OMO Policy Revision Deepens Market Pressure as August Losses Hit N2.5tn
Kayode Tokede The Nigerian equities market depreciated by N2.5 trillion in August 2026, influenced by the revised Open Market Operations (OMO) framework by the Central Bank of Nigeria (CBN). The
In August 2026, Nigeria's equities market experienced a significant decline of N2.5 trillion, driven by revisions to the Open Market Operations (OMO) policy introduced by the Central Bank of Nigeria (CBN). The CBN's revised framework allows individuals, corporations, and non-bank financial institutions to participate in the market, which could potentially divert funds away from the stock market towards fixed-income options.
The Nigerian Exchange Limited (NGX) recorded a market capitalization of N155.8266 trillion, marking a 1.6 percent decrease from the previous month's N158.326 trillion. However, the market showed signs of recovery between August 27 and 28, with a gain of N1.67 trillion. The NGX All-Share Index (ASI) experienced a decline of 1.6 percent, closing at 241,298.47 basis points on August 28.
This decline can be attributed to the cautious sentiment among investors, who are profiting from the market and reallocating their portfolios to higher-yielding fixed-income assets such as commercial papers, bonds, and money market funds. Despite this, analysts remain optimistic about the medium-term outlook for the Nigerian equities market, citing strong earnings and attractive valuations.
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