A few weeks ago, Fitch Ratings highlighted the Nigerian government’s repeated reliance on its Ways and Means Facility (WMF) with the Central Bank of Nigeria (CBN) as a key indicator of weaknesses in public finance management. The WMF is a government overdraft – a monetary tool that extends credit from the Central Bank to the government when its account reaches zero.
According to the report, the CBN’s repeated financing of government budgets could raise risks to macro-stability in the context of weak institutional safeguards that preserve the credibility of policymaking and the ability of the apex bank to control inflation.
Below is the Ventures Africa Weekly Economic Index for the week ending 29th of January, 2021. 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 NSE All-Share Index and Market Capitalization both appreciated by 3.442 percent to close the week at 42,412.66 and N22.187 trillion respectively.
Similarly, all other indices finished higher with the exception of NSE Oil/Gas which depreciated by 7.25 percent while the NSE ASeM and NSE Growth Indices closed flat.
Top Five Price Gainers
Champion Brew. Plc.
Fidson Healthcare Plc.
May & Baker Nigeria Plc.
Portland Paints & Products Nigeria Plc.
Julius Berger Nig. Plc
Top Five Price Decliners
Veritas Kapital Assurance Plc.
Sovereign Trust Insurance Plc.
Academy Press Plc.
Niger Insurance Plc.
Universal Insurance Plc.
How did the Naira fare?
How did the price of oil fare?
Brent oil prices closed out the week on the 29th of January 2021 at $55.88 per barrel, a slight increase from the $55.41 per barrel recorded a week earlier.