February always feels like a reset month. January does the heavy lifting—planning, budgeting, adjusting expectations—while February is where action starts to look serious. If you followed a January investment plan, chances are you’re already seeing some movement. If you didn’t, that’s fine too. February still offers a clean entry point.
1. First, Let’s Be Honest About the Goal
Most investors say they want “good returns.” What they really mean is returns that feel meaningful after inflation has taken its share. With inflation now revised to about 15.15% and possibly drifting toward 16.5%, earning anything close to that is basically standing still. Government securities may offer around 18%, which looks attractive on paper. But once risk enters the picture—equities, corporate debt, funds—you should expect more. Otherwise, why bother?
A reasonable target for February 2026 is a 25% inflation-adjusted return, with 30% as the base case. Ambitious? Yes. Unrealistic? Not necessarily—if your allocation makes sense.
2. Why Equities Are Carrying More Weight
Let me explain why equities take the lead. The Nigerian stock market delivered a 51.19% return in 2025. That wasn’t luck. It was driven by earnings growth, repricing, and inflation protection behaviour. January 2026 has already posted a 6.27% gain, with over 40 stocks up more than 20% year-to-date. That momentum matters. So, allocating about 48% (₦4.8 million) of the portfolio to equities isn’t reckless. It’s calculated.
3. Banking Stocks
Banks remain the easiest entry point for most investors. They trade frequently, pricing is still reasonable, and financials are improving. An allocation of ₦1.5 million spread across names like Zenith Bank, GTCO, UBA, FirstHoldCo, and Wema Bank still makes sense. Adding Stanbic IBTC, FCMB, and Access HoldCo broadens exposure without complicating things. These stocks already returned between 6% and 16% in January alone. Liquidity is strong. Valuations remain modest. Sometimes boring sectors quietly do the work.
4. Agriculture
Agriculture isn’t flashy, but palm oil stocks have been anything but shy. Presco and Okomu Oil returned 205% and 146% in 2025. They’re already up more than 10% this year. Strong market share, pricing power, and dividend prospects make them compelling. Allocating ₦1 million here positions you for capital growth and dividends—likely in the ₦10 to ₦15 per share range. That combination matters more than people admit.
5. Oil & Gas
Yes, 2025 was rough for the sector. The NGX Oil & Gas index ended negatively. But January 2026 tells a different story, with a 13.8% gain driven by Seplat Energy and Aradel Holdings. An allocation of ₦1 million here balances income and recovery potential. Dividends provide cushioning; improved performance adds upside. It’s not a bet—it’s exposure.
6. The Supporting Cast That Holds Things Together
Not every stock needs to be dramatic. Spreading ₦1.3 million across ICT, consumer goods, and industrial names like MTN Nigeria, BUA Foods, Dangote Cement, Academy Press, Custodian Investment, and NEM Insurance adds stability and optional growth. Think of this slice as the connective tissue of the portfolio. Individually modest. Collectively powerful.
7. Equity Mutual Funds
Honestly, not everyone wants to track individual stocks daily—and that’s fine. Allocating ₦1.7 million (17%) to equity-based mutual funds gives you diversification with professional oversight. Funds like:
- Stanbic IBTC Nigerian Equity Fund (65% return in 2025)
- Zrosk Magna Equity Fund (74% return)
- Chapel Hill Denham Equity Fund (64% return)
These funds averaged about 54% returns in 2025. A 30% expectation for 2026 is reasonable, not optimistic.
8. Fixed Income
Fixed income isn’t meant to impress you. It’s meant to protect you. With ₦2.2 million (22%) in Treasury bills, FGN bonds, and savings bonds, you secure a steady income and capital preservation. A 14% yield won’t beat inflation, but it smooths volatility. That matters more than it sounds.
9. Alternative Assets
Alternative assets—crypto, commodities—tempt with upside and test patience. A controlled ₦1.3 million (13%) allocation keeps exposure meaningful but contained. Expected returns could reach 30%, but volatility is real. Respect it.
Final Thought
This portfolio isn’t built for excitement. It’s built for outcomes. By spreading ₦10 million across equities, mutual funds, fixed income, and alternatives, you create balance—growth where it counts, defence where it’s needed. February 2026 isn’t about guessing. It’s about positioning. And sometimes, that’s how real money gets made. That’s why you stick to the process, stay patient, and let your positioning work for you.
