CBN Forecasts Bullish Trend in Nigeria's Capital Market Amid Bank Recapitalization

The Central Bank of Nigeria (CBN) foresees a continued bullish trend in Nigeria's capital market in 2026, supported by the completion of the bank sector recapitalization exercise by the end of the first quarter. Despite the positive outlook, the CBN warns of higher concentration risks in the banking sector, potentially leading to investor fatigue.

Policy measures such as zero capital gains tax for small businesses and exemptions for retail investors aim to attract new entrants to the market. The market's growth in 2025 was attributed to robust corporate earnings, stable macroeconomic conditions, and increased foreign portfolio inflows.

The Nigerian capital market saw significant growth in trade activity and market capitalization, driven by the industrial, banking, and consumer goods sectors.