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Displaying items by tag: Nigeria's gross domestic product (GDP)

Market capitalization at the Nigerian Stock Exchange (NSE) dropped by N100.2 billion on Thursday as stocks of banks and industrial companies listed on the Exchange recorded losses.
 
The market capitalization which opened on Thursday after a two-day break at N11.676 trillion, closed at N11.576 trillion, a difference of N100.2 billion, while the All Share Index dropped by 0.9 per cent to 31,692.63 basis points, and the year-to-date loss worsened to -17.1 per cent.
 
Analysts are of the opinion that the negative market performance was dragged by losses recorded in FBN Holdings Plc, Dangote Cement Plc and Access Bank Plc.
 
Activity level at the exchange fell as volume and value declined by 36.7 per cent and 49.8 per cent to 452.260 million units and N2.608bn, respectively.
 
The top traded stocks by volume were Medview Airline Plc (146.9 million units), NEM Insurance Plc (45.9million units) and Transcorp Hotels Plc (37.5 million units), while Zenith Bank Plc (N646.2m), Guaranty Trust Bank Plc (N345.6m) and MEDVIEW AIRline (293.9m) were the top traded stocks by value.
 
The losses not withstanding, performance across sectors was largely positive as three of five indices closed higher.
 
The Oil & Gas index yielded the most, with a 1.3 per cent gain due to price appreciations recorded in Forte Oil Plc and Conoil Plc while the Banking index gained 0.2 per cent on the back of price appreciations in Diamond Bank Plc, First City Monument Bank Plc and GTB.
 
The Consumer Goods index increased by 0.04 per cent as a result of the gains recorded in Nigerian Breweries Plc and Nascon Allied Industries Plc.
 
However, sell pressures in Dangote Cement, NEM Insurance and Niger Insurance dragged the industrial and insurance indices lower by 2.11 per cent and 0.69 per cent, respectively.
 
Investor sentiment strengthened as market breadth declined to 1.9x against 7.2x in the previous session, which was as a result of the 30 gainers that emerged against 16 decliners at the end of trading on Thursday.
 
The top performers were NPF Microfinance Bank Plc, Mutual Benefits Assurance Plc and Conoil Plc, whose respective share prices gained 10 per cent, 10 per cent and 10 per cent.
 
The top losers were UACN Property Development Company Plc, NEM Insurance and Niger Insurance, which saw their share prices decline by10 per cent, 9.2 per cent and 8.3 per cent, respectively.
 
 
Source: The Ripples
Published in News Economy
Thursday, 27 December 2018 13:28

Nigerian govt eyes $30bn manufacturing exports

The Federal Government of Nigeria has said it is targeting increasing manufacturing exports by $30 billion by 2025 through the development of Special Economic Zones.
 
This was disclosed by the Ministry of Industry, Trade and Investment in a statement.
 
According to the ministry, special economic zones had been identified by the Economic Recovery and Growth Plan as a major strategic tool to accelerate the implementation of the Nigeria Industrial Revolution Plan.
 
The ministry further explained that in achieving this, government envisioned the Made-in-Nigeria for Exports project and the Nigeria Export Processing Zone Authority to develop economic zones to world-class standards.
 
According to the statement, this would assist in positioning Nigeria as the manufacturing hub in sub-Saharan Africa and a major exporter of made-in-Nigeria goods and services.
 
“The project seeks to aid structural transformation of the Nigerian economy by increasing the manufacturing sector’s contribution to Gross Domestic Product to 20 per cent by 2025; contribute to sustainable inclusive growth by creating 1.5 million new manufacturing jobs in the initial phase of the project; increase and diversify foreign exchange earnings by increasing manufacturing sector exports to at least $30bn annually by 2025″ the ministry said.
 
The ministry further said that the project would start with a phase one that would focus on the development and upgrade of SEZs in 12 states across Nigeria, after which the initiative would be extended to other states in subsequent phases.
 
The project would also involve partnering with the private sector to develop new world-class SEZs in Abia, Katsina and Lagos as pilot projects to demonstrate proof of concept and provide models for future SEZ development in Nigeria.
 
The statement said the Nigeria SEZ Investment Company Limited had already been set up as the special purpose vehicle to deliver the Made-in-Nigeria for Export project and harness the Federal Government spending on SEZs.
 
“The Federal Executive Council has approved NSEZCO as the holding entity for all the Federal Government’s investments and proprietary interests in existing and future SEZs.
 
