Stock Market Accounts for 25% of Nigeria’s GDP
At N92.25 trillion, the equity market capitalisation of the Nigerian Exchange (NGX) has crossed 25% of the country’s gross domestic product size, MarketForces Africa Research highlighted in an investor note.
Nigeria has lost its identity as the largest economy in Africa due to weak local currency, high inflation, and reduced private sector activities. After the rebased exercise, Nigeria’s Gross Domestic Product for 2024 inched higher, settling at N372.82 trillion, which is equivalent to approximately $243.7 billion.
The country’s economic size had dropped sizably until the National Bureau of Statistics (NBS) shifted the base year from 2010 to 2019. The World Bank reported a GDP of $472.62 billion in 2022. In 2023, Nigeria’s GDP was estimated at $363.85 billion.
Analysts, however, noted that the Nigerian stock market has explained the difference between poor and rich people. “If you haven’t made 40% on your project year to date, you invested wrong! The NGX year-to-date return is approaching 42%! They say this is a big rich town….
“There is a current disconnect between the markets and the street. Keeping track of what is happening in the economy is where poor people often miss it.
“Sometimes, we are not informed, or we lack the guts to go where people are building wealth. But how would you tell people that the Nigerian stock market has transcended from making kobo kobo to creating wealth despite national economic dislocation?” #Stock Market Accounts for 25% of Nigeria’s GDP NNPCL Has 3 Weeks to Address N210 Trillion in Audit Discrepancies – Senate
