Shortly after the recent unveiling of a five-year roadmap by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, the apex bank issued directives to improve real sector lending and financial inclusion.
In a circular dated July 3, 2019, the CBN mandated all Deposit Money Banks (DMBs) operating in Nigeria to maintain a minimum Loan to Deposit Ratio (LDR) of 60 percent by September 10, 2019. This means that DMBs, otherwise known as commercial banks are required to lend out up to 60 percent of their customer deposits with the ratio subject to quarterly review: Read more here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 5th of July, 2019. 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 (NSE), as of 5th July 2019, showed that the All-Share Index depreciated by 2.32 percent from the previous week ending 28th of June 2019. Market capitalization at the close of trading during the week under review was N12.902 trillion, while the All Share-Index closed at 29,270.95.
Top five price gainers and decliners in the week under review:
Top five price gainers
Academy Press Plc.
Consolidated Hallmark Insurance Plc.
Cement Co. Of North.Nig. Plc.
Lafarge Africa Plc.
Top five price decliners
Smart Products Nigeria Plc.
Mutual Benefits Assurance Plc.
Guaranty Trust Bank Plc.
Red Star Express Plc.
How did the Naira fare?
The Naira’s value depreciated against the dollar last week as it closed at 361 Naira to a dollar on the 5th of July 2019, slightly lower than N360 per dollar it had recorded a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 5th of July 2019 at $64.82 per barrel, down from around $68.96 recorded a week ago. Despite OPEC’s extension of production cuts through March 2020, simmering U.S-Iran tensions and geopolitical tension in the Middle East, oil prices recorded their largest weekly decline in five weeks. This was largely driven by fears of worsening economic conditions in major economies amid a weakening global economy.