“The FEC approval also provided that all current and future capital appropriations for Project MINE be transferred to NSEZCO’s account, as soon as opening formalities are completed,” it added.
 
According to the statement, aggregation and harnessing of the Federal Government’s investment in a strong corporate special purpose vehicle “is to ensure the facilitation and mobilisation of additional capital from development finance institutions and private investors.”
 
 
Source: Business Insider
Published in Business
The National Bureau of Statistics, NBS, has said that the nation’s Gross Domestic Product, GDP, grew to 1.81 percent (year-on-year) in real terms in the third quarter of 2018 compared to the 1.50 in the second quarter of the same year.
 
This, the NBS said in a report released on Monday, was aided by the non-oil sector of the economy.
 
According to the report, in nominal terms, aggregate GDP stood at N33.36 trillion while real GDP was estimated at N18.08 trillion.
 
Growth in Q3 was largely helped by the non-oil sector, which contributed 90.62 per cent to total GDP while the oil sector contributed 9.38 per cent to growth in the review period.
 
However, Oil GDP contracted by -2.91 per cent compared to -3.95 per cent in Q2 and 23.93 per cent in Q3 2017.
 
The report also showed that average daily oil production fell to 1.94 million barrels per day (mbpd), higher than that of the 1.84mbpd recorded in Q2 by 0.10 mbpd- but lower than the 2.02 mbpd recorded in the same quarter of 2017 by -0.08mbpd.
 
The report further showed that real growth of the oil sector was –2.91 per cent (year-on-year) in Q3, indicating a decrease of –25.94 percentage points relative to rate recorded in the corresponding quarter of 2017.
 
The non-oil sector however grew by 2.32 per cent in real terms in Q3, representing 0.28 percentage points higher than the 2.05 per cent in preceding quarter and by 3.08 percentage points higher compared to the -0.76 per cent recorded same quarter of 2017.
 
The NBS report said the non-oil sector was mainly driven by Information and communication sector while other drivers include agriculture, manufacturing, trade, transportation and storage and professional, scientific and technical services.
 
For the sectoral contribution of GDP growth in the period under review, The NBS report showed that information and communication sector contributed 10.55 per cent to real GDP while agriculture 29.25 per cent to real GDP.
 
Manufacturing contributed 8.84 per cent to growth while services accounted for 48.79 per cent as well as industries which contributed 21.97 percent to real growth.
 
Also, trade contributed 15.80 per cent to real GDP while finance and insurance 2.52 per cent to growth as well as construction which recorded 3.01 per cent to GDP.
 
 
Source: PmNews
Published in News Economy
Market capitalization on the Nigeria Stock Exchange shed N39.89bn on Wednesday as the gains recorded in the previous session were pared.
 
The market capitalisation, which stood at N11.255tn on Tuesday, dropped to N11.215tn on Wednesday, while the All Share Index declined by 0.35 per cent to settle at 30,704.98 basis points.
 
Major benchmarks closed in the red at the end of trading on the floor of the Exchange on Wednesday.
 
The NSE Oil/Gas Index slid by 2.99 per cent, emerging the biggest loser as sinking oil prices hit energy companies.
 
Sell pressures were witnessed in Seplat Petroleum Development Company Plc and Total Nigeria Plc.
 
The NSE Industrial Index was the second biggest loser, with a 1.14 per cent loss due to sell-offs in Dangote Cement Plc.
 
Similarly, the NSE Banking Index depreciated by 0.21 per cent on the back of major losses witnessed in Guaranty Trust Bank Plc and Zenith Bank Plc.
 
The NSE Consumer Goods Index was however the highest gainer, with a 1.18 per cent gain as major stocks such as Nestlé Nigeria Plc and Nigerian Breweries Plc recorded price appreciation.
 
The NSE Insurance Index trailed, gaining a meagre 0.23 per cent on the back of gains recorded in Lasaco Assurance Plc and Wapic Insurance Plc.
 
The volume and value traded weakened by 36.4 per cent and 19.5 per cent to 200.997 million units and N4.098bn, respectively.
 
Top traded stocks by volume were Zenith Bank (51.895 million units), Lafarge Africa Plc (38.652 million units) and FBN Holdings Plc (15.852 million units), while Zenith Bank (N1.2bn), Dangote Cement (N502.7m) and Lafarge Africa (N457.3m) were the top traded stocks by value.
 
Investor sentiment took a further dip to 1.3x from 1.8x recorded on Tuesday as the year-to-date loss dipped to -19.7 per cent.
 
