The Nigerian stock market continued its bullish momentum last week, closing with a remarkable net capital gain of approximately ₦27 trillion, driven by increased participation from both foreign and domestic investors.

Market data from the Nigerian Exchange (NGX) showed a weekly gain of ₦2.16 trillion, pushing the year-to-date aggregate return to ₦26.87 trillion—already outpacing the total gains recorded in all of 2024 by more than ₦11 trillion.

The All Share Index (ASI), Nigeria’s benchmark stock performance indicator, climbed to 146,988.04 points by the close of trading on Friday, significantly higher than the 102,926.40 points at the beginning of the year. This represents a 42.81% return for investors, up from a full-year return of 37.65% in 2024.

With this performance, Nigeria is now ranked among the top five best-performing stock markets globally, surpassing returns from developed markets in Europe and the Americas.

The total market capitalisation of listed equities also reflected the strong upward trend, rising from ₦62.763 trillion at the start of the year to ₦93.296 trillion as of October 11—a 48.65% increase, or about ₦30.53 trillion in added value.

Analysts explained that the discrepancy between the ASI return and total market value was due to unadjusted figures from additional listings, which do not affect the index but increase market capitalisation.

The NGX’s ASI is considered Nigeria’s sovereign equity index and is closely tracked by both local and international investors.

A key driver of the market’s strong performance has been a sharp rise in foreign portfolio investments (FPIs). Data shows that foreign inflows reached ₦1.45 trillion in the first eight months of 2025—an impressive 121.67% increase over the ₦655.47 billion recorded in the same period last year.

According to the latest FPI report, inflows rose by 135.16%, while outflows increased by 110.33%. Total domestic transactions also surged by 93.72%, highlighting growing confidence among Nigerian investors.

The proportion of FPIs in the Nigerian stock market rose to 21.01%, compared to 18.86% in the corresponding period of 2024.

Adding to the optimism, FTSE Russell, a global market classification body, recently placed Nigeria on its Watch List for a potential upgrade to Frontier Market status, a development seen as a nod to the country’s growing market depth and investor appeal.

According to Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management, the FTSE move signals renewed confidence in Nigeria’s market fundamentals.

“It reflects renewed confidence in Nigeria’s economic direction and is likely to attract increased foreign participation, improve liquidity, and deepen the capital markets,” Amolegbe said.

He added that while macroeconomic challenges remain, particularly around foreign exchange stability and reform implementation, the upgrade watch “represents a turning point” for Nigeria’s capital market.

“This move represents a turning point and provides both a vote of confidence and a roadmap for sustained financial integration. If Nigeria stays the course, its stock market could witness a resurgence in investor activity and valuation growth in the coming years,” he added.

Analysts say that an improving macroeconomic environment, strong corporate earnings, and the stock market’s role as a hedge against inflation have helped sustain investor interest, particularly in key sectors such as banking, oil & gas, and telecommunications.

With Nigeria outpacing major global indices, including the UK and US markets (which posted average returns of around 15%), and surpassing many BRICS economies (excluding South Africa), the Nigerian Exchange appears to be on a solid path to becoming one of the world’s most attractive emerging investment destinations.

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Nigeria has secured its second major gas investment in 18 months with Shell’s $2 billion Final Investment Decision (FID) for a new offshore gas project in the HI Field, OML 144.

The announcement which was made known via a statement by the Special Adviser to the President on Information & Strategy, Bayo Onanuga, on Tuesday, October 14, comes as part of a broader wave of upstream oil and gas investments exceeding $8 billion since President Bola Ahmed Tinubu assumed office in 2023.

The new Non-Associated Gas (NAG) development is expected to produce approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028, providing nearly a third of the feedgas requirements for Nigeria LNG Limited’s Train 7 project.

This investment marks Nigeria’s third major oil and gas FID in the last 18 months, following the Ubeta NAG project and the Bonga North deepwater project, further unlocking Nigeria’s abundant gas resources for both domestic and export use. Combined, the HI and Ubeta projects will supply up to 15 percent of NLNG’s total feedgas requirements for Trains 1 to 7.

