Nigeria’s economic and financial landscape recorded mixed but encouraging developments, as equities recovered from previous losses, federal allocations to the three tiers of government increased, and policymakers advanced plans to deepen capital market participation, strengthen domestic production and attract long-term investment.
The Nigerian Exchange (NGX) All-Share Index rose 0.26% to close at 245,911.13 points, while market capitalisation augmented by ₦410.86 billion to approximately ₦159.66 trillion. Market breadth was positive, with 28 stocks advancing against 21 decliners. NASCON led the gainers, rising 7.31%, as investors selectively accumulated equities following Monday’s decline. The naira closed at ₦1,333.65 per US dollar in the official foreign exchange market, indicating relative stability during the session.
Fiscal developments also provided a notable boost to public-sector finances. The Federation Account Allocation Committee (FAAC) distributed ₦2.4 trillion in October, representing a 4% increase from the preceding month. Gross statutory revenue rose 7% to ₦1.7 trillion, although value-added tax receipts eased to ₦757 billion. The Federal Government received ₦832 billion, state governments’ ₦800 billion and local governments ₦561 billion, while the 13% derivation allocation increased 28% to ₦236 billion. The higher distribution could support public spending and infrastructure delivery, although its wider economic impact will depend on expenditure efficiency and fiscal discipline.
On tax policy, Finance Minister Taiwo Oyedele clarified that the Federal Government was not considering a fuel tax, describing its introduction so soon after the removal of the petrol subsidy as, insensitive. The clarification offers some policy reassurance in the midst of persistent concerns about homefront purchasing power, transport costs and business operating expenses.
Capital market development remained a central policy priority. The national capital market comprehensive strategy, targets a market valuation of ₦750 trillion by 2036. Based on an estimated starting value of ₦250 trillion, achieving that objective would require nominal annual growth of approximately 11.61%. Oyedele has also advocated a more ambitious US$1 trillion market within a decade, supported by the proposed listing of selected state-owned enterprises, including the Nigerian National Petroleum Company Limited (NNPC) and Nigeria LNG Limited (NLNG). The government intends to encourage voluntary listings through incentives, with the number of listed companies targeted to increase from 146 to 250.
Vice President Kashim Shettima also indicated that the National Economic Council would work with the Securities and Exchange Commission to guide state governments on raising infrastructure financing through the capital market, subject to regulatory oversight and investor scrutiny. Separately, JPMorgan reportedly deposited ₦50 billion with the Central Bank of Nigeria in support of its application for a merchant banking licence, with approval expected by late 2026 or early 2027, subject to the regulator’s decision.
Developments in the energy sector highlight the importance of supply security and domestic production. Brent crude approached US$112 per barrel during intraday trading before retreating below US$109, while Asian liquefied natural gas prices exceeded US$30 per million British thermal units. Nigeria plans to expand its strategic petroleum reserves from approximately 20 days of consumption to 90 days and achieve 45 days of petroleum-product self-sufficiency by early 2027. These targets could strengthen resilience against external supply disruptions, although implementation will require sustained investment in storage, refining and distribution infrastructure.
Continue reading with Eandel
Subscribe to unlock the complete story and receive your subscriber benefits.
