Airtel Africa is experiencing a significant widening in the valuation gap between its listings on the London Stock Exchange (LSE) and the Nigerian Exchange (NGX). According to recent reports, the company’s share price on the LSE has surged from £1.17 at the beginning of 2025 to £2.80 as of November 3, representing a 139% increase. In contrast, the share price on the NGX has only climbed slightly from N2,156.90 to N2,310.50, a mere 7.1% rise during the same period.
Market analysts attribute this disparity to the low liquidity on the NGX, which hampers price movement for stocks, even those with strong fundamentals like Airtel Africa. David Adonri, CEO of Highcap Securities Limited, noted that the limited trading volume on the Nigerian market means that significant investments are required to influence share prices. While the company enjoys robust performance and investor confidence on the LSE, the NGX’s market dynamics do not reflect the same momentum.
Despite the challenges, Airtel Africa maintains solid fundamentals, with impressive earnings growth and a strong market presence. However, analysts warn that without improvements in liquidity and market conditions in Nigeria, investors may struggle to fully benefit from the company’s positive performance. The situation underscores the need for reforms in the Nigerian stock market to enhance trading volumes and investor activity.
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