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 9th of June 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 low is the external reserve?

Data from the website of the Central Bank of Nigeria reveals that as of 8th June 2017, Nigeria’s external reserve increased by $493,933 to $30,283,709,848 from $ 30,283,215,915 recorded on 2nd June 2017.

How did the Naira fare?

During the week under review, the Naira depreciated further against the dollar at the parallel market as it was sold at 366 Naira/$ on Friday 9th June 2017, from 376Naira/$ recorded on Friday 2nd June 2017. The appreciation of the Naira is largely due to a combination of weak demand and increased dollar supply.

“Most of the huge demand for dollars and spike in the rate were fuelled by speculation and hoarding. The sustained dollar injection by CBN has eliminated these types of demand, hence low level of demand and appreciation of the Naira,” President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe told Vanguard News.

During the week under review, the CBN injected $190 million dollars into the interbank market. This sum of $100 million was offered for wholesale interventions, $50 million for SMEs for forex window, and $40 million for Business/Personal Travel Allowances, tuition and medical fees, among others.

What happened to the Central Bank this week?

One of the leading global rating agencies, Fitch Ratings recently stated that since the Central Bank of Nigeria (CBN) introduced a foreign exchange (FX) window at the end of April, the  ability of Nigerian banks to access foreign currency (FC) has improved considerably.

They further stated that the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) mechanism, commonly referred to as the “Investors’ and Exporters’ FX Window”, appears to be boosting FC supply and the flow of FC liquidity into the banking system, the agency added. The agency also said that improved access to FC means that liquidity pressures have, for now, eased for Fitch-rated banks.

The Nigerian Stock Market

Weekly Economic Index

According to the recent data released by the Nigerian Stock Exchange, as of 9th June 2017, the market closed trading on a positive note as the all share index increased 6.07 percent from the previous week ending 2nd June 2017. Market capitalization at the close of trading was 11.504 trillion, which is a 6.07 percent increase from N10.845 trillion recorded the previous week. The All Share Index for the week under review closed at 33,276.68.

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

Top five price Gainers

  1. May & Baker Nigeria Plc.
  2. Cadbury Nigeria Plc.
  3. Forte Oil Plc.
  4. Sterling Bank Plc.
  5. Seplat Petroleum Development Company Ltd

Top five price Decliners

  1. University Press Plc.
  2. Jaiz Bank Plc
  3. Thomas Wyatt Nig. Plc.
  4. Unilever Nigeria Plc.
  5. Eterna 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 their 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. 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
  52. Ashaka Cement
  53. Smart Products Nigeria Plc
  54. Lasaco Assurance Plc
  55. Eterna Plc

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