The Nigerian equities market closed modestly higher for August 2025, having endured a month marked by large swings in investor sentiment. The NGX All-Share index was up 0.31%, having started the month around 139,863 points, passing 146,000 points mid-month, and giving back nearly all of those gains in the last two weeks.
Even though the large-cap oil and industrial stocks weighed on performance on the call of the month, there was strong interest in small- and mid-cap stocks, especially in the insurance sector, that changed the leadership of the market. Investors rotated out of large-cap stocks into speculative names, driving some of the biggest market moves we have seen this year.
Insurance Sector Surge
The big winners in August were certainly the insurance stocks, which were driven by new-found optimism in the wake of the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The act implemented important changes such as strict governance, higher minimum capital requirements, and compulsory coverage regulations. Market commentators noted that it could lead to more consolidation in the industry as the sector continued to grow and speculation swelled for traditionally dormant insurance stocks.
Due to the thin liquidity in many of these stocks, modest inflows led to dramatic moves, and almost half of the best-performing stocks in the month were insurance stocks (with some doubling in weeks). August 2025: Top 20 Gainers
Here’s the list of the Nigerians stocks that performed the best overall in August 2025, ranked by percentage gains:
Mutual Benefits Assurance — +114.29%
AIICO Insurance — +91.47%
Veritas Kapital Assurance — +65.35%
Guinea Insurance — +65.12%
Regency Alliance Insurance — +63.75%
NCR (Nigeria) Plc — +59.31%
Coronation Insurance — +56.71%
Linkage Assurance — +55.17%
Universal Insurance — +53.85%
Ellah Lakes Plc — +53.09%
Prestige Assurance — +50.00%
Deap Capital — +44.80%
Nigerian Enamelware — +44.44%
Cornerstone Insurance — +38.91%
International Energy Insurance — +37.71%
Sovereign Trust Insurance — +37.57%
Consolidated Hallmark Insurance — +36.94%
AXA Mansard — +33.33%
NEM Insurance — +30.00%
Beta Glass — +29.00%
Great Movers
Mutual Benefits Assurance and AIICO Insurance performed the best. Both companies nearly doubled in value in under a month. Investors who placed themselves early in these names took full advantage from the strongest momentum rally seen in years.
Ellah Lakes had a great month too, after Management disclosed they were embarking on a 1,500ha oil palm plant expansion alongside plans to roll out livestock integration and upgrade their processing facility. Investment interest surged on the news, pushing the stock intraday to peaks above ₦19 before settling around ₦14 at month’s end, after trading below ₦10 at the beginning, leaving Inclusive risks to be resolved on the path forward.
Among industrials, Beta Glass and Nigerian Enamelware had impressive gains showing that investor enthusiasm is not just limited to insurance but for selective plays in manufacturing and consumer facing industries.
Risks & Takeaways
While August demonstrated the profit potential in Nigeria’s small-cap space, it also elucidated the risks. Many of the gainers were illiquid names, where small flows can create significant price moves; both through buy rushes or sell-offs. Hence, investors who entered trades early salvaged significantly, while late comers faced marked sell-offs.
Even for longer term investors, the renewed interest in insurance stocks may signal a structural shift prior to sector consolidation ahead that could improve the outlook for the insurance industry. However, the speculative nature of the August rally justifies healthy caution.
Future Outlook
As September begins, we are left to question whether the insurance stocks can uphold momentum into September, and whether institutional investors will increase exposure to the sector alongside retail investors? Broader market returns will likely remain correlated to global oil price movements, local monetary policy, and per-share growth of the improvement in corporate profitability.
The message from August is clear: even in a generally sideways market, hidden opportunities can present themselves for investors who see sectoral shifts early – and in Nigeria’s high volatility equity environment, timing and discipline is key.