• Saturday, April 20, 2024
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Big banks in blockbuster rally as investors cheer Emefiele exit

Stock market moves further south by 0.43%

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.

Read also: The rise and fall of CBN governor Emefiele

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