The Nigerian stock market has emerged as the world’s best-performing equity market in dollar terms in 2026, overtaking South Korea on the back of sustained macroeconomic reforms, improved foreign exchange liquidity and renewed investor confidence.
According to a Bloomberg report, Nigeria’s benchmark stock index has delivered a 67 per cent return in dollar terms since the beginning of the year, edging past South Korea’s KOSPI index, which posted a 66 per cent gain. Bloomberg tracked the performance of 92 stock exchanges worldwide.
South Korea relinquished the top spot after the KOSPI slipped into a technical bear market, falling 22 per cent from its June 19 peak. The decline was attributed to weakening investor sentiment amid concerns over the outlook for artificial intelligence (AI)-related and technology stocks. The South Korean won also weakened by five per cent in 2026, making it one of Asia’s poorest-performing currencies.
In contrast, Nigeria’s market has appreciated by about four per cent against the US dollar since January, supported by firmer global oil prices, improved foreign exchange liquidity and ongoing economic reforms.
Bloomberg noted that financial services companies listed on the Nigerian Exchange (NGX) accounted for much of the market’s impressive performance, with Fortis Global Insurance Plc recording an exceptional return of approximately 1,400 per cent in dollar terms this year.
The report also highlighted a recent decision by S&P Dow Jones Indices to place Nigeria on its 2027 watchlist for a possible return to frontier market status. The move is expected to boost investor confidence and attract increased foreign investment into the country’s capital market.
While acknowledging improvements in Nigeria’s regulatory environment, S&P said consistent policy implementation and stronger operational resilience remain key requirements before any reclassification is approved.
Meanwhile, FTSE Russell has postponed a decision on Nigeria’s return to its Frontier Market Index to allow for further assessment of the long-term impact of the country’s transition to a T+1 settlement cycle for international investors.
