Economic reforms and oil price windfalls drive broad-based gains in Nigerian assets

```htmlGolden Ten Data reported on May 8 that as investor confidence in Nigerian President Tinubu's economic reform agenda grows, Nigeria's stock, bond, and currency markets are all strengthening. Nigeria’s benchmark stock index has risen 63% in US dollar terms since the start of the year, second only to South Korea’s Kospi index, and has gained over 200% in the past 12 months. The country's local currency government bonds have outperformed most emerging market peers, and the Nigerian naira has become one of the strongest currencies in Africa. Tinubu's Nigerian economic restructuring measures include removing costly fuel subsidies and abolishing the multi-exchange rate system that caused the naira to be overvalued and deterred investors. These reforms have also prompted Moody’s and Fitch to upgrade Nigeria’s credit rating in 2025. Since the outbreak of the Iran war, rising oil prices have brought fiscal dividends, as roughly one-third of the government's revenue depends on crude oil exports. According to the latest exchange data, foreign investors purchased 181.8 billion naira ($133 million) worth of Nigerian stocks in March, higher than 72.3 billion naira the previous month. Data shows Nigeria’s stock market capitalization now reaches $105 billion, surpassing New Zealand and on par with Portugal, Ireland, and Morocco. Previously, FTSE Russell announced it would reclassify Nigeria as a frontier market starting in September, further boosting the country's stock market. Inclusion in related indexes will attract inflows from passive index funds.```