Nigerian financial markets have registered a broad-based recovery as investor sentiment improves following the implementation of President Bola Tinubu's economic reform agenda. Equities, local-currency government bonds and the naira have all strengthened amid what market participants describe as renewed confidence in policy direction.
The country's stock benchmark has risen 66% this year in dollar terms, the second-best showing among 92 indexes tracked by Bloomberg, trailing only South Korea's Kospi. Over the past 12 months the same index has climbed nearly 200%, a dramatic advance for investors tracking the market.
Beyond equities, local-currency government bonds have outperformed most emerging-market peers, providing additional evidence of improving demand for Nigerian debt. The naira has also been among the top-performing African currencies this year, ranking second on the continent behind Zambia's kwacha.
Tinubu's economic overhaul removed long-standing fuel subsidies and did away with multiple exchange rates that had previously left the currency overvalued and discouraged investment. Those policy shifts have been central to the narrative that underpins the recent return of capital to Nigerian markets.
International institutions have responded to the policy changes. The International Monetary Fund projects real economic growth of 4.1% this year, up from 3.3% when Tinubu assumed office three years ago. In addition, the reforms contributed to credit-rating upgrades from Moody's Ratings and Fitch Global Ratings in 2025.
Investors have been drawn back to Nigeria's capital markets in the wake of what are seen as more credible economic policies. The recovery has also been aided by rising oil prices since the start of the Iran war, which supplied extra budgetary support for a country that relies on crude exports for roughly one-third of government revenue.
Market participants continue to watch how sustained policy credibility and external factors such as oil prices will influence the outlook for Nigerian assets and public finances. For now, the combined effect of reforms, rating actions and stronger oil receipts has produced a notable rebound across stocks, bonds and the currency.