February 24, 2026/Coronation Report

Every market cycle delivers lessons. Some are dramatic: sharp sell-offs, sudden rallies. Others are quieter but more  enduring. One of the most persistent and underappreciated lessons in the Nigerian equities market is the critical importance of liquidity. Liquidity rarely feels urgent in calm conditions. It is only when the market is stressed that investors discover it is not guaranteed.

The central theme of this piece is that liquidity must act as the first filter in equity portfolio construction for listed stocks in Nigeria by investors. Valuation, earnings, and dividends remain important considerations, but without the ability to act by entering or exiting a position in reaction to them, their actual value in dictating investment decisions is diminished. This report seeks to examine the importance of considering individual stock liquidity when making investor decisions on the NGX, the structural sources of constraints to market depth on the NGX, suggest strategic solutions for unlocking liquidity, and a quantitative assessment of NGX30 stocks using the Amihud Illiquidity Ratio.

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