RFA Breakfast Paper - August 12, 2026
Nigeria's Capital Inflows Surge 256.9%
Nigeria's capital importation rose 256.9% year-on-year to $2.82bn in April 2026 from $0.79bn a year earlier, though inflows fell 26.7% month-on-month from $3.85bn in March, with declines across portfolio investment, foreign direct investment and other investments. The year-on-year surge reflects the carry appeal of double-digit naira yields with the MPR held at 26.5%, while the sequential drop signals that flows remain tactical rather than structural. Supporting conditions are intact: gross external reserves stood at $52.52bn, roughly 11 months of import cover, the composite PMI returned to expansion at 50.1 in June, and headline inflation eased to 15.91%. For investors, the mix argues for continued naira stability near current levels, but the FDI shortfall keeps Nigeria dependent on hot money that can reverse quickly if global rate differentials narrow.
U.S. Stocks Rise as July Inflation Cools
U.S. equities closed higher on Wednesday after July CPI landed in line with expectations. The S&P 500 rose 0.26% to 7,748.50 and the Nasdaq Composite added 0.54% to 26,588.49, while the Dow slipped 0.04% to 53,770.27. Headline CPI rose 0.1% month-on-month for a 3.4% annual rate, with core at 0.2% and 2.5%, easing fears of a Fed hike and supporting a September hold. The 10-year Treasury yield was little changed near 4.69%. AI infrastructure led the advance, with Super Micro Computer and CoreWeave both up 19% on results and Lumentum up 14%. The Dow lagged on elevated energy prices and Strait of Hormuz disruption risk.
NGX Extends Losses on Large-Cap Sell-Off
The Nigerian equity market extended losses on Wednesday, with the NGX All-Share Index down 1.12% or 2,756.48 points to 243,967.09 and market capitalisation shedding ₦1.76trn to ₦157.49trn. The NGX 30 fell 1.18% to 8,941.01 while the Banking Index eased 0.30% to 2,560.67. Losses were concentrated in heavyweights, led by BUA Foods (-10.00%), Unilever Nigeria (-9.97%), John Holt (-9.90%) and Zenith Bank (-1.34%). Gainers were led by International Energy Insurance (+10.00%), ETI (+9.93%) and CWG (+9.74%). Breadth was near even at 28 advancers to 27 decliners, indicating targeted profit-taking in index-movers rather than a broad-based retreat.
