Investors reacted favorably to Tinubu’s efforts to standardize foreign currency rates, causing the stock market to increase by 1.51 trillion naira.
Additionally, the naira appreciated against the dollar on the black market, closing at 765/$1, up 5 from the rate of 770/$1 the day before.
The market capitalization increased significantly over this period, rising by 5.23% from its beginning value of 28.845 trillion to its closing value of 30.350 trillion. The highest single-day rise since November 12, 2020 was achieved by the NGX All-Share Index, which increased by 5.23% to 55,738.35 basis points.
Industry experts and international lenders like the International Monetary Fund (IMF) supported President Tinubu’s focus in his address on gradually ending the petrol subsidy system.
The NGX Industrial Index rose by 7.41%, mainly due to positive sentiment surrounding Dangote Cement, Lafarge Africa, and Berger. The NGX Consumer Goods Index increased by 6.41%, with Nigerian Breweries, Dangote Sugar, and Nascon as key drivers. Finally, the NGX Oil and Gas Index saw a 4.04% rise, supported by the bullish trend observed in ETERNA, CONOIL, and Total.
Experts believe that this could be an opportune time for investors to consider quality investments with a medium to long-term horizon. They expect investor sentiment to be influenced by the pursuit of positive returns and developments in the interest rate space.
While some have praised President Tinubu’s economic policy orientation, labor organizations like the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) are concerned about the gradual elimination of the regime of gasoline subsidies.
Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), President Tinubu, and the Governor of the Central Bank of Nigeria (CBN) met to discuss the protests over the end of the subsidy regime. The results of the meetings and the timing of future sessions are still up in the air.
President Tinubu’s plan to phase out the fuel subsidy system has received the support of the Major Oil Marketers Association of Nigeria (MOMAN), the Depot and Petroleum Marketers Association of Nigeria (DAPPMAN), and the Independent Petroleum Marketers Association of Nigeria (IPMAN).
They emphasize that there is no need to panic purchase or stockpile gasoline and see this as a good change in the economic direction of the nation. These organizations guarantee a sufficient supply of fuel to Nigerians and promise to control distribution costs to lessen the effect on pump pricing. In order to maintain stability in the oil industry throughout the transitional phase, they also ask for ongoing communication with the government.