The central bank’s decision to raise interest rates to 15. 50 percent in response to the acceleration of inflation; and the predicted continuation of monetary tightening into 2023 have worsened the bleak prognosis for Nigerian stocks.
The sharp decline in the share price of Airtel Africa Plc, Nigeria, is blamed by analysts for the recent stock market meltdown.
Investors have switched from equities to bonds as they worry that inflation and rising interest rates would drive up the cost of debt and force businesses to pay more interest on bank loans.
According to information from World Government Bond, the yield on the 10-year government bond issued by Nigeria is 14. 353%. West Texas Intermediate (WTI) crude oil increased by 0. 13 percent to trade at $84.75, while Brent crude oil increased by 0. 27 percent to settle at $92.65 per barrel.