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Fed raised rates by 25 basis points as inflation remained above target.
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U.S. 10-year Treasury yields crossed 5% for the first time since 2007.
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NGX market capitalisation climbed above ₦162 trillion as Nigerian stocks extended their rally.
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Dangote Refinery’s ₦2.15 trillion IPO opened, becoming Africa’s largest-ever share offering.
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Oil remained above $100 as disruptions to Middle East supply continued.
September 21, (THEWILL) – Last week brought major developments across Nigerian and global financial markets.
In Nigeria, the NGX continued its strong run while Dangote Refinery’s landmark IPO opened to investors. Demand for government securities also remained high.
Overseas, the Federal Reserve raised interest rates, U.S. Treasury yields crossed 5%, and oil stayed above $100 a barrel.
Here are 10 developments investors should have on their radar this Monday.
1. Fed Raises Rates To 3.75%-4%
The Federal Reserve raised its benchmark interest rate by 25 basis points last Wednesday, taking the target range to 3.75%-4%.
It was the first U.S. rate increase since 2023 as policymakers responded to inflation that remained above target.
The decision could keep pressure on global borrowing costs, particularly if oil prices remain elevated.
2. U.S. 10-Year Yield Crosses 5%
The benchmark 10-year Treasury yield crossed 5% last week, reaching its highest level since 2007.
Higher Treasury yields increase borrowing costs for governments, companies and households. They also make U.S. government bonds more competitive with stocks and other assets.
For emerging markets, higher U.S. yields can also increase pressure on currencies and foreign capital flows.
3. NGX Market Capitalisation Crosses ₦162 Trillion
Nigeria’s equities market gained 2.78% last week, taking the NGX All-Share Index to 249,804.56 points.
Market capitalisation rose to about ₦162.16 trillion, while the index’s year-to-date gain reached 60.53%.
The Oil & Gas Index gained 3.71% during the week and is now up more than 125% this year.
4. Dangote Refinery’s ₦2.15 Trillion IPO Opens
Dangote Refinery’s IPO opened last week, offering 4.1 billion shares at ₦525 each.
The offer is targeting approximately ₦2.15 trillion, making it Africa’s largest-ever share sale.
Dangote plans to use part of the proceeds to expand the refinery’s capacity from 650,000 barrels per day to 1.4 million barrels per day.
5. Investors Subscribe ₦3.03 Trillion For ₦1 Trillion OMO Offer
Demand for Nigerian government securities remained strong.
At the CBN’s latest OMO auction, investors submitted ₦3.03 trillion in subscriptions against ₦1 trillion offered.
The 3.03-times subscription came as average Treasury-bill yields remained close to 19%.
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6. Oil Holds Above $100 As Supply Disruptions Continue
Brent crude remained above $100 a barrel last week as disruptions to Middle East production and shipping continued.
Brent settled at about $104.87, while WTI closed near $100.30 on Friday.
Higher crude prices could support Nigeria’s oil revenues, but expensive energy also adds pressure to inflation in countries that import fuel.
7. Gold Recovers Despite Higher U.S. Yields
Gold recovered last week despite the Fed’s rate increase and higher Treasury yields.
The metal ended Friday at about $4,377.55 an ounce, moving back towards $4,400.
Geopolitical tensions and demand for protection against inflation continued to support prices.
8. Yen Falls After BOJ Raises Rates
The Bank of Japan raised its policy rate to 1.25%, its highest level in 31 years.
The yen nevertheless fell about 2% against the dollar during the week as investors assessed the pace of future rate increases.
Higher Japanese rates could affect global investment flows because investors have long used Japan’s low interest rates to fund investments in other markets.
9. U.S. Tech Stocks Recover After Sharp Sell-Off
Semiconductor Circuit Board Brain Design Artificial Intelligence
Technology stocks came under heavy selling pressure early last week.
The Philadelphia Semiconductor Index fell almost 6% on Monday before recovering later in the week as oil prices and Treasury yields eased.
The swings came as investors weighed high technology valuations against rising interest rates and the large amounts being spent on artificial intelligence infrastructure.
10. Naira Weakens Slightly Against The Dollar
The naira recorded a modest decline last week.
The official NFEM rate moved from ₦1,326.52/$ to ₦1,331.20/$, while the parallel-market rate moved from ₦1,385/$ to ₦1,390/$.
The naira remained relatively stable despite a stronger dollar and higher U.S. interest rates, while Nigeria continued to benefit from elevated oil prices.
Nigeria enters the new week with Dangote Refinery’s IPO competing for investor capital as the NGX continues to trade near record levels.
Global markets will be watching the effect of the Fed’s rate increase, the 5% Treasury yield and oil prices above $100.
For Nigerian investors, the IPO, equities, government securities and the naira will remain the main areas to watch.
Joy Onuorah is a business journalist and brand communications specialist covering financial markets, artificial intelligence, digital economy, and the ideas reshaping business across Africa and the global market. Beyond her reporting for TheWill, Joy uses brand strategy, storytelling, copywriting, and high-value SEO to help brands build lasting market authority.
