The Nigerian equity market continues to gain traction, with 11 listed companies boasting a market capitalisation of over US$1bn as of April 10, 2025. This reaffirms investor confidence and improved valuation, as strong corporate earnings, ongoing recapitalisation plans, offer release in the market, and resilient investor sentiment lift the overall depth of the local bourse.
Among the top companies, Airtel Africa and DANGCEM lead the pack with market caps exceeding US$5bn and values of N8.11trn and N8.10trn, respectively. BUAFOODS and MTNN follow closely, reflecting the consistent investor appetite for defensive and consumer-centric stocks in Nigeria’s inflationary landscape.
Other notable entities include SEPLAT, which has a market cap of US$2.11bn (N3.35trn) and reflects a bullish outlook on the oil and gas sector. GEREGU, BUACEMENT, and TRANSPOWER, each above US$1.7bn, indicating growing confidence in Nigeria’s energy and industrial sectors. Tier-1 banks such as GTCO and ZENITHBANK have maintained a strong showing with valuations above US$1.2bn.
In terms of Sectors, the Financial Services, ICT, Oil and Gas, Industrial Goods, and Utilities sectors each had two companies, while Consumer Goods had one.
Five additional companies are on the watchlist for nearing the US$1 billion market capitalisation threshold, led by TRANSCOHOT (US$932.98m), UBA (US$757.31m), and Lafarge Africa (WAPCO) (US$726.03m). With sustained bullish momentum, these firms could soon join the billion-dollar club pending further bullish market
Analysts at Proshare note that the growing number of firms crossing the US$1bn benchmark signals improved market depth, liquidity, and valuation stability. The Central Bank of Nigeria’s (CBN’s) FX unification drive, stronger-than-expected Q1 earnings guidance, and anticipation of further sectoral reforms are expected to drive further investor inflows, particularly from foreign portfolio investors.
However, caution is advised as interest rate volatility, global inflationary pressures, and lagging FX data releases remain potential headwinds. Investors will also be watching the upcoming earnings season and further recapitalisation disclosures by key banks for direction activity.
The NGX market capitalisation has shown considerable fluctuations since the start of the year. It began at N62.92trn, increasing to N64.30trn by January 10. However, by January 16, it experienced a decline to N62.31trn. After that, it steadily rose, reaching a peak of N68.12trn by February 12, before slightly dropping to the current level of approximately N65.85trn. This trend reflects the market’s dynamic nature and the varying economic factors at play.