By Favour Pius
Improved economic growth in the first quarter of 2026 is expected to strengthen investor confidence and support renewed momentum on the Nigerian equities market, as analysts project stronger earnings for listed companies across key sectors of the economy.
Nigeria’s Gross Domestic Product (GDP) growth for the period reflected increased activities in trade, telecommunications, financial services and other non-oil sectors, raising expectations of improved corporate performance on the Nigerian Exchange Limited (NGX).
Market operators said the positive growth outlook could trigger renewed interest in fundamentally strong stocks, especially banking, telecoms, consumer goods and industrial equities that are closely tied to economic expansion.
Analysts noted that stronger GDP growth often signals rising consumer demand, improved business confidence and increased commercial activities, all of which support revenue growth and profitability for listed firms.
The development also comes amid gradual recovery in investor sentiment following major economic reforms, including foreign exchange liberalisation and fiscal adjustments aimed at stabilising the economy.
According to capital market stakeholders, improving macroeconomic indicators may encourage both local and foreign investors to increase participation in the equities market after months of cautious trading.
An investment analyst, Johnson Chukwu, said sustained GDP growth could positively impact the stock market if supported by stable monetary policies and improved investor confidence.
“Economic growth creates opportunities for businesses to expand operations and improve earnings. Once investors see stronger fundamentals and earnings outlook, demand for quality stocks naturally increases,” he said.
Despite the optimism, experts warned that inflationary pressures, elevated interest rates and exchange rate volatility remain major risks capable of limiting the full impact of economic growth on stock market performance.
They added that many investors are still monitoring the broader macroeconomic environment, particularly the effect of inflation on consumer purchasing power and business operating costs.
A stockbroker, Amina Yusuf, said investors were becoming more selective, focusing on companies with strong balance sheets, dividend history and resilience to economic shocks.
“Investors are now prioritising companies that can withstand inflationary pressures and still deliver consistent returns despite market volatility,” she said.
Analysts, however, maintained that if current economic reforms are sustained and corporate earnings remain strong, Nigerian stocks could witness improved valuation and increased market activity in the coming quarters.
