After much deliberation over the potential impact of the African Continental Free Trade Agreement (AfCFTA) on Nigeria’s economy, President Muhammadu Buhari finally signed the trade pact last week. The signing took place at the opening of the 12th Extra-Ordinary Session of the Assembly of African Union (AU) Heads of State and Government in Niamey, the Niger Republic.
Nigeria was one of three of the 55 AU member countries holding out on tendering a signature to the trade deal, along with Benin and Eritrea. Pressure from local unions such as the Manufacturers Association of Nigeria (MAN) and businesses had delayed the continent’s largest nation from signing the deal since it was launched a year ago.
Meanwhile, the Nigerian Stock Exchange (NSE) last week admitted Airtel Africa’s shares in a $4.4 billion floatation. The company issued 3,758,151,504 ordinary shares in a Cross Border Secondary Listing on Tuesday, July 9, 2019: Read more here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 12th of July, 2019. 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 12th July 2019 showed that the All-Share Index depreciated by 2.41 percent from the previous week ending 5th of July 2019, while the Market Capitalization appreciated by 7.91 percent to close at N13.922 trillion. The ASI closed at 28,566.79 during the week under review.
Top five price gainers and decliners in the week under review:
Top five price gainers
Sovereign Trust Insurance Plc.
Union Bank Nig. Plc.
Cadbury Nigeria Plc.
Flour Mills Nig. Plc.
Top five price decliners
Forte Oil Plc.
Glaxo Smithkline Consumer Nig. Plc.
Nigerian Aviation Handling Company Plc.
Pz Cussons Nigeria Plc.
How did the Naira fare?
The Naira’s value appreciated against the dollar last week as it closed at 360 Naira per dollar on the 12th of July 2019, slightly higher than N361 per dollar it had recorded a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 12th of July 2019 at $67.14 per barrel, up from around $64.82 recorded a week ago. Oil prices spiked mid last week after the United States Energy Information Administration (EIA) reported a significant decrease in crude oil inventories in the country, combined with the threat of oil production disruptions in the Gulf as a tropical cyclone has caused major oil companies to evacuate personnel to varying degrees.