… Despite N11.1trn July gain

By Peter Egwuatu 

Nigeria’s stock market reversed course last week as widespread profit-taking erased N1.261 trillion from investors’ portfolios, ending the week in negative territory after a sustained rally.

The decline followed renewed selling pressure across major banking, industrial and consumer goods stocks as investors cashed in on the strong gains recorded in recent weeks.

Data from the Nigerian Exchange Limited (NGX) showed that market capitalisation fell by N1.261 trillion to close at N158.326 trillion, compared with N159.587 trillion in the preceding week.

Similarly, the benchmark NGX All-Share Index (ASI) declined by 0.83 per cent to 245,283.68 points from 247,357.40 points, reflecting the broad-based weakness across the market.

Despite the weekly setback, the market still posted a robust monthly performance, with investors gaining N11.109 trillion in July. Market capitalisation climbed from N147.217 trillion at the end of June to N158.326 trillion by the close of July, underlining the strength of the rally before last week’s correction.

The sharp monthly appreciation encouraged many investors to lock in profits, particularly in stocks that had recorded significant price gains.

Market breadth also deteriorated during the week, signalling a stronger bearish sentiment. Only 33 stocks advanced, down from 57 in the previous week, while 56 equities declined, compared with 38 losers a week earlier. A total of 58 stocks closed unchanged, up from 51 recorded previously.

Analysts at InvestData Consulting Limited attributed the downturn largely to profit-taking in highly capitalised and actively traded stocks, especially within the banking sector.

“The emergence of fresh 52-week lows amid the broader market decline suggests that some investors are becoming increasingly cautious about individual stocks, even as the overall NGX remains significantly higher on a year-to-date basis,” the firm said.

Looking ahead, the analysts expect cautious trading to persist in the near term.

“The NGX enters the new trading week with a cautious short-term outlook following last week’s broad-based selloff. Profit-taking is likely to remain a dominant feature of the market as investors continue to lock in gains from the strong rally recorded so far this year,” they added.

Nigeria needs a coordinated industrial growth strategy, beyond macroeconomic reforms, to unlock investment in the manufacturing sector and accelerate economic expansion.

Chief Executive Officer of CFG Advisory, Mr. Tilewa Adebajo, stated this in an interview on CNBC Africa. He noted that reforms such as exchange rate liberalisation and broader macroeconomic adjustments should be regarded as the foundation for growth rather than the destination. 

Adebajo argued that without deliberate policies to boost production, infrastructure and industrial investment, Nigeria would struggle to achieve sustainable economic transformation.

According to him, the current growth rate of about four per cent is insufficient for an economy with Nigeria’s population and development needs. He said the country needs to consistently grow between eight and 10 per cent annually to significantly improve productivity, create jobs and raise living standards.

He noted that manufacturing remains constrained by structural challenges, including high financing costs, inadequate infrastructure and the absence of a long-term industrial development framework.

“Reforms alone are not the magic bullet. We need growth strategies that remove the structural impediments limiting productivity and investment,” Adebajo said.

He warned that government borrowing and rising debt-service obligations are crowding out private sector investment by keeping interest rates elevated. With Treasury bill yields remaining attractive and commercial lending rates reaching as high as 35 per cent for some businesses, manufacturers are finding it increasingly difficult to finance long-term expansion.

According to him, fiscal discipline must complement monetary, trade and industrial policies to create a more competitive environment for productive investment.

Adebajo also called for a pipeline of large-scale bankable projects capable of stimulating industrial growth. 

Beyond major investments such as the Dangote Refinery and Nigeria LNG Train 7, he said Nigeria needs fresh investments in power, transport infrastructure, agro-processing and manufacturing clusters to deepen industrial capacity.

He urged policymakers to leverage Nigeria’s large domestic market and the African Continental Free Trade Area (AfCFTA) to attract export-oriented manufacturers. 

Adebajo asserted that Nigeria’s reform programme will ultimately be judged not by macroeconomic stability alone, but by its ability to translate policy reforms into stronger manufacturing investment, higher productivity and sustained economic growth.

By Efe Onodjae

The Nigerian Ports Authority (NPA) has dismissed claims that the Eastern Ports have been neglected, saying the Federal Government (FG) is investing in infrastructure upgrades to restore their competitiveness and attract more cargo traffic.

Manager of the Rivers Port Complex, Kenechi Okaeze, gave the assurance during an interactive session with members of the Maritime Correspondents Organisation of Nigeria (MARCON) in Port Harcourt, where she represented the Minister of Marine and Blue Economy, Adegboyega Oyetola.

Responding to concerns raised by stakeholders, Okaeze said rehabilitation and modernisation works were ongoing across the Eastern Ports.

“It is not correct to say that management has abandoned the Eastern Ports. Some facilities are already being rehabilitated and management remains committed to their development,” she said.

She disclosed that reconstruction and strengthening of Berths Seven and Eight at the Rivers Port Complex were underway as part of efforts to improve operational efficiency and accommodate larger vessels.

According to her, navigation channels are also being deepened to enable bigger ships to berth directly at the ports, reduce logistics costs and ease the movement of cargo currently transported by road from ports in other parts of the country.

She noted that the Eastern Ports enjoy strategic proximity to key commercial markets, making their revival critical to improving Nigeria’s maritime logistics and reducing pressure on road infrastructure.

Okaeze added that increased vessel traffic to the Eastern Ports would also reduce the safety risks associated with long-distance haulage of cargo by road.

Expressing optimism over the ongoing projects, she assured stakeholders that the rehabilitation programme would restore the Eastern Ports to their strategic position in Nigeria’s maritime sector.

“I assure you that very soon the Eastern Ports will begin to experience significant growth again,” she said.