As June 2026 begins, the investment landscape continues to evolve amid tight monetary policy, persistent inflationary pressures, relative exchange rate stability, and a broadly positive growth outlook defining a complex but opportunity rich environment for Nigerian investors entering the second half of the year.

MPR (Monetary Policy Rate): 26.5%  — held steady by CBN

Inflation (April 2026): 15.69%  — up from 15.38% in March

GDP Growth (Q1 2026): 3.89% YoY  — driven by services, agriculture, ICT & financials

Exchange Rate: ~N1,375/$1  — relative stability at official market

Nigeria’s economy expanded by 3.89% year-on-year in Q1 2026, supported by growth in services, agriculture, construction, ICT, and financial services. The naira traded around N1,375/$1 at the official market in late May, offering some stability for investors watching currency risk. This macro backdrop will shape investment flows as we enter June.

EQUITIES MARKET

May 2026 confirmed that Nigerian equities remain one of the strongest performing asset classes, but it also showed that investors need to be more selective. The broad market rally was impressive, yet not all sectors moved with the same strength.

NGX All-Share Index (YTD): +60.9%

Market Capitalisation: N160.5 trillion (~$117bn)

Oil & Gas Sector Index (YTD): ~124%  — best-performing sector

Industrial Goods Index (YTD): ~116%  — up from 99% in April

After the broad market rally and sharp individual stock gains, the better question is no longer whether equities are attractive but which equities still offer reasonable upside, liquidity, and risk-adjusted returns. June should be approached as a stock-selection month, not a broad-market buying month.

Conservative Stock Picks

Investors with lower risk appetite should focus on names offering liquidity, market leadership, and earnings visibility:

• Dangote Cement — Industrial goods momentum; gained 21.65% in May
• Seplat Energy — Quality oil & gas exposure; best-performing sector index
• Zenith Bank & GTCO — Core banking names with institutional appeal
• Airtel Africa — ICT large-cap; posted a 21.00% May return
• MTN Nigeria — Worth watching despite a 10%+ May pullback, given size and earnings potential

Higher-Risk / Momentum Plays

• Fidson Healthcare & CAP — Strong YTD and May gains
• Fidelity Bank — Strongest banking momentum play in May
• Berger Paints, eTranzact & UPDCREIT — Sharp May rallies
• Zichis Agro Allied — Led NGX gainers on May 29 with 10% appreciation

FIXED INCOME

Fixed income remains attractive going into June 2026, especially for conservative investors seeking income and capital preservation. With the MPR at 26.5% and inflation at 15.69%, selected instruments still offer positive real returns.

Treasury Bills (9-month): ~18.39%  — FMDQ NITTY curve, May 25 2026

Treasury Bills (12-month): ~18.89%  — FMDQ NITTY curve, May 25 2026

FGN Bond (Feb 2031): 17.01%  — medium-tenor yields ~16.5%–17.0%

Commercial Papers (range): 17%–24.5%  — average ~22.5% across 24 issuers YTD

Treasury Bills remain the best conservative option. FGN Bonds suit longer-term income investors. Commercial Papers are better suited for investors willing to take on corporate credit risk in exchange for higher yield.

MUTUAL FUNDS

Mutual funds remain useful for diversification and professional management. According to the SEC CIS weekly report (ended April 30, 2026), equity-based funds delivered the strongest average return:

Equity Fund Average YTD Yield: ~56.21%

Standout Funds

• Zedcrest Equity Fund — Top pick for aggressive investors
• Halo Equity Fund, Zrosk Magna Equity Fund, Paramount Equity Fund
• CardinalStone Equity Fund
• Stanbic IBTC Nigerian Equity Fund — Best for scale-seeking investors
• UHOMREIT & UPDCREIT — Suitable for balanced investors seeking REIT exposure

Past performance does not guarantee future returns. With inflation expected to continue rising, match fund selection to your risk appetite and return objectives.

ALTERNATIVE ASSETS

Alternative assets such as gold and crypto remain useful for portfolio diversification, though they are not the strongest return options for June 2026 when compared to Nigerian equities and high-yield fixed income.

Comex Gold (YTD): +5.43%  — defensive hedge vs. inflation & currency risk

Bitcoin: ~$74,000–$78,000  — down from ~$88,722 at year-open

Ethereum: ~$2,000–$2,300  — remains volatile

• Gold appeals to investors seeking a hedge against inflation, currency pressure, or global uncertainty.
• Crypto remains suitable only for investors with high-risk appetite and a long-term horizon.

OUTLOOK & STRATEGY

June 2026 presents a market where returns are still available, but selectivity is now more important than broad exposure. The principles remain unchanged: seek inflation beating returns, demand higher rewards for higher risk, and focus on risk adjusted returns.

• Equities remain the strongest growth asset — but stock selection now matters more than broad market exposure.
• Fixed income offers attractive income for conservative investors at current MPR and yield levels.
• Mutual funds provide diversified access with professional management across risk profiles.
• Gold and select alternatives can serve as hedges, not return engines.