Nigerian market gains as government targets 7% GDP growth through economic reforms

Nigeria’s equities market continues to maintain its positive trajectory, with the NGX All Share Index closing at 106,074 points on Thursday.

The rally was supported by broad-based sector gains, notably in Technology Services (+5.88%), Consumer Non-Durables (+3.06%), and Non-Energy Minerals (+0.96%).

Conversely, Commercial Services (-3.54%), Transportation (-0.88%), and Producer Manufacturing (-0.58%) recorded losses.

Among large-cap stocks, MTN Nigeria Communications advanced 2.51%, Zenith Bank rose 0.89%, and Access Holdings gained 0.84%, while Dangote Cement, BUA Foods, and Aradel closed flat.

The equity market’s performance reflects improving investor sentiment, supported by positive macroeconomic projections.

The World Bank forecasts GDP growth of 3.4% in 2024 and 3.6% in 2025, driven by robust activity in the services sector, particularly telecommunications and financial services. Inflation is expected to ease to 22.1% in 2025 and further to 15.9% by 2027.

At the same time, the federal government has articulated an ambitious target of 7% annual GDP growth, reflecting its commitment to structural reform, investment promotion, and fiscal discipline. While near-term challenges persist, ongoing reforms present an opportunity to reposition the economy for long-term growth, leading to higher valuations on the domestic equity market.