Market analysts have cautioned that persistent inflation, unpredictable government policies, and fluctuations in exchange rates could undermine the economic progress currently being observed in Nigeria. Despite these hurdles, experts expect the capital market to remain robust throughout the second half of 2026, bolstered by bank recapitalization, improved foreign currency stability, and the upcoming Dangote Refinery listing.
These insights emerged during a webinar hosted by Arthur Steven Asset Management Limited, where Professor Uche Uwaleke highlighted that the Nigerian economy demonstrated significant resilience in the first half of 2026. This period saw the Nigerian Exchange record historic growth, with the All-Share Index jumping nearly 47 percent to exceed 229,000 points. This expansion generated roughly N47 trillion in value for investors, fueled by strong corporate profits and increased institutional engagement.
While external reserves have reached over $51 billion, Professor Uwaleke noted that rising global oil prices and increased transport costs have stalled earlier progress on lowering inflation. Nevertheless, the outlook for equities remains positive. Factors such as the successful banking recapitalization, which saw 33 banks secure N4.65 trillion in capital, along with new market reforms like the T+1 settlement cycle, are expected to draw in further international investment.
Financial experts suggest a balanced investment approach, recommending a mix of 50 percent equities, 20 percent fixed-income securities, 20 percent alternative assets, and 10 percent dollar-based holdings. However, investors are advised to watch for potential risks, including political uncertainty leading up to the 2027 elections and potential shifts in foreign capital flows.
