Nigeria's Stock Market to Recover Mildly in H2 2026

David Adonri, Chief Executive Officer of Highcap Securities Limited, projected a mild recovery in Nigeria's stock market for the second half of 2026, supported by improved corporate fundamentals and sustained macroeconomic reforms. He noted that despite persistent high interest rates and significant political and economic risks, investor sentiment remains largely positive due to stronger corporate earnings and economic indicators.

Adonri cautioned about inflationary pressures building ahead of the 2027 general elections and ongoing geopolitical tensions in the Gulf region, which could negatively impact market performance. He emphasized that the recent correction in the Nigerian Exchange should not be interpreted as a sign of structural weakness but rather as a normal phase of institutional portfolio repositioning following a strong rally.

Adonri also highlighted the potential impact of Dangote Refinery on the market and noted that recent economic reforms have received international endorsement, with the IMF acknowledging improvements in macroeconomic outcomes. The World Bank and CBN project Nigeria's economy to expand by 4.1% and 4.49%, respectively, in 2026.