Nigeria's economic reforms and oil price dividends drive a broad-based asset rally

Crypto World News reports that Nigerian President Tinubu’s economic reform agenda has boosted investor confidence, driving the country’s stocks, bonds, and currency markets higher across the board. Nigeria’s benchmark stock index has risen by 63% in US dollar terms since the start of this year, trailing only South Korea’s KOSPI index. In the past 12 months, the cumulative increase has exceeded 200%. The performance of the country’s government bonds has also outpaced most peers in other emerging markets, with the Nigerian naira becoming one of the strongest-performing African currencies.

Tinubu’s economic restructuring measures include canceling high-cost fuel subsidies and abolishing the multiple exchange-rate system that caused the naira to be overvalued. The related reforms have also prompted Moody’s and Fitch to upgrade the country’s credit ratings in 2025. Since the outbreak of the Iran war, higher oil prices have brought fiscal dividends, as around one-third of the government’s revenue depends on crude oil exports. According to the latest exchange data, foreign investors bought 181.8 billion naira (about $133 million) worth of Nigerian stocks in March, up from 72.3 billion naira in the previous month.

The data shows that Nigeria’s stock market currently has a market capitalization of $105 billion, exceeding New Zealand and at a similar level to Portugal, Ireland, and Morocco. Previously, FTSE Russell announced that starting in September it would reclassify Nigeria as a frontier market, further boosting the country’s stock market.