RFA Breakfast Paper - August 21, 2026

Naira Firms as FX Turnover Doubles

The naira extended its recovery on Friday, with the US dollar easing to ₦1,347.20 on the NAFEM window from ₦1,348.23 a session earlier, leaving the currency around 1.95% firmer over the past month and 12.3% stronger year-on-year. The move coincided with a marked improvement in market depth: weekly foreign-exchange turnover roughly doubled to about $4.5 billion, pointing to stronger participation from offshore investors and exporters and easing the dollar tightness that dogged the market through 2024. A steadier naira remains the central plank of disinflation, helping headline inflation slow to 15.43% in July, its lowest since March, even as food prices stay elevated. For investors, currency stability lowers imported-input costs, supports real fixed-income yields at the Central Bank's 26.5% policy rate and lifts the naira value of repatriated returns, though a firmer rate also trims the carry-trade appeal that has underpinned recent inflows.

U.S. Stocks Rebound Ahead of Jackson Hole

U.S. equities rebounded on Friday, recovering the prior session's losses as investors positioned for signals from the Federal Reserve's Jackson Hole symposium. The S&P 500 rose 0.43% to 7,674.37 and the Nasdaq Composite added 0.43% to 26,180.46, while the Dow gained 0.98%. Tesla jumped 5.14% and Moderna surged 8.86%, but rate-sensitive utilities including Sempra, Edison and AEP fell 4-5% as the 10-year Treasury yield climbed to 4.74%. Markets now await Wednesday's PCE inflation print for direction on the Fed's rate path.

NGX Extends Slide on Energy, Bank Losses

The Nigerian equity market stayed under pressure on Friday, with the All-Share Index slipping 0.29% to 239,351.16 as the August correction extended and market capitalisation eased to about ₦154.5 trillion. Breadth was negative, with 23 gainers against 34 losers: RT Briscoe led advancers, rising 9.63% to ₦11.95, while International Energy Insurance paced decliners at the 10% floor. Continued profit-taking in energy and banking heavyweights, led by Aradel Holdings and the tier-one lenders, dragged the Banking Index down 0.80% to 2,473.50, though the large-cap NGX 30 edged up 0.07% to 8,805.90. Year-to-date, the market remains firmly higher, up more than 54%.