MTNN, Dangote Cement, Guinness, Okomu Oil Rated Strong Buys for 2026

MTN Nigeria Plc, Dangote Cement Plc, Guinness Nigeria Plc and Okomu Oil Palm Plc have been identified as top equity picks for 2026, supported by earnings visibility, pricing power and favourable industry structures.

The recommendation was made by Bismarck Rewane, chief executive officer of Financial Derivatives Company, during a Lagos Business School breakfast session focused on Nigeria’s evolving macroeconomic and geo-strategic environment.

Rewane said the four companies combine scale, strong brands and competitive advantages that allow them to manage pricing effectively despite cost pressures. He noted that improving macroeconomic conditions, easing inflation and potential moderation in interest rates could further support corporate earnings, although he cautioned that FX stability and entry timing would remain key determinants of realised investor returns.

MTN Nigeria’s investment case is driven by its dominant position in a now-consolidated telecommunications sector and its accelerating shift toward data-led revenues. Higher data consumption, rising smartphone penetration and expanding digital services are expected to lift revenue to an estimated ₦7.8 trillion, representing a 58 per cent increase, while profit after tax is forecast to rise 44 per cent to ₦1.44 trillion. Trading at an estimated price-to-earnings ratio of 14 times, the stock is considered reasonably valued given its earnings growth outlook and defensive characteristics.

Dangote Cement’s outlook is supported by the highly consolidated nature of Nigeria’s cement industry, which provides pricing discipline and earnings visibility. Revenue is projected to reach ₦5.3 trillion, up 27 per cent, while profit after tax is expected to climb 44 per cent to ₦1.4 trillion. The stock trades at about 13.5 times earnings, a valuation that analysts believe does not fully reflect the company’s scale, export potential and infrastructure-led demand prospects.

Okomu Oil Palm Plc stands out as a strong agribusiness play, benefiting from firm palm oil prices, operational efficiency and supportive trade policies. Revenue is projected to rise 62 per cent to ₦351 billion, while profit after tax is expected to surge 121 per cent to ₦161 billion, driven by higher production volumes, economies of scale and improved cost efficiency. Despite sensitivity to FX movements, the stock is viewed as offering an attractive risk-reward profile at an estimated 16.4 times earnings.

Guinness Nigeria completes the list, with its pricing power, premium product mix and extensive distribution network cited as key strengths. Revenue is forecast to rise 42 per cent to ₦704 billion, while profit after tax is expected to increase 35 per cent to ₦21.6 billion. Trading at roughly 12.2 times earnings, the brewer is seen as well positioned to navigate a challenging consumer environment, particularly if macroeconomic conditions continue to improve.