The Central Bank of Nigeria (CBN) has projected a bullish outlook for the Nigerian capital market in 2026, citing ongoing bank recapitalisation, growing investor confidence, and supportive policy measures as key drivers. In its recently released report, “Macroeconomic Outlook for Nigeria, 2026: Consolidating Macroeconomic Stability Amid Global Uncertainty”, the apex bank emphasized that stronger bank balance sheets will deepen market activity and boost financial stability.
According to the CBN, the recapitalisation programme is expected to provide banks with the capacity to support private-sector-led growth while enhancing credit discipline and market confidence. “The capital market is expected to remain bullish in 2026, supported by the bank recapitalisation exercise, rising investor confidence, and other policy measures aimed at fostering growth,” the report noted.
Nigeria’s broader economy is also set to benefit, with the CBN forecasting a growth rate of 4.49 per cent in 2026, up from 3.89 per cent in 2025. This expansion is expected to be driven by structural reforms across key sectors, coupled with a gradually easing monetary policy stance designed to encourage investment and economic activity. Inflation is projected to moderate to an average of 12.94 per cent, supported by declining food prices and improved domestic fuel supply.
On the external front, the central bank expects foreign reserves to rise to $51.04 billion in 2026, underpinned by stronger exports, steady remittance inflows, and increased oil and gas production. The current account surplus is also projected to grow to $18.81 billion, reflecting a more resilient economy despite potential global uncertainties.
However, the CBN cautioned that risks such as global market volatility, geopolitical tensions, inflationary pressures, and potential disruptions in crude oil production could affect these projections. The bank reaffirmed its commitment to balancing price stability with economic growth, pledging to deploy appropriate policy tools to attract foreign investment, maintain exchange rate stability, and strengthen confidence in Nigeria’s financial markets.
source: punch