Inflation, policy inconsistency can destabilise economic reforms, analysts warn

However, the analysts stated that the Nigeria’s capital market is expected to maintain its positive momentum in the second half of 2026, supported by stronger macroeconomic fundamentals, banking sector recapitalisation, improved foreign exchange stability and the anticipated listing of Dangote Refinery, despite lingering inflationary pressures and global geopolitical uncertainties.

Analysts and investment experts noted that the Nigerian economy has shown remarkable resilience in the first half of the year following major structural reforms, including foreign exchange liberalisation, fuel subsidy removal and monetary tightening.

The analysts at ASAM and Uwaleke maintained that despite the inflation risks, there is a constructive outlook for equities, citing expectations of sustained corporate earnings growth, continued banking sector expansion, insurance recapitalisation and possible inclusion of Nigeria in major frontier market indices.