Nigeria’s stock market opened without significant movement on Thursday, though electronic and health technology shares showed notable strength.
Traders noted the potential boost from President Bola Tinubu’s recent directive to review government revenue deductions, aiming to free up public funds for investment. His administration targets 7% annual growth through investment-led expansion, a strategy market watchers believe could lift equities over time.
Trade diversification efforts also offer a tailwind. Expanding exports to Brazil, China, Japan, and the UAE may reduce reliance on the U.S. market, softening the blow of a new 15% U.S. import tariff. Oil production climbed to 1.507 million barrels per day in July, surpassing OPEC targets. Yet stubbornly low global crude prices might mute the sector’s celebration.
All eyes now turn to Friday’s July inflation report. Annual inflation dipped to 22.22% in June, its lowest since April 2023, but core inflation crept up to 22.76%, signaling persistent underlying pressures. While easing headline inflation could support stocks, those sticky costs still threaten consumer spending and corporate profits. Will this divide define the market’s next move?
