Alliance Warns of Valuation Risks as NGX Surges 228% in Three Years
The Nigerian stock market’s 228 per cent surge since 2023 has placed the Nigerian Exchange Limited (NGX) among the world’s strongest-performing equity markets.
However, the Alliance for Economic Research and Ethics has warned that the rally comes with significant valuation and liquidity risks.
In its assessment of the market, the Alliance noted that the NGX All-Share Index rose from about 74,800 points at the end of 2023 to 245,209 points as of August 6, 2026, while total market capitalisation increased from about ₦30 trillion to ₦158.3 trillion.
The Alliance observed that the market’s performance has been supported by a combination of economic reforms, banking recapitalisation, new corporate listings, currency movements and stronger oil prices.
It noted that the removal of fuel subsidies and the unification of foreign exchange windows, although initially painful, helped change the macroeconomic environment and improve investor confidence.
“The macroeconomic fundamentals shifted. And the stock market, which is always a forward-looking instrument, responded with enthusiasm,” the Alliance noted.