Nigeria’s equities market could record another strong performance in the second half of 2026, with analysts projecting an 11.6 per cent growth despite growing differences in the performance of individual sectors and companies. The forecast comes after the NGX All-Share Index surged by 57 per cent through July, pushing total market capitalisation up by N58.9 trillion to N158.3 trillion within the first seven months of the year.
Speaking at the Coronation Media Parley 2026 organised in collaboration with the Capital Market Correspondents Association of Nigeria (CAMCAN), the managing director of Coronation Asset Management, Aigbovbioise Aig-Imoukhuede, said the market rally reflects deeper structural changes rather than a temporary surge. He noted that domestic investors, including pension funds, institutional investors and retail participants, have played a bigger role in driving market activity, reducing reliance on foreign portfolio flows.
However, analysts warned that investors may need to be more careful in the months ahead as the broad market gains begin to hide significant differences between sectors and individual companies. Gbemisola Adelokiki, head of Equities Research at Coronation Research, said investors would increasingly focus on earnings quality, valuations, liquidity and corporate governance. She noted that while some large-cap stocks have already been significantly re-rated, companies with strong and sustainable earnings growth could continue to attract investor interest.
United Capital Plc also expects the equities market to grow by 11.60 per cent in H2 2026, identifying banking, building materials, telecommunications, food and beverages, and power as key sectors to watch. The firm pointed to stronger corporate earnings, improved dividend payments, greater macroeconomic stability and possible inclusion of Nigerian stocks in global indices as potential catalysts for further share price gains.
Beyond the domestic market, analysts said improved foreign-exchange liquidity, stronger external reserves and greater currency stability could encourage foreign investors to return to Nigerian equities. The ongoing banking recapitalisation programme and wider economic reforms were also highlighted as factors that could strengthen investor confidence. With opportunities also emerging in quality credit, infrastructure debt and long-term infrastructure financing, investors are being encouraged to look beyond short-term market movements and position strategically. As Aig-Imoukhuede put it, investors who wait for complete certainty may end up paying more than those prepared to act on well-assessed opportunities.
source: Leadership