There were twenty-three gainers and 18 lossers at the end of trading on Wednesday.
 
Forte Oil, which was the second highest gainer on Tuesday, advanced to top the list as the highest gainer on Wednesday, with a 9.85 per cent increase to N26.20 per share.
 
Diamond Bank Plc’s share price appreciated further, gaining 9.65 per cent as it closed at N1.25.
 
Access Bank Plc reversed the losses it made on Tuesday as it emerged the 12th highest gainer, with a 2.60 per cent increase to close at N7.90 per share.
 
Five other banks ― Unity Bank Plc, Wema Bank Plc, United Bank for Africa Plc, FBN Holdings Plc and Stanbic IBTC Holdings Plc ― were on the gainers’ list, despite the 0.21 per cent decline recorded in the banking index.
 
Abbey Mortgage Bank Plc was the biggest loser, with a 7.55 per cent share price depreciation.
 
Abbey Mortgage Bank, Seplat, Jaiz Bank Plc, Japaul Oil & Maritime Services Plc and Julius Berger Nigeria Plc, were the top five losers.
 
They recorded price depreciation of 7.55 per cent, 6.53 per cent, 6.12 per cent, 4.76 per cent and 4.29 per cent.
 
 
Source: The Ripples
Published in News Economy
Thursday, 20 December 2018 15:13

Nigeria’s foreign reserves rise by $1.51bn

Figures released by the Central Bank of Nigeria (CBN) have shown that Nigeria’s foreign reserves rose by $1.518bn from $41.523bn on November 22 to $43.041bn as of December 17.
 
The reserves, which had suffered major declines in past months, had been maintaining a steady rise of recent.
 
The nation’s foreign exchange reserves fell from $45.838bn at the end of August to $41.533bn on November 21.
 
The CBN had earlier revealed that the reserves fell by $990.98m from $47.11bn in July to $46.128bn on August 23, 2018.
 
Records from the apex bank however showed that the external reserves were gradually moving on a recovery path.
 
CBN Governor, Godwin Emefiele, had said before that because crude oil was a major source of the country’s foreign exchange, the nation’s economy became sensitive to fluctuations in the price of crude oil.
 
“Significant declines in the price of crude oil not only reduced Nigeria’s export earnings, but the nation was also subjected to higher inflation and lower growth, given our dependence on imported goods,” Emefiele had said.
 
 
Source: Punch News
Published in Bank & Finance
Nigeria’s President, Muhammadu Buhari on Wednesday gave an overview of the implementation of the N9.12 trillion 2018 budget, saying 67 per cent performance had so far been recorded by Ministries, Departments of Agencies (MDAs) of government.
 
The President revealed this when he presented the 2019 budget estimates at a joint session of the National Assembly in Abuja.
 
According to him, out of the total appropriation of N9.12 trillion, N4.59 trillion had been spent by Sept. 30, 2018, against the prorated expenditure target of N6.84 trillion.
 
He said: “This represents 67 per cent performance. Debt service and the implementation of non-debt recurrent expenditure, notably payment of workers’ salaries and pensions are on track.
 
“Despite the delay in the passage of the 2018 Budget on 20th June 2018, the sum of N820.57 billion had been released for capital projects as at 14th December, 2018. We have carried over capital projects that were not likely to be fully funded by year-end 2018 to the 2019 budget.’’
 
The President said the 2018 budget was based on a benchmark oil price of 51dollars, oil production of 2.3 million barrels per day and an exchange rate of N305 to the dollar.
 
He added that based on these assumptions, the federal government’s aggregate revenue of N7.17 trillion was projected to contribute to the 2019 budget of N9.12 trillion while the projected deficit of N1.95 trillion (or 1.73 percent of GDP) was to be financed mainly by borrowing.
 
“In 2018, average oil production up to end of the third quarter was 1.95 mbpd, as against the estimated 2.3 mbpd for the entire year. However, average market price of Bonny Light crude oil was higher (an average of $74 per barrel as at October) than the benchmark price of $51.
 
“As at the end of the third quarter, federal government’s actual aggregate revenue was N2.84 trillion, which is 40 percent higher than 2017 revenue.
 
“The overall revenue performance is only 53 percent of the target in the 2018 budget largely because some one-off items are yet to be actualized. We have now rolled this revenue item over to 2019,” he said.
 
While urging the lawmakers to expedite action for the passage of the 2019 budget, the President stressed the need for the legislature to partner with the executive arm of government for the benefit of Nigerians.
 
