Trading Tuesday - Nigeria Pushes Fiscal Digitization and Manufacturing Growth as Global Markets React to Inflation, Debt and Conflict Signals
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Market Overview
Good evening and welcome to today’s market wrap, Where Nigeria advances reform efforts through e-invoicing rollout, the Industrial Policy 2025 launch, and VAT relief measures to support real estate and broader economic growth. Dangote’s $400 million refinery expansion reinforces the energy self-sufficiency drive, even as domestic equities show mixed performance despite strong year-to-date sectoral gains. Globally, weaker equities, a stronger U.S. dollar, inflation updates, rising debt projections, and geopolitical tensions are sustaining cautious market sentiment.
Nigerian News & Market Update
NRS begins phased rollout of e-invoicing for businesses:
The Nigeria Revenue Service has begun a phased rollout of e-invoicing to strengthen tax compliance, starting with large taxpayers and expanding by turnover size. - Punch
Dangote signs $400million equipment deal to fast-track refinery expansion:
The Dangote Group signed a $400 million deal with XCMG Construction Machinery Company Limited to accelerate its refinery expansion, aiming to double capacity and strengthen its global market position. - Punch
Tinubu unveils Nigeria Industrial Policy 2025:
President Bola Tinubu launched the Nigeria Industrial Policy 2025, emphasizing factory openings, job creation, exports, and strong public-private sector collaboration for industrial growth. - PremiumTimes
Oyedele: VAT Scrapped on rent, land, homes:
Chairman Taiwo Oyedele announced that under the new tax reforms, land, buildings, and rent are fully exempt from VAT, while other measures cut construction costs, reduce withholding tax, and provide incentives for homeowners, landlords, and real estate investors. - TheSun
Nigeria Sectoral Indices Performance
The table below shows that the Nigerian equities closed lower on the day, with losses across NGX 30 (-0.56%), Banking (-3.69%), Consumer Goods (-2.93%), and the Premium Board (-2.39%), while the Lotus Index edged up 0.16%.
Despite the daily pullback, week-to-date and month-to-date performances remain strong, led by Oil & Gas (+11.79% WTD, +29.28% MTD) and the Lotus Index (+10.85% WTD). Year-to-date gains are robust across sectors, with Oil & Gas (+47.12%), Lotus (+37.32%), and Premium Board (+35.14%) leading the market rally.
Fixed Income (FGN Bonds
Global News & News Update
Ormat signs 150 MW geothermal power deal with NV Energy to supply Google in Nevada:
Ormat Technologies Inc signed a long-term 150 MW geothermal power deal with NV Energy, Inc. to supply clean energy to Google Inc in Nevada, supporting AI data center operations. - Reuters
German inflation confirmed at 2.1% in January:
German inflation rose slightly to 2.1% in January, confirming preliminary figures and up from 2.0% in December. The increase reflects harmonized consumer price growth, allowing comparisons across European Union countries. - Reuters
Japan’s debt issuance to surge 28% in fiscal 2029 from 2026, finance ministry estimates:
Japan plans to increase annual bond issuance by 28% by fiscal 2029 to cover rising debt-servicing costs amid fiscal pressures. - Reuters
Ukraine hits oil terminal in Russia’s Krasnodar, chemicals plant in Perm:
Ukrainian drones struck Russia’s Taman oil terminal and Perm chemicals plant ahead of U.S.-mediated peace talks, targeting strategic energy and industrial facilities. - Reuters
Indices, Commodities & Currencies
The table below depicts that the Global equities closed broadly lower, with declines across the S&P 500, Nasdaq, Russell 2000, and Nikkei, while volatility (VIX) ticked higher. Energy and metals weakened sharply Brent, WTI, gold, silver, and copper all fell while soft commodities showed mixed performance, with cocoa down but orange juice and sugar higher. The U.S. dollar strengthened modestly, commodities in grains were mixed, and most major currencies traded slightly lower against the dollar.
Fixed Income (USA Bonds)
Event
Conclusion
Nigeria’s ongoing tax, industrial, energy, and real estate reforms support a positive medium-to-long-term growth outlook, though short-term market volatility may persist. Investors should monitor policy execution, liquidity trends, sector rotation, and fixed income yields for positioning opportunities. Globally, tighter financial conditions and geopolitical risks may keep commodities and emerging markets sensitive, warranting a cautious, selective strategy.
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