Four blue-chip stocks on the Nigerian Exchange (NGX) – MTN Nigeria Plc, Dangote Cement Plc, Guinness Nigeria Plc, and Okomu Oil Palm Plc – have been tipped by Financial Derivatives Company (FDC) as standout equity picks for 2026.
The recommendation was made by Bismarck Rewane, Chief Executive Officer of FDC, during his presentation at the Lagos Business School Breakfast Session themed “2026: The New Geo-Strategic Dispensation.”
According to Rewane, the four stocks combine scale, earnings visibility, and pricing power, making them attractive for investors positioning for medium-term upside.
The FDC’s boss is saying that MTN Nigeria, Dangote Cement, Guinness Nigeria, and Okomu Oil offer compelling earnings growth prospects and price increase potentials going into 2026, citing robust earnings prospects, industry consolidation, and improving macroeconomic conditions.
However, Rewane cautions that timing and entry price remain critical, as FX stability and interest rate direction will largely determine how much of the projected upside is ultimately realised.
He described the stocks as stars to buy, citing their strong earnings growth, high return on equity, healthy margins, brand strength and competitive advantage. He outlined the equities’ fundamentals to drive growth:
FDC’s bullish view on MTN Nigeria rests on its dominant market position and accelerating shift toward data-led revenues. Nigeria’s telecoms sector is now firmly consolidated, with MTN Nigeria, Airtel Africa, and Glo controlling the bulk of subscribers, limiting price wars and supporting earnings stability.
FDC projects MTN Nigeria’s revenue to rise to N7.8 trillion, representing a 58% increase, driven by higher data usage, rising smartphone penetration, and expanding digital services. Profit after tax is forecast at N1.44 trillion, up 44%, supported by tariff adjustments, cost discipline, and higher-margin data revenues.
Despite its capital-intensive nature, MTN Nigeria is trading at an estimated price-to-earnings (P/E) ratio of 14x, which FDC considers reasonable given strong double-digit earnings growth and defensive characteristics. A more stable naira, easing inflation, and potential interest rate moderation are seen as key sentiment boosters.
For Dangote Cement, FDC sees Nigeria’s highly consolidated cement industry as a major advantage. Dominated by Dangote Cement, BUA Cement, and Lafarge Africa, the sector benefits from pricing discipline and earnings visibility.
FDC forecasts Dangote Cement’s 2026 revenue at N5.3 trillion, up 27%, with profit after tax expected to climb 44% to N1.4 trillion. The stock is valued at an estimated P/E of 13.5x, which Rewane argues does not fully reflect the earnings growth potential.
Key growth drivers include expanded clinker exports, government-backed infrastructure projects, improved energy efficiency, and tighter cost control. While the company remains sensitive to FX movements and interest rates, FDC believes its pricing power and scale position it as a preferred cement play.
FDC also identified Okomu Oil Palm Plc as a compelling agribusiness play, benefiting from strong commodity pricing, cost efficiency, and policy support for local producers. The palm oil industry remains fragmented, with Okomu Oil and Presco Plc standing out as dominant, vertically integrated players.
FDC projects Okomu Oil’s revenue at N351 billion, a 62 per cent increase, while profit after tax is forecast to surge 121 per cent to N161 billion. Economies of scale, rising production volumes, and lower unit costs underpin the earnings outlook.
Tariffs on imported crude palm oil continue to support high domestic prices, strengthening margins. Trading at about 16.4x earnings, the stock is viewed as offering an attractive risk-reward profile despite FX sensitivity.
Guinness Nigeria completes FDC’s 2026 buy list, with Rewane highlighting the brewer’s pricing power, premium product mix, and strong distribution network. Nigeria’s brewing industry is highly consolidated, allowing leading players to manage pricing without severe volume losses.
Guinness Nigeria completes FDC’s 2026 buy list, with Rewane highlighting the brewer’s pricing power, premium product mix, and strong distribution network. Nigeria’s brewing industry is highly consolidated, allowing leading players to manage pricing without severe volume losses.
FDC forecasts Guinness Nigeria’s revenue at N704 billion, up 42%, while profit after tax is expected to rise 35% to N21.6 billion. The stock trades at a P/E of about 12.2x.
While execution remains strong, FDC flags interest rates and FX volatility as key risks. Still, stable oil prices and improved macro conditions could ease pressures on costs and consumer demand.
MTN Nigeria is currently the second most valuable stock on the NGX with a market capitalization of N11.2 trillion, which makes about 11.7% of the entire NGX equity market.
The stock closed on Wednesday, December 17, 2025 at N531.70 per share. It began the year with a share price of N200 and has since gained 166% on that price valuation, ranking it 24th on the NGX in terms of year-to-date performance.
Dangote Cement is currently the third most valuable stock on the NGX with a market capitalization of N10.4 trillion, which makes about 10.9% of the entire Nigerian Stock Exchange equity market.
The stock closed on Wednesday, December 17, 2025 at N614.90 per share. It began the year with a share price of N478.80 and has since gained 28.4% on that price valuation, ranking it 95th on the NGX in terms of year-to-date performance.
Okomu Oil Palm is currently the 22nd most valuable stock on the NGX with a market capitalization of N1.06 trillion and 954 million shares outstanding, which is about 1.11% of the Nigerian Stock Exchange equity market.
The stock closed on Wednesday, December 17, 2025 at N1,109 per share on NGX, recording a 6.8% gain over its previous closing price of N1,038. It began the year with a share price of N444.00 and has since gained 150% on that price valuation, ranking it 28th on the NGX in terms of year-to-date performance.
Guinness Nigeria is currently the 27th most valuable stock on the NGX with a market capitalization of N577 billion 2.19 billion shares outstanding, which makes about 0.604% of the NGX equity market.
The stock closed on Wednesday, December 17, 2025 at N263.40 per share. It began the year with a share price of N70.25 and has since gained 275% on that price valuation, ranking it 10th on the NGX in terms of year-to-date performance.