Stock Market Surges by 4% after Tinubu Sacks CBN Governor Emefiele

The Nigerian stock market recorded a 4% gain yesterday, the first trading day after President Bola Tinubu suspended and arrested the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, over alleged corruption and mismanagement.

The benchmark All-Share Index (ASI) soared by 4% or 2,232.58 points to close at 58,163.55 points, while the market capitalisation increased by N1.22 trillion or 4% to settle at N31.670 trillion.

The NGX ASI year-to-date return was at 13.49%. Market turnover was up by about 216% while market activities measured by volume traded increased by 106.44% as investors poured into the market. The value of deals transacted rose 55% compared to the last trading day on Friday, June 9.

The sectoral performance was led by the NSE Banking Index which rose by 6.7%, followed by the NSE Insurance Index which gained 5.4%. The NSE Consumer Goods Index and the NSE Oil and Gas Index also soared by 4.3% and 3.9% respectively.

The market breadth was positive, as 62 stocks appreciated, among which the top 10 gained above 9% on the day.

Top three gainers were Access Holdings (10.00%), Guaranty Trust Holding Co (10.00%) and NASCON Allied Industries (10.00%) while the top three losers were Ellah Lakes (-10.00%), John Holt (-10.00%), and Caverton Offshore Support Group (-4.62%).

Analysts at Parthian Securities Limited noted that, “We expect mixed sentiments with a positive tilt at tomorrow’s trading session, as some investors might start to take profit while others take positions in stocks that might rally further.”

Emefiele was arrested on Saturday by officials of the Department of State Services (DSS) after he was suspended by President Bola Tinubu on Friday.

The president directed the deputy governor (Operations Directorate), Folashodun Adebisi Shonubi, to act as the CBN governor pending the conclusion of investigation and the reforms in the apex bank.

Emefiele was appointed as the CBN governor in 2014 by former President Goodluck Jonathan and his tenure was renewed in 2019 by former President Muhammadu Buhari.

He was accused of stealing and selling dozens of petrol-bearing trucks confiscated from suspected looters, auctioning them off to his proxies at ridiculous prices while he was in charge of the Port Harcourt office of the CBN.

He was also alleged to have violated the code of conduct for public officers by owning properties beyond his legitimate income.

Emefiele, who is 61 years old, is a native of Agbor, Delta State. He has a Bachelor’s Degree in Banking and Finance from the University of Nigeria Nsukka and a Master’s Degree in Finance from the same university.

He also has a Bachelor of Laws degree from the University of London and has attended executive education programmes at Stanford University, Harvard University and Wharton School of Business.

He started his career as a lecturer at the University of Nigeria Nsukka and University of Port Harcourt before joining Zenith Bank Plc as an executive director in charge of corporate banking, treasury, financial control and strategic planning.

He rose to become the chief executive officer and group managing director of Zenith Bank Plc before he was appointed as the CBN governor in 2014.

He has been involved in several high-profile cases of fraud, money laundering and corruption as the CBN governor and has faced criticism for his interventionist currency policy that propped up the Nigerian Naira by pumping billions of dollars into the foreign exchange market.

He also introduced a multiple exchange rate regime to try to mask pressure on the Naira and avoid a series of devaluations.

The investigation into Emefiele’s activities is expected to last for several days as the DSS gathers more evidence against him.

He has been ordered to hand over the affairs of his office to Shonubi, who will act as the interim CBN governor until further notice.

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