Nigerian stocks drop 1.2% for third week as T+1 rule spooks foreign investors
Last week, Nigerian equities fell 1.2%, marking the third straight week of broad losses after the June introduction of a T+1 settlement cycle. The Banking Index led the decline, slipping 10.5%, followed by the Insurance Index. FTSE Russell placed its recent upgrade of Nigeria from unclassified to frontier market on hold, citing concerns that a new rule requiring international investors to prefund their accounts before trading could deter foreign capital. The T+1 cycle, intended to speed up trade settlement, has instead raised concerns about liquidity for foreign investors who must now prefund accounts. Regulators’ slow response risks deepening apathy and triggering further capital outflows. Meanwhile, investors are showing increased interest in stocks that pay dividends at least twice a year, as the market awaits half‑year corporate results. Premium Times notes that this dividend‑focused positioning could offer a defensive tilt amid uncertainty. Investors should monitor regulator actions, consider dividend‑paying shares for stability, and consult a financial adviser before making any investment decisions.