As the debate on the Nigerian Senate’s non-passage of the 2018 budget rages on despite the fact that it had been submitted by President Buhari in November 2017, there are new fears that Nigeria could slide back into recession, barely a year after it just exited one. Nigeria’s economy grew by a mere 0.8 percent in 2017, which on first look represented an economic growth when comparing it to 2016 when the country slid into recession. However, that small growth, which also culminated in Nigeria’s exit from recession, is in danger of the “double dip,” where a failure to increase spending and slow demand for goods and services can lead to negative growth in Gross Domestic Product.
On the issue of budget implementation in Nigeria, it has taken more than half the year for the implementation of the annual budget to be passed into law in the past few years. This has made public spending in the right sectors of the economy almost non-existent, and also makes it difficult for the private sector to plan for the year. The economic outlook for Nigeria looks harsh.
Below is the Ventures Africa Weekly Economic Index, for the week ending 27th of April 2018. 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 27th of April 2018, showed that the All Share Index appreciated by 1.05 percent from the previous week ending 20th April 2018. Market capitalization at the close of trading during the week under review was N14.940 trillion which was a 1.340 percent increase from N14.743 trillion recorded the previous week. The All Share Index for the week under review closed at 41,244.89
Top five price Gainers and Decliners in the week under review:
Top five price gainers
Forte Oil Plc.
Nestle Nigeria Plc.
Learn Africa Plc.
Veritas Kapital Assurance Plc.
Consolidated Hallmark Insurance Plc.
Top five price decliners
Unity Bank Plc.
Glaxo SmithKline Consumer Nigeria Plc.
Jaiz Bank plc.
Mutual Benefits Assurance
Skye Bank Plc.
How did the Naira fare?
In the week under review, the Naira remained stable against the Dollar in the parallel market. It was sold at N360/$ on Friday 27th of April 2018, maintaining the same value it recorded on the 20th of April 2018.
How did the price of oil fare?
Global oil prices continue to rise, even as they went up from $73.32 per barrel during the week ending 20th of April to $74.62 on the week ending 27th of April 2018. However, oil prices are likely to be affected this week by the resumption of US shale oil drilling. This could also be offset later in the new month following a possible withdrawal by the Trump-led american administration from the nuclear deal signed with Iran in 2016. This could lead to sanctions being reimposed on the country, a major oil producer, driving up the demand for oil.