Since the global oil price crash in 2014, Nigeria has been one of the hardest-hit economies due to its over-dependence 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 all efforts seem to have backfired.
However, it looks like that is all about to change as the CBN, which once showed that its decisions were not independent of the federal government, seems to be taking a different 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 12th of May 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:
Did the price of crude oil change?
The OPEC weekly basket price revealed that between 8th and 12th of May 2017, the price of crude oil increased considerably from $46.87 per barrel to $48.37 per barrel. The increase in price was due to the facts that U.S. oil inventories fell by more than forecast and it was also reported that the OPEC-led production cuts could be extended.
How low is the external reserve?
Data from the website of the Central Bank of Nigeria reveals that as of 11th May 2017, Nigeria’s external reserve decreased by $77.282 million to $ 30.911billion from $ 30.988billion recorded on 4th May 2017.
How did the Naira fare?
During the week under review, the Naira depreciated further against the dollar at the parallel market to 383 Naira/$ on Friday 12th May 2017, from 385 Naira/$ recorded on Friday 5th May 2017.
The CBN Acting Director, Corporate Communications, Isaac Okorafor, confirmed that the Central Bank of Nigeria (CBN) approved the sale of $100 million at the Wholesale Secondary Market Intervention Sales (SMIS) auction announced on Monday, May 8, 2017. During the week under review, CBN sold $14 million in the Investors and Exporters (I&E) foreign exchange window
What we know about the 2017 Budget passed by the National Assembly
The Nigerian National Assembly (NASS) on Thursday, 11th May 2017, passed the 2017 Appropriation Bill, five months after President Muhammadu Buhari presented the budget to the assembly. It would be recalled that President Buhari presented a budget of N7.30 trillion to the National Assembly on December 14th, 2016. The budget was raised from N7.30 billion to N7.44 trillion. For the first time in the history of Nigeria, the full details of the National Assembly’s budget are in the appropriation bill. the oil price benchmark proposed in the budget was raised from $42.50 to $44.50
The Nigerian Stock Market
According to the recent data released by the Nigerian Stock Exchange, as of 12th May 2017, the market closed trading on a positive note as the all share index increased 7.46 percent from the previous week ending 5th May 2017. Market capitalization at the close of trading was 9.746 trillion up from N9.069 trillion recorded the previous week. The All Share Index for the week under review closed at 28,192.46. This is the best post recorded by NSE since President Muhammadu Buhari’s election.
Top five price Gainers and Decliners in the week under review:
Top five price Gainers
- May & Baker Nigeria Plc
- Ecobank Transnational Incorporated
- Fidson Healthcare Plc
- P Z Cussons Nigeria Plc.
- Oando Plc
Top five price Decliners
- Jaiz Bank Plc
- Seplat Petroleum Development Company Ltd
- Newrest Asl Nigeria Plc
- Neimeth International Pharmaceuticals Plc
- O.C. Gases Plc
Dividends announced so far in 2017
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 following companies 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 Ban
- 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
- O.C. 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
