier Market classification.
The recognition comes months after FTSE Russell suspended Nigeria’s planned upgrade to Frontier Market status over concerns surrounding the country’s T+1 settlement cycle.
The Securities and Exchange Commission (SEC) said ongoing reforms are focused on building a transparent and efficient capital market that supports long-term investment and aligns with global best practices.
Commenting on the development, NGX Group Managing Director and Chief Executive Officer, Temi Popoola, described the recognition as evidence that Nigeria’s reform agenda is gaining international validation.
According to him, while the watchlist does not amount to a market reclassification, it reinforces investor confidence and supports efforts to deepen market liquidity, improve accessibility and position Nigeria as a preferred destination for domestic and international capital.
For investors, the latest recognition strengthens Nigeria’s profile among frontier markets and underscores the growing impact of reforms aimed at making the country’s capital market more competitive and globally attractive.
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.
