Despite global economic uncertainty and persistent trade tensions, investors in the Nigerian stock market witnessed massive gains in May 2025, raking in a remarkable ₦3.966 trillion in returns from activities on the Nigerian Exchange Limited (NGX).
Market capitalization on the NGX surged from ₦66.496 trillion at the end of April 2025 to ₦70.662 trillion by the close of trading last week, reflecting renewed investor confidence and strong market momentum. The NGX All-Share Index (ASI) also climbed sharply by 5.6%, rising from 105,800.62 basis points in April to 111,742.01 points in May, underscoring the bullish sentiment that dominated the month.
Analysts attribute this impressive rally to robust domestic investor participation, strategic corporate moves, and improved market sentiment, although they caution that the momentum may moderate in the coming weeks amid lingering global uncertainties.
Weekly analysis showed consistent upward movement, with the ASI increasing by 2.5% week-on-week and the market capitalization expanding by an additional ₦1.7 trillion. This pushed the year-to-date (YTD) return to 8.6%, further cementing the NGX’s position as one of Africa’s most resilient capital markets.
One of the key drivers behind May’s bullish run was the USD $10 million share buy-back program initiated by Airtel Africa Plc, which attracted strong investor interest and provided significant support to the overall market. Complementing this lift were substantial gains in major equities including BUA Foods, which appreciated by 5.3%, MTN Nigeria at 3.7%, and Transcorp Hotels which soared by 6.5%.
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Sectoral performance was largely positive, mirroring the overall bullish market direction. The Consumer Goods Index rose by 3.8%, Insurance Index climbed by 1.0%, Banking Index edged up by 0.7%, and the Industrial Goods Index gained 0.3%. The only laggard was the Oil & Gas Index, which slipped by 2.1% amid global volatility in crude oil prices.
Although trading volume dipped slightly by 3.5% week-on-week, trading value jumped significantly by 59.6%, highlighting the higher appetite for premium stocks and large-cap equities.
Analysts at Cordros Research anticipate that the market may adopt a more cautious tone in the days ahead, with investor sentiment likely to be shaped by macroeconomic data and corporate news flow. “Despite this week’s positive momentum, we expect sentiment to turn cautiously optimistic amid ongoing global uncertainties, particularly trade tensions,” they noted.
Similarly, experts at InvestData Consulting Limited said the Nigerian equities market continues to reflect bullish investor positioning driven by improved risk appetite. They emphasized that global oil market dynamics, evolving supply-side risks, and economic policy signals remain critical factors for investor decision-making.
Overall, the ₦3.97 trillion surge in May 2025 confirms growing investor confidence in Nigeria’s financial markets, fueled by strategic buy-backs, resilient sectors, and promising corporate performances, even as the broader global economy continues to grapple with uncertainty.