Meristem Sees Strong Momentum: Why Nigeria’s Equity Rally Is Far From Over
Meristem Stockbrokers has projected that the Nigerian equities market will sustain its rally, driven by improving economic fundamentals, easing inflation, and stronger macroeconomic stability.
Here’s a simple breakdown
Equities Rally Still Has Room to Run
• The Nigerian stock market delivered over 51% returns, with some stocks gaining above 100%
• According to Meristem’s CEO, Saheed Bashir, these gains do not mean the market is overvalued.
• The rally is fundamentally driven, not speculative — meaning company earnings and economic conditions are backing the growth.
“There is still a lot of value in those companies,” Bashir said.
Inflation Cooling = Good News for Stocks
• Inflation pressures are gradually easing
• Meristem does not expect inflation to rebound sharply.
• As inflation moderates, interest rates are expected to decline, making equities more attractive than fixed-income instruments.
Lower rates = cheaper borrowing + better company profits = stronger stock prices.
Government Reforms Supporting Growth
• Improved tax reforms and revenue mobilisation are seen as positive for long-term economic stability ️
• Higher revenue means more funding for:
• Infrastructure
• Education
• Healthcare
• Security
All of which support business growth and investor confidence.
Liquidity Still a Key Challenge
• Meristem highlighted low market liquidity as a concern
• They called for more participation from:
• Pension funds
• Insurance companies
• Long-term foreign investors
More long-term money = a deeper and more stable market.
Banking Sector Recapitalisation Remains Critical
• Bank recapitalisation is seen as essential to:
• Strengthen the financial system
• Support economic expansion
• Improve credit availability
A stronger banking sector = stronger economy
What the Panelists Are Saying
• Recent credit rating upgrades signal improved investor confidence ⭐
• Reforms are generally positive, but:
• High debt servicing costs
• Weak government revenue
remain key risks ⚠️
They stressed that consistent reform implementation and clear communication are crucial to ensuring real benefits for households and investors.
Bottom Line
Meristem believes Nigeria’s stock market is moving:
From stability → to strength
Sustained reforms
Lower inflation
Strong fundamentals
Long-term investor participation
…are the key drivers that could keep equities attractive in 2026 and beyond
Meristem Stockbrokers has projected that the Nigerian equities market will sustain its rally, driven by improving economic fundamentals, easing inflation, and stronger macroeconomic stability.
Here’s a simple breakdown
Equities Rally Still Has Room to Run
• The Nigerian stock market delivered over 51% returns, with some stocks gaining above 100%
• According to Meristem’s CEO, Saheed Bashir, these gains do not mean the market is overvalued.
• The rally is fundamentally driven, not speculative — meaning company earnings and economic conditions are backing the growth.
“There is still a lot of value in those companies,” Bashir said.
Inflation Cooling = Good News for Stocks
• Inflation pressures are gradually easing
• Meristem does not expect inflation to rebound sharply.
• As inflation moderates, interest rates are expected to decline, making equities more attractive than fixed-income instruments.
Lower rates = cheaper borrowing + better company profits = stronger stock prices.
Government Reforms Supporting Growth
• Improved tax reforms and revenue mobilisation are seen as positive for long-term economic stability ️
• Higher revenue means more funding for:
• Infrastructure
• Education
• Healthcare
• Security
All of which support business growth and investor confidence.
Liquidity Still a Key Challenge
• Meristem highlighted low market liquidity as a concern
• They called for more participation from:
• Pension funds
• Insurance companies
• Long-term foreign investors
More long-term money = a deeper and more stable market.
Banking Sector Recapitalisation Remains Critical
• Bank recapitalisation is seen as essential to:
• Strengthen the financial system
• Support economic expansion
• Improve credit availability
A stronger banking sector = stronger economy
What the Panelists Are Saying
• Recent credit rating upgrades signal improved investor confidence ⭐
• Reforms are generally positive, but:
• High debt servicing costs
• Weak government revenue
remain key risks ⚠️
They stressed that consistent reform implementation and clear communication are crucial to ensuring real benefits for households and investors.
Bottom Line
Meristem believes Nigeria’s stock market is moving:
From stability → to strength
Sustained reforms
Lower inflation
Strong fundamentals
Long-term investor participation
…are the key drivers that could keep equities attractive in 2026 and beyond