After ratifying a new law that creates relief for small businesses through tax exemptions, the Nigerian government is considering adding tax incentives for SMEs in prioritized sectors, the trade minister said last week.
According to Niyi Adebayo, Nigeria’s minister of industry, trade, and investment, micro, small and medium enterprises (MSMEs) in the agriculture, construction, and automotive industries will be getting tax and regulatory incentives which the ministry had started working on. More details here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 7th of February, 2020. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE) as of February 7, 2020, showed that the NSE All-Share Index and Market Capitalization depreciated by 2.69 percent and 1.61 percent to close the
week at 28,067.09 and N14.618 trillion respectively. Similarly, all other indices finished lower with the exception of NSE Insurance index while NSE ASeM closed flat.
Top five price gainers and decliners in the week under review:
Top five price gainers
Law Union and Rocks Ins. Plc
Union Bank Nig. Plc.
Honeywell Flour Mill Plc.
Livestock Feeds Plc.
Japaul Oil & Maritime Services Plc.
Top five price decliners
C & I Leasing Plc.
Royal Exchange Plc.
Cadbury Nigeria Plc.
Nascon Allied Industries Plc.
Last week, the NSE in collaboration with the Securities and Exchange Commission (SEC) held a training session for capital market operators on the legal and regulatory requirements of derivatives trading. The workshop was meant to guide market participants to properly interpret the approved rules on Exchange-traded derivatives and the recently released derivatives and clearing rules by the SEC. Read more here.
How did the Naira fare?
The Nigerian currency slid against the dollar at the close of last week, trading at 365 Naira per dollar, a notable decrease from the N361 per dollar recorded a week before.
How did the price of oil fare?
Brent oil prices continued its weekly decline, closing out the week on the 7th of February, 2020 at $54.45 per barrel, a decrease from $56.94 a week earlier. Oil has dropped more than 20 percent from a peak in January after the fast-spreading coronavirus hit demand in China, the world’s largest oil importer and also fuelled concerns of excess supplies. Earlier Monday morning, Brent crude slipped to $54.27 a barrel while the U.S. West Texas Intermediate fell 0.4 percent to $50.14 a barrel. Meanwhile, traders are waiting to see if Russia will join other producers in seeking further output cuts led by OPEC.