Lagos, Nigeria | September 22, 2025
The Nigerian Exchange (NGX) opened the week on a bearish note as equities retreated, even as fresh macroeconomic data showed headline inflation easing to 20.12 percent in August 2025, down from 21.88 percent in July.
Market analysts noted that while the moderation in inflation was a welcome development, investor sentiment was tempered by tighter monetary and regulatory signals from the Central Bank of Nigeria (CBN).
The CBN, in a new directive, announced stricter exit rules for bank chief executives, barring immediate transitions into board chairmanship positions or other influential roles within their institutions for a cooling-off period. The measure, the apex bank explained, is designed to strengthen governance, reduce conflicts of interest, and enhance stability in the financial sector.
On the trading floor, selloffs in key blue-chip stocks dragged the NGX All-Share Index lower, erasing part of last week’s gains. The loss came despite the positive signal from the inflation slowdown, which economists say could ease cost-of-living pressures and gradually improve consumer spending power.
Investors are now closely watching the CBN’s policy trajectory ahead of its next Monetary Policy Committee (MPC) meeting, with expectations that further tightening may be deployed to consolidate gains in price stability.
Analysts at several investment firms stressed that while the new CEO exit rule is a bold step toward better corporate governance, the NGX may remain under pressure in the near term as market players adjust to the twin forces of monetary tightening and regulatory reforms.
