As quickly as the global oil price was rising, hitting its highest since 2013 last week, it likewise has begun to dip, as different market forces have acted to keep it from going much higher. Nigeria, an oil-exporting country and one of the countries majorly hit by the drastic drop in oil prices in 2014, would hope this is not a repeat of 2014. The country went into recession soon after that, with its foreign reserves used to majorly prop up the value of the Naira.
Things have been looking good for the country’s economy; global oil prices went up last year, Nigeria exited recession, and its foreign reserves also hit a four year high last month. The Naira has also appreciated against the Dollar.
Below is the Ventures Africa Weekly Economic Index, for the week ending 2nd of February 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:
The performance of the Nigerian Stock Market
According to recent data released by the Nigerian Stock Exchange (NSE), as of 2nd February 2018, the all share index decreased by 1.98 percent from the previous week ending 26th January 2018. Market capitalization at the close of trading during the week under review was N16.019 trillion which is a 2.09 percent decrease from N15.692 trillion recorded the previous week. The All Share Index for the week under review closed at 44,639.99.
Top five price Gainers and Decliners in the week under review:
Top five price gainers
AIICO Insurance Plc.
Unity Bank Plc.
Wema Bank Plc.
C & I Leasing Plc.
NPF Microfinance Bank Plc.
Top five price decliners
LASACO Assurance Plc.
Associated Bus Company Plc.
Law Union and Rock INS Plc.
African Alliance Insurance Company Plc.
Royal Exchange Plc.
Nigeria’s foreign reserves
Nigerian foreign reserves reached a four year high of $40.33 billion last week. Data obtained from the Central Bank of Nigeria showed that reserves rose from $38.765 billion in December 2017, to $40.33 billion in January 2018. This implies that Nigeria’s foreign reserves have risen by more than $1.5 billion in just one month.
Global oil price
Brent oil, which has gotten back on track after hitting three-year highs in the past weeks has fallen to its lowest price this year. The positive increase in oil prices has buoyed US shale oil production and this, coupled with the cuts made to oil supply by OPEC countries, has had an effect on oil prices. With the global stock market performance beginning its own decline across the board, a further drop in oil prices is being predicted.
However, under the week in review, between the 26th of January and 2nd February 2018, Brent crude started the week at around $70 and ended at around $68.50 per barrel.
How the Naira fared
During the week under review, the Naira continued to appreciate against the dollar in the parallel market. It was sold at N360/$ on Friday ending 2nd of February 2018 from an average of N364/$ recorded on the 26th of January 2018.