Money Monday-Nigeria’s Banking and Energy Sectors Gain Momentum as Global Markets Eye Fed Rate Cuts and Shifting Oil Flows
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Market Overview
Good evening and welcome to today’s market update. In this edition, we unpack key developments shaping Nigeria’s financial landscape from renewed banking and insurance recapitalisation momentum to fuel market shifts driven by Dangote’s supply boost and easing crude prices. Globally, investors navigate mixed signals as oil markets rebalance, major central banks tilt dovish, and geopolitical-driven supply dynamics continue to influence commodities and currency flows.
Nigerian News & Market Update
27 banks raise fresh capital in latest recapitalisation drive — CBN:
Nigeria’s banking sector remains resilient, with 27 banks raising fresh capital under CBN’s recapitalisation drive, strong FX reserves, and continued support for economic growth and financial stability. - Punch
TotalEnergies To Sell 40% Offshore Stake In Nigeria Licenses To Chevron:
TotalEnergies is selling a 40% stake in two Nigerian offshore licenses to Chevron, forming a joint venture to unlock new resources while remaining the operator. - Channels
OPEC+ Retains Nigeria’s 1.5mb/d Oil Quota Through 2026:
OPEC+ has extended Nigeria’s 1.5 million bpd production quota until December 2026, with major members pausing planned output increases to support oil market stability. - Channels
CBN Sells ₦7.85trillion in OMO Bills to Banks, Foreign Investors in Nov:
The Central Bank of Nigeria (CBN) aggressively tightened liquidity in November, mopping up ₦7.85 trillion through Open Market Operations (OMO) bills as banks and foreign investors oversubscribed amid excess cash in the financial system. - Dmarketforces
Dangote Refinery to Supply 1.5billion Litres of Petrol Monthly:
Dangote Refinery will supply 1.5 billion litres of petrol monthly from December to January boosting nationwide fuel availability and reinforcing Nigeria’s energy security. - Dmarketforces
Recapitalisation: 4 Audit Firms Begin Capital Verification Of 18 Insurance Companies:
Big Four auditors are verifying the capital positions of 18 insurers as the National Insurance Commission (NAICOM) advances its 2025–2026 recapitalisation programme to strengthen the industry’s solvency and competitiveness. - Leadership
Dangote Refinery, others cut petrol gantry price to N840 per litre:
Depot operators, including Dangote Refinery, have cut PMS gantry prices to about ₦840/litre following a drop in global crude oil prices, while OPEC+ maintains a cautious production stance heading into early 2026. - Vanguard
Nigeria Sectoral Indices Performance
The table below depicts that the NGX Banking, Insurance, Consumer Goods, and Premium Board indices posted slight gains across most short-term periods, while Oil/Gas and Industrial Goods declined. Quarter-to-date, Oil/Gas and Lotus Index are the strongest performers, while Banking and Insurance remain negative.
Year-to-date, the market is broadly positive, led by the Lotus Index (+83%) and Insurance (+51%).
Fixed Income (FGN Bonds)
Global News & Market Update
BofA expects December Fed cut, two more in 2026:
The Bank of America (BofA) now expects the U.S. Fed to cut rates by 25 bps in December due to weakening labor data and dovish signals from policymakers. - Reuters
Turkey cuts Russian Urals oil imports in November, diversifies with Kazakh, Iraqi supply:
Turkey has cut its imports of Russia’s Urals crude to about 200,000 bpd due to tightening sanctions, shifting instead to alternative grades like Kazakhstan’s CPC Blend. - Reuters
India to sell up to 6% stake in Bank of Maharashtra:
India is selling up to a 6% stake in Bank of Maharashtra to help the lender meet minimum public shareholding requirements. - Reuters
Thai central bank planning measures to ease strong baht, sees room for rate cuts:
Thailand’s central bank is moving to ease pressure on the rapidly strengthening baht by tightening gold-related FX controls and raising the non-repatriation limit for foreign income to $10 million per transaction. - Reuters
Indices, Commodities & Currencies
The table below depicts that the Global equities were mostly lower, with the Dow, S&P 500, Nasdaq, and European indices declining, while volatility (VIX) edged slightly higher. Energy prices were mixed: WTI and Brent gained, but Natural Gas weakened, while metals like gold, silver, and copper recorded modest rises.
In commodities, grains showed mixed performance oats and canola advanced strongly while major currencies traded with mild movements against the USD.
Fixed Income (USA Bonds)
Conclusion
Looking ahead, Nigerian markets may see improved liquidity conditions, stronger sectoral rotations, and stability in energy prices as local supply strengthens. Globally, expectations of a U.S. Fed rate cut, shifting crude trade patterns, and active currency interventions could heighten short-term volatility but open opportunities across fixed income and equities. Investors should stay positioned for policy-driven movements while watching oil dynamics and central bank actions closely in the weeks ahead.
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