Nigeria’s financial sector is starting 2026 in a stronger position than it was a year ago. The banks’ recapitalisation drive has pushed roughly ₦5 trillion into the system, changing how lenders approach risk, lending and expansion.
Growth forecasts for 2026 sit between 4.0% and 5.5%, according to local and international institutions, including the Central Bank of Nigeria, the World Bank and the IMF.
Inflation has cooled compared to last year, consumer spending has held up, and banks are beginning to price loans more aggressively to protect margins.
Still, this is not a smooth market. Loan defaults are rising in some segments, and foreign exchange pressures have not disappeared.
The naira is trading around ₦1,400 to the dollar, offering more stability than in 2024, but not enough to remove currency risk from bank balance sheets.
Recent policy changes by the CBN have helped calm the market. Tighter monetary controls and improvements in digital revenue collection have boosted confidence, while external reserves have climbed to $46.18 billion, based on the CBN’s January 29, 2026 update.
The direction is positive, but performance will vary widely across the sector. Cybersecurity exposure, asset quality and capital discipline will separate winners from laggards.
Based on early trading activity, analyst commentary and balance sheet strength, these financial stocks are drawing the most attention.
1. Guaranty Trust Holding Company Plc (GTCO)
GTCO remains one of the most closely watched banking stocks on the Nigerian Exchange. Trading around ₦99, the stock offers a dividend yield of roughly 8.6%, supported by consistent earnings and a strong retail base.
The group’s focus on digital banking continues to pay off, especially in transaction volumes and fee income. CardinalStone Partners recently upgraded the stock to “Buy,” pointing to as much as 30% upside as lending capacity expands after recapitalisation.
GTCO’s operations across multiple African markets give it exposure to regional trade flows, although policy shifts and tariff changes could affect earnings. The stock is listed on both the NGX and the London Stock Exchange and remains one of the market’s premium counters.
2. Access Holdings Plc (ACCESSCORP)
Access Holdings, traded as ACCESSCORP on the NGX, is widely seen as one of the main beneficiaries of recent regulatory changes. Analysts have highlighted improvements in capital adequacy and funding structure.
The stock closed at ₦22.55 on Monday, February 2, 2026. With private sector credit expected to expand this year, Access Bank is well-positioned to benefit, particularly in corporate and trade-related lending.
3. Fidelity Bank Plc (FIDELITYBK)
Fidelity Bank has quietly delivered one of the strongest early-year performances among mid-tier lenders. Trading under the ticker FIDELITYBK, the bank is progressing steadily with its recapitalisation plans.
Market watchers point to tighter cost controls and improving operating efficiency as key drivers. Based on current valuations, analysts estimate potential returns in the 12% to 15% range.
4. United Bank for Africa Plc (UBA)
UBA closed trading at ₦43.90 on the NGX on Monday, February 2, 2026. As a tier-one bank and a member of the FUGAZ group, UBA benefits from scale and a wide geographic footprint.
Its presence across several African markets supports long-term growth, though investors continue to track non-performing loan levels closely, especially in higher-risk regions.
5. Linkage Assurance Plc (LINKASSURE)
Insurance stocks have also stayed on investors’ radar. Linkage Assurance Plc reflects that broader interest, even though the stock has started the year slightly in the red, with a year-to-date decline of 0.56%.
The insurance segment remains sensitive to capital strength and claims management, making stock selection critical.
Overall, higher capital levels give financial institutions more room to grow, but they also lead to exposure to credit risk. Non-performing loans could climb toward the 6% to 7% range if economic conditions tighten.
PwC has already flagged uneven performance across the sector, advising investors to focus on banks with strong capital buffers and disciplined risk management.
6. First HoldCo Plc (formerly FBN Holdings)
First HoldCo is a leading Nigerian tier-one Bank that operates at a significant scale and has recovered in recent trading sessions after recapitalisation milestones.
Its large loan book and market presence make it a core name in many portfolios. Historical governance and asset-quality issues have lingered in investor memory, but recent capital strengthening has supported renewed interest. Monitoring of credit costs and balance-sheet cleanup will be key in 2026.
First Bank reported mixed financial results in its 2025 full-year results as the group recorded a pre-tax profit of N229.10 billion. The company’s pre-tax profit declined by 71.18%, and its profit after tax also declined by 93.36% in FY 2025.
7. Ecobank Transnational Incorporated (ETI)
ETI provides broad exposure across West and Central Africa. Several brokerages have maintained positive or upgraded views, citing earnings resilience and diversified operations.
Regional disparities and currency risks across its footprint present challenges, but its cross-border model appeals to investors seeking non-domestic growth levers within the African financial landscape.
Moody’s Ratings upgraded Ecobank’s outlook to stable in July 2025, while affirming its B3 long-term issuer ratings.
8. Stanbic IBTC Holdings Plc
Stanbic IBTC commands a premium valuation due to its focus on corporate and investment banking, strong balance sheet, and full compliance with capital rules. It attracts investors prioritising stability and institutional-grade services.
While growth may be more measured than higher-beta peers, its consistent execution and lower volatility make it a defensive anchor in financial portfolios.
9. Wema Bank Plc
Wema has carried forward momentum from prior periods, driven by digital banking advancements and successful capital strengthening. The group’s scale remains smaller than its tier-1 competitors, but its innovation focus has sustained interest.
10. Jaiz Bank Plc
Jaiz Bank, a non-interest bank, has maintained steady attention amid recapitalisation compliance. Its ethical and Sharia-compliant model attracts dedicated retail and institutional segments.
