Nigeria’s equity market is expected to extend gains in the second quarter of 2026, led by banking, telecommunications and consumer goods stocks, as investors shift focus to company earnings and sector-specific fundamentals following a broad-based rally in the first quarter.
Market participants said in interviews conducted on April 7, 2026, in Abuja that momentum could persist, though at a more selective pace, with capital flowing into fundamentally strong names across key sectors.
Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, said stocks such as Seplat Energy, Aradel Holdings, MTN Nigeria, Nigerian Aviation Handling Company (NAHCO) and tier-one banks are likely to remain market leaders.
“These companies have strong fundamentals and continue to attract investor interest,” Igbrude said, adding that first-quarter earnings releases will be critical in shaping market direction in the coming months.
He also pointed to the insurance sector as an emerging area of activity, driven by ongoing recapitalisation requirements expected to boost capital inflows and consolidation.
The outlook follows a strong first quarter, during which the Nigerian Exchange (NGX) posted significant gains. Market capitalisation rose by N29.83 trillion between January 1 and March 31, 2026, climbing from N99.38 trillion to N129.21 trillion, according to NGX data released at the end of March.
Over the same period, the NGX All-Share Index advanced 29.35% to 201,287.78 points, up from 155,613.03, reflecting broad investor optimism supported by improved foreign exchange liquidity and relative macroeconomic stability.
Bisi Bakare, National Coordinator of the Pragmatic Shareholders’ Association, said the first-quarter rally was partly driven by momentum carried over from 2025, when the market delivered returns exceeding 50%.
She expects the second quarter to mark a transition from broad market gains to stock-specific performance.
“The market has priced in a lot of optimism,” Bakare said. “Growth may continue, but at a slower and more selective pace.”
She added that ongoing bank recapitalisation efforts, combined with domestic institutional demand and upcoming earnings reports, could sustain liquidity and investor interest.
Ridhwan Hamza, Secretary-General of the Liberated Shareholders’ Association, said the NGX’s expansion efforts, including increased investor education and new listings, are supporting long-term market growth.
He identified a range of companies, including Zenith Bank, Eterna Plc, Airtel Africa, United Capital, Fidson Healthcare, Jaiz Bank, Computer Warehouse Group, Aradel Holdings and Japaul Gold, as having the fundamentals to attract capital.
Hamza also flagged the potential listing of Dangote Refinery in the second quarter as a key catalyst that could deepen market capitalisation and sectoral diversification.
Analysts say that while macroeconomic indicators remain supportive, including improved currency stability, investors are likely to become more discerning, focusing on earnings quality, balance sheet strength and dividend outlook.
The second quarter is therefore expected to test whether corporate performance can sustain the pace of gains recorded earlier in the year, as Nigeria’s equity market transitions from momentum-driven trading to fundamentals-based investing.