Since the global oil price crash in 2014, Nigeria has been one of the hardest-hit economies due to its overdependence on oil as its main source of revenue. China’s economic slowdown, as well as the United States’ rate hike, also affected its economy adversely. As a result, Nigeria’s economic growth has declined dramatically, with its currency falling to an all-time low. As a result of the new monetary policies, Investors are pulling out regularly as most of them are scared to leave their investments in the country. The Central Bank of Nigeria (CBN) put in stringent policies to help save the Naira from falling but it backfired.

However, it looks like that is all about to change as the CBN, which once showed that its decisions were not independent on the federal government, seems to be taking a new turn. But it is still uncertain if the CBN will be able to sustain some of its recent policies which are geared towards saving the Naira from falling.

Below is the Ventures Africa Weekly Economic Index, for the week ending 24th of March 2017. This economic index gives you a glimpse into the recent activities in Nigeria’s economy as well as changes that could affect the economy:

How did the Naira fare?


The Naira appreciated further against the dollar at the parallel market to 390 Naira/$ on Friday 24th March 2017, up from 443 Naira/$ on Monday 20th March 2017. The Central Bank of Nigeria (CBN) on Friday 24th March 2017 offered the sum of $100 million to meet the requests of wholesale customers, out of which $91 million was taken. This indicates greater apprehension among dealers who anticipate a further crash of the dollar in the FOREX market.

What happened in the Central Bank?


The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday, 20th and Tuesday, 21st of March 2017 met and decided to retain the Monetary Policy Rate (MPR) at 14 percent, the Cash Reserve Ratio (CRR) at 22.5 percent, the Liquidity Ratio at 30 percent and the Asymmetric corridor at +200 and -500 basis points around the MPR. The decision to hold on all policy parameters was not surprising to market watchers and indeed the market.

Did the price of crude oil change?

A worker inspect facilities on an upstre

According to OPEC weekly basket price between March 21 and March 24, 2017, the price of crude oil decreased considerably from $49.23 per barrel to $48.26 per barrel. This fall in the price of crude oil was due to increasing skepticism in the oil market regarding the odds of a six-month extension, JBC Energy said in a recent report. U.S. oil production is also recovering strongly, with output back up to 9.1 million barrels per day, roughly 600,000 bpd higher than last summer.

What happened in Nigeria’s Oil and Gas Sector?


According to the Centre for the Study of the Economies of Africa (CSEA), OPEC’s Monthly Oil Market Report (MOMR) indicates that Nigeria recorded the highest and only increase in crude oil production amongst the OPEC member countries in February 2017. Domestic crude oil production in Nigeria rose (Month-on-Month) by 3.7 percent to 1.61 million barrels per day, in February 2017. The relative stability in the Niger-Delta oil region, in addition to OPEC exemption from global production/supply cut, steered increased domestic production in Nigeria has been attributed as the reason for the change.

How low is the external reserve?


Data from the website of the Central Bank of Nigeria reveals that as of March 24th, 2017, Nigeria’s external reserve decreased by $11.75 million to $30.34 billion from $30.35 billion recorded on March 20th 2017.

Nigeria Stock Market

NSE CSR Award-Ventures-Africa

According to the recent data released by the Nigerian Stock Exchange, as of 24th March 2017, the market closed trading on a negative note as the all share index decreased 0.77percent from the previous week ending 17th March 2017. Market capitalization at the close of trading was 8.80 trillion naira.

Top five price Gainers and Decliners the week under review:

Top five price Gainers

  1. Lafarge Africa Plc
  2. Fidson Healthcare Plc
  3. Livestock Feeds Plc.
  4. Mobil Oil Nig Plc.
  5. Julius Berger Nig. Plc.

Top five price Decliners

  1. Guinness Nig Plc
  2. Seplat Petroleum Development Company Ltd
  3. Diamond Bank Plc
  4. UACN Property Development Co. Limited
  5. Africa Prudential Registrars Plc

Dividends announced so far in 2017


Tracking companies that have announced their dividends is 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. As of 24th of March 2017 the companies that have announced the full year reports are Vitafoam Plc, Greif Nigeria Plc, United Capital, Nigerian Breweries, Transcorp Hotels Plc, Africa Prudential, Zenith Bank, Dangote Cement, Nestle Nigeria, Access Bank, Total Nigeria Plc and Lafarge Africa Plc.


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