2026-01-02 06:00:00
In an update published by Punch, the Central Bank of Nigeria (CBN) projects that Nigeria’s capital market could remain upbeat in 2026, helped by banking-sector recapitalisation, improved investor sentiment and pro‑growth policies.
The CBN’s broader outlook links market sentiment to macro stability—exchange-rate management, inflation expectations and the credibility of policy signals—suggesting that a cleaner macro picture could support risk appetite.
But the outlook also flags potential downsides, including investor fatigue if bank capital raises crowd out other issuers.
The Guardian, referencing the CBN outlook, notes the market is expected to stay “bullish, supported by bank recapitalisation” and rising confidence. In an analysis of recapitalisation dynamics, a separate market brief warns that “despite the bullish momentum, the capital market could face higher concentration risk” as bank issuance dominates.
Echotitbits take: Recapitalisation can be a turbo‑charge for bank resilience—but it can also soak up liquidity and attention. Watch how quickly banks stagger rights issues/placements, whether pension funds rebalance, and if non‑bank corporates still find room to raise long‑term capital without being priced out.
Source: The Punch — January 2, 2026 (https://punchng.com/bank-recapitalisation-to-drive-bullish-capital-market-says-cbn/)
The Punch 2026-01-02
Photo Credit: The Punch
