Nigeria’s economy (GDP) saw its biggest contraction in at least a decade in the second quarter of the year, a report by the National Bureau of Statistics released last Monday shows, reflecting the COVID-19 pandemic’s economic fallout and crash in global oil prices.
Real gross domestic product for Q2 2020 fell 6.1 percent compared with a growth of 1.87 percent in Q1 2020 and 2.12 percent in Q2 2019, ending a three-year trend of positive real growth rates seen since the 2016 recession. Read more here.
Below is the Ventures Africa Weekly Economic Index for the week ending 28th of August 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 as of August 28, 2020, showed that the NSE All-Share Index and Market Capitalization both appreciated by 0.35 percent to close the week at 25,309.37 and ₦13.203 trillion respectively. Similarly, all other indices finished higher with the exception of NSE Premium, NSE Banking, NSE AFR Div
Yield and NSE MERI Value Indices while the NSE ASeM closed flat.
Top price gainers and decliners in the week under review:
Top five price gainers
University Press Plc.
FTN Cocoa Processors Plc.
Champion Breweries Plc.
NEM Insurance Plc.
PZ Cussons Nigeria Plc.
Top five price decliners
Beta Glass Plc.
Arbico Plc.
C&I Leasing Plc.
Consolidated Hallmark Insurance Plc.
Cutix Plc.
How did the Naira fare?
The Nigerian currency fell against the dollar at the close of last week, trading at ₦387 per dollar, a slight depreciation from the ₦386 a dollar recorded a week before. At the parallel market, the exchange rate remained stable, closing at ₦477/$1 – same as the preceding week. At the NAFEX window, it appreciated marginally to close at ₦385 on Friday.
Meanwhile, the central bank has said it will resume the sale of foreign currency (forex) to Bureau De Change operators from today (August 31) ahead of the reopening of the country’s airports to international flight operations from September 5. CBN stopped selling forex to dealers late March when the country was about to enter a four-week coronavirus lockdown. More details here.
How did the price of oil fare?
International benchmark Brent Crude is poised to record its fifth straight monthly gains after prices rallied higher on Monday morning at Asia’s trading session. Brent futures rose to trade at $46.44 a barrel by 10:20 WAT while the United States West Texas Intermediate crude was up at $43.43 a barrel.
