Think Thursday -Navigating Volatility: Nigerian Markets Balance Domestic Growth, Global Energy Pressures, and Geopolitical Risks.
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Market Overview
The Nigerian Exchange Limited (NGX) experienced a mild pullback today, with the All‑Share Index dipping slightly as profit‑taking in banking and insurance stocks weighed on sentiment, even as trading liquidity remained robust and pockets of bargain buying supported select counters. Domestically, investors are digesting recent fiscal reform optimism and strong non‑oil trade ties with the UAE, while global energy dynamics including elevated oil tanker rates and sustained high crude prices amid U.S. Iran tensions are injecting a risk premium that could influence market flows and valuations Against this backdrop, earnings reports, macro policy cues and broader geopolitical developments are likely to shape near‑term trading, with investors balancing cautious positioning against longer‑term structural drivers.
Nigerian News & Market Update
KPMG Appoints Tola Adeyemi as CEO for Africa, Reinforcing Continental Leadership: KPMG has named Tola Adeyemi as Chief Executive Officer for its Africa operations, with the leadership change taking effect in March 2026 and complemented by new independent members on its Africa Governance Counci. - Punch
Nigeria’s Tinubu Greenlights Ajaokuta Free Trade Zone as Ododo Courts Investors:
President Bola Tinubu has officially approved the establishment of the 4,000-hectare Ajaokuta Economic City Free Trade Zone in Kogi State, with Governor Usman Ododo securing the lisence and promising to attract both local and foreign capital to jump-start industrial growth. - Punch
TotalEnergies to Inaugurate 5 MW Solar Plant at OML 58 to Power Ubeta Gas Project:
The Managing Director of TotalEnergies EP Nigeria Limited announced plans to commission a 5-megawatt solar power plant at OML 58, designed to supply electricity directly to the Ubeta Gas Project and support the company’s broader emissions reduction and energy expansion strategy. - Punch
UAE–Nigeria Non-Oil Trade Hits $7.4 Billion, LCCI Hails Strategic Partnership:
Non-oil commerce between the United Arab Emirates and Nigeria surged to $7.4 billion, reflecting robust bilateral trade across logistics, agriculture, digital services and investment sectors, according to the Lagos Chamber of Commerce and Industry. -Punch
Nigeria Sectoral Indices Performance
Most sectors declined slightly today (e.g., NGX 30: -0.51%, Industrial Goods: -1.19%), indicating short-term profit-taking.
However, broader momentum remains strong, with Month-to-Date gains such as Oil & Gas (+33.98%), Consumer Goods (+21.23%), and NGX 30 (+17.08%).
Year-to-Date performance is robust across the board led by Oil & Gas (+52.47%) and Premium Board (+40.02%) highlighting sustained bullish market sentiment despite near-term volatility.
Fixed Income (FGN Bonds)
Global News & Market Update
US Extends Deadline for Potential Buyers of Lukoil International Assets to April 1 Amid Ukraine Peace Negotiations:
The United States Treasury’s Office of Foreign Assets Control has extended the Feb. 28 deadline to April 1 for negotiations on the sale of Lukoil’s international assets valued at about $22 billion seeking to use the process as leverage in ongoing Ukraine peace talk. - Reuters
Engie Shares Surge as French Utility Moves to Buy £10.5 Billion UK Power Grid:
Shares in French utility Engie jumped to multiyear highs after the company agreed to acquire UK Power Networks the largest electricity distributor in Britain in a £10.5 billion ($14.2 billion) deal that is poised to expand its regulated energy infrastructure footprint - Reuters
US Pushes April 1 Deadline for Lukoil Asset Sale as Ukraine Peace Talks Stall:
The United States has extended the deadline for potential buyers to negotiate the purchase of Lukoil’s $22 billion international assets from Feb. 28 to April 1, using the process as leverage while Ukraine peace negotiations continue without major breakthroughs. - Reuters
Mideast–Asia Oil Tanker Rates Soar to Highest Since 2020 Amid Iran‑Tension Risk Premium:
Freight rates for Very Large Crude Carriers (VLCCs) from the Middle East to China climbed above $200,000 per day, the highest level since April 2020, as shippers and traders rush to lock in crude shipments amid simmering geopolitical tensions between the U.S. and Iran and concerns over future supply disruptions.. - Reuters
Indices, Commodities & Currencies
Global markets are mixed, with the DJIA (+0.29%) and S&P 500 (+0.85%) advancing, while the NASDAQ 100 (-1.55%) and Russell 2000 (-0.60%) declined, reflecting rotation out of tech into broader equities.
Energy commodities are broadly weaker TI (-1.53%), Natural Gas (-2.52%), and Brent (-1.87%) while metals show softness in Gold (-0.59%), Silver (-4.30%), and Platinum (-3.80%), signaling reduced safe-haven demand.
Agricultural markets are mixed, with gains in Soybean Oil (+1.97%) and Oats (+1.69%), while currencies show a firmer USD (+0.17%) against softer EUR (-0.19%) and JPY (-0.15%), indicating moderate dollar strength.
Fixed Income (USA Bonds)
Events
Conclusion
Looking ahead, the Nigerian market may oscillate between consolidation and renewed upside as liquidity stays elevated and selective sectors outperform, but geopolitical headwinds and profit‑taking pressures could keep volatility elevated. Continued monitoring of global oil price trends, shipping cost dynamics, and local macroeconomic signals will be critical for portfolio positioning and risk management in the coming sessions.
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