Nigeria’s equities market entered the opening sessions of 2026 on a positive trajectory, extending gains and offering investors clearer sectoral direction as strategic capital movements shaped early-year sentiment.
Initial trading activity suggested renewed confidence across the market, driven less by speculative flows and more by deliberate, high-profile investment decisions that have begun to redefine positioning in key sectors.
Central to this evolving narrative is Mr. Femi Otedola’s exit from Geregu Power, a transaction widely viewed as a well-timed value realisation. The divestment capped a full investment cycle that began with early entry into the power sector, followed by operational scaling and a strategic exit aligned with peak valuation and favourable liquidity conditions.
Notably, the exit did not signal a withdrawal from risk assets. Instead, it marked a reallocation of capital, with proceeds redirected toward increased exposure in the banking sector. This move underscores growing confidence in financial services as beneficiaries of macroeconomic stabilisation, balance sheet repricing, and stronger earnings prospects heading into 2026.
The transaction highlights a critical investment principle often overlooked in market commentary: disciplined exit execution. Effective capital allocation extends beyond identifying growth opportunities to recognising when assets have fully priced in value and acting decisively.
Otedola’s repositioning has reinforced positive sentiment around tier-one banking stocks, particularly institutions poised to benefit from expanding margins, solid capital buffers, and improving asset quality in the current interest rate environment.
Alongside this, Mr. Tony Elumelu’s emergence as a significant shareholder in Seplat Energy has sent a separate but equally influential signal. The move reflects a long-term strategic commitment to African-led ownership and governance within the energy sector, reinforcing confidence in indigenous operational capability.
This investment aligns with broader themes shaping the Nigerian market, including resource control, energy security, transition planning, and stronger corporate governance standards.
Taken together, these strategic transactions have helped define the early tone of 2026: capital rotation rather than capital exit, targeted sector exposure instead of broad-based risk aversion. Banking and energy have emerged as focal points, providing momentum for sustained market engagement.
For investors, the direction is increasingly clear. Conviction-led strategies, sector leadership, and disciplined capital timing are likely to be the primary drivers of value creation, outweighing short-term market momentum in the months ahead.
