“We are seeing some panic selling from international institutional holders and that’s putting a lot of pressure on domestic equities,” Kato Mukuru, the head of equity research at Exotix Partners LLP, said in the article.

However, the Central Bank of Nigeria was selling dollars to the market in an attempt to prop up the local currency. Razia Khan, head of Africa macroeconomic research at Standard Chartered Plc, argues that the central bank is committed to defending the naira currency and provide currency stability, citing a conversation with central bank governor Godwin Emefiele.

Global X Nigeria Index ETF

For more information on Nigeria, visit our Nigeria category.

Max Chen contributed to this article.