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 declined drastically, with its currency falling to an all-time low. In order to save the economy from a complete collapse, the Central Bank of Nigeria (CBN) put stringent monetary policies in place, which saw investors pulling out of the country.
However, it looks like the country’s economic situation is 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 11th of August 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 7th and 11th of August 2017, the price of crude oil decreased from $50.06 per barrel to $49.37 per barrel. The fall in price was caused by OPEC’s extended oil production cuts.
This week, the International Energy Agency (IEA) reduced demand estimates for OPEC crude this year and for 2018, stating that there are doubts about the group’s commitment to cutting production. The IEA lowered projections for the amount of crude required from OPEC this year and next by about 400,000 barrels a day.
How low is the external reserve?
Data from the website of the Central Bank of Nigeria reveals that as of 8th August 2017, Nigeria’s external reserve increased by $256,301,757 to $31,222,178,576 from $ 30,965,876,757 recorded on 8th August 2017.
The Central Bank of Nigeria (CBN) also revealed that foreign reserves appreciated by $554.7 million or 1.8 percent in July, to bring the year till date growth to 19.3 per cent. The increase in Nigeria’s external reserve is as a result of the stabilization of the global oil prices and increase in the inflow from International Money Transfer Operations.
How did the Naira fare?
During the week under review, the Naira depreciated against the dollar at the parallel market as it was sold at 367 Naira/$ on Friday 11th August 2017 from 364 Naira/$ recorded on Friday 4th of August 2017.
The Nigerian Stock Market
According to the recent data released by the Nigerian Stock Exchange, as of 11th August 2017, the market closed trading on a positive note as the all share index increased 2.07 percent from the previous week ending 4th August 2017. Market capitalization at the close of trading was 13.166 trillion, which is a 2.07 percent increase from N12.899 trillion recorded the previous week. The All Share Index for the week under review closed at 38,198.60. This is the first time the Nigerian Stock exchange market capitalization is crossing the 13 trillion mark since October 2014.
Top five price Gainers and Decliners in the week under review:
Top five price Gainers
- Guinness Nig Plc
- Nigerian Aviation Handling Company Plc
- Dangote Flour Mills Plc
- Nestle Nigeria Plc.
- Jaiz Bank Plc
Top five price Decliners
- E.M Insurance Co (Nig) Plc.
- Morison Industries Plc.
- Dangote Sugar Refinery Plc
- Caverton Offshore Support Grp Plc
- Continental Reinsurance Plc
Dividends announced so far
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:
- 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
- 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
- Ashaka Cement
- Smart Products Nigeria Plc
- Lasaco Assurance Plc
- Eterna Plc
- The Initiates Plc
- The Initiates Plc
- Fidson Healthcare Plc
- eTransanct
- Conoil
- UPDC Real Estate Investment Trust
- Redstar Express
- University Press
- Honeywell Flour Mills
- Tripple Gee and Company
- Flour Mills Nigeria
- Stanbic IBTC ETF 30
- Vitafoam Plc
- Rak Unity Petroleum Plc
- Skye Shelter Fund
- Flour Mills of Nigeria Plc
- Custodian And Allied Insurance Plc
- Dangote Sugar Refinery Plc
- McNichols Consolidated Plc