Since 2024, President Tinubu’s administration, through the Office of the Special Adviser on Energy, has implemented a series of industry reforms aimed at attracting investment. These include fiscal incentives, regulatory clarity, simplification of operating processes, reduced contracting costs, and shortened approval cycles. According to the government, these reforms—now embedded in legislation—have repositioned Nigeria as a competitive destination for global energy investment.

The development of the HI gas field, originally discovered in 1985, is being enabled by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.

Olu Arowolo Verheijen, Special Adviser to the President on Energy, said, “With the Ubeta FID and now the HI FID, we have secured the gas supply needed to make NLNG Train 7 not just possible, but transformative. These projects will strengthen the reliability of Nigeria’s LNG exports while expanding LPG supply for domestic use — reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon.”

Peter Costello, Shell’s Upstream President, added, “Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas. This Upstream project will help Shell grow our leading Integrated Gas portfolio while supporting Nigeria’s plans to become a more significant player in the global LNG market.”

The NLNG Train 7 project will increase Nigeria’s LNG production capacity by 8 million metric tonnes annually, equivalent to 35 percent of current production. The project is expected to enhance domestic gas supply, create jobs, stimulate economic growth, and support SMEs in host communities.

President Tinubu welcomed the announcement, emphasizing that Shell’s investment is a validation of the administration’s reforms and a clear signal that Nigeria is “fully open for business and investment.”

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The European Union (EU) has approved a N320.5 billion (€190 million) credit facility to Nigerian banks aimed at strengthening the country’s agricultural sector.

In a statement on Monday, Bolaji Adebiyi, special adviser on media to Minister of Budget and Economic Planning Atiku Bagudu, said the European Investment Bank (EIB) would channel the credit line through Nigerian commercial banks and financial institutions to expand lending to agribusinesses.

The facility was announced during a meeting between EIB senior executives and the federal ministry on the sidelines of the Global Gateway Forum in Brussels, Belgium.

According to Thourayya Tricki, EIB’s director of international partnerships, the credit package is part of the EU’s ongoing support for Nigeria’s agricultural value chains, with a particular focus on cocoa and dairy production.

“The Nigerian investment package for climate-smart agriculture is at an advanced stage, ensuring sustainability and competitiveness of agri-food products,” Tricki said, noting that the initiative includes credit lines and technical assistance to development finance institutions (DFIs) and commercial banks to broaden lending to the agricultural subsector.

Diedrick Zambon, the bank’s head of Sub-Saharan Africa relations, was present at the meeting.

The EU has also allocated €68 million to support Nigeria’s vaccine manufacturing and pharmaceutical industry, comprising an €18 million technical assistance grant and a €50 million credit facility.

Officials from the Nigerian delegation, including Bolaji Onalaja, special assistant to the minister, and Benjamin Galadima, focal officer of the EU unit, highlighted ongoing reforms under President Bola Tinubu’s Renewed Hope Agenda. They also discussed the upcoming National Development Plan (2026–2030) as a framework for attracting sustainable investments and strengthening community-level development through the ward-based development programme.

High-level sessions and bilateral meetings were held with EU institutions, including officials from the Directorate of International Partnerships (INTPA) and the European Bank for Reconstruction and Development (EBRD).

On behalf of Bagudu, who was on official assignment in Vienna, Austria, the delegation expressed appreciation to Gauthier Mignot, head of the EU delegation to Nigeria and ECOWAS, for facilitating Nigeria’s participation at the 2025 Global Gateway Forum.

In her keynote address, Ursula von der Leyen, President of the EU Commission, announced the expansion of the Global Gateway Investment Package to €400 billion, alongside the creation of a dedicated Investment Hub to improve transactions and accelerate project delivery, particularly in Africa.

The Global Gateway Forum, hosted by the European Union, brings together global leaders and stakeholders to promote sustainable infrastructure investment and launch strategic partnerships worldwide.

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