Investment Guide for Nigerian Investors in 2026
2025 marked a year of adjustment across global and domestic markets. Inflation moderated unevenly, interest rates stayed elevated, and geopolitical risk continued to influence capital flows. Despite these conditions, several asset classes delivered strong nominal returns. For Nigerian investors, the year clarified how asset selection shapes long-term outcomes.
Last year's market performance reflected disciplined capital allocation. Against that backdrop, we’ve outlined five asset classes Nigerian investors should watch out for in 2026, and how each fits into a balanced portfolio designed to support long-term growth.
1. Fixed Income: Yield Anchored Portfolio Stability
Nigerian fixed income assets delivered strong and consistent returns throughout 2025. Tight monetary conditions and active liquidity management by the Central Bank of Nigeria (CBN) supported elevated yields across government securities.
Treasury bills recorded average yields of approximately 17 percent during the year, with rates peaking earlier in 2025 before easing into the mid-teens as investor demand strengthened. FGN bond yields also moderated as appetite for longer-duration instruments improved. Nigeria’s sovereign Eurobonds performed well, with the 2029 maturity yielding around 6 percent and the 2049 maturity about 8 percent by year-end, providing dollar-denominated income without exposure to naira exchange rate risk.
As of January 2026, the Monetary Policy Rate remains at 27 percent, continuing to support attractive yields on short-term instruments. Market expectations suggest that a sustained decline in inflation below 20 percent could allow for gradual rate cuts toward the 20–22 percent range by mid-2026, placing downward pressure on future yields.
In this context, if interest rates fall as expected, locking in to longer-duration bonds could be a winning strategy for investors.
2. Nigerian Equities: Earnings, Participation, and Repricing
Nigerian equities recorded a strong year in 2025. The NGX All-Share Index rose by 51.19 percent, increasing total market capitalisation from about ₦63 trillion to nearly ₦100 trillion over twelve months, a rally fuelled by twelve straight months of gains that echoed the post-COVID rebound but with broader participation.
Several concrete developments drove the strong performance of Nigerian equities in 2025:
Inflation stabilised
FX reforms reduced uncertainty
CBN's move toward a unified exchange rate
Consumer goods companies led the market. Guinness Nigeria surged by 398 percent, while Vitafoam Nigeria advanced 300 percent. Financial institutions followed as interest income expanded. Zenith Bank climbed 35.82 percent for the full year, while GTCO rose 59.12 percent. Insurance companies recorded some of the strongest percentage gains as profitability improved from a low base. AIICO Insurance advanced 165 percent, supported by investment income from high-yield fixed income securities and sector-wide momentum.
For Nigerian investors, equities continue to anchor long-term growth strategies, but selection standards should tighten. Investors should prioritise businesses with durable cash flows, consistent reinvestment discipline, and clear shareholder return policies. In 2026, Nigerian equity performance favours companies that combine earnings consistency, disciplined capital allocation, and operational control.
3. Gold and Precious Metals: Strategic Risk Management
Gold delivered a powerhouse performance in 2025, driven by sustained demand from central banks and institutional investors. Prices surged sharply through the year, closing around $4,346 per ounce (up approximately 65% from $2,623 at the January open). Early 2026 extended that momentum, with gold trading around $4,739 on 20 January.
The story of gold in 2025 was one of relentless geopolitical undercurrents amplifying its timeless status as the ultimate safe haven asset. Central banks, led by China adding 225 tonnes and India stockpiling 100 tonnes, treated gold as a de-dollarisation asset. Global official demand hit 1,100 tonnes, the highest since 1971.
Geopolitically, gold’s rise reflected a series of overlapping global fractures. The Russia–Ukraine war reinforced the need for reserve diversification among governments and institutions. In the Middle East, recurring flare-ups kept global markets on edge, especially when disruptions threatened key trade routes. Simultaneously, renewed China–US tariff tensions and broader trade policy uncertainty added another layer of instability to global markets.
These pressures drew incremental buyers back into the market during periods of heightened uncertainty, reinforcing the view that gold had moved into a higher structural price range rather than experiencing a temporary surge. Silver complemented with explosive gains to new highs, rising over 140 percent for the year, mostly driven by solar panel demand of roughly 200 million ounces annually.
Looking into 2026, baseline forecasts cluster in the mid-$4,000s on average, with Deutsche Bank around $4,450 and the World Bank nearer $3,575, while major banks frame year-end targets of roughly $4,900 (Goldman Sachs) to $5,000 (J.P. Morgan).
For Nigerian investors, precious metals, especially gold, play a defined role within portfolios: physical bars from accredited refiners such as Rand or GLD exposure via local brokers provide protection during periods of stress.
4. Real Estate: Income, Scarcity, and Legal Clarity
Real estate continued to serve as a reliable component of diversified portfolios in 2025. In the UK, average house prices increased by 2.5 percent in the 12 months to November 2025 , reflecting steady demand within a constrained supply environment. Northern Powerhouse cities like Manchester hit 5.8 percent from rental yields driven by regeneration projects.
For Nigerian investors, UK real estate offers additional advantages through GBP-denominated income—averaging £1,200/month for a 2-bed Manchester flat—and ownership within a transparent legal framework, including robust tenant protections and stamp duty reliefs for non-residents. These characteristics support long-term capital preservation and currency diversification.
As financing conditions gradually improve—UK base rates potentially to 3.5 percent—disciplined real estate investment centred on income generation and location fundamentals remains well-positioned in 2026, with opportunities in fractional ownership platforms.
5. FX Hedging and Foreign Currency Assets: Portfolio Resilience
Currency dynamics continued to shape investment outcomes in 2025, with a meaningful shift emerging in the second half of the year. After years of persistent depreciation, the naira closed 2025 at ₦1,429 per dollar, marking a 7.4 percent annual appreciation from ₦1,535 at the end of 2024. This represented the naira’s first annual gain since 2012, driven by FX market reforms, tighter monetary policy, and the Central Bank’s exchange rate unification.
Despite this improvement, inflation remained elevated, FX inflows were uneven, and sentiment remained sensitive to oil revenues. As a result, the naira’s 2025 performance reduced immediate panic around FX exposure but did not eliminate medium-term currency risk.
Against this backdrop, dollar- and sterling-denominated assets continued to play a stabilising role within portfolios. U.S. Treasuries across the 2–10 year segment delivered mid-single-digit total returns, supported by coupon income and easing yield expectations later in the year. UK bonds provided income around 4 percent, alongside modest capital appreciation as rate pressures softened.
Even with the naira’s 2025 strength, these foreign-currency assets preserved purchasing power across cycles and reduced reliance on a single currency regime. Looking into 2026, foreign currency exposure remains a structural element of prudent portfolio construction.
Structuring for 2026
The investment outcomes of 2025 demonstrated how disciplined portfolio construction supports strong performance amid uncertainty. Some assets are held to generate steady income, others to drive long-term growth, some to protect against shocks, and others to preserve purchasing power across currencies. When each asset is chosen for its function rather than its recent returns, the portfolio becomes more resilient and easier to manage through different market conditions.
A resilient portfolio combines income from fixed income assets, growth from selectively chosen equities, stability from gold, cash flow and legal certainty from real estate, and purchasing power preservation through foreign currency exposure.
At PariVest, this framework guides how we support Nigerian investors accessing UK real estate. We focus on assets where demand, income, and long-term fundamentals drive outcomes. In an environment shaped by policy shifts and global risk, structured decision-making remains the most consistent advantage.
