Nigeria’s equities market is minting outsized returns in 2025, with a handful of mid- and small-cap stocks handing investors triple-digit gains, outpacing broader market benchmarks and underscoring renewed speculative appetite.
As of September 11, Beta Glass Plc has surged 649 percent, making it the best-performing stock on the Nigerian Exchange, according to data compiled by Cowrywise.
A N1 million investment in January would now be worth N7.49 million, highlighting investor enthusiasm for manufacturers exposed to rising demand for consumer goods and the strong fundamentals of the glass producer.
Mutual Benefit Assurance Plc followed closely with a 593 percent jump, turning the same N1 million bet into N6.93 million. The outsized rally in the insurer reflects investors’ increasing appetite for low-priced financial stocks, which have historically delivered sharp rallies in bullish cycles.
Many insurance firms, including Custodian Investment and AIICO Insurance, have also seen a surge in their stocks as investors are betting on the sector’s sweeping recapitalisation exercise to boost returns in the medium term.
Other notable gainers include Initiates Plc (+380%), Champion Breweries (+346%), and Ellah Lakes (+324%), all of which have benefited from renewed interest in niche plays across industrials, agriculture, and consumer staples.
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Transport and manufacturing names also made the leaderboard, with ABC Transport up 267 percent and Honeywell Flour Mills advancing 265 percent.
Real estate developer UPDC and household goods maker Vitafoam Nigeria added 265 percent and 241 percent, respectively.
The gains come against a backdrop of record market turnover and increased liquidity from both domestic institutional investors and retail traders.
Analysts say the rally has been driven by a mix of strong earnings recovery, policy reforms encouraging private sector participation, and a wave of speculative positioning as inflationary pressures push investors toward equities as a hedge.
Still, the extraordinary returns raise concerns about sustainability. “What we are seeing is a liquidity-fueled rally that may not necessarily reflect the fundamental strength of these companies,” said one Lagos-based equity analyst.
“Valuations are stretching, and unless earnings momentum keeps pace, corrections are inevitable.”
The broader Nigerian Exchange All-Share Index has also been on a tear in 2025. Though it’s been on a four-week losing streak, it broke even as ASI gained 1.13 percent week-on-week, closing at 140,545.69 points.
Overall, the year-to-date (YTD) return improved to 36.55 percent, but the magnitude of gains in these counters highlights the market’s uneven distribution of wealth creation.
Investors who concentrated bets in the year’s top stocks have multiplied their portfolios several times over, while others tied to lagging sectors remain under water.
As Nigeria navigates macroeconomic headwinds, including double-digit inflation, exchange-rate volatility, and a volatile oil market, the question for investors is whether the rally can hold through year-end or if profit-taking will trim some of the extraordinary gains.