January 5, 2026/CSL Report
The Nigerian Exchange (NGX) closed 2025 on a historic high, delivering a remarkable 51.2% annual return, the market’s strongest performance since 2007, and marking its sixth consecutive year of gains. The rally propelled the All-Share Index (ASI) to a record 155,613.03 points, while total market capitalisation surged to ₦99.3 trillion.
This exceptional performance was underpinned by a combination of easing macroeconomic pressures, improved foreign investor sentiment following FX market reforms, strong earnings growth among large-cap stocks, and sustained domestic liquidity seeking inflation hedges. Although 2025 now ranks as the second-best year in nearly two decades, momentum was especially pronounced in the second half, which delivered a 29.7% return, led by a powerful 16.6% surge in July alone.
The rally was notably broad-based, signalling a more resilient and diversified market structure than in previous cycles. The Consumer Goods sector led the advance with a remarkable 129.6% return, supported by easing foreign-exchange losses and exceptional stock-level performances, including Guinness Nigeria (+398.1%) and Vitafoam (+300.0%).
The Insurance sector followed with a 65.6% gain, largely driven by the passage of the Nigerian Insurance Industry Reform Act (NIIRA 2025), which served as a powerful policy catalyst by strengthening capitalization requirements and long-term industry confidence.
The Banking sector posted a solid 39.8% return, demonstrating resilience despite mid-year regulatory headwinds stemming from CBN forbearance directives. In contrast, the Oil and Gas sector was the sole underperformer, declining by 1.5%, underscoring a clear rotation of capital towards sectors benefiting from more immediate, policy-driven and earnings-visible catalysts.
As the market enters 2026, Nigerian equities appear well positioned to sustain their positive momentum, contingent on continued fiscal discipline and further improvement in the macroeconomic environment. While the record-breaking performance of 2025 sets a demanding base, the structural reforms implemented during the year have deepened market breadth, reducing reliance on a narrow group of stocks. Looking ahead, investors can expect ongoing earnings growth and the potential for attractive dividend upside. However, the pace and durability of any extension of the bull run will be shaped primarily by the direction of interest rates and the preservation of foreign-exchange stability, which remain the key swing factors for market performance in the year ahead.
Click here to download full report: CSL Nigeria Daily – 05 January 2026 – Equities .pdf
