RFA Breakfast Paper - September 7, 2026
Nigeria’s Reserves Hit $54bn as Naira Firms
Nigeria's gross external reserves crossed $54bn for the first time since December 2008, reaching $54.08bn on 3 September and overshooting the CBN's own $51bn full-year projection. The build-up rests on stronger dollar inflows, oil-related tax receipts, third-party flows and a record $947m of formal remittances through IMTOs in July, rather than fresh borrowing. The naira has firmed in step, holding near ₦1,321/$ in the NFEM window after touching a two-year high around ₦1,315 intraday, having appreciated roughly 1.5% through August on turnover of $14.68bn, a five-month peak. A deeper reserve buffer widens the CBN's room to defend the currency and hold its tight-policy stance into next week's rate decision, while steadier FX eases imported-inflation risk. For portfolio investors it strengthens the case for naira assets, though the gains still lean on elevated oil taxes and remittance flows that can prove cyclical.
Strong Jobs Lift Yields, Pressure Stocks
U.S. equities ended the holiday-shortened week lower on Friday after a far stronger-than-expected August payrolls report reset the Fed outlook. The economy added 162,000 jobs against forecasts near 56,000, with prior months revised higher, lifting the 10-year Treasury yield to 4.79% and pushing futures-implied odds of a 25bp rate hike at next week's FOMC to about 60%. The S&P 500 fell 0.38% to 7,718.60 and the Nasdaq Composite lost 0.29% to 26,506.99, led lower by rate-sensitive growth names. Markets were shut Monday for Labor Day.
NGX Gains as ARADEL Offsets Bank Losses
The NGX All-Share Index rose 0.29% on Monday to 247,699.78, adding 707 points and lifting market capitalisation ₦1.04trn to ₦160.60trn, even as breadth stayed firmly negative with 46 decliners against just 12 advancers. The gain was carried by index heavyweights rather than the broad tape: ARADEL rose 5.38% and led value traded, while ZICHIS topped the gainers at +9.97%. Weakness centred on banking, where the NGX Banking Index fell 0.72%, and on names such as CAVERTON, which shed its 10% limit. The NGX 30 added 0.37% to 9,111.19. Turnover was ₦27.23bn across 52,199 deals, with sentiment supported by Nigeria's imminent reclassification to frontier-market status.
