Naira kept its strength against the British pound in Nigeria’s FX market recently.
Meanwhile, sterling strengthened globally, gaining against the US dollar in international markets.
However, domestic pricing diverged from global forex trends during trading sessions.
Naira Keeps Firm Grip On Pound
Dealers anchored GBP/NGN pricing to US dollar liquidity conditions in Nigeria.
They actively ignored full real-time alignment with global spot market movements.
Consequently, naira strength pressured the pound in domestic FX trading.
Monetary Policy Tightens Liquidity Conditions
At the same time, policy and external buffers reinforced currency stability.
The Central Bank of Nigeria held the Monetary Policy Rate at 26.5%.
It also maintained the Cash Reserve Requirement at 45%, tightening liquidity conditions.
These actions reduced excess liquidity and strengthened demand for the naira.
In addition, reserves of about $49.3 billion supported intervention capacity.
Rising crude oil prices near $100 per barrel boosted FX inflows.
As a result, external buffers improved and market confidence strengthened further.
Inflation Pressures And Investment Flows
However, inflation and productivity gaps still shape investor behaviour.
High interest rates attract short-term carry trades into naira assets.
Meanwhile, long-term investors remain cautious despite attractive yields.
Legend Internet reported weaker financial results during the same period.
The company generated ₦505.36 million in revenue, but it fell 18.84%.
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Cost of sales declined, yet gross profit still dropped 21.48%.
Administrative expenses surged 174.38% to ₦457.62 million during the period.
These costs exceeded gross profit and pushed the firm into losses.
Consequently, the company recorded an operating loss of ₦134.63 million.
Previously, it earned an operating profit of ₦244.55 million.
Finance costs also rose sharply to ₦64.71 million due to borrowing.
Total borrowings increased to ₦564.88 million from ₦75.23 million.
After finance costs, the company posted a pre-tax loss of ₦199.34 million.
It then reported a net loss of ₦99.34 million for six months.
Despite this, the balance sheet remained relatively resilient overall.
Total assets rose 7.55% to ₦3.45 billion during the period.
Shareholders’ funds held steady at ₦2.55 billion as a buffer.
Moreover, cash and equivalents improved to ₦165.5 million from negative levels.
This strengthened short-term liquidity and operational flexibility significantly.
Meanwhile, the company expanded infrastructure investments steadily across its network.
It raised property, plant and equipment to ₦3.25 billion overall.
Fibre assets alone exceeded ₦2.44 billion in value.
Finally, market reaction remained muted after the earnings release.
The share price slipped slightly to ₦5.90 from ₦6.06.
However, it still traded 11.5% higher year-to-date overall.
Investors now watch cost control and earnings recovery closely ahead.
