A narrow group of sectors, including Consumer Goods, ICT, Industrial Goods and Banking, controlled almost 79% of the value of transactions and total returns of Nigeria’s equities market in 2025.
The market closed the year on a historic high, with total market capitalization rising to N99.38 trillion and a year-to-date return of 51.19%, the strongest performance ever recorded on the Nigerian Exchange.
Beneath the headline rally, sectoral data reveal a market whose value was heavily concentrated in a narrow group of industries.
This is according to research data compiled by Sterling Asset Management & Trustees Limited (SAMTL).
The data shows that four sectors—Consumer Goods, ICT, Industrial Goods and Banking—accounted for 78.6% of total market value. This concentration shaped index performance, investor returns, and the overall narrative of NGX’s standout year.
At the close of 2025, the NGX’s N99.38 trillion equity market was far from evenly distributed. Consumer Goods alone accounted for N23.58 trillion, representing 23.78% of total capitalisation and making it the single largest sector by value on the exchange.
ICT followed closely with N19.47 trillion, or 19.63% of market value, despite having just nine listed companies. Industrial Goods came third at N18.82 trillion, equivalent to 18.97%, highlighting how a few large stocks can define entire sectors.
Banking completed the dominant quartet with N16.09 trillion, or 16.22%, spread across 13 firms. In plain terms, the NGX’s performance in 2025 was largely driven by how a small number of heavyweight sectors—and even fewer stocks—performed.
Consumer Goods retained its position as the market’s anchor sector, buoyed by strong earnings and investor appetite. With just 20 listed firms, it delivered both the highest market value and the best sectoral return in 2025.
The real surprise was ICT’s ascent to second place by capitalisation. Its N19.47 trillion valuation edged past Industrial Goods, underscoring the growing influence of technology-linked companies in Nigeria’s capital market.
Although the gap between ICT and Industrial Goods was modest, the shift was symbolically important. It suggested that market leadership was no longer confined to traditional industrial champions, but increasingly shaped by scalable, high-value digital businesses.
Banking remained a core pillar of the NGX, providing depth, liquidity, and consistent institutional interest. Its inclusion among the top four reinforced the sector’s role in determining overall market direction.
Beyond these four sectors, market value thinned out rapidly. Oil and Gas accounted for N7.31 trillion, Utilities N5.16 trillion, while Agriculture and Services together contributed less than N5 trillion combined.
Insurance illustrated the starkest imbalance. Despite having 21 listed firms and posting a 62.12% return, it represented just 0.97% of market value. The pattern suggests breadth without scale, limiting impact on the broader market.
First, the NGX is effectively driven by its “big four.” Broad market rallies or sell-offs will largely reflect movements in Consumer Goods, ICT, Industrial Goods and Banking.
Second, sector rotation risk is elevated. Any slowdown in one major sector—especially Consumer Goods or ICT—could quickly weigh on index performance.
Second, sector rotation risk is elevated. Any slowdown in one major sector—especially Consumer Goods or ICT—could quickly weigh on index performance.
Finally, underweight sectors may signal opportunity or caution. While they could offer hidden value if reforms and earnings improve, they may also reflect structural weaknesses that continue to deter capital.
Explaining the concentration of trades on the “Big Four”, Mr. Tajudeen Olayinka, CEO of Wyoming Capital said “active traders and speculators prioritised liquidity, favouring stocks that could be easily bought or sold without price distortions. This explains sustained interest in banking stocks, which remain the most liquid counters on the NGX”.
In contrast, “capital-gain-seeking investors shifted more aggressively into consumer goods and industrial stocks. Many companies in these sectors staged strong recoveries after prior downturns, returning to profitability from depressed price levels. This created perceived value opportunities that attracted investors more than even banking stocks,” Olayinka explained.
He added that Banking stocks remained the most traded due to strong institutional and foreign portfolio investor participation. Investors are drawn by the sector’s transparency, multiple information sources (banks, regulators, and the CBN), and strong regulatory oversight.
Mr. Aruna Kebira of Globalview Capital Limited argued that this concentration is not unhealthy for the market, as investors retain full discretion to allocate capital to sectors they trust most. According to him, sector dominance reflects confidence, liquidity, and earnings visibility rather than structural weakness. The deep liquidity of banking stocks, according to him, ensures constant counterparty availability, limiting sharp price swings. As a result, banking stocks serve more as liquidity anchors than aggressive capital appreciation plays.