Nigerian Market Update: October 23, 2025 – Steady Climb Amid Reforms

Nigeria’s economy is showing resilience and gradual stabilization as of today, with the Nigerian Exchange (NGX) maintaining its impressive upward trajectory. Fueled by robust non-oil sectors and a strengthening naira, the market reflects growing investor confidence despite persistent challenges like inflation. Here’s your comprehensive snapshot based on the latest data from October 22’s close.

NGX All-Share Index Hits New Heights

The NGX All-Share Index (ASI) closed at 153,736 points yesterday, posting a solid 1.50% gain for the session. This continues a stellar run, with the index up 9.09% over the past month and a whopping 55.38% year-to-date. Market capitalization now stands at approximately N96.13 trillion (roughly $65.6 billion).

Heavyweights like BUACEMENT, which surged ~52% in Q3 2025, and ARADEL (up 9.20% recently) are leading the charge in cement and energy sectors. Services and materials stocks, up 5.1% last week, remain key drivers. Trading volumes stayed healthy, with far more stocks advancing than declining.

Looking ahead: Analysts project continued momentum, backed by earnings growth forecasts of 23% annually through 2027. The market is on track for a trading volume of US$57.41 billion this year, though global headwinds like U.S. tariffs could spark short-term volatility.

Naira Strengthens Against the Dollar

Good news on the forex front: the naira appreciated to 1,463.45 NGN per USD on October 22, a 0.16% improvement from the prior day. Over the past week, it traded between 1,468–1,496 NGN/USD, marking a 1.74% monthly gain and 10.93% year-over-year recovery.

Boosted by foreign reserves topping $42 billion and a current account surplus of 6.1% of GDP, the currency’s rebound—up ~4.89% in 2025 overall—signals improving fundamentals. Parallel market (BDC) rates lingered around 1,515–1,520 NGN/USD.

Projections: Mild volatility is expected today, with further upside potential tied to steady oil exports.

Economic Bright Spots and Headwinds

Nigeria’s GDP expanded 3.9% year-on-year in H1 2025, accelerating from 3.5% in H1 2024, thanks to services, agriculture, and elevated oil production. Inflation has cooled to 23.0% from 31.4% last year, with 2026 forecasts at 22.0%. The IMF recently upgraded its 2025 growth outlook to 3.9%, citing stronger domestic fundamentals and lower exposure to global tariffs.

Reforms are paying off: $8 billion in energy investments have flowed in, non-oil exports are rising, and external balances are strengthening. Public debt is trending down to 39.8% of GDP, with fiscal deficits narrowing.

Yet challenges linger. Poverty and food insecurity remain elevated, and hitting a $1 trillion GDP by 2030 will require growth to accelerate fivefold. U.S. tariffs (15% on Nigerian goods, sparing oil/gas) pose minimal threat, thanks to Nigeria’s massive 230M+ domestic market and deepening ties with China, India, and Brazil—as noted by Foreign Minister Yusuf Tuggar.

Quick Hits from the Week

Health Boost: ₦32.9 billion allocated to primary health centers, though calls grow for transparent community oversight.

X Buzz: Traders celebrate naira’s gains but question the impact of per-clinic health funding.

The Bottom Line

Nigeria’s markets are on a positive streak, underpinned by reforms that are gradually delivering inclusive growth. Keep an eye on oil prices and U.S. trade news for intraday moves. For live updates, head to NGX or CBN portals.

Stay tuned for tomorrow’s wrap-up—what’s your take on the naira’s rebound? Drop a comment below!

Written by Gold Oyeniran