Wealth Wednesday - Fiscal Discipline, Digitalisation, and Infrastructure Reforms Drive Nigerian Market Focus as Global Inflation Slows
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Market Overview
Welcome to today’s market update, Where Nigeria advances digital reforms through cashless enforcement, e-invoicing rollout, and enhanced corporate governance, reinforcing compliance and operational efficiency. Oil revenue pressures persist following a ₦1.76trillion shortfall from missing Organization of the Petroleum Exporting Countries production quotas, despite efforts to strengthen non-oil exports and expansion moves by MTN Group. Globally, expansion moves by Rio Tinto align with easing inflation across key economies, raising expectations of upcoming rate cuts.
Nigerian News & Market Update
SAHCO secures ISO certificate:
Skyway Aviation Handling Company has become the first ground handling company in Nigeria to secure ISO/IEC 27001:2022 certification, strengthening its information security and cyber resilience standards. - Punch
eTranzact backs NRS e-invoicing phased rollout:
eTranzact has pledged same-day onboarding and seamless support to help taxpayers comply as the Nigeria Revenue Service rolls out its e-invoicing system in phases. - Punch
Nigeria loses ₦1.76trillion after missing OPEC quota:
Nigeria lost about ₦1.76 trillion in potential oil revenue after repeatedly producing below its quota set by the Organization of the Petroleum Exporting Countries between January 2025 and January 2026 - Punch
MTN to acquire IHS Towers for $6.2billion:
MTN Group has agreed to acquire IHS Towers in a $6.2 billion all-cash deal, bringing Africa’s largest independent tower operator fully under MTN’s control. - Punch
FAAN bans cash transactions from February 29:
Federal Airports Authority of Nigeria has ordered a complete halt to cash transactions nationwide from February 29, 2026, enforcing the federal government’s cashless policy to curb revenue leakages. - Punch
NPA unveils simplified export channels:
The Nigerian Ports Authority has introduced Export Process Terminals and simplified export channels to streamline documentation, packaging, and shipment for exporters. - TheSun
Nigeria Sectoral Indices Performance
The table below shows that the Nigerian equity market closed broadly positive, with the NSE ASI gaining 0.56% as most sectoral indices recorded strong advances across key timeframes. The NGX Oil & Gas Index led performance (+3.87% daily; +52.82% YTD), followed by robust gains in Consumer Goods and Industrial Goods, reflecting sustained sectoral momentum.
Insurance was the only laggard on the day (-0.20%), while year-to-date returns remain firmly positive across all major indices, underscoring strong market breadth and investor confidence.
Fixed Income (USA Bonds)
Global News & Market Update
Rio Tinto takes majority control of Canada’s Nemaska Lithium:
Rio Tinto gains majority control of Canada's Nemaska Lithium to build an integrated lithium supply chain in Quebec for North American EVs. - Reuters
India sugar output seen lower than forecast, curbing exports:
Excessive rainfall in India reduces sugarcane yields, lowering sugar output and limiting exports while supporting domestic prices. - Reuters
Global Energy Alliance seeking to raise $100 million by 2028 to digitise India’s electric grids:
The Global Energy Alliance plans to raise $100 million by 2028 to digitize India’s electricity grids, enhancing efficiency and renewable integration. - Reuters
South Africa inflation eases in January, expected to remain subdued:
South Africa's inflation eased to 3.5% in January, remaining subdued and keeping the possibility of central bank interest rate cuts open. - Reuters
UK inflation hits lowest in nearly a year at 3.0%, strengthening bets on a BoE rate cut:
UK inflation fell to 3.0% in January, its lowest in nearly a year, boosting expectations of an imminent interest rate cut by the Bank of England. - Reuters
Unilever’s India arm to invest up to $221 million in high-growth categories:
Hindustan Unilever will invest up to $221 million over two years to expand capacity in high-growth premium segments like beauty, wellbeing and home care amid rising competition. - Reuters
Canadian annual inflation rate edges down in January as gasoline costs drop:
Canada’s inflation edged down to 2.3% in January as falling gasoline prices offset higher food costs, keeping price pressures within the Bank of Canada’s target range. - Reuters
Indices, Commodities & Currencies
The table below depicts that the Global equities closed broadly higher, with gains across the S&P 500, Nasdaq 100, DJIA, and European indices, while the VIX declined, signalling improved investor risk appetite. Energy prices strengthened as WTI and Brent advanced, metals particularly gold and silver posted solid gains, while soft commodities showed mixed performance with cocoa sharply lower. In currencies, the US dollar remained firm overall, commodities-linked currencies were mixed, and most grain prices traded sideways to slightly positive, reflecting cautious but stable global market sentiment.
Fixed Income (USA Bonds)
Event
Conclusion
For investors, Nigeria’s accelerating digital and structural reforms could enhance transparency, revenue mobilisation, and long-term market efficiency, supporting sentiment in telecoms, fintech, aviation services, and export-linked sectors. Nonetheless, oil production shortfalls remain a key macro risk, keeping fiscal sustainability and FX liquidity in focus. Globally, moderating inflation and potential rate cuts may improve capital flows to emerging markets, positioning selective Nigerian equities and fixed income instruments for renewed foreign investor interest in the near term.
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