Nigeria faces currency volatility and stock market shifts

The Nigerian economy is experiencing significant volatility in both its foreign exchange and equity markets. The naira experienced a sharp depreciation against the US dollar, closing at N1,365/$ on October 22, marking its steepest single-day drop in 18 months. Interbank foreign exchange turnover surged to $1.01 billion on Friday, October 23, reflecting intense demand for dollars driven by corporate year-end payments and seasonal commercial orders.

In the equity market, the Nigerian Exchange (NGX) All-Share Index showed mixed results. While some reports indicated a recovery of 0.92 per cent, adding ₦1.47 trillion to the total market value, other data noted a slight weekly decline of 0.13 per cent. Major gainers included Dangote Cement and FirstHoldco, which both rose by 10 per cent, helping to offset losses in other sectors. Despite these fluctuations, the market's year-to-date return remains strong at approximately 58.87 per cent.