Nigerian equities surged 16.6 percent in February 2026, the market’s strongest monthly gain since January 2024, as oil and gas, industrial, and banking stocks led a broad-based rally, while the naira strengthened modestly against the U.S. dollar. The Nigerian Exchange Group’s All-Share Index closed the month at 192,826.8 points, moving closer to the 200,000 mark.
This was the third consecutive monthly gain following a dip in November 2025, lifting year-to-date returns to 23.9 percent on more than 36 billion shares traded.
The oil and gas sector drove much of February’s performance, rising 33.6 percent to 4,060.7 points. Large-cap stocks Aradel and Seplat climbed 38.9 percent and 35.8 percent respectively, while mid-cap counters contributed significantly, including Japaul Gold with a 58.2 percent gain, Eterna up 6.7 percent, and Oando rising 3.2 percent. More than 1.6 billion shares changed hands in the sector.
Industrial goods followed, advancing 22.2 percent to 7,314.6 points, surpassing the 7,000-point threshold for the first time. Cement companies powered the rally with Lafarge up 27.4 percent, Dangote Cement 22.7 percent, and BUA Cement 19.7 percent, supported by gains in Chemical & Allied (25.9 percent), Berger Paints (23.3 percent), Beta Glass (18.7 percent), Austin Laz (18.2 percent), and Cutix (4.4 percent).
Banking stocks rose 16.7 percent to 1,892.1 points, led by tier-one banks Zenith Bank (27.4 percent), First HoldCo (19.9 percent), GTCO (18.2 percent), Access Holdings (17.3 percent), and UBA (10.2 percent).
Tier-two banks also contributed, with Jaiz Bank gaining 57.9 percent, FCMB 25.2 percent, Sterling 16.4 percent, Wema Bank 15.4 percent, Stanbic IBTC 13.0 percent, and Fidelity Bank 7.3 percent.
Consumer goods shares gained 6.5 percent, mainly on mid-cap stocks including Nascon Allied Industries (44.7 percent), Nestle Nigeria (43.9 percent), McNichols (33.4 percent), PZ Cussons (28.6 percent), Dangote Sugar (27.6 percent), Vitafoam (26.9 percent), and Unilever (21.7 percent), while Nigerian Breweries posted a marginal gain of 1.5 percent.
Insurance stocks were the slowest to move, up just 2.3 percent, led by Universal Insurance (23.3 percent), AXA Mansard (15.8 percent), Lasaco Assurance (15.7 percent), and Mutual Benefits (13.6 percent).
Trading during the month saw the first three of four weekly sessions close in positive territory, with the index peaking above 194,000 points in the penultimate week before a mild 1.1 percent decline in the final week returned the ASI to 192,826.8 points.
Analysts said the rally reflected both fundamentals and policy support, including recovering oil prices, strong industrial output, and central bank measures to maintain liquidity.
The Central Bank of Nigeria cut its Monetary Policy Rate by 50 basis points to 26.5 percent at its 304th Monetary Policy Committee meeting, maintained the Cash Reserve Ratio at 45 percent for commercial banks and 16 percent for merchant banks, kept liquidity requirements at 30 percent, and preserved the standing facilities corridor at +50/-450 basis points around the MPR.
The naira ended February at N1,368.5 per dollar in the official market, stronger than the N1,384.5 opening rate at the start of the month. The currency showed short-term volatility in the final week, weakening from N1,353.5/$ on Monday to N1,368.5/$ by Friday, but remained firmer than in January, when it opened at N1,431/$ and closed at N1,391/$.
Rising external reserves, which reached $50.45 billion by mid-February, the highest in 13 years, supported the currency. Since late December 2025, reserves have climbed steadily from roughly $44.8 billion, reflecting sustained inflows and stronger foreign exchange liquidity.
Analysts said these levels provide a cushion against prolonged exchange rate pressures and support investor confidence in both equities and the naira.
Headline inflation fell to 15.1 percent in January, the eleventh consecutive month of decline, down 12.5 percentage points from January 2025, reflecting moderation in overall price growth. The combination of lower inflation, higher reserves, and eased policy rates helped underpin the February rally, with broad investor participation across large-cap and mid-cap stocks.
Analysts noted that the market is currently overbought across major timeframes, suggesting the possibility of a near-term correction, but fundamentals remain supportive for continued gains. Investors benefited across sectors, with oil, cement, and banking stocks delivering the largest returns, while mid-cap consumer goods and tier-two banks offered additional upside.
The rally demonstrates Nigeria’s gradual economic recovery, as equities and the currency reflect rising oil prices, monetary easing, and stronger reserves. Continued foreign inflows, robust corporate earnings, and industrial growth are expected to support market momentum into the first quarter, though volatility remains a factor, particularly around oil prices and policy decisions.