As Nigeria’s economy stabilizes and equities soar, investors are urged to prioritize liquidity, profit growth, and dividends when selecting stocks in 2025.
With Nigeria’s economy entering a disinflationary phase and the Central Bank easing its monetary stance, investors are shifting focus from fixed-income securities to equities. Analysts say the ongoing bank recapitalization exercise, injecting over N4 trillion into the financial system, has boosted market liquidity and investor confidence.
The Nigerian Exchange (NGX) has gained 43.6% year-to-date, reflecting renewed optimism. Experts advise investors to first consider liquidity, targeting companies with at least 20 million monthly share trades. “Liquidity determines whether you can buy or sell shares easily,” the report noted. Growth-focused investors should seek firms with a five-year profit CAGR above 30%, such as Wema Bank, Okomu Oil, and Presco Plc. Dividend seekers are encouraged to look toward Seplat Energy, Dangote Cement, and BUA Foods. Meanwhile, value investors are urged to identify stocks trading below intrinsic value for long-term gains. Overall, strong liquidity and earnings stability remain key to stock selection in 2025.