Nigerian stocks fall to two-week low after Q3 data shows recession

ABUJA: Nigerian stocks fell to a two-week low on Monday after third-quarter data showed the economy was in recession, while the currency weakened on the black market due to demand pressure in the wake of dollar shortages.

The all-share index fell 1.07pc to 33,773.72 points, according to Refinitiv Eikon data, led by the banking sector, down 5.79pc.

Nigeria slipped into a second recession in four years in the third quarter after its GDP contracted for the second consecutive quarter, data released on Saturday showed, with the impact of the COVID-19 pandemic and low oil prices to blame.

The naira meanwhile fell to as low as 484 per dollar on the black market, traders said. On the official market, it trades around 381 naira.

The currency has come under pressure on the black market as central bank policies restrict access to the official window for some imports, thereby funneling demand to the unofficial market, traders said.