Following the suspension of the Central Bank Governor, Godwin Emefiele, the Nigerian stock market experienced a surge, reaching its highest level since July 2008.

Investors are speculating on a potential currency devaluation, which contributed to the rise in the main index of the Nigerian Exchange above 57,437 points.

This significant increase contrasts with the relatively flat performance of MSCI’s main emerging equity benchmark.

The year-to-date gains of Nigerian stocks stand at 11.8%, nearly double the six percent return on the MSCI index.

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The rally reflects optimism regarding the policy signals from President Bola Tinubu, who recently assumed office.

The scrapping of fuel subsidies and the suspension of the central bank governor have also had an impact on the market, with the NGX Banking Index experiencing its largest gain in over eight years.

Increased liquidity in the foreign currency market is anticipated due to exchange rate convergence, which is expected to boost trading activities for banks.

Pressure is mounting on the Nigerian currency, as traders anticipate further depreciation, with the naira falling to 474 per dollar.