RFA Breakfast Paper - September 22, 2026
CBN Cuts MPR by 350bps to 23%
The Central Bank of Nigeria cut its Monetary Policy Rate by 350 basis points to 23.00% from 26.50%, its largest single move since 2006, and reset the asymmetric corridor to +50/-300 basis points around the MPR. Governor Olayemi Cardoso characterised the decision as an operational recalibration rather than a change in stance, citing the gap between the 26.50% policy rate and effective market rates of about 22%; the move aligns the benchmark with prevailing conditions to strengthen policy transmission. The easing follows a third consecutive moderation in headline inflation, to 15.39% in August, alongside 4.43% real GDP growth in the second quarter and a composite PMI of 52.7. A lower benchmark should gradually reduce funding costs and support credit, a constructive backdrop for rate-sensitive equities and the banks, though the bank's framing tempers hopes of an aggressive easing cycle.
Nasdaq Hits Record as Oil, Yields Ease
U.S. equities were mixed on Tuesday as the Nasdaq Composite set a fresh record close of 27,244.28, up 0.45% on continued AI enthusiasm, while the S&P 500 finished essentially flat at 7,764.64 and the Dow slipped 0.36%. Small caps led, the Russell 2000 rising 0.68%. Crude oil fell sharply — Brent settling 1.09% lower at $99.25 — as U.S.–Iran diplomacy at the UN General Assembly unwound the geopolitical risk premium and helped ease the 10-year Treasury yield to 4.96%. Investors stayed positioned for a lower Fed path into upcoming data.
Banks Power NGX to Fresh Record High
The Nigerian Exchange extended its record run on Tuesday, the All-Share Index adding 0.18% to an all-time high of 250,614.66 and lifting market capitalisation by about ₦297 billion to ₦162.68 trillion. Gains were led by strong demand for tier-1 and tier-2 banks, with the Banking Index jumping 2.50% to 2,725.39 as Fidelity, Zenith and Access dominated trading. The NGX 30 rose 0.18% to 9,224.43. Breadth was positive at 36 advancers to 26 decliners; Sovereign Trust Insurance led gainers at +9.95% while Multiverse fell 9.86%. The year-to-date return stands at 61.05%, aided by the CBN rate cut and anticipation of the Dangote refinery listing.
