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Nigerian Stock Index Posts World’s Biggest Drop on Currency Risk
ABUJA – Nigerian stocks posted the largest decline in the world today as a slumping naira led to a selloff by foreign investors.
The Nigerian Stock Exchange All-Share Index retreated 1.6 percent to 38,767.29 by the close in Lagos, bringing its five-day drop to 4.9 percent, the biggest weekly decline since June. The naira rebounded today after falling a fourth straight day yesterday to a record low.
“All of these things are causing panic,” Pabina Yinkere, head of research at Lagos-based Vetiva Capital Management Ltd., said by phone. “For an international investor, if the currency is going to devaluate, it will affect his own returns.”
Stocks, bonds and currencies from developing nations have been sold after the start of stimulus reduction by the Federal Reserve last month. Equities in Nigeria, Africa’s biggest oil producer, fell 6.5 percent this year, compared with a 4.8 percent decline in the MSCI Emerging Markets Index.
Nigeria’s foreign-currency reserves dropped for a 17th day to $42 billion yesterday. Central bank Deputy Governor Sarah Alade said today the regulator intervened in the market and has enough reserves to keep defending the currency.
“Foreign investors are going risk off,” Yinkere said. “When you consider our own domestic issues where our currency reserves haven’t been growing, there is a sense that the safe position people are taking is that they are anticipating some devaluation of the naira.”
Dangote Cement Plc (DANGCEM), the index’s biggest company by market value, dropped a fourth day, slipping 0.1 percent to 234.70 naira. Guaranty Trust Bank Plc (GUARANTY), the largest lender, fell to the lowest level since Sept. 18, retreating 5 percent to 24.73 naira.
– BLOOMBERG
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Inside Tinubu’s Closed-Door Meeting With Opposition Leaders – SDP, IPAC Reveal Details
The Social Democratic Party (SDP) and the Inter-Party Advisory Council (IPAC) have disclosed details of their recent closed-door meeting with President Bola Tinubu, explaining that the engagement focused on strengthening Nigeria’s democratic process ahead of the 2027 general elections.
The clarification came amid speculation surrounding the meeting, which took place at the Presidential Villa in Abuja after leaders of several opposition parties attended an Iftar dinner hosted by the president earlier in the week.
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Speaking during a gathering hosted in Abuja by the SDP’s former presidential candidate, Adewole Adebayo on Friday, the party’s National Chairman, Prof. Sadiq Gombe, said the meeting with Tinubu followed an official invitation from the Presidency and lasted about an hour.
According to Gombe, the discussion centred on the need to strengthen Nigeria’s electoral laws and restore public confidence in the country’s electoral process ahead of the 2027 polls.
He explained that the meeting provided an opportunity for party leaders to remind the president of the importance of conducting transparent, free, and credible elections.
Gombe noted that democracy can only thrive when governments listen to the concerns of citizens and ensure electoral processes that guarantee fairness and accountability.
The SDP chairman also expressed concern over growing voter apathy, pointing to the low turnout recorded in the recent Area Council election in the Federal Capital Territory.
He said the Abuja Municipal Area Council election witnessed only about seven per cent voter turnout, which he described as a clear sign that many Nigerians are losing confidence in the electoral system.
Gombe urged the government and members of the National Assembly to take urgent steps to review electoral laws and rebuild public trust in Nigeria’s democracy.
Also speaking, the National Chairman of IPAC, Dr. Yusuf Dantalle, said political parties used the meeting to raise concerns about aspects of proposed electoral reforms, particularly issues related to indirect primaries and the mandatory electronic transmission of results.
Dantalle explained that the parties appealed to the president to use his influence to encourage legislative review where necessary, noting that reforms should strengthen, rather than complicate, the democratic process.
He expressed optimism that Tinubu would consider the concerns raised and support necessary amendments that would improve the electoral system.
The IPAC chairman also called on the Independent National Electoral Commission (INEC) to strictly adhere to electoral guidelines as preparations for the next election cycle begin.
Earlier in his remarks, Adebayo cautioned political actors against turning the 2027 general elections into a do-or-die contest, stressing that the primary goal of democracy should be the progress and stability of Nigeria rather than personal political victories.
He urged leaders across political parties to encourage citizens to actively participate in the democratic process and ensure that elections are conducted peacefully and transparently.
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