The Nigerian Naira has demonstrated strength against the British Pound Sterling, currently trading at N1,840/£1. This appreciation comes as the UK faces increased economic uncertainty, with the British pound hitting monthly lows amid political developments.
The naira has shown resilience in the first half of May, recovering from its April lows. The currency has largely remained within the N1,825/£1 to N1,950/£1 range, influenced by the Central Bank of Nigeria’s liquidity management strategies and global economic optics.
In the equities market, the All-Share Index rebounded on May 21, 2026, adding 111.7 points to close at 249,175.4 points. This recovery followed a significant decline in the previous session. Market activity saw a surge in volume, with 1.05 billion shares traded across 62,448 deals.
Sterling Financial Holdings emerged as the most actively traded stock, with 322.6 million shares exchanged. Berger Paints and Learn Africa were among the decliners, while International Energy Insurance and ABC Transport led the gainers.
Meanwhile, the Central Bank of Nigeria (CBN) conducted its Treasury Bills Primary Market Auction on May 20, 2026, allotting N829.32 billion. This amount exceeded the N650 billion offered, indicating sustained liquidity and investor appetite for government securities, particularly the one-year paper.
The 364-day bill saw strong demand, attracting subscriptions of N1.84 trillion against an offer of N500 billion, with an allotment of N683.29 billion. The 182-day bill was allotted N78.59 billion against a N50 billion offer, while the 91-day bill attracted N68.63 billion in subscriptions against a N100 billion offer, with N67.45 billion allotted.
Looking ahead, Nigeria's anticipated return to the FTSE Russell Frontier Index by September 2026 is expected to stimulate a fresh wave of foreign portfolio investments. Griffin Capital Group CEO, Babatunde Obaniyi, noted that recent reforms in the foreign exchange market and improving macroeconomic indicators are restoring investor confidence, potentially leading to further market rallies.
