The Nigerian banking industry witnessed a 14 percent rise in Non-Performing Loans in the first half of 2020, according to data from the National Bureau of Statistics, putting an end to a 2-year trend of continued decline in NPLs since Q3 2018.
The latest banking sector report from the NBS shows that non-performing loans in banks increased to ₦1.212 trillion at the end of June 2020, from ₦1.059 trillion recorded in December 2019. This indicates that NPLs across rose by ₦152.4 billion or 14.38 percent in six months. See report here.
Below is the Ventures Africa Weekly Economic Index for the week ending 11th of September 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
The Nigerian Stock Exchange All-Share Index at the end of last week rose 0.04 percent to close at 25,591.95. Similarly, all other indices were higher with the exception of NSE Alternative, Banking, Insurance, and Oil & Gas Indexes.
Top Weekly Gainers
Top Weekly Losers
Royal Exchange Plc.
News: The NSE last Tuesday held a webinar ahead of the launch of derivatives on the bourse, featuring Charlie Rubin, Derivatives Consultant at C-Rubin Futures, and former Senior manager of the New York Stock Exchange, and New York Futures Exchange.
How did the Naira fare?
The Nigerian currency maintained its weekly rise against the dollar at the close of last week, trading at ₦383 per dollar, an appreciation from the ₦385 a dollar recorded a week before. At the parallel market, the exchange rate closed at ₦440/$1, per data from AbokiFX.
How did the price of oil fare?
After steep losses earlier last week, on the back of returning bearish sentiment in oil markets due to what appears to be a weakening demand recovery, oil prices edged up a bit on Friday with international benchmark Brent climbing back above $40 per barrel to close at $40.16 per barrel while the United States West Texas Intermediate climbed to $37.60.
Sentiment remains more pessimistic than in previous weeks, however. Low prices are hitting members of the organization of petroleum exporting countries and allies (OPEC+), just as they begin to roll back the voluntary production cuts in response to the coronavirus pandemic.