By Majeed Salaam
Nigeria’s equities market has emerged as the best-performing stock market globally in dollar terms this year, overtaking South Korea’s equities market as investors respond positively to economic reforms, improved foreign exchange liquidity and renewed confidence in the country’s financial assets.
According to a Bloomberg report, Nigeria’s benchmark stock index has delivered a 67 percent return in dollar terms since the beginning of 2026, placing it ahead of South Korea’s Kospi index, which recorded a 66 percent gain during the same period.
The performance places the Nigerian Exchange (NGX) at the top among 92 global equity markets tracked by Bloomberg, marking a major turnaround for a market that has faced years of investor concerns around currency instability, liquidity challenges and macroeconomic uncertainty.
South Korea, which had previously led the global ranking, lost its position after the Kospi entered a technical bear market this week, declining 22 percent from its June 19 peak as investors reassessed the outlook for artificial intelligence-related stocks.
The South Korean won has also weakened by about five percent against the dollar this year, adding pressure to foreign investor returns.
Nigeria’s improved market performance, however, has been supported by domestic economic factors, including policy reforms, stronger oil prices and increased foreign exchange availability. The naira has appreciated by about four percent against the dollar since January, improving the outlook for investors seeking exposure to Nigerian assets.
The rally reflects growing investor optimism that ongoing economic adjustments are beginning to create a more stable environment for businesses and financial markets.
Financial services companies listed on the NGX have been among the strongest drivers of the market’s performance. Bloomberg reported that Fortis Global Insurance Plc delivered returns of about 1,400 percent in dollar terms this year, highlighting the strong performance recorded by some Nigerian financial stocks.
Unlike South Korea’s market growth, which has been largely driven by technology and artificial intelligence-related companies, Nigeria’s equity market expansion has been powered mainly by broader macroeconomic improvements and renewed investor appetite for domestic assets.
The development comes as international market institutions continue to reassess Nigeria’s investment classification. S&P Dow Jones Indices recently placed Nigeria on its 2027 watchlist for a possible reclassification to frontier market status, a move that could attract increased foreign investment if the country meets the required conditions.
S&P said Nigeria’s regulatory environment had improved but noted that consistency in policy implementation and operational resilience would remain important factors before any reclassification decision.
Similarly, FTSE Russell deferred a decision on Nigeria’s return to its Frontier Market Index, citing the need for further assessment of the impact of the country’s transition to a T+1 settlement cycle on international investors.
The improved performance of Nigerian equities reflects a changing perception of the country’s investment landscape. For several years, foreign investors had been cautious due to challenges around currency repatriation, exchange rate volatility and economic uncertainty.
