Nigeria's Stock Market Expected to Recover by 2026

David Adonri, Chief Executive Officer of Highcap Securities Limited, forecasts a mild recovery in Nigeria's stock market during the second half of 2026. This recovery is expected to be supported by improved corporate fundamentals and sustained macroeconomic reforms, despite ongoing high interest rates and political risks associated with the 2027 general elections.

Adonri spoke during the Capital Market Correspondents Association of Nigeria (CAMCAN) mid-year 2026 capital market review and outlook in Lagos. He noted that the equity market is likely to regain momentum as investors respond to stronger corporate earnings and improved economic indicators, which bolster confidence in Nigeria's reform agenda.

However, he cautioned about inflationary pressures building up ahead of the elections and the impact of ongoing conflicts in the Gulf region, which pose significant downside risks to market performance. Adonri also mentioned that recent economic reforms have received international endorsement, leading to upgrades in Nigeria's sovereign credit ratings by agencies such as S&P Global Ratings and Fitch Ratings.