Data released by the Central Bank of Nigeria on Monday, October 1st, 2018 has shown that Nigeria’s foreign reserves fell by almost $2 billion in September alone. Towards the end of August, Nigeria’s foreign reserves stood at $45.838 billion but by September 27, it had fallen to $44.380 billion. This dip is a continuation of a trend that began in July when foreign reserves fell by $990.98m; from $47.11bn in July to $46.128bn on August 23, 2018. The decline has been blamed on many factors such as the “changing pattern of international trade, institutional changes in the economy and structural shift in production.”
However, analysts believe that the major cause of the continuous dip in foreign reserves is that foreign investors were taking their funds out of the country, based on the uncertainty caused by Nigeria’s upcoming general elections. These withdrawals have been in the form of shares and Bonds, as investors continue to hedge their bets over Nigeria’s immediate political future.
Below is the Ventures Africa Weekly Economic Index, for the week ending 28th of September 2018. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 28th September 2018, showed that the All-Share Index appreciated by 0.70 percent from the previous week ending 21st September 2018. Market capitalization at the close of trading during the week under review was N11.962 trillion a 0.70 percent increase from N11.880 trillion recorded the previous week. The All Share-Index for the week under review closed at N32,766.37.
Top five price gainers and decliners in the week under review:
Top five price gainers
Niger Insurance Plc.
Veritas Kapital Insurance Plc.
UACN Property Development Company Plc.
First Aluminium Nigeria Plc.
Stanbic IBTC Holdings Plc.
Top five price decliners
Union Bank Nigeria Plc.
Union Diagnostics & Clinical Services Plc.
Livestock Feeds Plc.
Unity Bank Plc.
How did the Naira fare?
The Naira’s value against the dollar depreciated last week as it declined from N362/Dollar on the 21st of September to N364/Dollar on the 28th of September.
How did the prices of oil fare?
Brent oil prices rose between 21st September and 28th September from $79.59 to $82.1. finishing at a 4-year record high. Analysts say oil prices will continue to increase this week, and could even hit $85 per barrel before the end of the week. This oil prices hike has been attributed to falling supplies from Venezuela and Iran, and the reluctance to increase oil production from OPEC.