Economic and Business News

For the Week ending, Friday, 5th January, 2018


Naira closes at 363/dollar after new year break

The naira closed at 363 per United States dollar at the parallel market on Tuesday, the same rate it closed before the New Year break on Friday.

The local currency, which has been hovering around 365/dollar for some months, rose to 364/dollar as the Christmas holiday approached.

The naira later rose to 364/dollar last week before closing at 363/dollar on Friday.

Foreign exchange traders and currency analyst had predicted that the naira would be stable during the Christmas and New Year holidays.

The Punch. Wednesday, 3rd January, 2018


SEC stops issuance of dividend paper warrants

The Securities and Exchange Commission on Tuesday directed all registrars to stop the issuance of dividend paper warrants.

A dividend paper warrant is a financial instrument in form of a cheque issued by a quoted company to its shareholders through which dividend is paid to them.

The Acting Director-General, SEC, Dr. Abdul Zubair, said this during a media briefing on the capital market initiatives of the commission.

He stated that the stoppage of the issuance of dividend paper warrants took effect from January 1 this year, adding that all paper warrants issued up till December 31, 2017 were still valid and should be honoured by banks.

The Punch. Wednesday, 3rd January, 2018


China to bankroll cost of 2 Nigerian satellites

The China EXIM Bank and the China Great Wall have agreed to bankroll the cost of $550 million for the production of two satellites (NigComSat) for Nigeria.

Minister of communication, Adebayo Shittu, made the disclosure while briefing the State House Correspondents after a closed door meeting with President Muhammadu Buhari, on Wednesday.

According to him, the initial plan was for Nigeria to pay 15 percent of $550 million ($82 million) as counterpart funding for the production of the satellites, but because it could not raise the amount, the contract was renegotiated with the China EXIM Bank and the China Great Wall, the manufacturers of the satellites and they have agreed to pay the entire $550 million to procure two new satellites.

The Sun. Wednesday, 3rd January, 2018


Manufacturers, others now have reliable access to forex - Report

Manufacturers and other forex users in the country now have reliable access to dollars, a report put together by analysts at FBNQuest Capital Limited has revealed.

According the report, which was released on Tuesday, the country's Purchasing Managers' Index for the manufacturing sector also rose strongly in December to 68.7 from 60.1.

The PMIs are forward-looking indicators of sentiment in all economies and have the proven capacity to move financial markets in developed economies.

The Punch. Wednesday, 3rd January, 2018


Nigeria's economic expansion persist rapidly in December - CBN

The Central Bank of Nigeria, CBN yesterday released its Purchasing Managers Index (PMI) survey for December which indicated continuous rapid expansion of economic activities during the month.

The report showed that the Manufacturing PMI and Non-Manufacturing PMI rose to the highest level in more than three years. While the Manufacturing PMI rose to 59.3 percent and the Non-Manufacturing PMI rose to 62.1 percent during the month.

The report also showed that 30 out of the 34 subsectors surveyed by the apex bank recorded expansion, up from 27 subsectors that recorded expansion in November.

Vanguard. Thursday, 4th January, 2018


CBN's Anchor Borrowers Program: 225,000 farmers to benefit from NIRSAL'S new field structure

As part of its focus on taking business-driven agriculture to the grassroots, the Nigeria Incentive-Based Risk Sharing System for Agriculture is deploying an innovative nation-wide field structure to support 225,000 farmers under the CBN Anchor Borrowers Scheme.

The structure, known as the Project Monitoring Reporting and Remediation Office, has units located in each state and the Federal Capital.

The PMROs are designed to support NIRSAL's core mandate of making agriculture more attractive for private sector investment by de-risking the agricultural value chain. Among other functions, they will provide rigorous monitoring and supervision of NIRSAL facilitated agriculture projects to improve successful outcomes

The Punch. Thursday, 4th January, 2018


Osun govt to supply 250,000 cocoa seedlings to farmers

The Osun State Government says it will provide 250,000 cocoa seedlings for sale to farmers in the 2018 planting season.

Special Adviser to the Governor on Agriculture and Food Security, Mr Remi Kolajo, said this yesterday in an interview with journalists in Osogbo.

He said: "The state government, in the past, had been making cocoa seedling available to farmers in the state at 40-per-cent subsidised rate.

"However, due to the financial challenges which the state is facing at the moment, the state government will not be subsidising cocoa seedlings for farmers this year.”

Vanguard. Friday, 5th January, 2018


Economic growth should reflect in consumers' welfare - Lagos Chamber of Commerce and Industry (LCCI)

he Lagos Chamber of Commerce and Industry has said that the country's exit from recession and its current economic growth must be felt by the ordinary consumer before it can be seen to be real.

The country exited its worst recession in 25 years in the third quarter of 2017.

Following the exit, President Muhammadu Buhari, the Minister of Finance, Mrs. Kemi Adeosun, and many economists have warned that it is too early to celebrate.

Buhari had said that until the exit from recession was felt by Nigerians, there was no point celebrating.

The Lagos Chamber of Commerce and Industry (LCCI) observed that the marginal growth of 0.55 per cent with which the country exited recession was too slow, largely aided by improved oil prices and production. The growth, they stressed, was fragile and the nation could slip back into recession.

The Punch. Friday, 5th January, 2018

Other Economic and Business Indicators

GDP 1.40%
(Q3, 2017)
Inflation Rate
(Year-on-Year change)
(November, 2017)
Unemployment Rate 18.8%
(Q3, 2017)
Underemployment Rate 21.2%
(Q3, 2017)
Monetary Policy Rate 14%
(November, 2017)
Inter-Bank Call Rate 22.63%
(August, 2017)
Prime Lending Rate 17.65%
(July, 2017)
Maximum Lending Rate 30.94%
(July, 2017)
External Reserve USD 39,074,969,396
(4 January, 2018)
Exchange Rate (CBN)
5 January, 2018
USD: 305.95
POUNDS: 414.56
EUROS: 368.70
Exchange Rate (Parallel Market)
5 January, 2018
USD: 363.00
POUNDS: 486.00
EUROS: 434.00
Liquidity Ratio 30%
Treasury Bill Rate (91 Days) 12.54%
(3, January 2018)
Demand Deposits at Banks
(NGN million)
(July, 2017)
Credit to Government (Net)
(NGN million)
(July, 2017)
Credit to Private Sector
(NGN million)
(July, 2017)
Currency in Circulation
(Million Naira)
(July, 2017)
Bank Reserves
(Million Naira)
(July, 2017)
External Debt: FGN + States
(USD million)
(as at March 31, 2017)
Local Debt: FGN only
(NGN million)
(as at September 30, 2017)
Nigeria's Merchandise Trade N5,697.5 billion (Quarter 2, 2017)
Crude Oil $65.86 (OPEC Daily Basket, 5 January, 2018)

Source: CBN, NBS and DMO
Compiled by: Research Department, NACCIMA
8 January, 2018