Nigeria: Markets Diverge as NGX Hits Records Amidst Cash Crisis

Key financial indicators from Nigeria highlight a deepening disconnect between asset valuations and monetary transmission mechanisms, creating a complex backdrop for the naira (NGN).

Equities Surge to Historic Highs

The Nigerian Stock Exchange (NGX) has extended its record-breaking run, with recent monitoring data indicating market capitalization has breached the N100 trillion milestone. This surge reflects aggressive capital flight into equities as a hedge against inflation and currency devaluation.

CBN Battles Liquidity 'Black Hole'

Despite the equity boom, the Central Bank of Nigeria (CBN) is facing a critical failure in monetary policy transmission. Recent data reveals that 94% of cash is circulating outside the formal banking system.

Data Snapshot

• Currency Ticker: NGN
• Market Cap Milestone: N100 trillion
• Informal Cash Circulation: 94%
• Institution: CBN

Policy Response

The CBN is planning new ratios for ATM and card usage to force capital back into digitalization. Market sentiment remains fragile due to lack of public education on fiscal changes.