In a remarkable recovery, Nigerian stocks have surged 31% in 2026, delivering the second-best dollar returns globally and reclaiming $21 billion in market value that was lost following a significant devaluation of the naira in 2024. The total market capitalization on the Lagos Exchange has now reached approximately $84 billion, demonstrating a 58% increase compared to the period before the naira's collapse. This substantial rebound signals a revitalization of the Nigerian stock market amidst challenges posed by currency fluctuations.

According to a report by Bloomberg, the gains of Nigerian stocks have significantly outperformed those of broader emerging market indices, which only recorded an 11% increase, and frontier market stocks, which experienced a 6.4% advance. Analysts are attributing this robust performance to a combination of stronger corporate earnings, a stabilizing naira, and renewed investor confidence in Nigeria's economic outlook. The turnaround in corporate financial health following the naira's depreciation has encouraged investors to view Nigerian companies more favorably.

Olabode Williams, an analyst at SBG Securities Ltd., remarked that firms adversely affected by the naira's decline have managed to stabilize their finances and return to profitability. This optimistic sentiment has sparked a bullish response in the market, indicating that investors are anticipating growth trends. Such dynamics highlight a significant turnaround in the Nigerian economy and its financial markets, reflecting greater resilience and adaptation to currency challenges that were once seen as detrimental to long-term performance.