Nigeria’s central bank governor, Godwin Emefiele, last week dismissed notions of a likely devaluation of the Naira this year, saying such adjustment to the local currency will not be happening anytime soon. But the apex bank chief acknowledged the recent fluctuations in global oil prices as well as in Nigeria’s foreign reserves, which analysts consider the basis for their prediction of an unavoidable currency devaluation. Find out more here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 31st of January, 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 January 31, 2020, showed that the NSE All-Share Index and Market Capitalization both depreciated by 2.65 percent to close the week at 28,843.53 and N14.857 trillion respectively. Similarly, all other indices finished lower with the exception of NSE Insurance and NSE Consumer Goods index while NSE ASeM Index closed flat.
Top five price gainers and decliners in the week under review:
Top five price gainers
Linkage Assurance Plc.
Neimeth International Pharmaceuticals Plc.
Vitafoam Nig Plc.
NPF Microfinance Bank Plc.
Cornerstone Insurance Plc.
Top five price decliners
Honeywell Flour Mill Plc.
Associated Bus Company Plc.
The Nigerian bourse meanwhile unveiled its new Growth Board last week, which became operational from Wednesday, January 29, 2020, to encourage listing of growth companies, particularly Micro, Small and Medium Enterprises (MSMEs) with high-growth potential. Follow this link to read more about the new board.
How did the Naira fare?
The Nigerian currency rose against the dollar at the close of last week, trading at 361 Naira per dollar, a slight increase in the N362 per dollar recorded a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 31st of January, 2020 at $56.94 per barrel, a decrease from $61.06 a week earlier. Following the deadly coronavirus outbreak in China that was last week declared a global health emergency, Brent crude prices fell on Monday to their lowest in more than a year, dragged down by worries about lower demand in China, the world’s largest oil importer. Brent crude prices dropped by as much as 2.1 percent to $55.42, the lowest since January 4, 2019. In response, OPEC and its allies could meet sooner than earlier scheduled to discuss deepening their production cuts. This could help stem the sharp decline in oil prices due to the demand scare from the coronavirus outbreak.