Market News

BY Bunmi Bailey 

Africa’s financial landscape is shifting as currency stability, easing global conditions and policy recalibrations reshape markets. Nigeria sits at the centre of the action — from equities and billionaire wealth to monetary policy — while sovereign borrowers and regulators across the continent signal a more active 2026.

Naira rally lifts Nigeria stocks to Africa’s top spot

Nigeria has emerged as Africa’s best-performing equity market in 2026, driven by a stronger naira, renewed foreign investor appetite and a sustained bull run on the Nigerian Exchange.

BusinessDay analysis of African Markets data shows the benchmark index has gained 34.4 percent in dollar terms year to date as of February 20. The All-Share Index stood at 194,989.8 points, with market capitalisation at N125.2 trillion ($92.9 billion), the highest return among 17 African bourses tracked.

Why it matters: The NGX’s outperformance signals improving investor confidence in Nigeria’s macro reforms and FX stability. If sustained, the rally could deepen foreign participation, support capital raising and reinforce the country’s position in frontier market portfolios.

Dangote, Rabiu lead Africa’s billionaire gains as wealth jumps $5bn

Nigeria’s equity rally is rapidly boosting the fortunes of its industrial elite, with Aliko Dangote and Abdulsamad Rabiu posting the largest wealth gains among African billionaires so far this year.

BusinessDay analysis of the Bloomberg Billionaires Index shows the duo’s combined net worth rose by $4.97 billion between January 1 and February 20, comfortably ahead of their continental peers.

Why it matters: The surge underscores how closely billionaire wealth in Africa tracks listed equity performance. Rising valuations at Dangote Cement, BUA Foods and BUA Cement highlight Nigeria’s growing weight in the continent’s corporate wealth creation cycle.

African borrowers raise $5.95bn in strongest start in 13 years

Sub-Saharan African sovereigns have opened the year with their busiest Eurobond issuance in more than a decade as governments rush to lock in cheaper funding.

Bloomberg data show dollar-denominated bond sales across the region have reached $5.95 billion so far this year — the strongest start since 2013 and sharply higher than the $1.8 billion raised in the same period of 2025.

Why it matters: The reopening of the Eurobond window signals improving global risk appetite for African credit. However, sustained access will depend on fiscal discipline, debt sustainability and continued moderation in global rates.

Kenya fines Nigerian lender’s unit KSh33m in regulatory crackdown

Kenya’s Competition Authority has fined Guaranty Trust Bank Kenya Limited KSh33.2 million for false and misleading representations and unconscionable conduct involving a long-standing corporate client.

The regulator said the penalty — roughly $260,215 — was imposed for breaches of the Competition Act following its investigation.

Why it matters: The ruling highlights rising regulatory scrutiny of bank conduct across East Africa. For Nigerian lenders expanding regionally, compliance and customer-protection standards are becoming increasingly critical to franchise risk.

CBN bets on disinflation with second rate cut in five months

The Central Bank of Nigeria on Tuesday lowered its benchmark rate for the second time in five months, trimming the Monetary Policy Rate to 26.5 percent as inflation pressures gradually ease.

Headline inflation slowed to 15.10 percent in January 2026 from 15.15 percent in December, according to the National Bureau of Statistics.

Why it matters: Nigeria’s cautious pivot toward easing places it within Africa’s emerging rate-cut cycle. If disinflation holds, lower borrowing costs could support credit growth and equities — but weak policy transmission remains a key risk to watch.