Big banks in blockbuster rally as investors cheer Emefiele exit

The stocks of Nigeria’s largest banks are up as much as 10 percent Tuesday morning in Lagos as investors cheer the end of unorthodox policies by suspended CBN Governor Godwin Emefiele.

United Bank for Africa, Zenith bank, Access, Guaranty Trust Bank, First Bank of Nigeria Holdings were all up by the daily maximum of 10 percent in less than 30 minutes of trading. All of them are trading at a one-year high.

Emefiele’s suspension by President Bola Tinubu last Friday is being interpreted as the end of the country’s damaging multiple fx rates that sowed confusion among foreign investors and deterred capital inflows.

Investors also expect that with Emefiele out of the picture, the banking sector will get a new lease of life with the possible end of arbitrary CRR debits that has long affected the sector’s profitability.

Details later

Lolade Akinmurele

Ololade Akinmurele a seasoned journalist and Deputy Editor at BusinessDay, holds a crucial position shaping the publication’s editorial direction. With extensive experience in business reporting and editing, he ensures high-quality journalism. A University of Lagos and King’s College alumnus, Akinmurele is a Bloomberg-award winner, backed by professional certifications from prominent firms like CitiBank, PriceWaterhouseCoopers, and the International Monetary Fund.

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