The Central Bank of Nigeria (CBN) last week placed a restriction on access to foreign currency for milk imports, covering all but six importers of the dairy and its derivatives.
Initial speculations had suggested that the CBN would impose a total ban on access to dollars for the imports. But some companies were exempted because they had keyed into a backward integration program meant to enhance their capacity and improve local milk production, the apex bank said last Tuesday. More details here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 14th 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 14, 2020, showed that the NSE All-Share Index and Market Capitalization both depreciated 1.11 percent to close the week at 27,755.87 and N14.456 trillion respectively. Similarly, all other indices finished lower with the exception of NSE AFR Div Yield and NSE Industrial Goods indices while NSE ASeM Index closed flat.
Top five price gainers and decliners in the week under review:
Top five price gainers
Livestock Feeds Plc.
United Capital Plc.
Trans-nationwide Express Plc.
Learn Africa Plc.
Prestige Assurance Plc.
Top five price decliners
Linkage Assurance Plc.
Skyway Aviation Handling Company Plc.
Guinness Nigeria Plc.
Vitafoam Nigeria Plc.
Nestle Nigeria Plc.
Last week, Access Bank Plc in a corporate disclosure on the NSE said it has applied for the admission of a N15 billion green bond – first listed on the local bourse and the FMDQ OTC Securities Exchange last year – on the Luxembourg Stock Exchange (LuxSE). The unsecured climate-credential bond has a 15.50 percent fixed rate over a five-year maturity period (2019-2024). Read more here.
How did the Naira fare?
The Nigerian currency maintained its value against the dollar at the close of last week, trading at 365 Naira per dollar, the same rate recorded a week before.
How did the price of oil fare?
Brent oil prices bounced back from its weekly decline, closing out the week on the 14th of February, 2020 at $57.37 per barrel, an increase from $54.45 a week earlier.
Although prices rallied on Friday, in their first weekly gain since the beginning of the year, economic realities in China will likely result in a sharp decline in energy consumption, analysts have said. That could shave another 7 percent off crude prices in the short term, according to Goldman Sachs, whose commodity strategist cut oil price target by $10 to $53 in Q1 through the end of the year amid weakening Chinese oil demand due to the coronavirus outbreak.
The International Energy Agency has also predicted weaker energy demand in the first quarter, but the market is looking to deeper or lengthened production cuts by the Organization of Petroleum Exporting Countries and its allies such as Russia.