The Central Bank of Nigeria has forecast that Nigeria’s capital market will sustain a bullish trend in 2026, buoyed by the ongoing bank recapitalisation programme, improving investor confidence and favourable policy support.

The projection is contained in the apex bank’s newly released report titled “Macroeconomic Outlook for Nigeria, 2026: Consolidating Macroeconomic Stability Amid Global Uncertainty.”

The CBN noted that bank recapitalisation is expected to reinforce balance sheets, improve financial system stability and boost market participation, factors it said would underpin continued growth in the capital market.

“The capital market is expected to remain bullish in 2026, supported by the bank recapitalisation exercise, rising investor confidence and other policy measures aimed at fostering growth,” the CBN stated.

The apex bank projected that Nigeria’s economy would sustain its growth momentum in 2026, expanding by an estimated 4.49 per cent, up from 3.89 per cent in 2025, driven by broad-based structural reforms and a gradual easing of monetary policy.

The CBN also projected that headline inflation would ease to an average of 12.94 per cent in 2026, supported by lower food prices and reduced premium motor spirit costs, following improvements in domestic refining capacity and supply conditions.
On the financial sector, the bank noted that although monetary aggregates decelerated in 2025 amid tight monetary conditions, a measured policy easing alongside prudential safeguards is expected to reinforce credit discipline and financial stability in 2026.

It added that the ongoing recapitalisation programme would strengthen banks’ ability to finance private-sector-driven growth.

On the external front, the CBN projected continued improvement, with foreign exchange reserves expected to increase to $51.04 billion in 2026, driven by stronger export earnings, stable remittance inflows and higher oil and gas production. The current account surplus is also forecast to expand to $18.81 billion.

However, the apex bank warned that the outlook remains vulnerable to risks such as renewed inflationary pressures, volatility in global financial markets, geopolitical tensions and potential disruptions to crude oil output.

Despite these headwinds, the CBN reiterated its commitment to balancing price stability with economic growth, stressing that appropriate policy measures would be deployed to attract foreign investment, maintain exchange rate stability and reinforce confidence in Nigeria’s financial markets.