…oil firms tumble
The Nigerian equities market suffered a major setback midweek, shedding N288.9 billion as investor sentiment soured amid deepening political tensions in Rivers State. The All-Share Index (ASI) tumbled 0.44 per cent to 104,915.13 points, trimming the year-to-date return to 1.93 per cent.
Market capitalisation also declined 0.44 per cent to N65.79 trillion, reinforcing a growing risk-off sentiment among investors.
Stockbrokers said that the increasing political tension in Rivers State was a key driver of investor uncertainty following serial attacks on oil infrastructure in the state.
The removal of Governor Siminalayi Fubara has triggered violent protests and attacks on critical oil infrastructure, exacerbating concerns about Nigeria’s economic stability.
The bearish momentum persisted as weak market breadth revealed 13 gainers against 37 decliners, with LIVESTOCK, ETRANZACT, WAPIC, MRS, and MAYBAKER leading the laggards. Despite the downturn, trading activity surged, with the total transaction volume skyrocketing 290.46 per cent, and transaction value rising 50.52 per cent to N12.37 billion across 12,012 deals.
According to David Adonri, a leading market analyst, the turmoil in Rivers has significantly impacted banking and oil stocks, with Aradel Holdings, MRS, and Oando sinking deep into negative territory on Wednesday.
“The deteriorating situation in the Niger Delta appears to be weighing heavily on market sentiment,” Adonri observed. “Major oil stocks are in freefall, mirroring the broader bearish trend.”
Beyond equities, the crisis presents a direct threat to Nigeria’s foreign exchange earnings, given the country’s reliance on crude oil exports.
Attacks on key oil pipelines since Tuesday— including the Trans-Niger Pipeline operated by Shell Petroleum Development Company (SPDC)—could slash oil export volumes, tightening dollar liquidity and accelerating inflation.
“If the damage continues unchecked, we could see a sharp depreciation of the Naira, mounting fiscal pressure on the government, and a prolonged economic downturn,” Adonri warned. The capital market’s three-day losing streak has now erased N563 billion in value this week alone.
Meanwhile, the naira depreciated further by 0.16 per cent at the official window, closing at ₦1,530.52 per dollar, while in the parallel market, it weakened to ₦1,570 per dollar.
With political turmoil intensifying and economic uncertainty mounting, analysts warn that Nigeria’s investment climate is deteriorating rapidly.
The question now remains if the Federal Government will take decisive action to stem the crisis before it spirals into a fullblown economic catastrophe.
