Nigeria’s Federal Executive Council (FEC) last week approved an increase in the Value Added Tax (VAT) rate from five percent to 7.2 percent. The disclosure was made by the Minister of Finance, Budget and National Planning, Zainab Ahmed, at the end of a cabinet meeting.
However, this move is still subject to an amendment of the VAT Act of 1994 by the National Assembly. If approved by the lawmakers, the new rate will reportedly take effect from 2020. More details here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 13th of September, 2019. This economic index gives you a glimpse into recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of September 13, 2019, showed that the NSE All-Share Index appreciated by 2.33 percent to close at 27,779 while Market Capitalization moved up 2.39 percent, seeing out the week at N13.523 trillion. All other indices finished higher with the exception of NSE Insurance and NSE Industrial Goods Indices which depreciated by 2.13 percent and 0.41 percent, respectively while the NSE ASeM index closed flat.
Top five price gainers and decliners in the week under review:
Top five price gainers
UACN Property Development Company Plc.
FBN Holdings Plc.
Seplat Petroleum Development Company Plc.
Forte Oil Plc.
Ecobank Transnational Incorporated.
Top five price decliners
Thomas Wyatt Nig. Plc.
Continental Reinsurance Plc.
Livestock Feeds Plc.
How did the Naira fare?
The Naira maintained its value against the dollar at the close of last week. The exchange rate stayed at 362 Naira per dollar on the 13th of September 2019, the same as a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 13th of September 2019 at $62.14 per barrel, a modest rise from the $61.57 recorded a week earlier. However, Saturday’s drone attacks on two Saudi Aramco facilities, which slashed output in the world’s top producer by half, have seen oil prices surge to record levels.
In the early minutes of business on Monday, Brent futures surged $12 – the most in dollar terms since they were launched in 1988 – representing a jump of nearly 20 percent. With oil currently trading at above $70 per barrel and even expected to rise further amid the Saudi crisis, Nigeria is poised to gain big from the surge.