Nigeria may have to cut its interest rate to rein in the economic effects of the devastating coronavirus outbreak, central bank governor Godwin Emefiele has said. This is a similar approach monetary authorities are taking globally as they move to protect their economies from the pandemic.
The interest rate cut is expected to also revive Africa’s biggest economy, which has been forced to review its 2020 record budget in line with changes in the oil market and the impact of coronavirus on trade. Read more here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 13th of March, 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 March 13, 2020, showed that the NSE All-Share Index and Market Capitalization both depreciated by 13.49 percent to close the week
at 22,733.35 and N11.847 trillion respectively. All other indices also finished lower as well while NSE ASeM Index closed flat.
Top price gainers and decliners in the week under review:
Top price gainers
Consolidated Hallmark Insurance Plc.
Cornerstone Insurance Plc.
Top price decliners
Cadbury Nigeria Plc.
Zenith Bank Plc.
Access Bank Plc.
United Capital Plc.
Nigeria Brew. Plc
How did the Naira fare?
The Nigerian currency depreciated against the dollar at the close of last week, trading at 369 Naira per dollar, a rise from the 368 per dollar recorded a week before.
How did the price of oil fare?
Brent oil prices continued its downward trend at the close of last week, seeing out the week on the 13th of March, 2020 at $36.13 per barrel, a notable decrease from $48.41 a week earlier. Amid the coronavirus-triggered slump in oil demand coupled with the price feud between Russia and Saudi Arabia, Moscow on Wednesday said it is open to further cooperation with OPEC, offering hope of production cuts as oil prices fall to record lows.
Major producer Venezuela is also in discussions with OPEC and Russia about the current oil price collapse, President Nicolas Maduro said on Thursday. According to Maduro, Venezuela reached out to its “partners” to take steps toward opening up a new dialogue between OPEC and non-OPEC nations.