Since the global oil price crash in 2014, Nigeria has been one of the hardest-hit economies due to its over-dependence on oil as its main source of revenue.
China’s economic slowdown, as well as the United States’ rate hike, also affected its economy adversely. As a result, Nigeria’s economic growth has declined dramatically, with its currency falling to an all-time low. As a result of the new monetary policies, investors are pulling out regularly as most of them are scared to leave their investments in the country.
The Central Bank of Nigeria (CBN) put in stringent policies to help save the Naira from falling but all efforts seem to have backfired.
However, it looks like that is all about to change as the CBN, which once showed that its decisions were not independent of the federal government, seems to be taking a different turn. But it is still uncertain if the CBN will be able to sustain some of its recent policies, which are geared towards saving the Naira from falling.
Below is the Ventures Africa Weekly Economic Index, for the week ending 9th of June 2017. This economic index gives you a glimpse into the recent activities in Nigeria’s economy as well as changes that could affect the economy:
How low is the external reserve?
Data from the website of the Central Bank of Nigeria reveals that as of 8th June 2017, Nigeria’s external reserve increased by $493,933 to $30,283,709,848 from $ 30,283,215,915 recorded on 2nd June 2017.
How did the Naira fare?
During the week under review, the Naira depreciated further against the dollar at the parallel market as it was sold at 366 Naira/$ on Friday 9th June 2017, from 376Naira/$ recorded on Friday 2nd June 2017. The appreciation of the Naira is largely due to a combination of weak demand and increased dollar supply.
“Most of the huge demand for dollars and spike in the rate were fuelled by speculation and hoarding. The sustained dollar injection by CBN has eliminated these types of demand, hence low level of demand and appreciation of the Naira,” President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe told Vanguard News.
During the week under review, the CBN injected $190 million dollars into the interbank market. This sum of $100 million was offered for wholesale interventions, $50 million for SMEs for forex window, and $40 million for Business/Personal Travel Allowances, tuition and medical fees, among others.
What happened to the Central Bank this week?
One of the leading global rating agencies, Fitch Ratings recently stated that since the Central Bank of Nigeria (CBN) introduced a foreign exchange (FX) window at the end of April, the ability of Nigerian banks to access foreign currency (FC) has improved considerably.
They further stated that the Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) mechanism, commonly referred to as the “Investors’ and Exporters’ FX Window”, appears to be boosting FC supply and the flow of FC liquidity into the banking system, the agency added. The agency also said that improved access to FC means that liquidity pressures have, for now, eased for Fitch-rated banks.
The Nigerian Stock Market
According to the recent data released by the Nigerian Stock Exchange, as of 9th June 2017, the market closed trading on a positive note as the all share index increased 6.07 percent from the previous week ending 2nd June 2017. Market capitalization at the close of trading was 11.504 trillion, which is a 6.07 percent increase from N10.845 trillion recorded the previous week. The All Share Index for the week under review closed at 33,276.68.
Top five price Gainers and Decliners in the week under review:
Top five price Gainers
- May & Baker Nigeria Plc.
- Cadbury Nigeria Plc.
- Forte Oil Plc.
- Sterling Bank Plc.
- Seplat Petroleum Development Company Ltd
Top five price Decliners
- University Press Plc.
- Jaiz Bank Plc
- Thomas Wyatt Nig. Plc.
- Unilever Nigeria Plc.
- Eterna Plc.
Dividends announced so far in 2017
Tracking companies that have announced their dividends are very important for the country as it affects the share price of the company. This also enables people to know if they are eligible to collect the dividend, when it will be approved and when it will be paid. So far the following companies who have announced their full year reports are:
- Vitafoam Plc
- Greif Nigeria Plc
- United Capital
- Nigerian Breweries
- Transcorp Hotels Plc
- Africa Prudential
- Zenith Bank
- Dangote Cement
- Nestle Nigeria
- Access Ban
- Guaranty Trust Bank
- Total Nigeria Plc
- Lafarge Africa Plc
- Custodian and Allied Plc
- MRS Oil Nigeria Plc
- United Bank for Africa Plc
- GlaxoSmithKline Consumer Nig. Plc
- Unilever Nigeria Plc
- FCMB Group Plc
- Dangote Sugar Refinery Plc
- Stanbic IBTC Holdings Plc
- Pharma-Deko Plc
- UACN Plc
- AIICO Insurance Plc
- Chemical and Allied Products Plc
- Trans-Nationwide Express Plc
- AXA Mansard Insurance Plc
- Mobil Oil Nigeria Plc
- Beta Glass Plc
- Infinity Trust Mortgage Bank Plc
- Okomu Oil Palm Company Plc
- NASCON Allied Industries Plc
- Gases Plc
- Learn Africa Plc
- NEM Insurance Plc
- Nigerian Aviation Handling Company Plc
- Med-View Airline
- Fidelity Bank
- Okomu oil
- Regency Alliance
- Presco Plc
- Consolidated Hallmark Insurance Plc
- Nestle Nigeria Plc
- Aluminium Extrusion Industries Plc
- Berger Paints Plc.,
- FBN Holdings Plc.
- NPF Microfinance Bank
- Newrest ASL Nig
- UAC of Nigeria Plc
- Chemical and Allied Products Plc
- Continental Reinsurance Plc
- Ashaka Cement
- Smart Products Nigeria Plc
- Lasaco Assurance Plc
- Eterna Plc
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