Nigerian Banks Surge 68% Yet Trade Below Peers' Values

In 2026, Nigerian banking stocks experienced a remarkable rally, with the NGX Banking Index increasing by 67.96% year-to-date as of September 14, outperforming the broader NGX All-Share Index, which rose by 56.35%. This surge resulted in a market value increase of approximately N11.17 trillion, from N16.44 trillion at the end of December 2025 to N27.61 trillion by September 14, 2026.

Despite these gains, many of Nigeria's largest banks still trade below their book values and at lower price-to-earnings multiples compared to major African lenders in Kenya, South Africa, Ghana, and Tanzania. Analysts attribute the persistent valuation discount to lingering investor skepticism about the sustainability of strong earnings.

Factors such as the completion of the Central Bank of Nigeria’s recapitalisation exercise and attractive dividend yields have improved sentiment. The inclusion of some Nigerian banks in the FTSE Russell Frontier 50 Index is expected to boost foreign investor demand.