Nigeria’s inflation rate, last placed at 12.82 percent in July, may soar to more than 14 percent by the end of December, the central bank (CBN) has warned. This comes as Africa’s largest economy faces a rising government deficit and broader economic challenges amid the coronavirus outbreak.
The projection is based on supply shocks that may likely occur due to a decline in economic activities globally, the apex bank said in its 143-page Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2020/2021. Read more here.
Below is the Ventures Africa Weekly Economic Index for the week ending 18th 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
Data released by the Nigerian Stock Exchange as of September 18, 2020, showed that the NSE All-Share Index depreciated by 0.08 percent while Market Capitalization appreciated by 0.10 percent to close the week at 25,572.57 and ₦13.365 trillion respectively.
All other indices finished lower with the exception of NSE Main Board, NSE Pension, NSE Insurance, NSE Meri Growth, NSE Consumer Goods, NSE Lotus II and NSE Industrial Goods Index while NSE ASeM Index closed flat.
Top price gainers and decliners in the week under review:
Top five price gainers
Wapic Insurance Plc.
Learn Africa Plc.
Unity Bank Plc.
Neimeth International Pharmaceuticals Plc.
Ikeja Hotel Plc.
Top five price decliners
Associated Bus Company Plc.
NEM Insurance Plc.
Tripple Gee and Company Plc.
University Press Plc.
Union Diagnostic & Clinical Services Plc.
How did the Naira fare?
The Nigerian currency slid against the dollar at the close of last week, trading at ₦385 per dollar, a depreciation from the ₦383 a dollar recorded a week before. At the parallel market, the exchange rate closed at ₦457/$1, per AbokiFX.
How did the price of oil fare?
Oil prices rallied last week due to a combination of factors, with international benchmarks Brent crude closing the week at $42.73 per barrel and U.S. West Texas Intermediate at $40.66 a barrel. The rebound came after reports showed a drawdown in oil storage, Hurricane Sally forced offshore platforms offline, and a meeting between OPEC+ where the Saudi oil minister warned speculators gambling in the market and pressured laggards to increase their compliance.
American investment banking giant, Goldman Sachs has said that it expects Brent rising to $49 per barrel before the end of the year. “We estimate that the oil market remains in deficit with speculative positioning now at too low levels,” Goldman said.