Nigeria’s Stock Market Delivers N58.9trn Return to Investors in Seven Months

*Market capitalisation climbs to N158.33trn on FX stability, strong corporate earnings  

*MTN Nigeria grows revenue by 26% to N2.99trn in H1

Kayode Tokede

The Nigerian stock market appreciated by N58.97 trillion in the first seven months of 2026 as investors’ confidence continued to drive prices of listed equities on the Nigerian Exchange Limited (NGX).
This comes as MTN Nigeria Communications Plc revealed that it recorded revenue of N2.99 trillion in the first half (H1) of 2026, up by 25.9 per cent year-on-year from the N2.38 trillion reported in the first half (H1) of 2025.

For the NGX, as at the close of trading activities yesterday, the market capitalisation of listed stocks closed for trading at N158.326 trillion, representing an increase of N58.9 trillion or 59.32 per cent, compared with the N99.376 trillion it closed for trading in 2025.
Of the N158.326 trillion market capitalisation, Airtel Africa Plc and seven other blue chip stocks controlled 63.98 per cent or N101.29 trillion of the Nigerian stock market. The market capitalisation of Airtel Africa closed at N21 trillion, followed by MTN Nigeria Communications Plc with market capitalisation of N17.57 trillion.
Dangote Cement Plc came third with market capitalisation of N17.45 trillion and BUA Foods Plc, N15.21 trillion market capitalization as of July 31, 2026.

The market capitalisation of BUA Cement Plc stood at N10.7 trillion; Seplat Energy Plc – N6.82 trillion; First Holdco Plc – N5.89 trillion and HBM Nigeria Plc – N5.85 trillion.    
Consequently, the major market indicator, the NGX All Share Index closed for trading yesterday at 245,283.68 basis points , which was 89,670.65 basis points or 57.6 per cent higher, when compared with the 155,613.03 basis points it closed for trading last year.

The growth in Nigeria’s stock market has been influenced by stability in the foreign exchange market, the Central Bank of Nigeria (CBN) retaining interest rate at 26.50 per cent, impressive earnings by listed companies, among other reforms by market capital regulators.  
Sectoral performance showed that the oil and gas index emerged as the best-performing segment on the Exchange posting a year-to-date (YtD) return of 96.3 per cent to 5,242.33 basis points, significantly outperforming the broader market.
The NGX Industrial goods index followed closely with a 85.44per cent YtD gain to 10,525.17basis points, reflecting strong price appreciation in cement and construction-linked counters.

The NGX banking index also recorded a solid 66.7 per cent YtD return to 2,527.59 basis points , buoyed by recapitalisation expectation and earnings momentum, while the NGX consumer goods index rose by 10.82 per cent YtD to 4,405.53 basis points.
The data by NGX revealed that the NGX Insurance Index inched up by 0.9 per cent in its YtD growth to close July 31, 2026 at 1,200.08basis points.  

Analysts noted that the relative stability in the foreign exchange market, alongside moderating inflation expectations and improved liquidity conditions, also encouraged portfolio rebalancing in favour of equities.
They argued that the expectation of robust half year 2026 corporate earnings, particularly from large-cap industrial firms, played key roles in sustaining the upward trend.
This was in addition to increased retail participation, driven by growing financial literacy and easier access to trading platforms, which has helped to boost market liquidity.

However, the operators cautioned that while the bullish run reflects improving sentiment, it may face intermittent corrections as investors take profit and react to macroeconomic developments, including monetary policy decisions and fiscal adjustments.
They maintained that the outlook for the rest of the year remained cautiously optimistic, provided economic reforms are sustained and corporate performance continues to meet market expectations.

Investment Banker & Stockbroker, Mr. Tajudeen Olayinka said, “improved liquidity and investors willingness to hold Naira assets, arising from continued stability in the macroeconomic environment, drove the stock market growth in seven months of 2026.”
On outlook in August 2026, Olayinka projected positive performance but less aggressive rally, unlike how the market performed in the first five months of 2026.

Globalview Capital Limited. Mr. Aruna Kebira attributed the bullish momentum recorded in the seven months of 2026 to the strong fundamentals of listed companies, particularly in the manufacturing sector, noting that improved stability in the foreign exchange market and a gradual decline in inflation have further strengthened market sentiment.
Meanwhile, MTN Nigeria Communications Plc recorded revenue of N2.99 trillion in H1 2026, up by 25.9 per cent year-on-year from N2.38 trillion reported in the first half (H1) of 2025.

The growth in revenue was driven by sustained commercial momentum and stronger demand for data services.
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose 39.2 per cent to N1.7 trillion, with EBITDA margin expanding 5.3 percentage points to 55.9 per cent. Profit after tax jumped 70.6 per cent to N707.5 billion in H1 2026, while earnings per share rose 70.6 per cent to N33.7.

The company also generated free cash flow of N712.7 billion in H1 2026, up 73.9 per cent supported by strong earnings, disciplined capital allocation and improved operating cash generation.
MTN invested N620.5 billion in capital expenses , excluding leases, to strengthen network capacity and coverage, with capex intensity at 20.7 per cent.

The company also added 4.9 million new subscribers in the period, lifting its total subscriber base to 92.2 million, up 8.9 per cent YoY.
Active data users increased by 9.3 per cent to 55.7 million, reflecting sustained demand for data-rich services and continued smartphone adoption.
The company declared an interim dividend of N26 per two kobo ordinary share.
Speaking on the H1 2026 results, the CEO of MTN Nigeria, Mr. Karl Toriola in a statement said the performance was supported by improved customer engagement and disciplined execution.

“Commercial momentum remained strong, with 4.9 million net additions in H1 lifting our subscriber base to 92.2 million, while active data users increased by 2.5 million to 55.7 million,” Toriola said.
He added that “service revenue growth of 25.9 per cent was ahead of the company’s medium-term guidance of at least low-20 per cent growth and 10.4 percentage points above the average inflation rate in H1 2026.”

Toriola noted that “growth moderated in Q2 due to the full annualisation of prior price adjustments and the temporary suspension of the airtime and data credit service, which impacted fintech revenue. Excluding that service, service revenue growth was 27.3 per cent in H1, demonstrating the strength of the core business.”

Looking ahead, MTN Nigeria said, “it will focus on sustaining service revenue growth, improving customer experience, accelerating home broadband execution and strengthening fintech performance. With the airtime and data credit service now resumed, the company expects fintech activity to ramp up through H2 2026.”