Nigeria's Stock Market Is Booming. So Why Doesn't the Average Nigerian Feel Richer?

The Nigerian stock market is on fire. On September 23, the NGX All-Share Index closed at a record 251,191 points, and market capitalisation hit a record ₦163.06 trillion. The index is up about 60% this year, and an estimated ₦60 trillion in shareholder wealth has been created since January. Yet ask the average Nigerian whether they feel richer, and you'll get the face you give someone who says "just stay positive."

So where is the money? Let's investigate.

First, the wealth belongs to people who own shares. The rest of us hold airtime, a sachet of hope, and a very personal relationship with the price of garri. A rising index doesn't buy rice. It only buys more headlines.

Second, even inside the market, not everybody is invited to the party. Reports show that on some days the rally was driven by a few heavyweight stocks rather than broad buying, with more shares falling than rising. So a person can own shares and still be sitting at the back of the class while the big banks collect the prize.

Third, some of the excitement is foreign. FTSE Russell has restored Nigeria to its Frontier Market Index after nearly three years of exclusion, and international funds are repositioning. Wonderful news for investors. But no foreign fund has yet been seen negotiating with the woman who sells tomatoes.

Fourth, a stock market is a number on a screen, and your life is a number on a receipt. One of them is up 60%. The other seems to rise every time you enter the market.

To be fair, this boom isn't fake. Companies can raise money, banks have been recapitalised, and investors really are making returns. It's just that none of this automatically lowers your transport fare or makes the pharmacy friendlier.

That's the real gap in the story. Wealth on the trading floor and wealth in the pocket are two different journeys, and the second one has terrible roads.

So if you own shares, congratulations, and please remember your cousins. If you don't, relax. The index may be at a record high, but your food budget has also set a personal record.

Until the money trickles from the Exchange to the bus stop, the average Nigerian will keep listening to this party from outside, wondering why the music is so loud and the invitation never came.