 
Source: Business Insider
Published in Bank & Finance
The Executive Secretary, Nigeria Shippers Council (NSC), on Sunday said the country was losing $9.1 billion yearly on freight revenue that would have accrued to its treasury,
 
He said the amount was being lost to foreign ships.
 
Mr Bello, who spoke on the feasibility of the proposed National Carrier, told the News Agency of Nigeria (NAN) in Lagos that foreign shipping lines were milking the country dry.
 
“We need to have a national carrier because of the profound economic impact it will have on our economy. We have lost so much in terms of earnings of freight to foreign shipping companies.
 
“Nigerians don’t operate any ship at all; that is on the part of the dry cargo. On the wet cargo, Nigerians don’t lift the crude and the Minister of Transportation, Rotimi Amaechi, thought that this imbalance is very dangerous to the economy.
 
“So he set up a committee with the Nigeria Shippers Council as chairman to lead the private sector and we started working with PIL which is a Singaporean shipping company.
 
“We signed an MOU with it about three years back but the operating atmosphere of shipping in Nigeria is murky and not profitable because there are many obstacles which include lack of incentives.
 
”Fourthly, unwillingness or inability of Nigeria’s private sector to support this very important enterprise is another issue,” Mr Bello said.
 
Bello said that the committee for the national fleet implementation had to go back to look at it closely. “We have now retraced our steps”.
 
”The national fleet is such an important venture that it has to be painstakingly done. We are talking about one or two-year project,” he said.
 
He added that “what we have done was because the government is very serious about the economy, we were able to approach and get the audience of the Vice-President and we addressed the Economic Management Team on the vision.
 
This project, if we get it right, it means much more earnings for freight.
 
“Each year, we lose 9.1billion dollars in freight to foreign ships.
 
”Between 2004 and 2017, Nigeria recorded total vessel traffic of 25,256 vessels with the total gross freight of $39 billion and earning a paltry sum of $1 billion as levy for NIMASA.
 
“It means greater revenue for the government, employment for our people. It means setting up of associated industries, shipbuilding, ship repairs, involvement of our financial institutions like banks and insurance, even the pride of having ships flying the Nigerian flags”.
 
He said there were lots of reforms to be made and they include the flag administration and the ship registry of Nigeria.
 
”Both had to be reformed in line with the international standard so that we could attract people to come and register ships in Nigeria.
 
”We need vessel repairs and vessel building so that we don’t tow our ships to Singapore or Ghana for repairs. That will be a drain on the business.
 
”We need a reform of our nautical colleges, MAN Oron especially, so that they would produce the best of cadets so that cadets produced would have sea time experience, using Nigerian ships.
 
“If we have investments and we are able to establish the fleet, that means NIMASA will accord that fleet the status of national carrier.
 
”And if this is done, it means that they will have first priority in cargo; project cargos, Nigerian cargo, cargo belonging to federal, state and LGAs,” he said. 
 
 
Source: NAN
 
Published in Economy

Nigeria’s inflation rate is expected to rise to about 11.4 per cent for the rest of this year till mid-2019, the Central Bank of Nigeria has said.

The CBN Governor, Godwin Emefiel*e, disclosed this while speaking on Nigeria’s outlook and policy thrust for 2019.

He said, “Inflation expectations are rising on the backdrop of anticipated politically related liquidity injections. For the rest of 2018 and towards mid-2019, Nigeria’s rate of inflation is projected to rise slightly to about 11.4 per cent and then moderate thereafter.”

The consumer price index, which measures inflation decreased to 11.26 per cent (year-on-year) in October2018, according to latest report by the National Bureau of Statistics on its ‘CPI and inflation report October 2018’.

The statistics revealed that this was a 0.02 per cent points lower than the rate recorded in September 2018 (11.28 per cent).

While speaking on the exchange rate, he said that although the CBN had so far managed to maintain exchange rate stability, the current capital flow reversals from emerging markets were expected to continue to exert considerable pressure on market rates.

This pressure, he added, could be amplified by the forthcoming elections, especially as the political marketplace heats up.

He said notwithstanding those pressures, the CBN was determined to maintain its stable exchange rate policy stance over the next few months, given the relatively high level of reserves.

“Gross stability is projected in the foreign exchange market given increased oil-related inflows and contained import bill. I would like to make it categorically clear that sustaining a stable exchange rate is of overriding importance to us even as we continue to put measures in place to shore up reserves,” he said.

While speaking on the balance of payments, he said it was expected to remain positive in the short term, and that oil prices continue to recover, adding that it was expected that the current account balance would strengthen even further.

