When the global oil price crashed in 2014, Nigeria was one of the hardest-hit economies due to its over-dependence on oil as a revenue source. Nigeria’s economy was also affected by China’s economic slowdown, as well as the United States’ rate hike. In order to save the economy from a total collapse, the Central Bank of Nigeria (CBN) put stringent monetary policies in place, which saw investors pulling out of the country.
However, from all indications, the country’s economic situation is changing, as the CBN, which once showed that its decisions were not independent of the federal government, seems to have taken a new turn. The country is no longer in recession and it seems investor confidence in the country has improved.
Below is the Ventures Africa Weekly Economic Index, for the week ending 8th of December 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?
According to the OPEC weekly basket price, the price of crude oil decreased from $61.71 per barrel to $61.03 per barrel from 1st to 8th of December 2017.
On the tail end of a rather dull week in oil markets, crude prices recovered on Thursday and Friday following the Trump administration’s announcement that the US will move its embassy in Israel to Jerusalem.
How did the Nigerian stock market fair?
According to the recent data released by the Nigerian Stock Exchange (NSE), as of 8th of December 2017, the market closed trading on a positive note as the all share index increased by 3.46 percent from the previous week ending 1st of December 2017. Market capitalization at the close of trading was N13.672 trillion, which is a 3.46 percent increase from N13.215 trillion recorded the previous week. The All Share Index for the week under review closed at 39,257.53.
Top five price Gainers and Decliners in the week under review:
Top five price Gainers
- FBN Holdings Plc.
- Cadbury Nigeria Plc.
- Fidelity Bank Plc
- Neimeth International Pharmaceuticals Plc
- Union Bank Nig. Plc.
Top five price Decliners
- Total Nigeria Plc.
- International Breweries Plc.
- Chellarams Plc.
- Guinness Nig Plc
- Studio Press (Nig) Plc
How low is the external reserve?
Data from the website of the Central Bank of Nigeria reveals that as of 7th of December 2017, Nigeria’s external reserve increased by $ 1,047,917,534 to $ 35,863,941,984 from $ 34,816,024,450 recorded on 29th of November 2017. This is the highest recorded since the last three years.
How did the Naira fare?
During the week under review, the Naira appreciated against the dollar as it was sold at 363 Naira/$ on Friday 8th December 2017 from 364 Naira/$ recorded on Friday 1st December 2017.
The Central Bank of Nigeria (CBN) has opened the foreign exchange market with the injection of another $210,000,000 to sustain liquidity. The Acting Director, Corporate Communications Department, CBN, Isaac Okorafor disclosed this to the press in Abuja on Tuesday.
The sum of $100m was offered to the wholesale segment, $55 million was allocated to the Small and Medium Enterprises (SMEs) segment while $55 million was allocated to the invisible segment (i.e. tuition fees, medical payments and Basic Travel Allowance (BTA), among others).
The Acting Director noted that the releases to successful bidders which have since been concluded are part of the efforts aimed at further enhancing ease of doing business in Nigeria.
CBN warns Nigerians on abusing naira notes
On Friday, 8th of December 2017, the Central Bank of Nigeria (CBN) warned Nigerians against abusing the naira notes. The apex bank said anyone caught abusing the naira would be prosecuted and if convicted the person risks spending six months in jail or a fine of N50,000.
An official of the Currency Operation Department at the CBN headquarters, Samuel Shuaibu, disclosed this during the commencement of the ‘CBN Fair’ in Calabar.
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 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 Plc
- Access Bank
- 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
- Vetiva Griffin 30 ETF
- 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
- Stanbic IBTC Pension ETF 40
- Redstar Express Plc
- 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
- UnityKapital Assurance
- Guiness Nigeria
- PZ Cussons Nigeria Plc
- Nigerian Enamelware Plc
- Cutix Plc
