As 2026 approaches, investors are evaluating various asset classes in search of profitable opportunities for the new year.
Nigeria’s macroeconomic landscape remains one of cautious stabilisation. Following aggressive monetary tightening and fiscal reforms in 2024–2025, the naira is expected to find a tentative floor within the N1,400–N1,550 range. However, with headline inflation still in the mid-teens and the 2027 election cycle approaching, currency volatility remains the primary risk to capital preservation.
For the savvy investor, 2026 is not a year for retreat but for strategic positioning in assets that offer positive real returns.
Read also: Forty stocks that more than doubled investors’ wealth in 2025
Here are ways to invest in 2026.
Mutual funds – low risk, steady returns
Mutual funds pool money from multiple investors to invest in diversified portfolios of stocks, bonds, or other securities, managed by professional fund managers who aim to generate returns.
Nigeria’s top mutual funds have consistently delivered positive real returns, outperforming the nation’s inflation for five consecutive years. This performance highlights the potential of diversified investment vehicles as a hedge against macroeconomic volatility.
An analysis of the 10 top-performing mutual funds from 2021 to 2025 by BusinessDay reveals a trend of outperformance.
While Nigeria’s inflation rate steadily climbed from 17.2 percent in 2021 to an estimated 33.5 percent in 2024, before dropping to 20.1 percent in 2025, the average returns from these funds proved to be a more than effective counter-measure.
Of the various types of mutual funds, equity funds and growth funds proved the most
In the five years, some funds and asset management firms have consistently appeared on the list of top performers, indicating their ability to adapt and maintain strong returns across various market conditions.
Stanbic IBTC Asset Management Limited dominated the list, with eight funds making it to the top performers’ list. This indicates a wide-ranging expertise across different fund types. Asset & Resources Management (ARM) Co. Ltd followed closely with seven funds, highlighting its consistently strong performance. FBNQuest Asset Management Limited and the Capital Express Asset and Trust Limited were also notable, with four and three funds respectively.
The top 10 performing mutual funds are led by Halo Equity Fund (161 percent), followed by the specialised Stanbic IBTC Imaan Fund (92.56 percent), which has a minimum of 70 percent in Sharia-compliant equities. Other high-growth funds include: the Guaranty Trust Equity Income Fund (88.46 percent), the Zrosk Magna Equity Fund (78.51 percent), and the Paramount Equity Fund (69.19 percent). Rounding out the eight are the consistent performers: Stanbic IBTC Nigerian Equity Fund (67.36 percent) and the Ethical Fund (62.41 percent), alongside the Anchoria Equity Fund (62.29 percent).
This investment tool offers low risk with stable returns, low minimum initial amount of N5,000 and multiples of N1,000 thereafter. It also offers higher interest rates than traditional savings accounts, and easy access to funds when needed.
Read also: Where investors are finding liquidity in Nigeria as private equity exits slow
Dollar-denominated assets
For those seeking liquidity without the complexity of physical trade, dollar-denominated assets remain a non-negotiable component of a balanced portfolio.
Experts advise investing in some dollar-denominated assets to give protection against naira devaluation over time. Some high-risk dollar-denominated assets include Equities and Exchange-Traded Funds (ETFs). This offers exposure to global markets and potential for higher returns, but the major challenge is its volatility. Examples of U.S. stocks include: Apple, Amazon, and Tesla.
For medium-risk securities, Oyinkan Badejo, financial advisor, recommends focusing on and building long-term wealth. Some examples of instruments under the medium risk include: dollar bonds such as the GTCO dollar fund and the Stanbic IBTC dollar fund.
For low-risk securities, there are varieties of instruments such as dollar domiciliary savings accounts, dollar fixed deposits, Nigeria Eurobonds, and private companies’ Eurobonds.
Domiciliary savings accounts (USD accounts)
These are dollar savings accounts offering small interest (one percent to three per annum), but the advantage is investors’ money stays in dollars and is accessible. This is good for storing USD for short-term use or hedging against naira depreciation. However, it is bad for earning meaningful returns.
Dollar fixed deposits
This is offered by Nigerian banks for 30 days–365 days, with interest rates around three to six percent, depending on tenor and provider. Zenith, UBA, Access, and Stanbic IBTC offer these instruments.
Eurobonds from AAA-rated issuers
If you go for short-duration sovereign Eurobonds from highly rated countries or corporates, they can be relatively low-risk, especially if held to maturity. Overall, the average Eurobond yield improved to 7.3 percent from 9.7 percent at the start of the year. In the broader Sub-Saharan Africa (SSA), Eurobond yields generally trended lower in 2025, reflecting improved investor sentiment and easing risk premiums.
They can be accessed via licensed investment platforms such as FBNQuest, Afrinvest, or through NRN Investment Accounts
Nigerian stocks
Nigerian stock investors enjoyed strong returns in 2025, with the NGX-ASI rising 47.73 percent YTD as of Dec 22, 2025. In 2026, focus is shifting to quality companies with pricing power and FX-earning subsidiaries.
For the banking sector, Cordros’ top pick for 2026 is GTCO. For industry goods, Wapco and Presco, and Okomu for consumer goods.
Read also: How to invest in tech companies before their public listing
Right issue
A rights issue occurs when a company sells shares to its existing shareholders.
Investors can take note of ongoing equity offerings that bridge the reporting years.
Champion Breweries Plc is currently offering shares at N16.00, with the window remaining open until January 5, 2026. Furthermore, The Initiates Plc, a key player in waste management and industrial cleaning, is offering ordinary shares at N7.00, with a closing date of January 12, 2026. These offerings allow investors to deploy capital into the real sector at a time when institutional stability is paramount.
Also, Fidson Healthcare Plc is offering 600,000,000 ordinary shares of 50 kobo each at N35.00 per share, based on one new ordinary share for every four ordinary shares held as at the close of business on Wednesday, November 12, 2025. The rights issue is now open and is scheduled to close on January 30, 2026.
Bonds/ treasury bills
Despite a potential gradual easing of interest rates in 2026, treasury bills and FGN savings bonds continue to offer attractive risk-adjusted returns.
In 2025, Nigeria’s fixed-income market faced two contrasting forces: improving inflation and persistent liquidity deficits. Short-term yields remained reactive, while longer-term bonds provided better returns.
Investor takeaway: Lock in high double-digit yields early in 2026 before interest rates decline further.
According to analysts at Cordros in a 2026 outlook report, while yields on short- and mid-term instruments are expected to decline more sharply, longer-dated yields are likely to fall more slowly due to the larger supply of long-term government bonds the market needs to absorb.
Read also: CBN renews global investor push as confidence in financial markets builds
Real Estate Investment Trusts (REITs) – Own property, earn USD without hassles
A REIT is a professionally managed investment that pools money to invest in income-generating real estate properties such as commercial buildings, malls, and housing estates.
It allows investors to earn rental income and potential property appreciation without owning physical real estate. It’s less capital-intensive than buying a physical house or land. It provides portfolio diversification.
The Chapel Hill Denham Nigerian Real Estate Investment Trust (NREIT) offers exposure to Nigeria’s thriving real estate sector and the opportunity to invest in naira but earn in dollars.
