Nigerian Stocks Fall in World’s Worst Drop as Bank Defends Naira

Nigerian stocks tumbled, with the benchmark index closing in a bear market, as the central bank intervened to defend the currency of Africa’s biggest oil producer and halt its slump to a record low against the dollar.

The Nigerian Stock Exchange All Share Index dropped 3.7 percent to 33,225.75 by the close in Lagos a 12th day of declines in the longest losing streak since January 2009. The gauge has tumbled 23 percent from this year’s high on July 9, the most among world equity measures tracked by Bloomberg. The naira surged, erasing a decline after Deputy Governor Sarah Alade said the central bank was selling dollars to the market.

Nigeria is facing lower export earnings after the average crude price among members of the Organization of Petroleum Exporting Countries dropped below $80 for the first time in four years.

The weak naira is threatening Central Bank of Nigeria Governor Godwin Emefiele’s pledge to avoid raising interest rates before presidential elections next year.