At N16.37trn, MTN Outpaces BUA Foods, Others as NGX Most Capitalised Stock 

Kayode Tokede

Following the unprecedented rally in the Nigerian equities market, MTN Nigeria Communications Plc has seen its market capitalisation jumped N16.37 trillion as of February 16, 2026, surpassing BUA Foods Plc, among others to become most capitalised stock on the Nigerian Exchange Limited (NGX).

BUA Foods and Dangote Cement Plc with market capitalisation of N14.38 trillion and N13.5trillion came second and third respectively.

Findings by THISDAY showed that  MTN Nigeria since late 2025 and January 2026 was the second most capitalised  stock on NGX with an average market capitalisation of N10 trillion.

The company has not announced its result and accounts for year ended December 31, 2025.  But capital market analysts have expressed that the stock market fundamentals and National Pension Commission (PenCom) reforms, which has favoured the market has boosted inventors’ confidence.

PenCom  had recently announced its decision to raise equity limits for pension funds, a development that has positively impacted MTN and other stock prices on the bourse, leading to some reaching a 52-week high.

The announcement was as a result of the amendment of Section 9 of PenCom investment regulations, increasing equity allocation caps across multiple Retirement Savings Account (RSA) fund classes: RSA Fund I moved from 30 per cent to 35 per cent; RSA Fund II from 25 per cent to 33 per cent; RSA Fund III from 10 per cent to 15 per cent; while RSA Fund VI (Active) from 25 per cent to 33 per cent.

The new policy impacted injection of fresh liquidity into the stock market helping the stock price of some blue-chip companies to advanced significantly.

Between February 9, 2026, when the policy was announced  till February 16, 2026, the market capitalisation has appreciated by N10.47 trillion to N122.13 trillion on investors’ demand for MTN Nigeria, Dangote Cement, Aradel Holdings Plc, among others.

THISDAY analysis of trading numbers showed that MTN Nigeria, 16 others listed companies contributed about N97.44 trillion of the N122.13 trillion market capitalisation  on the NGX.

They are: Airtel Africa Plc, N8.53 trillion; BUA Cement Plc, N6.87 trillion; Seplat Energy Plllc, N5.03 trillion; Aradel Holdings, N4.76 trillion and Guaranty Trust Holding Company Plc, N4.29 trillion.

A further breakdown showed that the stock price of MTN Nigeria appreciated by 36.3 per cent to close at N779.70 per share as of February 16, 2026 from N572.00 per share it closed trading in January 2026, to outpace BUA Foods that has remained flat at N798.90 per share since 2025.

The stock price of Dangote Cement appreciated by 31.1 per cent to close February 16, 2026 at N798.60 per share from N609.00 per share it opened for trading this year.

Cordros Research in a report stated that PenCom had  cited practical implementation challenges arising from the existing limits across ordinary shares, FGN bonds and alternative assets, with the key constraint being the limited availability of qualifying alternative asset instruments.

The report stated, “The shortfall has hindered effective deployment into the alternative instruments asset class, resulting in an underutilisation of the alternative asset allocation, and leaving PFAs with excess liquidity. Given the importance of PFAs to domestic market liquidity, we expect the adjustment to translate into a supportive flow dynamic for Nigerian equities, strengthening the institutional bid over the near to medium term.

“PenCom increased the maximum allocation to ordinary shares for RSA Funds I, II, III and VI-active to 35.0 per cent, 33 per cent, 15.per cent and 33.0per cent, from 30 per cent, 25.0 per cent, 10per cent and 25 per cent, respectively. The upward revision reflects a shortage of qualifying alternative asset instruments, including infrastructure funds, private equity funds and agriculture investment funds, which has constrained deployment into the alternative asset bucket, leaving excess liquidity within the system.

“Thus, PenCom’s decision to widen equity limits reads as a practical release valve, creating more room for PFAs to put idle capacity to work in listed equities. Allocation limit utilisation also suggests that equity limits were increasingly binding, with RSA Fund I (25.1per cent of 30 per cent) and RSA Fund II (22.4 per cent of 25 per cent) closing in on their respective ceilings, while RSA Fund III (10.4per cent of 10 per cent) has already effectively maxed out its prior limit.”

“Following the revision, we expect market flows to improve, given PFAs’ outsized influence on local institutional activity. For context, PFAs accounted for c.69.0per cent of domestic institutional gross market flows in 2025, positioning them as the key marginal buyer in the market.Ultimately, the added equity headroom should support a continued tilt towards equities, particularly with valuations still attractive and the earnings outlook constructive.

“As such, we estimate cumulative net inflows of N2.18 trillion into equities over 2026, lifting total pension equity holdings to N6.14 trillion by December 2026 (+55.2per cent y/y).  Our estimates assume average monthly NAV growth of N411.62 billion (in line with the 2025 average growth rate) and a total equity allocation of 19.0per cent (2025: 14.4per cent).

“At the fund level, our estimates factor in both incremental allocation headroom and continued NAV growth,” the report said.

It added, “Specifically, we expect Fund I, II, III and VI-active equity holdings to rise by 68.2 per cent y/y, 58.2 per cent y/y, 67.1 per cent y/y and 109.7 per cent y/y to N185.52 billion, N4.09 trillion, N1.22 trillion, and N74.31 billion, respectively, implying 29.3 per cent, 29.6 per cent, 15.0 per cent, and 21.4 per cent equity allocations, respectively.

“Notably, the equities market rallied in the immediate aftermath of the revision, with the NGX ASI advancing by 1.6% (10 February), its strongest single day gain since 05 January 2026. Trading activity also strengthened with total value traded reaching N50.43 billion, the highest single day turnover recorded in 2026YTD.

“The swift pickup reflects early PFA portfolio action alongside broader investor positioning around incremental pension demand. Looking ahead, we expect domestic institutional flows to remain supportive, with the bulk of allocations gravitating towards liquid, large cap bellwethers where pension portfolios are typically concentrated. More broadly, we view the revision as a clear policy tailwind for Nigerian equities, improving the flow backdrop and reinforcing valuation.”