A report by Vetiva Research, titled ‘Nigeria Equity Strategy, Conviction Stocks for 2025,’ has highlighted the potential benefits of ongoing digital transformation and recapitalisation efforts in the Nigerian banking sector.
The report notes that the adoption of digital technologies will streamline banking processes, reduce operational costs, and improve customer experiences. Additionally, the recapitalisation policy is expected to strengthen the capital base of banks, enabling them to better withstand economic shocks.
“Together, these initiatives are anticipated to bolster the overall resilience and competitiveness of Nigeria’s banking sector, positioning it for sustainable growth and improved financial stability as well as sustained earnings growth across core banking operations, especially in the first half of 2025,” the report said.
Together, these initiatives are anticipated to bolster the overall resilience and competitiveness of Nigeria’s banking sector, positioning it for sustainable growth and improved financial stability.
The report also expresses optimism about the prospects of the Nigerian equity market in 2025, projecting sustained positive performance driven by local investors, improved domestic liquidity, and favourable policy adjustments.
Key sectors expected to drive growth include oil and gas, telecoms, and banking. The report highlights attractive valuations for top banking picks, with an average P/E of 1.7x compared to Nigeria’s market P/E of 6.2x.
Vetiva Research’s portfolio comprises fundamentally sound companies operating in key sectors, with a focus on dividend-paying stocks.
“Our portfolio comprises fundamentally sound companies operating in key sectors (telecoms, banking, consumer goods, industrials, and oil and gas), with particular attention given to dividend-paying stocks,” the report said.
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