Nigeria’s equity market has seen a strong rebound in 2025, driven by macroeconomic reforms, improving corporate earnings, and increased investor confidence, both local and foreign. For global investors looking for exposure to emerging markets, Best Nigerian Stocks offer compelling opportunities in consumer goods, telecommunications, infrastructure, and more.
In this piece, we analyze some of the Best Stocks to buy right now on the Nigerian Exchange (NGX), along with risks and key metrics to consider.
Market Context & Key Trends
- NGX market capitalization is expected to reach around US$51.46 billion in 2025, with a CAGR (2025-26) of about 5.7%.
- In the first half of 2025, the Nigerian stock market delivered a 61% increase in equity transactions compared to the same period in 2024. This was driven largely by local institutional investors.
- Analysts have projected market returns in the range of 24-40% for 2025 under various scenarios, assuming stable policies and continued reforms.
These make Nigeria an attractive frontier for investors seeking high growth and diversification. Below are stocks that stand out given 2025 performance and prospects.
Top Stocks to Buy Now
Here are some of the strongest picks in Nigeria as of October 2025, with reasons why they look good:
| Company | Sector | Why It’s Attractive | Risks / Things to Watch |
|---|---|---|---|
| BUA Foods Plc | Consumer Goods / Agribusiness | Most valuable company on NGX by market cap (≈ N11.3 trillion ~ US$7.72B), showing strong growth. Performance in sugar, flour, edible oils give good exposure to domestic demand. | Input cost inflation (e.g. raw materials, energy), FX volatility, regulatory risk in agriculture imports/exports. |
| MTN Nigeria Plc | Telecommunications | Huge user base, rising data demand. Shares have surged ~135% YTD in 2025. Strong digital services potential. | Regulatory risk; foreign exchange risk; needing continual investment to stay ahead in tech/digital segment. |
| Dangote Cement Plc | Construction / Infrastructure | Critical for infrastructure build-out; plays big role in concrete, cement across Nigeria/Africa. Shares have seen decent YTD gains. | Cement is energy & transport cost heavy; inflation, interest rates impact demand; competition from imports or other producers. |
| Beta Glass Plc | Manufacturing / Glass | One of the best performing stocks in 2025: strong earnings growth, good valuation relative to gains. | Glass industry is energy intensive; possible supply chain issues; exposure to raw material imports and exchange rate shifts. |
| Honeywell Flour Mills | Food / Consumer Goods | Steady returns (241% in H1 2025 for example), resilient consumer demand, food staples tend to fare better in inflationary environment. | Volatile input costs; currency depreciation; government policy on food import/export could impact margins. |
| Okomu Oil Palm Plc | Agriculture / Agro-Allied | Huge returns in recent quarters (≈ 150% in Q3). Agriculture exports may benefit from global demand plus local shortages. | Weather risks; cost of logistics; regulatory or tax policy changes; international competition. |
| Aradel Holdings Plc | Energy / Industrial | Star performer in Q3 2025 (~160% return); expansion upstream + involvement in energy infrastructure; appealing for growth investors. | Energy markets are volatile; dependence on global oil prices and local policy incentives; capital intensive, potential delays. |
What Global Investors Should Know
- Currency Risk: The Naira has been volatile. Returns in NGX stocks may look great in Naira but could erode when converted to USD or other stable currencies if FX moves worsen.
- Regulatory & Policy Risk: Nigerian government policies on agriculture, import/export, energy subsidies, taxes can shift – monitoring is important.
- Valuation Multiples: Some stocks have already surged. Be careful of buying at peak valuations unless fundamentals justify it (earnings growth, dividend yield, margin sustainability).
- Liquidity: Some high return stocks are less liquid; this matters for large investors wanting to exit positions without impacting price much.
- Diversification: Spread across sectors (telecoms, consumer goods, infrastructure, agro) to buffer against sector-specific shocks.
Sample Portfolio Ideas
For a global investor with moderate risk appetite, a sample diversified NGX portfolio could be:
- 25-30% in MTN Nigeria for telecom/digital growth
- 20-25% in BUA Foods + Honeywell Flour Mills for consumer staples and inflation hedge
- 15-20% in Dangote Cement for infrastructure exposure
- 10-15% in Beta Glass + Okomu Oil Palm for manufacturing/agro exports
- 5-10% in growth plays like Aradel Holdings
Nigeria’s stock market in October 2025 offers attractive opportunities for global investors. Strong recent performance, improving economic stability, and exposure to high-growth sectors make certain NGX stocks appealing. However, risks like currency devaluation, input cost inflation, and regulatory shifts are real. Diligent research, valuation discipline, and diversification will be key.
