Financial institution recapitalisation to drive bullish capital market, says CBN

The Central Bank of Nigeria has projected that the Nigerian capital market will stay bullish in 2026, pushed largely by the continued financial institution recapitalisation train, rising investor confidence and supportive coverage measures.

This outlook is contained within the CBN’s “Macroeconomic Outlook for Nigeria, 2026: Consolidating Macroeconomic Stability Amid International Uncertainty”, lately launched by the apex financial institution.

In keeping with the report, the recapitalisation of banks is predicted to strengthen steadiness sheets, improve monetary stability and deepen market exercise, thereby supporting sustained progress within the capital market.

“The capital market is predicted to stay bullish in 2026, supported by the financial institution recapitalisation train, rising investor confidence and different coverage measures aimed toward fostering progress,” the CBN acknowledged.

The apex financial institution projected that Nigeria’s financial system would proceed its growth trajectory in 2026, with progress estimated at 4.49 per cent, up from 3.89 per cent in 2025, anchored on broad-based structural reforms and a regularly easing financial coverage stance.

The CBN additionally forecast a moderation in headline inflation to a mean of 12.94 per cent in 2026, pushed by declining meals costs and decrease premium motor spirit prices, following enhancements in home refining capability and provide situations.

Within the monetary sector, the financial institution famous that whereas financial aggregates slowed in 2025 because of tight financial situations, a calibrated coverage easing and prudential measures would help credit score self-discipline and monetary stability in 2026. The recapitalisation programme can be anticipated to reinforce banks’ capability to help private-sector-led progress.

On the exterior entrance, the CBN projected sustained enchancment, with exterior reserves anticipated to rise to $51.04bn in 2026, supported by stronger exports, regular remittance inflows and elevated oil and gasoline output. The present account surplus is forecast to develop to $18.81bn.

Nonetheless, the apex financial institution cautioned that the outlook stays topic to dangers, together with potential inflationary pressures, international monetary market volatility, geopolitical tensions and doable disruptions to crude oil manufacturing.

Regardless of these dangers, the CBN reaffirmed its dedication to balancing worth stability with output progress, noting that acceptable coverage instruments could be deployed to draw international funding, maintain change price stability and strengthen confidence in Nigeria’s monetary markets.