Nigerian equities market muted as investors await central bank decision

The NGX All-Share Index started the week on a relatively flat note, following a four-week correction driven by profit-taking. Sector performance was mixed, with seven sectors advancing and six declining.

Looking ahead, easing inflation and signals from the central bank that lending rates could fall are creating a constructive outlook for Nigerian equities. Lower borrowing and discount rates typically lift valuations, ease working-capital strain, and revive capital expenditures.

Interest rate-sensitive sectors, such as consumer goods, industrials, and real estate, are best placed to outperform as credit demand recovers. A confirmed policy pivot at the September 22–23 Monetary Policy Committee (MPC) meeting would support equities. While banks may see some pressure on their margins, this could be offset by improved loan growth and asset quality.