PRESIDENT Bola Tinubu may have his weaknesses in several areas but his policies have sustained the Nigerian stock market rally, leaving investors counting in millions.

The Nigerian stock market rally began in 2020. In fact, by the end of 2020, the Nigerian Exchange (NGX) was named the best-performing stock market among the 93 equity indexes tracked by Bloomberg across the world, returning 45.7 percent even amid COVID-19 pandemic.

In 2021, NGX All Share Index returned 6.1 percent, driven by recovering corporate earnings and improved investor sentiments, according to the NGX Group. Equity capitalisation increased by 5.89 percent, with NGX Oil and Gas Index returning 52.52 percent, putting millions of naira into investors’ hands. Nigerian equities market rallied by 19.98 percent in 2022.

President Tinubu began his tenure on May 29, 2023 with the now infamous “subsidy is gone” mantra, which sent prices from petrol to food skyrocketing. He also, through the Central Bank of Nigeria (CBN), floated the foreign exchange market, pushing the exchange rate from less than N470/$ to nearly N1,600 by end of May, 2025. These policies, though harsh, turned out to become two of the boldest policies in the last decade.

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The CBN also cleared a $7 billion FX backlog in 2024 and introduced a series of measures to curb market manipulation. Like wild fire, the policies sparked several areas of the economy. It boosted confidence in the stock market as portfolio investors saw clarity in the FX market. This motivated them to bet on Nigerian stock and fixed income markets even with several risks in the economy.

Similarly, with oil subsidy removed, investors saw oil and gas stocks as good picks. This is because oil and gas firms would play in the market as economic entities and make profits without resorting to government subsidies. They could buy petrol at X price and sell at XY price, making Y profit.

As a result of these and clear policy environment, the Nigerian stocks became one of world’s best performers. It closed 2023 with a return of 45.90 percent, more than double of 2022 and highest in three years.

The rally continued in 2024, with the NGX ending the year with a remarkable 37.65 percent gain. The All Share Index (ASI), which tracks the market performance, jumped from 28,843 points in January 2024 to 40,270 points, outperforming markets like S&P 500 and FTSE 100. This trend put tens of millions of naira into the hands of several investors.

Best stocks

At the beginning of 2024, Juli Plc started 2024 at N0.59 share price but ended the year at N10.30 share price, indicating 1,646 percent gain. This means that if an investor had put N10 million on Juli Plc by the beginning of 2024, they would have walked away with N26.5 million in December. Good investment, right?

Similarly, Sunu Assurances’ investors amassed 877 percent gain in 2024, beginning the year at N1.10 share price and ending at N10.75 share price. Investors walked of with millions as a result of this stock. If you were an investor and had put N10 million in early 2024, you would have taken additional N8.8 million off the market.

The once-struggling Oando Plc closed the year with 529 percent appreciation, beginning 2024 at N10.50 share price and closing at N66. Economy Post had explained factors that led to a change in fortunes for Oando Plc, including the petrol subsidy removal and Mr Bola Tinubu’s emergence as the president.

“After the Eni deal and the subsidy removal, Oando became an investors’ darling and a good pick,” said a major oil sector player, who has an interest in one of the three deals mentioned in this story.

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An oil sector insider said, “This explains why we all want to have our person as president. Once subsidy was removed, Oando and other firms had to trade in a typical market. They would buy and sell to customers without waiting for government subsidies which would not come at times. So, it is a beneficial policy that favoured oil firms and the nation.”

Also, Eunisell Interlinked gained 520 percent in 2024, beginning the year at N3.20 share price and ending 2024 at N19.27. If you had invested N10 million, you would have walked off with extra N5.2 million by December 2024.

Transnational Corporation (TRANSCORP) gained 402 percent, starting the year at N8.66 and ending at N43.50. In 2023, the stock gained 666 percent, making it the best in the NGX since 2022. If you had invested N10 million in this stock, you would have gained extra N4 million in 2024.

2025 performance

The NGX recorded a modest gain of 2.66 percent in the first quarter (Q1) of 2025. Honeywell Flour Mills began the year at N6.30 and ended Q1 at N12.35, gaining 96.03 percent.

UPDC Plc rose 86.79 percent to N3.14 in Q1, just as palm oil maker Presco reported a 65.25 percent share price gain.

“I believe the market is undergoingc correction,” said an Lagos-based emerging markets analyst, Mr Ike Ibeabuchi. “Some Nigerian stocks have been unduly undervalued, but they are finding their real value due to market correction,” he argued.

“Inflation is moderating and the regulation is getting better. Market manipulation is now less. Also, naira stability is helping just as FX float. Som you can say that investor sentiment is stronger due to a number of policies, which are now helping many investors to rake in millions of naira.”