Nigeria Stocks Lead World With 67% Dollar Return as South Korea Slips Into Bear Market
Updated
Updated · Business Insider Africa · Jul 9
Nigeria Stocks Lead World With 67% Dollar Return as South Korea Slips Into Bear Market
3 articles · Updated · Business Insider Africa · Jul 9
Summary
Bloomberg data tracking 92 exchanges show Nigerian equities have returned 67% in U.S. dollar terms this year, edging South Korea's 66% gain to become the world's top-performing stock market.
Tinubu's reforms, better foreign-exchange liquidity, higher oil prices and a naira up about 4% against the dollar have lifted returns and revived foreign investor appetite.
S&P Dow Jones added momentum this week by saying it is considering upgrading Nigeria to frontier-market status, a step that could draw more institutional money into local equities.
South Korea lost the lead as the Kospi fell more than 22% from its June peak into a technical bear market, while the won weakened about 5% this year.
A planned sale of about 10% of Dangote Petroleum Refinery through a multi-exchange African listing is seen as a further catalyst for deepening Nigeria's capital market.
FTSE has upgraded Nigeria, but will S&P follow, unlocking hundreds of millions more in investment?
As Nigeria's market leads the world, can its rally survive the nation's severe underlying economic risks?
From AI Boom to Oil Rally: Nigeria Surpasses South Korea as 2026’s Best-Performing Stock Market
Overview
In 2026, Nigeria's stock market became the world's top performer in dollar returns, driven by a remarkable rally that saw a N6.3 trillion surge in just four days. This success followed significant macroeconomic reforms by the government, which initially caused high inflation and currency volatility but later led to enhanced foreign exchange liquidity and a period of naira stability. The sustained rise in global oil prices further boosted investor confidence, attracting both domestic and international investors. These combined factors created a strong investment climate and marked a major shift in Nigeria's market dynamics.