Can the Nigerian stock exchange maintain its winning streak in 2023?
Nigeria’s bullish market

2022 was the worst year for global equities and bonds in over a decade.

Interest rate hikes by most central banks to fight record-high inflation, and the fear of a global recession, led to selloffs in riskier and less stable emerging and frontier markets.

Key takeaways:

  1. The Nigerian stock exchange (NGX) defied all odds as it appreciated by 19.9% in 2022, even as global equity markets lost heavily amid global interest rate hikes. 

  2. The primary driver of the positive performance in 2022 (which should persist in 2023) was a lack of foreign investor participation. 

  3. With sustained domestic investor dominance in the NGX and barring any post-election chaos, 2023 should be another positive year.


For instance, the MSCI All-Country World Index (ACWI) shed 19.8% in 2022. The MSCI ACWI is a benchmark for global equity funds and tracks almost 3,000 stocks in 48 developed and emerging market countries.

But in the middle of this global equity market bloodshed, the second-largest stock exchange in Africa appreciated by 19.9%.

This particular stock market withstood storms. Plagues even. They included: persistently high domestic inflation, foreign exchange (fx) illiquidity, aggressive interest rate hikes by central banks (local and global) and even pre-election jitters. 

Typically, these negative factors would have dampened investors’ confidence in the economy and, by extension, the stock market. As such, they (investors) would exit the market, leading to a bearish run (negative performance). But not this market; this market stood tall in the face of adversity.

If you didn't

This story is only available to Premium subscribers Subscribe or sign in to finish reading

Not ready to subscribe? Register to read a selection of free stories

Yomi Ajayi

Yomi Ajayi

Read Latest

Why is Pakistan an attractive market for Kuda?

PREMIUM - 24 MAR 2023

Highlights and lowlights of Nigeria's 2023 elections

PREMIUM - 23 MAR 2023

Can Nigerians be optimistic about the future?

PREMIUM - 22 MAR 2023

How Stears accurately predicted Nigeria's election results

PREMIUM - 17 MAR 2023

Download our mobile app for a more immersive reading experience

Scan QR code
mobile download