Nigeria's Equity Market Set for Gains in H2 2026

Nigeria’s equity market is anticipated to deliver further gains in the second half of 2026, as the NGX All-Share Index increased by more than 60% in the first half of the year, making it one of the strongest-performing markets globally. VNL Capital, in its report, noted that the market capitalization rose from approximately N99 trillion at the beginning of the year to nearly N160 trillion before a correction in June.

The rise was attributed to banking recapitalization sentiment, strong corporate earnings, and renewed investor participation. While further upside is expected, VNL Capital cautioned that gains may become more selective as the index approaches its optimistic case of a 60% annual gain.

Key factors supporting positive sentiment include corporate earnings releases and improved macroeconomic stability, while risks include pre-election uncertainty and elevated interest rates. The oil and gas sector led the first-half rally, with the NGX Oil & Gas Index gaining close to 90%, driven by high oil prices and improved domestic production.