Photograph — Ventures Africa

Nigeria announced last week that it plans to fund some of its recently-signed 2018 budget by issuing a $2.8 billion Eurobond, the third of its kind in the past 12 months. Nigeria raised its biggest ever Eurobond issuance in November last year, as part of its plans to fund Nigeria’s 2017 budget. It successfully raised $3 billion in a 2-part international bond sale; one to mature after 15 years, and the other to mature after 30 years.

The latest Eurobond issuance means Nigeria’s external debts have increased from 23 percent to 60 percent, while simultaneously reducing domestic debts from 77 percent to 40 percent. Overall, the country now has 23 percent of its debt coming from foreign borrowing. It also means Nigeria’s foreign reserves could cross the $50 million mark before the end of the year, a target that was predicted at the beginning of 2018. Read more here.

Below is the Ventures Africa Weekly Economic Index, for the week ending 29th of June 2018. 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 29th June 2018, showed that the All-Share Index appreciated by 1.10 percent from the previous week ending 22nd June 2018. Market capitalization at the close of trading during the week under review was N13.866 trillion which was a 1.10 percent increase from N13.716 trillion recorded the previous week. The All-Share Index for the week under review closed at 38,278.55.

Top five price gainers and decliners in the week under review:

Top five price gainers

Unity Bank Plc.
Honeywell Flour Mill Plc.
Law Union and Rock Ins. Plc.
Total Nigeria Plc.
Stanbic IBTC Holdings Plc.

Top five price decliners

Japaul Oil and Maritime Services Plc.
Prestige Assurance Co. Plc
Equity Assurance Plc.
Linkage Assurance Plc.
Diamond Bank Plc.

How did the Naira fare?

The Naira rose in value slightly against the Dollar in the parallel market. In the week under review, It was sold at N361/$ on Friday 29th of June 2018, a slight rise from N360/$ recorded on the 22nd of June 2018. The value of the Naira to the Dollar has oscillated between 360 and 361 Naira for the most part of the year, suggesting that the exchange rate has been pegged at that value by Nigeria’s apex bank.

How did the prices of oil fare?

Brent Crude prices ended at $78.86 last week, while West Texas Intermediate (WTI) reached $74, its highest since November 2014. Brent crude prices rose slightly from $75 recorded the week before that. The reasons for this high price can be attributed to a number of factors which include an OPEC agreement with Russia to increase output which initially raised fears, a November deadline for American oil companies by Donald Trump to reduce imports from Iran, uncertainty over Libyan oil exports, and power outages in some of Canada’s oil facilities.


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