When the global oil price crashed in 2014, Nigeria was one of the hardest-hit economies due to its over-dependence on oil as a revenue source. Nigeria’s economy was also affected by China’s economic slowdown, as well as the United States’ rate hike. In order to save the economy from a total collapse, the Central Bank of Nigeria (CBN) put stringent monetary policies in place, which saw investors pulling out of the country.
However, from all indications, the country’s economic situation is changing, as the CBN, which once showed that its decisions were not independent of the federal government, seems to have taken a new turn. The country is no longer in recession and it seems investor confidence in the country has improved.
Below is the Ventures Africa Weekly Economic Index, for the week ending 5th of January 2018. This economic index gives you a glimpse into the recent activities in Nigeria’s economy as well as changes that could affect the economy:
Did the price of crude oil change?
According to the OPEC weekly basket price, the price of crude oil decreased from $61.94 per barrel to $61.48 per barrel from 1st to 15th of December 2017. Oil price was extremely volatile during the week under review.
On Thursday, the International Energy Agency reported that global oil supply has jumped to a one-year high as U.S. shale producers roar back to life, while data from the Energy Information Administration Wednesday showed a bigger-than-expected weekly drop in U.S. crude inventories, along with a climb in domestic production to its highest weekly level on record at the EIA.
Meanwhile, Natural-gas prices reached its lowest intraday levels since February as a weekly decline in U.S. supplies of the fuel was a lot smaller than the five-year average.
How did the Nigerian stock market fare?
According to the recent data released by the Nigerian Stock Exchange (NSE), as of 15th of December 2017, the all share index decreased by 32.09 percent from the previous week ending 8th of December 2017. Market capitalization at the close of trading was N13.678 trillion, which is a 3.04 percent increase from N13.672 trillion recorded the previous week. The All Share Index for the week under review closed at 38,436.08.
Top five price Gainers and Decliners in the week under review:
Top five price Gainers
- Berger Paints Plc
- Dangote Sugar Refinery Plc
- Nascon Allied Industries Plc
- Seplat Petroleum Development Company Ltd
- 11 Plc
Top five price Decliners
- Linkage Assurance Plc
- Learn Africa Plc
- Flour Mills Nig. Plc.
- Sterling Bank Plc.
- Nigerian Aviation Handling Company Plc
How low is the external reserve?
Data from the website of the Central Bank of Nigeria reveals that as of 14th of December 2017, Nigeria’s external reserve increased by $ 990,029,515 to $ 36,853,971,499 from $ 35,863,941,984 recorded on 7th of December 2017. From the available data, Nigeria’s foreign exchange reserve has been on the rise.
How did the Naira fare?
During the week under review, the Naira depreciated against the dollar as it was sold at 364 Naira/$ on Friday 15th December 2017 from 363 Naira/$ recorded on Friday 8th December 2017.
As at Tuesday, December 12, 2017, the interbank window of Nigeria’s Foreign Exchange market received another boost of $210,000,000.00 from the Central Bank of Nigeria (CBN). The interventions were for the Wholesale, Small and Medium Enterprises (SMEs) and invisibles segments of the market.
The Acting Director, Corporate Communications at the CBN, Mr Isaac Okorafor disclosed that the Bank offered the sum of $100million to the wholesale segment, while the SMEs and Invisibles segments each received the sum of $55 million. He reiterated that the releases were meant to boost liquidity, trade and ease of remittances for legitimate personal commitments.
Dividends announced so far
Tracking companies that have announced their dividends are very important for the country as it affects the share price of the company. This also enables people to know if they are eligible to collect the dividend, when it will be approved and when it will be paid. So far the companies who have announced their full-year reports are:
- Greif Nigeria Plc
- United Capital
- Nigerian Breweries
- Transcorp Hotels Plc
- Africa Prudential
- Zenith Bank
- Dangote Cement
- Nestle Nigeria Plc
- Access Bank
- Guaranty Trust Bank
- Total Nigeria Plc
- Lafarge Africa Plc
- Custodian and Allied Plc
- MRS Oil Nigeria Plc
- United Bank for Africa Plc
- GlaxoSmithKline Consumer Nig. Plc
- Unilever Nigeria Plc
- FCMB Group Plc
- Dangote Sugar Refinery Plc
- Stanbic IBTC Holdings Plc
- Pharma-Deko Plc
- UACN Plc
- AIICO Insurance Plc
- Chemical and Allied Products Plc
- Trans-Nationwide Express Plc
- AXA Mansard Insurance Plc
- Mobil Oil Nigeria Plc
- Beta Glass Plc
- Infinity Trust Mortgage Bank Plc
- Okomu Oil Palm Company Plc
- NASCON Allied Industries Plc
- Gases Plc
- Learn Africa Plc
- NEM Insurance Plc
- Nigerian Aviation Handling Company Plc
- Med-View Airline
- Fidelity Bank
- Okomu oil
- Regency Alliance
- Presco Plc
- Consolidated Hallmark Insurance Plc
- Nestle Nigeria Plc
- Aluminium Extrusion Industries Plc
- Berger Paints Plc.,
- FBN Holdings Plc.
- NPF Microfinance Bank
- Newrest ASL Nig
- UAC of Nigeria Plc
- Chemical and Allied Products Plc
- Continental Reinsurance Plc
- Ashaka Cement
- Smart Products Nigeria Plc
- Lasaco Assurance Plc
- Eterna Plc
- The Initiates Plc
- Vetiva Griffin 30 ETF
- Fidson Healthcare Plc
- eTransanct
- Conoil
- UPDC Real Estate Investment Trust
- Redstar Express
- University Press
- Honeywell Flour Mills
- Tripple Gee and Company
- Flour Mills Nigeria
- Stanbic IBTC ETF 30
- Stanbic IBTC Pension ETF 40
- Redstar Express Plc
- Vitafoam Plc
- Rak Unity Petroleum Plc
- Skye Shelter Fund
- Flour Mills of Nigeria Plc
- Custodian And Allied Insurance Plc
- Dangote Sugar Refinery Plc
- McNichols Consolidated Plc
- UnityKapital Assurance
- Guinness Nigeria
- PZ Cussons Nigeria Plc
- Nigerian Enamelware Plc
- Cutix Plc
- Sim Capital Alliance Value Fund
- UPDC Real Estate Investment Trust