A strong rally across major sectors pushed the Nigerian equities market to a solid start in 2026, with the benchmark index recording a 6.27 per cent gain in January, the first trading month of the year.
Data from the Nigerian Exchange (NGX) show that the All-Share Index climbed from 155,612.9 points at the beginning of the month to 165,370.4 points at the close of trading, adding 9,757.5 points. The performance marked the first time the index decisively crossed the 160,000-point threshold, reflecting renewed investor appetite for equities.
More than 15 billion shares were traded during the month, underscoring heightened market activity. The bulk of the gains were recorded in the first three weeks of January, when the index briefly peaked above 166,000 points, before a mild pullback in the final two weeks trimmed overall returns.
Despite the late correction, the January performance was broad-based, with most sectors closing in positive territory. The Oil and Gas sector emerged as the standout performer, leading the rally and making the largest contribution to the overall market gain.
Tracked by the NGX Oil & Gas Index, the sector advanced by 13.80 per cent during the month, supported by a trading volume of over 491 million shares. Large-cap stocks drove the gains, with Aradel rising by 16.45 per cent and Seplat advancing 15.34 per cent. Mid-cap stocks also posted positive returns, including Eterna with an 8.25 per cent gain, Japaul Gold at 5.63 per cent and Oando at 0.75 per cent.
The Insurance sector followed closely, as the NGX Insurance Index rose by 11.76 per cent, extending the bullish momentum seen in December. Leading the sector were Veritas Kapital, which surged 43.27 per cent, Mutual Benefits Assurance at 34.84 per cent, NEM Insurance at 19.40 per cent, AXA Mansard at 15.99 per cent and Consolidated Hallmark at 15.90 per cent. Other insurers, including AIICO, Linkage Assurance, Prestige Assurance, Coronation, Regency Alliance and Cornerstone, also closed the month with positive but more modest gains.
The Banking sector ranked as the third-best performer, with the NGX Banking Index rising 6.99 per cent on the back of more than three billion shares traded. Tier-one banks led the advance, as Zenith Bank gained 15.61 per cent, GTCO rose 9.15 per cent, Access Holdings added 7.62 per cent and UBA climbed 6.36 per cent. Strong performances were also recorded by Wema Bank, Ecobank and Stanbic IBTC.
Industrial Goods stocks delivered steady gains, with the sector index up 5.45 per cent. Large-cap counters such as Lafarge Africa rose 16.73 per cent, Dangote Cement gained 4.27 per cent and BUA Cement added 2.52 per cent. Mid- and small-cap stocks outperformed within the sector, led by Triple Gee, which surged 64.93 per cent, Meyer at 46.72 per cent, Berger Paints at 25 per cent and Cutix at 17.74 per cent.
The NGX Consumer Goods Index also closed higher, rising 3.21 per cent during the month. Large-cap stocks such as Nigerian Breweries and International Breweries posted moderate gains, while mid- and small-cap names dominated performance. McNichols led the sector with a 94.19 per cent rally, followed by Champion Breweries at 28.57 per cent, PZ Cussons at 26.27 per cent and Vitafoam at 22.28 per cent.
Market analysts note that the strong January performance reflects sustained investor confidence following the 51.19 per cent return recorded by the equities market in 2025. The breadth of the rally suggests that demand extended beyond blue-chip stocks to mid- and small-cap names offering attractive growth prospects.
However, the close above 165,000 points has also raised concerns about overbought conditions. With valuations stretched, a deeper pullback in large-cap stocks could trigger a broader market correction in the near term.
Even so, January 2026’s 6.27 per cent gain represents a significantly stronger start compared with the 1.53 per cent return recorded in January 2025, reinforcing optimism about the market’s medium-term outlook.