CBN expects recapitalisation to boost Nigeria’s capital market
The Central Bank of Nigeria (CBN) has predicted a bullish outlook for the Nigerian capital market, citing ongoing bank recapitalisation and supportive policies as key drivers. The CBN’s recent report highlights that these measures will strengthen banks and deepen market activity. The bank also forecasts economic expansion and improved financial stability. However, it warns that risks such as inflation and global volatility could impact the outlook.
TLDR
- The CBN projects a bullish Nigerian capital market in 2026, mainly due to bank recapitalisation and rising investor confidence.
- The recapitalisation exercise is expected to strengthen banks’ balance sheets and support sustained market growth.
- Nigeria’s economy is forecast to grow by 4.49% in 2026, up from 3.89% in 2025, with inflation expected to moderate to 12.94% in 2026.
- External reserves are projected to reach $51.04bn in 2026, with the current account surplus rising to $18.81bn.
- The CBN cautions that risks remain, including inflationary pressures and global market volatility, but pledges to use policy tools to maintain stability and attract investment.
