Nigeria's financial landscape is poised for significant transformation in 2026, with the Central Bank of Nigeria (CBN) projecting a robust and dynamic capital market fueled by strategic banking reforms and economic policies.

The CBN's comprehensive "Macroeconomic Outlook for Nigeria, 2026" reveals an optimistic economic trajectory, highlighting the anticipated bullish performance of the nation's financial sector. At the heart of this projection is an ambitious bank recapitalization exercise designed to strengthen financial institutions and boost investor confidence.

The apex bank forecasts a remarkable economic growth rate of 4.49 percent in 2026, a notable increase from 3.89 percent in the previous year. This projected expansion is anchored on broad-based structural reforms and a gradually easing monetary policy stance that promises to stimulate economic activity.

Central to the CBN's outlook is the bank recapitalization program, which is expected to significantly enhance balance sheets, improve financial stability, and deepen market activity. By strengthening banks' capacity to support private sector growth, the initiative aims to create a more resilient and dynamic financial ecosystem.

Inflation is also expected to moderate, with the CBN projecting an average of 12.94 percent in 2026. This anticipated decline is attributed to decreasing food prices and lower premium motor spirit costs, driven by improvements in domestic refining capacity and supply conditions.

On the external economic front, Nigeria anticipates substantial improvements. The country's external reserves are projected to rise to $51.04 billion, supported by stronger exports, steady remittance inflows, and increased oil and gas output. The current account surplus is forecast to grow to $18.81 billion, signaling positive economic momentum.

However, the CBN remains cautiously optimistic, acknowledging potential risks such as global financial market volatility, geopolitical tensions, and possible disruptions to crude oil production. Despite these challenges, the bank remains committed to balancing price stability with output growth, ready to deploy appropriate policy tools to attract foreign investment and sustain exchange rate stability.

As Nigeria navigates the complex global economic landscape, the CBN's strategic approach offers a beacon of hope, demonstrating the nation's resilience and potential for sustainable economic growth in the coming years.