Nigeria is bankable. The Nigerian Capital Market is investable and world class.

In my previous post, I stated that Nigeria is ready for business. This is not a mere slogan; It is a carefully curated position supported by data, structure, and market performance.

In addition to Nigeria being ready for business and investment, I will be going a step further by sharing about more specific reasons and benefits of investing in Nigeria.

There are a million and one benefits of investing in Nigeria. These benefits range from tax incentives that ensure that international investors return with the highest return on investment possible to strong fiscal policies protecting investors and their investments plus an active youth population that will ensure the availability of needed labour.

In addition to the benefits above, there are guaranteed return on investment for some type of investments backed by Nigeria’s strong external reserves, strong recapitalized local banks and financial institutions that can withstand large international investment and Nigeria having a world class market that gives comparatively better returns just to mention a few.

Today, I will be highlighting the Nigerian Capital Markets being investable and world class and how it directly benefits international investors vis a vis other major capital markets in the world.

For investors, the relevant questions about a market that determine their investment decisions are straightforward, they are:
Is the market liquid?
Is it regulated?
Is it delivering risk-adjusted returns?
Is there depth across asset classes?

Nigeria increasingly answers yes to each of these questions!

The Nigerian Capital Market operates within a defined regulatory framework, supported by a central securities depository system, improving disclosure standards, recapitalised financial institutions, and expanding participation across domestic and foreign investors.

The Nigerian Capital Market performance has been impressively decisive!

Year-to-date (YTD) 2025, the Nigeria Exchange All Share Index (NGX ASI) has returned approximately 51%, placing it ahead of major global benchmarks. Over the same period, Japan’s Nikkei 225 came at a distant second with return estimated at 28%, while leading U.S. indices — NASDAQ, S&P 500, and Dow Jones — have delivered approximately 20%, 16%, and 16% respectively.

Nigerian Fixed income markets have shown similar resilience and strength. Nigerian instruments have delivered approximately 17% YTD 2025, compared with roughly 7% in India and near 4% across the UK, U.S., and France.

This is not an isolated cycle. The equities market recorded approximately 50% returns in 2020, moderated during global pandemic disruptions in 2021, and rebounded with sustained momentum — 20% in 2022, 46% in 2023, 38% in 2024, and 51% in 2025. The 2026 outlook is projected to sustain the current record. It is worth noting that these strong gains and returns on investment happened during a period of Naira strengthening.

Beyond performance, Nigeria has incredible benefits to offer, like:
• A large and active domestic investor base
• Increasing market liquidity
• Sovereign and corporate fixed income depth
• Ongoing banking sector recapitalisation
• A young, productive population supporting long-term economic expansion

For portfolio managers seeking diversification beyond saturated developed markets, Nigeria Capital Market provides exposure to growth, yield, and demographic upside within a regulated framework.

For Sovereign Wealth Funds, Nigeria offers long-duration exposure to demographic and consumption expansion.

For Development Finance Institutions, the capital market serves as a channel for commercially viable impact — infrastructure financing, SME growth, and financial inclusion.

For Private Equity and Growth Capital, sectoral under-penetration and improving exit optionality create room for asymmetric upside.

For Family Offices and Diaspora Institutional Investors, Nigeria provides yield, diversification, and long-term positioning within a structured market environment.

Emerging markets require discipline, structure, and local expertise. With proper positioning, Nigeria offers measurable opportunity.

As allocation reviews for 2026 begin, Nigeria warrants your favorable consideration.

We remain available to support structured entry and strategic positioning within the market.

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