Nigeria’s stock market has become the world’s top-performing equity market in US dollar terms, overtaking South Korea’s Kospi index. According to Bloomberg data, Nigeria’s benchmark index has gained 68% in dollar terms this year, with the Kospi gaining 66%. The rally has been driven by economic reforms, stronger oil prices, improved foreign exchange liquidity, and a 4% appreciation of the naira. Additional optimism followed news that S&P Dow Jones Indices is considering restoring Nigeria to frontier-market status, a move that could attract more foreign investment. Financial stocks have led the gains, with insurer Fortis Global Insurance posting a remarkable 1,483% dollar return. Unlike South Korea, where concerns over weakening demand for artificial intelligence stocks have triggered a sharp market decline, Nigeria’s surge reflects improving macroeconomic fundamentals.
Business Day