Nigerian equities dropped into a correction as plunging oil prices dimmed the outlook for Africa’s biggest economy.
The Nigerian Stock Exchange All Share Index fell 3.3 percent on Wednesday to 25,186.34 by 1:11 p.m. in Lagos, the lowest level since September 2012 and the most among 93 global indexes tracked by Bloomberg after Egypt. The measure is down 12 percent since the previous peak on Dec. 31, more than the 10 percent drop that indicates a market correction.
Nigeria, Africa’s largest oil producer, is struggling to cope with crude oil prices that have fallen to below about $31 a barrel. Oil accounts for two-thirds of government revenue and about 90 percent of its foreign currency earnings. The slump is weighing on growth, which is forecast to slow to 3.2 percent last year, the slowest pace this century, according to a Bloomberg survey of economists.