The Nigerian stock market is on fire in 2025.
The All-Share Index (ASI) as of the close of trading last week surged to 134,452.93 basis points, representing a 30.63% year-to-date (YtD) return, just shy of the 37.65% full-year gain recorded in 2024 and closing with a market capitalization of N83.07 trillion.
In 2024, about 35 stocks recorded triple-digit YtD gains with Juli Plc, Sunu Assurance, Learn Africa, Oando, and Eunisell emerging in the top 5.
By the end of the first half of 2025, 20 stocks had recorded triple-digit YtD gains, as Beta Glass, Honeywell Flour, The Initiatives, Vitafoam, and Smart Product emerged as the top five best performers.
As of the close of trading last week on Friday, July 25, 2025, 37 stocks had recorded triple-digit YtD returns, and with about 110 gainers YtD.
Data from PenCom says we have got N24.10 trillion in pension assets as of May 2025, yet only N2.75 trillion is invested in domestic stocks. That is 11.4% or 12.6% if you throw in foreign equities. Government securities, on the other hand, was N14.95 trillion. That’s 62% of pension allocation.
It’s the same story with mutual funds. According to Nairametrics data, out of N5.98 trillion in total assets under management (AUM) as of H1 2025, only N114.5 billion is allocated to equity and balanced funds combined—that’s less than 2%.
By contrast, money market funds hold N3.14 trillion, or about 52.5% of total AUM, while dollar funds account for N1.92 trillion, roughly 32%.
So, why are equity funds so underrepresented?
During Nairametrics’ Drinks & Mics live show on July 22, 2025, Samson Esemuede, CIO of Zrosk Capital, cut to the heart of the matter:
“What we’re seeing isn’t just a rally — it’s a recalibration.”
Sam said he launched an equity mutual fund in September 2024, and less than a year later, it’s the third-largest equity-based mutual fund in Nigeria with over N5 billion AUM.
“That’s a pittance,” he quipped, pointing to SEC data that shows the entire mutual fund industry sits just under N4 trillion, with equities barely visible in the mix.
“Just reallocate 5% of the N3.1 trillion in money market funds into equities — and see the difference.”
Arnold A. Dublin-Green, CIO of Cordros Asset Management, echoed the sentiment:
“Even with a N1 trillion jump in AUM in Q2 2025, equity allocations are still minuscule. Foreign investors? Same story. MSCI kicked Nigeria out of its Frontier Index in 2023, pushing out passive flows. But if FX reforms hold and macro signals improve, we may see a reversal.”
His takeaway?
“This isn’t just a rally. It’s a massive opportunity. One of the most compelling contrarian bets in global markets today.”
Overall, Nigerian equities aren’t just outperforming — they’re still hiding in plain sight. Despite delivering stellar returns, the Nigerian equities market remains strikingly under-owned by institutional capital.
This mismatch between performance and participation points to a compelling opportunity for forward-looking investors.
With many fundamentally sound stocks still trading below book value and broad-based gains across sectors, the current rally is not merely speculative—it is grounded in real growth and valuation upside.
The big guns haven’t even started allocating meaningfully. When they do, we won’t be talking about cheap P/Es anymore — we’ll be talking about missed opportunities.
If you’re waiting for a formal invitation to invest in Nigerian stocks, consider this.
