Strategic Allocation: Investing N10 Million in January 2026

Deploying N10 million in January 2026 demands a strategic framework that transcends chasing transient trends. The cornerstone of a robust portfolio is a clearly defined objective. For the discerning investor, the primary goal is securing returns that not only outpace inflation but also preserve and grow long-term capital. Your target return must dictate your asset allocation. Aiming for annual returns exceeding 25% necessitates a meaningful commitment to higher-growth, higher-risk assets such as equities.

In the current economic climate, merely beating official inflation metrics is insufficient. With rising costs in food and energy, a realistic benchmark for preserving purchasing power is approximately 23%. While risk-free assets like Treasury Bills offer yields around 18%, they provide only modest protection. Therefore, to genuinely grow capital, investors should consider allocations targeting 30% to 40% returns, achieved through disciplined diversification and a focus on asset quality.

The Nigerian equities market, as measured by the NGX market cap, remains a compelling avenue for inflation-beating returns. Following a 51.19% gain in the All-Share Index for 2025, the focus for 2026 shifts to fundamentally sound companies with attractive valuations and reliable dividend histories. The banking sector presents a particularly strong opportunity. Having largely addressed new capital requirements, leading banks trade at an average price-to-earnings ratio of 3x—a stark contrast to the consumer goods sector’s 26x—and offer prospects for both capital appreciation and dividend income in the new year.

While assessing relevance traditional investment vehicles, one must also consider the broader macroeconomic landscape. Factors such as political stability, akin to discussions surrounding coups in West Africa, and domestic security directives, like those issued by the Inspector-General of Police during the yuletide, IGP orders vigilance, can influence market sentiment. However, a disciplined strategy centered on valuation and fundamentals is paramount. A diversified N10 million portfolio, with strategic positions in undervalued equities and other growth assets, is positioned to navigate these complexities and target substantial real returns in 2026.