Nigerian Stock Exchange Sees 56.4% Decline in Transactions

The Nigerian Exchange Limited (NGX) has reported a substantial 56.4% decrease in market transactions, highlighting ongoing economic challenges and investor apprehension.

This downturn is attributed to factors such as inflation, currency volatility, and uncertainties surrounding government policies, which have collectively dampened investor confidence.

Despite the overall slump, the NGX witnessed the listing of the federal government’s May 2025 savings bonds. These bonds are part of efforts to encourage public investment in national development projects and offer Nigerians a secure investment avenue.

Market analysts suggest that the decline in transactions reflects broader economic strains, including reduced consumer spending and limited access to foreign exchange. The Central Bank of Nigeria’s monetary policies and the government’s fiscal strategies are under scrutiny as stakeholders seek measures to stabilize the economy and rejuvenate the capital market.

The NGX is exploring initiatives to attract both local and foreign investors, including the introduction of new financial instruments and enhancing market transparency. These steps aim to restore confidence and stimulate activity within the exchange.

As Nigeria navigates these economic headwinds, the performance of the NGX serves as a barometer for the country’s financial health, underscoring the need for comprehensive reforms to foster a resilient and inclusive economy.