Advertisement
Nigeria’s Interest Rates to Remain Elevated in H2 2026, United Capital Projects
United Capital Plc has projected that interest rates in Nigeria will remain elevated through the second half of 2026 as inflationary pressures persist.
Group Chief Executive Officer Peter Ashade said at the firm’s investor relations roundtable that global inflation remains sticky due to elevated oil prices triggered by the U.S.–Iran conflict, with yields rising across major markets.
Ashade noted that the U.S. 10‑Year Bond yield climbed to 4.6 per cent in June from 3.9 per cent in March, reflecting the impact of supply shocks. He explained that similar pressures are keeping Nigerian interest rates high, with no immediate respite expected.
Despite the challenging environment, United Capital reported strong first‑half results. Profit after tax rose 77.5 per cent to N21.10 billion, while profit before tax increased 79.6 per cent to N24.78 billion. Gross earnings climbed 57.8 per cent to N37.49 billion, supported by higher trading income, expanding fee‑based revenues, and robust growth across core businesses.
The group’s shareholders’ funds expanded nearly 25 per cent to N187.09 billion, while total assets stood at N1.64 trillion. Managed funds grew to N1.04 trillion, reinforcing United Capital’s position as one of Nigeria’s leading investment managers. Mutual fund assets under management have surged more than 350 per cent since 2021.
Looking ahead, Ashade said United Capital’s 2026 strategy will focus on business expansion across Africa, product innovation, financial inclusion, digital transformation, and operational efficiency.
He added that technology‑driven investment opportunities and regional growth will help sustain performance despite elevated interest rates and intensified competition for funding.
