Nigerian Stocks Stabilize as NGX ASI Rises; Policy Deals with Japan and China Offer Tailwinds

Aug 25, 2025 - 17:00

Nigerian equities showed signs of stabilization on Friday, with the NGX All-Share Index (ASI) advancing 0.48% to 141,004.14. Breadth was constructive as gains spread across multiple sectors. Electronic technology, consumer durables, and health technology led the upside, while commercial services, non-energy minerals, and producer manufacturing lagged.

Market Snapshot: Index, Breadth & Sector Moves

Index performance: +0.48% to 141,004.14
Leaders: Electronic technology, consumer durables, health technology
Laggards: Commercial services, non-energy minerals, producer manufacturing

At the stock level, BUA Foods, Guaranty Trust Holding (GTCO), Zenith Bank, and International Breweries were among the top performers. MTN Nigeria Communications, Dangote Cement, and Aradel finished unchanged, while Lafarge Cement (Lafarge Africa) and Stanbic IBTC Holdings closed lower.

Policy Catalysts: TICAD 9 and Infrastructure Momentum

Nigeria strengthened strategic ties with Japan during the Ninth Tokyo International Conference on African Development (TICAD 9), securing a USD 190 million renewable-energy loan from JICA. The package prioritises grid expansions, new substations, and off-grid solutions—themes that can underpin multi-year capex cycles. For listed names, that backdrop is supportive for:

Utilities and independent power: grid upgrades and distribution efficiency
Industrial and electricals: transformers, cables, and project services
Renewables and off-grid providers: solar, storage, and hybrid systems

Separately, the Federal Roads Maintenance Agency (FERMA) signed a two-year Long-Term Strategic Framework Agreement with the Global Cooperation Promotion Research Centre (GCPRC) to modernise roads and deepen Nigeria–China collaboration. The framework targets joint project planning, technology transfer, and capacity building—a constructive setup for construction, materials, engineering services, and logistics equities tied to transport corridors and urban connectivity.

Stocks to Watch: Banks, Consumers, Industrials

Banks: Friday’s strength in GTCO and Zenith highlights ongoing interest in well-capitalised lenders with fee income resilience.
Consumers: BUA Foods and International Breweries benefited from defensive demand and brand reach.
Cement & Building Materials: Divergence persisted as Dangote Cement ended flat, Lafarge Africa slipped, and infrastructure headlines set the stage for longer-term demand.

Macro Outlook: Q2 GDP in Focus

Investors now look to Q2 GDP after Q1 2025 grew 3.13% YoY, led by services and industry, with the oil sector at 1.87% and agriculture slightly rebounding.

Upside scenario: A firmer GDP print could support industrials, consumers, banks, and utilities, especially with capex-heavy policy catalysts in the pipeline.
Downside scenario: A softer read may weigh on cyclicals such as manufacturing and energy, putting the burden back on policy execution and earnings delivery.

Key Takeaways for Searchers & Readers

Nigerian stock market today: NGX ASI +0.48%; rotation favoured tech-adjacent, consumer, and health names.
Policy tailwinds: TICAD 9 energy financing and the FERMA–GCPRC road pact could unlock utilities, renewables, and infrastructure opportunities.
Next catalyst: Q2 GDP—watch for confirmation of momentum in services and industry.