Nigeria's stock market has emerged as the world's best-performing equity market in dollar terms this year, overtaking South Korea as investors reward the country's improving macroeconomic outlook and ongoing economic reforms.
According to Bloomberg data tracking 92 global stock exchanges, Nigerian equities have returned 67% in U.S. dollar terms so far this year, narrowly surpassing South Korea's 66% gain.
The milestone marks a remarkable turnaround for Africa's largest economy after years of currency volatility and weak investor sentiment.
The rally has been fueled by President Bola Tinubu's economic reforms, stronger foreign exchange liquidity, higher global oil prices, and renewed foreign investor interest. The naira has also strengthened by about 4% against the U.S. dollar since the beginning of the year, amplifying returns for international investors.
Investor confidence received another boost this week after S&P Dow Jones Indices announced it is considering upgrading Nigeria to frontier market status, a move that could attract additional institutional investment into the country's capital markets.