“This will be supported by improved non-oil performance as diversification efforts begin to yield results to reduce undue imports,” he added.

Emefiele also said that the apex bank would explore the possibility of leveraging technology to enhance credit to critical sectors of the economy, especially agriculture and manufacturing.

 

Source: Punch

Published in News Economy

In its determination to ensure all the refineries belonging to the Nigeria National Petroleum Corporation (NNPC) begin to perform at full capacity, the Federal Government, Wednesday, said that it would collaborate with Saudi Arabia.

The Minister of State for Petroleum Resources, Dr. Ibe Kachukwu stated this in Abuja after playing host to the Saudi Minister for Oil and Energy, Khalid Al Falih.

According to Kachikwu, Nigeria was currently tapping from the vast experience of Saudi Arabia, adding that both countries would take strong business decisions on the matter in due course.

The minister, who was making comments on some of the discussions which the Federal Government had with the delegation from Saudi Arabia with respect to refineries at a press conference he addressed, said they looked at what the experience had been for the two countries.

He said: “As you know, the refineries have been very close to my heart. So, I did bring up the issues of experiences that we’ve had so far and he shared his own experiences in terms of successes that they’ve had.

“We’ve got an understanding to come look deeper into how they’ve done their own trajectory to get to where they are today and what experiences we can pick from there. No formal things agreed yet, but there is the willingness to collaborate and learn from one another. These are usually very strong business decisions and at the appropriate time, we will nosedive into the details of that.”

Kachikwu also stated that the meeting with the Saudi delegation was with respect to the current outlook in the global crude oil market, adding that Nigeria and Saudi Arabia, as members of the Organisation of Petroleum Exporting Countries, need to look at the prevalent dynamics in the crude market.

“OPEC is a very strong voice in the oil sector, not just in terms of satisfying the needs of members but also in stabilising the market fundamentals for the rest of the world. Quite frankly, working together is some of the fundamentals to what has been the resurgent OPEC and what we have done with pricing."

Also speaking at the press conference, Al Falih said his country was willing to share experiences with Nigeria on how to help Nigeria revamp its refineries.

Al Falih said: “Saudi Aramco has become successful to a large degree by building a number of large world scale refineries through joint ventures and finding very attractive financing schemes with foreign direct investments.

“There is technical, project management and financing success and Saudi Arabia is becoming a major exporter of value added products integrated with petrochemicals, which improves the profitability of manufacturing companies.”

The Saudi minister further revealed that he had invited Kachukwu to come and see how Saudi Arabian oil giant operates, adding that it would help to improve the operations of Nigerian refineries.

Published in Business
Strengthening mechanism for increased internal revenue generation is critical to the expected increased revenue in the non-oil sector, Yue Man Lee, World Bank Senior Economist, has said.
 
Lee said this on Tuesday in a paper she presented at the ongoing 3-day National Council on Finance and Economic Development conference, holding in Kaduna.
 
The paper was entitled “Strengthening States Revenue Performance through Transparency and Open Government.’’
 
Lee observed that Nigeria’s revenues were very low due to contraction in oil revenues and the stagnancy in the non-oil revenues which she attributed to the absence of stable tax policy reforms and weak tax administration.
 
She said that with no improvement in revenue collection, total spending would decline; debt would increase while fiscal space would shrink.
 
The expert noted that the government could not deliver on its social and development agenda without it increasing total public spending.
 
According to her, the only mechanism to increase government expenditure in a sustainable way is to triple total revenue through mobilising non-oil revenue.
 
“However, Nigerian tax perception survey shows low tax compliance due to weak transparency and accountability.
 
“Corporate income tax is less than six per cent of registered taxpayers, personal income tax shrinks to two per cent, while compliance in the case of VAT varies between 15 and 40 per cent.
 
“This is worrisome because low tax compliance reduces states revenues and strengthening revenue and increasing expenditure efficiency needs to be underpinned by an increase in transparency and accountability.”
 
Lee, however, said that the Nigerian states could increase transparency and accountability to strengthen IGR through harmonisation of revenue collection and automation of tax payment.
 
“Kwara and Kaduna States are good example of states where such reforms were initiated with a significant increase in IGR,” she said.
 
Meanwhile, the Accountant-General of the Federation, Ahmed Idris, said that automated collection and management of non-oil revenue was critical to increasing its performance in revenue generation and sustenance.
 
 
(NAN)
 
Published in News Economy
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