Nigeria’s main stock index jumped to a five-week high on Wednesday, climbing 1.29 percent, as rising prices for crude oil, the mainstay of the Nigerian economy, led to gains for oil and banking shares. The stock market gained for the second straight day, rising above 26,000 points, a level last seen on Nov. 8.
The Organisation of Petroleum Exporting Countries and non-OPEC producers last week agreed to curtail crude output and prop up global prices, their first joint agreement since 2001. More than two years of low prices have stretched budgets and spurred unrest in some countries.
Nigeria’s government gets around two-third of its revenues from oil sales. The country is now facing a recession brought on by the effects of low crude prices since mid-2014.
On Wednesday, the president presented a record 7.29 trillion-naira ($23.94 billion) budget for 2017 to lawmakers, hoping that the recent rise in crude prices would support government spending next year, which also lifted equities.
The government struggled to fund its 2016 spending plan as oil prices stayed low. Shares of fuel retailer Forte Oil rose the maximum 10 percent the stock exchange allows. Gas producer Seplat rose 6.7 percent. Pan-African bank Ecobank rose 4.9 percent and Diamond Bank 3.5 percent.