The Nigerian Exchange Limited (NGX) has announced the outcome of its full-year 2025 market index review.
This is according to information published by the Exchange, which confirmed that the reviewed indices took effect at the start of trading on Friday, January 2, 2025.
Notably, Guinness Nigeria Plc, Presco Plc, and Wema Bank gained inclusion in key indices, highlighting their improved market positions and performance during the year.
These additions came at the expense of companies such as United Capital Plc, Access Corp, International Breweries, and Stanbic IBTC, which, along with others, were replaced as part of the periodic rebalancing process.
The reshuffle reflects evolving trends in market capitalization, liquidity, and sector dynamics within Nigeria’s capital market.
What the data is saying
The index changes reflect shifts in market capitalisation, liquidity, compliance, and sector performance, impacting both passive and active investor strategies in Nigeria’s capital markets.
In the flagship NGX 30 Index, which tracks the 30 most capitalised and liquid stocks, Guinness Nigeria Plc was added, replacing United Capital Plc (UCP).
This suggests increased investor interest, improved liquidity, or growth in Guinness’ market value over the year. Guinness was also the best-performing consumer goods stock in 2025.
United Capital’s exit from the NGX 30 does not necessarily indicate a deterioration in fundamentals but reflects a relative decline in ranking based on the index criteria during the review period.
Among sector-specific indices, changes were minimal:
- NGX Insurance Index: Mutual Benefits Assurance was added, replacing Guinea Insurance.
- NGX Oil & Gas Index: Japaul Gold & Ventures Plc replaced MRS Oil Nigeria.
- Banking, Consumer Goods, and Industrial Goods Indices: No changes were recorded, suggesting relative stability in sectoral leadership.
More shifts across thematic and compliance-focused indices
The NGX Pension Index, which includes stocks eligible under Nigeria’s pension investment guidelines, admitted Wema Bank Plc, while International Breweries was removed—highlighting shifts in free float, liquidity, and compliance.
In the NGX Lotus Islamic Index, Presco Plc was added. The index, which tracks Shariah-compliant stocks, now reflects continued investor preference for agriculture-linked and export-driven firms.
Thematic and partner indices saw broader reshuffling:
- NGX Pension Broad Index: Nigeria Infrastructure Debt Fund added; Regency Alliance and Veritas Kapital exited.
- Afrinvest Bank Value Index: Wema Bank Plc and Jaiz Bank Plc were added, while Access Holdings Plc and Stanbic IBTC Holdings Plc were removed.
- Afrinvest Dividend Yield Index welcomed Dangote Cement, Okomu Oil, Vitafoam, and Conoil, reinforcing dividend-paying stocks as favourites amid high interest rates.
- Meristem Growth Index: BUA Cement, Lafarge Africa, AXA Mansard, AIICO, CAP, Conoil, and United Capital were added, showcasing strong earnings growth momentum.
- Meristem Value Index saw entries like ETI, Julius Berger, and NEM Insurance, while Dangote Sugar, TotalEnergies, and Lafarge Africa were removed.
Reason for Indexes
NGX index reviews are more than routine adjustments—they influence investor decision-making, fund allocation, and stock visibility.
- Passive investment products and institutional portfolios often track these indices, resulting in inflows into newly added stocks and outflows from those removed.
- NGX’s CEO Jude Chiemeka emphasized that the index review aligns with the Exchange’s goal of deepening liquidity and boosting investor confidence through product innovation.
- Similarly, Abimbola Babalola, Head of Trading and Products, noted that the rebalancing ensures efficient market tracking and portfolio alignment.
What you should know
The NGX Limited reviews and updates the list of companies that make up its main stock market indices every year.
Simply put, NGX checks which companies are doing well and still meet the rules—such as size, share price, trading activity, and how many shares are available to the public.
Companies that no longer meet these standards are removed, while better-performing or fast-growing companies are added.
This keeps each index a true picture of the market and ensures it reflects the most relevant and investable companies.
For investors, the reshuffle matters because funds and investors that track these indices may buy into new entrants and sell those removed, which can cause share prices to move.
For active and passive investors alike, these changes provide useful signals on which stocks are gaining relevance and which are quietly losing ground in Nigeria’s equity market.
