from OKORO CHINEDU in Lagos, Nigeria
Nigeria Bureau
LAGOS, (CAJ News) – NIGERIA’S equity market stabilised on Monday after a week of declines, with the benchmark index remaining close to its monthly high as investors weigh geopolitical risks and the outlook for crude prices.
Wilfred Obasi, Regional Director Africa at TenTrade, said the energy sector could remain in focus amid persistent uncertainty in the Middle East.
Although Nigeria is meeting its OPEC production quota, output remains below the level assumed in the 2026 budget. The recurring shortfall could put pressure on public finances and weigh on investor sentiment towards the economy and equities.
Downward revisions to 2026 oil demand forecasts by OPEC and the International Energy Agency could add to these concerns.
However, crude prices remain elevated amid limited diplomatic progress in the Middle East, security risks and shipping disruptions. Renewed tensions could push oil prices higher, potentially supporting energy stocks, while de-escalation could have the opposite effect.
Investors will therefore monitor geopolitical developments alongside forthcoming economic data, which could influence expectations for monetary policy and determine the direction of Nigerian markets.
– CAJ News