Momentum Fades On Nigerian Bourse, Amid Profit-Taking As Agriculture, Oil Reforms May Support Capital Inflows
Daniel Wesonga
Nigerian equities remained under pressure, with the NGX All Share Index falling 0.73% on Wednesday, reflecting broad market weakness. Only Consumer Durables, Commercial Services, Technology Services, Energy Minerals, and Retail Trade advanced, while Distribution Services plunged 9.98%, alongside Electronic Technology, Producer Manufacturing, and Consumer Non-Durables. The recent slowdown appears driven by profit-taking following the sustained rally since mid-April.
Nigeria’s delegation to the 9th Tokyo International Conference on African Development (TICAD9) is pursuing strategic partnerships in power, industry, and agriculture, with initiatives including JICA-backed power projects, vocational training, renewable energy programs, and investment talks led by NACCIMA and the Bank of Industry. These efforts could support equities by attracting foreign investment, boosting capital inflows, and improving confidence in long-term growth, particularly in infrastructure, energy, and industrial sectors.
Meanwhile, the USD 100 million livestock offtake deal with the Saudi Export and Import Bank, backed by Lagos State’s NGN 5 billion support and modern cold-chain logistics, strengthens Nigeria’s non-oil exports and agribusiness sector. Nigeria is also committed to OPEC quotas, and increasing crude output, domestic refinery reforms, and ESG-focused workforce improvements indicate a stabilizing energy sector. These developments are likely supportive for energy equities and potentially attract further capital inflows.
Wesonga is Senior Sales Manager at Pepperstone
