January 26, (THEWILL) — Nigeria’s stock market recorded a historic ₦11.92 trillion in equities transactions, the highest annual turnover in nearly two decades, but the milestone loses its shine when measured in dollar terms, exposing the lingering impact of currency weakness.
The surge in trading activity reflects a strong rally on the Nigerian Exchange (NGX), where the All-Share Index rose by over 50 percent, driven largely by domestic investors seeking protection against inflation and limited fixed-income returns. Local investors accounted for close to 80 percent of total trades, while foreign participation, though improving, remained modest.
However, when converted to dollars, the record turnover tells a less impressive story. At an average exchange rate of about ₦1,500 to the dollar, the ₦11.92 trillion transaction value translates to under $8 billion. By comparison, a similar naira value in 2007, when the naira traded near ₦125 to the dollar, would have exceeded $90 billion.
This contrast highlights how years of naira depreciation have eroded the real global value of Nigeria’s capital market activity, despite strong nominal growth. Analysts note that while recent economic reforms, improved investor sentiment and market reforms are positive signs, sustained currency stability remains critical for Nigeria to attract deeper foreign investment and compete meaningfully with global emerging markets.
Ogochukwu Onwaeze
