According to reports last week, Nigeria is the only Organisation of Petroleum Exporting Countries (OPEC) member that imports Petrol, and is also the largest importer of Premium Motor Spirit (PMS). This information was revealed by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru. This news is damning to Nigeria as it implies that the second biggest oil-producing country in Africa has no functioning refinery to process its own oil.
Below is the Ventures Africa Weekly Economic Index, for the week ending 2nd of March 2018. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes that could affect the economy:
How did the Nigerian Stock Market perform?
According to recent data released by the Nigerian Stock Exchange (NSE), as of 2nd of March 2018, the all share index increased by 0.72 percent from the previous week ending 23rd February 2018. Market capitalization at the close of trading during the week under review was N15.403 trillion which is a 0.82 percent increase from N15.277 trillion recorded the previous week. The All Share Index for the week under review closed at 42,876.23.
Top five price Gainers and Decliners in the week under review:
Top five price gainers
Japaul Oil & Maritime Services Plc.
Unity Bank Plc.
N.E.M. Insurance Co. (Nig) Plc.
Cement Co. of North Nig. Plc.
Consolidated Hallmark Insurance Plc.
Top five price decliners
Sovereign Trust Insurance Plc.
UNIC Diversified Holdings Plc.
Multiverse Mining and Exploration Plc.
FTN Cocoa Processors Plc.
African Alliance Insurance Company Plc.
How did the Naira fare?
During the week under review, the Naira appreciated slightly against the dollar in the parallel market. It was sold at N359.47088/$ on Friday ending 2nd of March 2018, increasing from an average of N360.55971/$ recorded on the 23rd of February 2018. The Exchange rate seems to be alternating between 359 and 360 Naira to a dollar in the last few weeks.
How did the price of oil fare?
Global oil prices went down last week as OPEC extended cuts to oil output to March 2018. It went down from $67.31 per barrel on the 23rd of February to $63.40 last week. Reduction in oil price has helped to reduce growth in U.S. shale output.
Nigerian GDP growth
According to the Nigerian Bureau of Statistics, the nation’s Gross Domestic Product (GDP) grew in Q4 2017 by 1.92 percent (year-on-year) in real terms, maintaining its positive growth since the emergence of the economy from recession in Q2 2017. This growth is compared to a contraction of –1.73 percent recorded in Q4 2016 and a growth of 1.40 percent recorded in Q 2017.
Quarter on quarter, real GDP growth was 4.29 percent. The year 2017 recorded a real annual growth rate of 0.83 percent higher by 2.42 percent, than –1.58% recorded in 2016.
This figure tallies with projections made at the beginning of 2017, that Nigeria’s annual growth rate would be 0.8 percent. The annual growth rate in 2018 is projected to be 1.9 percent but will be subdued by population growth.
Ministry of Environment to offer Green Bonds in 2018
Nigeria’s ministry of Environment last week announced that it would be issuing Green bonds worth N150 billion this year, to enable it meet its Nationally Determined Contributions (NDCs) to end climate change, as promised in the 2015 UN Climate Change conference.
After the success of its first bond issuance last year, where it issued N10.69 billion bonds, the Ministry has decided to fund some of its projects with the money.
“As at today, green bonds have issued N10.6 billion over three projects. The first project is the Energizing Education Project registered with the Federal Ministry of Power under the Rural Electrification Agency, the second project is the Rural Electrification Municipal Project also under the Federal Ministry of Power and the third project is the Afforestation Project which is registered under the Federal Ministry Of Environment,” Mr Ahmad Salihijo, a technical assistant to the Minister of Environment told news men last week.