Photograph — Getty Images

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 19th 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 15th and 19th of May 2017, the price of crude oil increased considerably from $49.72 per barrel to $50.81 per barrel. The increase in price was due to the fact that 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 15th May 2017, Nigeria’s external reserve decreased further by $216 million to $ 30.695billion from $ 30.911billion recorded on 11th May 2017.

How did the Naira fare?

During the week under review, the Naira depreciated further against the dollar at the parallel market to 381 Naira/$ on Friday 12th May 2017, from 375 Naira/$ recorded on Friday 12th May 2017. This was largely due to the increase in dollar supply and less demand. The Central Bank of Nigeria (CBN) injected $457.3 million into various segments of the foreign exchange market. It also disclosed that the Investors and Exporters (I&E) foreign exchange window has so far attracted $600 million from autonomous sources and from the apex bank.

According to the Acting Director, Corporate Communications at the Central Bank of Nigeria, Isaac Okorafor, the breakdown is as follows: the $457.3 million offered indicates that both the spot and forwards segments received a total of $267.3 million while the wholesale segment got $100 million. Then, the SME and invisibles segments comprising of basic travel allowance, tuition fee and medical got $50 million and $40 million respectively.

What happened to Nigeria’s inflation rate?

The recent data released by the National Bureau of Statistics (NBS) showed that Nigeria’s inflation rate dropped in April. Consumer Price Index (CPI), which is the measure of inflation, dropped 0.02 percentage points from 17.26 percent recorded in March 2017 to 17.24 percent in April 2017.

The Food Index increased by 19.30 percent (month-on-month) in April. This rise was driven by an increase in the prices of bread, cereals, meat, fish, potatoes, yams and other tubers, coffee, tea and cocoa, milk cheese and eggs and oils and fats. The lowest increase in food prices year-on-year were recorded by Soft Drinks, Fruits, Coffee, Tea and Cocoa.

During the month, the highest year-on-year increases were seen in Bread and Cereals, Meat, fish, liquid and solid fuels, fuels and lubricants for personal transport equipment, clothing materials and other articles of clothing.

The Nigerian Stock Market

According to the recent data released by the Nigerian Stock Exchange, as of 19th May 2017, the market closed trading on a negative note as the all share index decreased 0.28 percent from the previous week ending 12th May 2017. Market capitalization at the close of trading was 9.719 trillion, which is a 0.27 percent decrease from N9. 746 trillion recorded the previous week. The All Share Index for the week under review closed at 28,113.38.

Top five price Gainers and Decliners in the week under review:

Top five price Gainers

  1. May & Baker Nigeria Plc.
  2. Linkage Assurance Plc
  3. United Bank For Africa Plc
  4. Oando Plc
  5. Neimeth International Pharmaceuticals Plc

Top five price Decliners

  1. Newrest ASL Nigeria Plc
  2. C & I Leasing Plc.
  3. Diamond Bank Plc
  4. Eterna Plc.
  5. Cement Co. of North. Nig. 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 who have announced the full year reports are:

  1. Vitafoam Plc
  2. Greif Nigeria Plc
  3. United Capital
  4. Nigerian Breweries
  5. Transcorp Hotels Plc
  6. Africa Prudential
  7. Zenith Bank
  8. Dangote Cement
  9. Nestle Nigeria
  10. Access Ban
  11. Guaranty Trust Bank
  12. Total Nigeria Plc
  13. Lafarge Africa Plc
  14. Custodian and Allied Plc
  15. MRS Oil Nigeria Plc
  16. United Bank for Africa Plc
  17. GlaxoSmithKline Consumer Nig. Plc
  18. Unilever Nigeria Plc
  19. FCMB Group Plc
  20. Dangote Sugar Refinery Plc
  21. Stanbic IBTC Holdings Plc
  22. Pharma-Deko Plc
  23. UACN Plc
  24. AIICO Insurance Plc
  25. Chemical and Allied Products Plc
  26. Trans-Nationwide Express Plc
  27. AXA Mansard Insurance Plc
  28. Mobil Oil Nigeria Plc
  29. Beta Glass Plc
  30. Infinity Trust Mortgage Bank Plc
  31. Okomu Oil Palm Company Plc
  32. NASCON Allied Industries Plc
  33. C. Gases Plc
  34. Learn Africa Plc
  35. NEM Insurance Plc
  36. Nigerian Aviation Handling Company Plc
  37. Med-View Airline
  38. Fidelity Bank
  39. Okomu oil
  40. Regency Alliance
  41. Presco Plc
  42. Consolidated Hallmark Insurance Plc
  43. Nestle Nigeria Plc
  44. Aluminium Extrusion Industries Plc
  45. Berger Paints Plc.,
  46. FBN Holdings Plc.
  47. NPF Microfinance Bank
  48. Newrest ASL Nig
  49. UAC of Nigeria Plc
  50. Chemical and Allied Products Plc
  51. Continental Reinsurance Plc

Comments

Elsewhere on Ventures

Triangle arrow