Adonri made the projection while speaking at the Capital Market Correspondents Association of Nigeria (CAMCAN) Mid-Year 2026 Capital Market Review and Outlook held in Lagos.

According to him, the equities market is poised to gradually regain momentum as investors respond to improving corporate performance, stronger economic indicators and increasing confidence in the country’s reform agenda.

He, however, cautioned that high inflation, elevated interest rates, political activities ahead of the 2027 general elections, insecurity, simultaneous capital-raising exercises by companies and the ongoing conflict in the Gulf region remain key downside risks that could affect market performance in the months ahead.

Adonri explained that the recent correction on the Nigerian Exchange should not be viewed as a sign of weakening market fundamentals but rather as a normal phase of portfolio rebalancing by institutional investors following the strong rally triggered by ongoing economic reforms.

“The current market correction is a result of institutional investors repositioning their portfolios and not an indication of a breakdown in market fundamentals,” he said.

He expressed optimism that stronger corporate fundamentals and improved earnings prospects across listed companies would support a gradual recovery in the equities market during the second half of the year.

While projecting that the current high interest rate environment is likely to persist, Adonri said Exchange Traded Products (ETPs) are expected to realign with their underlying fundamentals as market conditions improve.

He also noted that the activation of the commercial papers and derivatives markets would deepen Nigeria’s capital market, broaden investment opportunities and enhance market liquidity.

Adonri identified the anticipated listing of Dangote Refinery on the Nigerian Exchange as one of the most significant developments expected in the coming months, describing it as a potential game changer capable of transforming the size, depth and attractiveness of Nigeria’s capital market.

Reviewing the country’s macroeconomic outlook, he said Nigeria’s ongoing economic reforms continue to receive positive recognition from international institutions.

According to him, the International Monetary Fund (IMF) has acknowledged that the reforms are producing improved macroeconomic outcomes, while leading global credit rating agencies have upgraded or affirmed Nigeria’s sovereign credit ratings.

He noted that S&P Global Ratings upgraded Nigeria’s sovereign credit rating to ‘B’ from ‘B-’ with a stable outlook in May 2026. Fitch Ratings also affirmed the country’s ‘B’ rating with a stable outlook, while Moody’s upgraded Nigeria’s rating to ‘B3’ from ‘Caa1’.

Adonri said the improved ratings reflect growing confidence in Nigeria’s economic management, supported by greater foreign exchange stability, rising external reserves and increased crude oil production.

He added that the World Bank and IMF project Nigeria’s economy to grow by 4.1 per cent in 2026, while the Central Bank of Nigeria (CBN) forecasts a stronger growth rate of 4.49 per cent.

According to him, higher crude oil production, expanding domestic refining capacity, improving foreign reserves and a relatively stable and appreciating naira are expected to support investor confidence and economic growth.

Despite the positive outlook, Adonri stressed that sustained macroeconomic stability and policy consistency remain essential to preserving investor confidence and ensuring long-term growth in the capital market.

He expressed confidence that once institutional investors complete their portfolio adjustments and economic reforms continue to gain traction, the Nigerian stock market will gradually return to a stronger growth trajectory in the second half of 2026.

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Speaking at the Capital Market Correspondents Association of Nigeria (CAMCAN) Mid-Year 2026 Capital Market Review and Outlook in Lagos, Adonri said stronger corporate earnings and improving macroeconomic indicators are expected to support renewed momentum in the stock market.

He explained that the recent decline in share prices should not be viewed as evidence of weak market fundamentals but rather as a normal adjustment resulting from institutional investors rebalancing their portfolios after the rally driven by recent economic reforms.

According to him, the market’s underlying fundamentals remain solid, with investor sentiment supported by ongoing reforms and signs of macroeconomic stability.

Adonri, however, warned that inflation, political activities ahead of the 2027 general elections, insecurity, simultaneous corporate capital-raising programmes and geopolitical tensions in the Gulf region could weigh on market performance in the coming months.

He also projected that interest rates would remain elevated for now, while Exchange Traded Products are expected to gradually align with their underlying values as market conditions improve.

The investment expert identified the anticipated listing of the Dangote Refinery on the Nigerian Exchange as a major development that could significantly expand the size, liquidity and attractiveness of Nigeria’s capital market.

Reviewing the broader economy, Adonri noted that Nigeria’s reform agenda has continued to earn international recognition, citing improved sovereign credit ratings and positive economic growth forecasts from global institutions as indicators of growing confidence in the country’s economic management.

He added that higher crude oil production, improved foreign exchange reserves, expanding domestic refining capacity and a more stable naira are expected to support economic growth and encourage investment.

Adonri maintained that while the market is navigating short-term uncertainties, sustained policy consistency, macroeconomic stability and the completion of institutional portfolio adjustments should position the equities market for a moderate recovery in the months ahead.

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