Nigerian Stocks Surge N26.5tn in Record April

Investors on the Nigerian Exchange added N26.5 trillion to their portfolios in April as the market hit a record valuation of N155.7 trillion. This surge marks a 20 per cent jump in the All-Share Index within a single month. Money is flowing back into the bourse because buyers trust the earnings power of Nigeria’s largest companies. High inflation usually scares investors away from paper assets. Here, it seems to have pushed them toward equities as a shield against rising prices.

The total value of the market now stands at its highest point this year. It rose from N129.2 trillion in March to nearly N156 trillion by the end of April. Institutional buyers are no longer sitting on the sidelines. They are hunting for stocks with solid balance sheets and high liquidity. This demand has created a resilient uptrend that defies the broader economic gloom. The market is increasingly concentrated around a few dozen giants that dictate the pace of growth.

Banks remain the engine room of this trading frenzy. The financial services sector accounted for over 77 per cent of all shares traded by volume this week. Lenders like Access Holdings and United Bank for Africa are the preferred vehicles for big bets. Investors moved N124 billion through bank stocks alone during the final week of the month. These institutions are benefiting from high interest rates and the clearing of old foreign exchange backlogs. Consumer goods followed as a distant second, reflecting a more cautious view of the retail sector.

Global oil prices are providing the necessary fuel for this local rally. Brent crude climbed to $114 per barrel as tensions in the Middle East refused to cool. The deadlock between the United States and Iran over the Strait of Hormuz has sparked deep fears about global supply. Nigeria stands to gain from this chaos through increased foreign exchange inflows. Higher oil revenue supports the naira and makes Nigerian stocks look cheaper to foreign buyers. This external boost is masking some of the structural weaknesses in the domestic economy.

Uncertainty in the energy market grew after the United Arab Emirates left the OPEC+ alliance. This move introduced fresh volatility into global price forecasts. Supply constraints are now the dominant theme for the rest of the year. For Nigeria, the high price of crude acts as a vital macro driver for the stock market. Energy-linked equities are seeing renewed interest as a result. If oil stays above $100, the bullish sentiment in Lagos is likely to persist.

Trading activity is picking up speed as more volume enters the system. Over 4.8 billion shares changed hands this week, a significant jump from the previous period. The number of deals also rose, showing that both retail and big players are active. This liquidity is a healthy sign for an exchange that has often struggled with low turnover. Price discovery is becoming more efficient as more buyers compete for the same top-tier stocks. The market has found its rhythm in a high-cost environment.

The current rally suggests a decoupling from the struggles of the average Nigerian household. While firms struggle with energy costs and logistics, their share prices tell a story of triumph. This gap exists because the exchange represents the elite tier of the corporate world. These firms can pass costs to consumers and reap the benefits of high interest rates. Shareholders are happy to take the dividends while the real economy catches up. The boom in April is a victory for capital over cost.