LAGOS – Nigerian stocks have overtaken South Korea’s Kospi index to hand investors the highest dollar-based returns globally this year, topping a list of 92 exchanges tracked by Bloomberg.
The Nigerian benchmark index has returned 67 percent in U.S. dollar terms. This performance narrowly edged past South Korea’s 66% gain before the Asian market retreated.
Souring sentiment on artificial intelligence equities pushed South Korea’s previously world-beating rally into a technical bear market, forcing global fund managers to rotate capital into reform-led frontier assets.
In contrast, the Lagos bourse has surged due to aggressive macroeconomic adjustments, rising international crude oil prices, and substantially improved domestic foreign exchange liquidity under ongoing state structural reforms.
A four percent year-to-date appreciation of the Nigerian naira has protected foreign equity gains. Meanwhile, the South Korean won fell five percent to become one of Asia’s weakest currencies.
Investor confidence was further accelerated after S&P Dow Jones Indices placed Nigeria on its 2027 watchlist. The exchange faces a potential upgrade from standalone to benchmark-tracked frontier market status.
Domestic institutional demand is anchoring the momentum. Investors are aggressively positioning ahead of expected corporate earnings and the highly anticipated public listing of the massive Dangote Petroleum Refinery.
Market capitalization on the Nigerian Exchange recently expanded by over six trillion naira in a four-day trading window, driven by significant rallies in heavy-weight financial, industrial, and telecommunications stocks.
