Headline inflation in Nigeria rose for the thirteenth consecutive month to a 30-month high of 13.71 percent in September compared with 13.22 percent in August, the latest data from the National Bureau of Statistics (NBS) shows. On a month-t0-month basis, the headline inflation index increased by 1.48 percent, 0.14 percentage points higher than August’s 1.34 percent. More details here.
Below is the Ventures Africa Weekly Economic Index for the week ending 16th of October 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 October 16, 2020, showed that the NSE All-Share Index and Market Capitalization both appreciated by 0.86 percent to close the week at 28,659.45 and ₦14.980 trillion respectively. All other indices finished higher with the exception of NSE Insurance while the NSE ASeM Index closed flat.
Top price gainers and decliners in the week under review:
Top five price gainers
International Breweries Plc.
Cadbury Nigeria Plc.
Guinness Nigeria Plc.
Lafarge Africa Plc.
Top five price decliners
E-Tranzact International Plc.
Portland Paints & Products Nigeria Plc.
Consolidated Hallmark Insurance Plc.
Royal Exchange Plc.
Note: The NSE will host an Oil and Gas sector webinar on Tuesday, October 20, 2020. Themed Perspectives of Operators and Industry Experts Post-COVID-19, the webinar will bring together key players across the entire oil and gas value chain to discuss the impact of the COVID-19 pandemic on the sector as well as its reactions to global trends, government policies, funding dynamics, key challenges, and potential shifts. Interested participants can register to attend here.
How did the Naira fare?
The Nigerian currency maintained its weekly rise against the dollar at the close of last week, trading at ₦380 per dollar, a slight appreciation from the ₦382 a dollar recorded a week before. The exchange rate in the parallel market – where forex is traded unofficially – closed at ₦460/$1, from ₦457 per dollar last week.
How did the price of oil fare?
The most recent oil price rally was cut short by concerns about a second wave of the coronavirus pandemic in Europe and a third wave in the United States. Many countries in Europe are reporting cases far higher than the peaks they saw during the first wave with France seeing over 30,000 infections on Thursday while America reported more than 60,000 cases for the first time in over two months.
International benchmarks West Texas Intermediate and Brent Crude closed the week at $40.84 and $42.98, from $41.14 and $43.33, respectively. OPEC+ has said it will guard against another oil price crash but tensions within the group are mounting. Production cuts compliance is still around 100 percent, however, that figure is expected to fall in the coming months.