×

Warning

JUser: :_load: Unable to load user with ID: 59

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

Friday, 31 August 2018 04:40

Nigerian economy is quite diversified -—NBS

The Statistician-General of the National Bureau of Statistics (NBS), Yemi Kale, said the Nigerian economy could be regarded as a diversified economy based on the Q2 2018 Gross Domestic Product (GDP) figures released recently.

Kale made this disclosure while answering questions on the effectiveness of the Federal Government’s diversification policy in a tweet chat on Thursday.

The NBS boss said the services sector grew by over 50 percent in the second quarter of the year, adding that the performance was the first since the 2016 economic recession.

According to him, the 1.50 percent real GDP growth recorded in Q2 was largely driven by the services sector.

“The best assessment of any plan or policy of government is to look at the underlying statistics. If you look at the GDP numbers for Q2 2018 published early this week by our Office, you will observe that the economy is quite diversified.

“The services sector accounts for over 50% of our economy, and for the first time since the recession, the services sector posted positive numbers and was mainly responsible for the growth recorded during the quarter,” Kale said.

He, however, said the benefits of diversified growth would become more evident and impacting on the citizenry if the government could provide incentives to support domestic production and stimulate consumption.

The NBS had released the GDP report for Q2 2018 on Monday, the report noted that the rate at which the Nigerian economy grew in the quarter slowed to 1.50 percent when compare with 1.95 percent recorded in the previous quarter.

Despite the sluggish growth, the non-oil sector of the economy grew by 2.05 percent from 0.76 percent in Q1 2018, while the oil sector contracted by -3.95 percent from 14.77 percent in Q1 2018.

The Minister of Budget and National Planning, Sen. Udoma Undo Udoma, had said the growth in the non-oil sector was an evidence that the implementation of the targeted policies and programs of the Economic Recovery and Growth Plan (ERGP) by the Federal Government was yielding positive results.

The ERGP is a four-year medium term strategic blueprint of the Federal Government aimed at diversifying the economy away from dependence on the oil and gas sector.

The plan covers 2017 to 2020 and focuses on human capital investment, restoration of economic growth, and building a competitive economy.

The Ripples

Published in News Economy
The nation’s foreign exchange reserves have dropped below $46 billion, available data from the Central Bank of Nigeria (CBN) showed on Wednesday.
 
The reserves, which stood at $47.79 billion as of July 5, fell to $45.98 billion on August 27, the lowest level in five months.
 
According to the CBN data, the external reserves rose from $45.65 billion on March 23 to $46.04 billion on March 26. The increase was sustained as the reserves grew up till $46.79 on May 10 from $46.75 recorded on May 9.
 
Thereafter, the movement in the reserves became inconsistent but reached a high of $47.79 billion on July 5 and had been on steady decline, shedding $1.81 billion in less than two months.
 
Last week, the National Bureau of Statistics (NBS) released the capital importation data which saw the total value of capital imported into the country between April and June this year fell by $790 million to $5.51 billion.
 
An analysis of the data by our correspondent showed that the value dropped by 12.53 percent, making the $790 million depreciation the highest since the first quarter of 2016 when the nation’s economy was at the brink of recession.
 
Analysts at FSDH Research, in a Monthly Economic and Financial Markets Outlook, attributed the drop in the nation’s foreign reserves in July which extended to August to the exits of foreign investors from the Nigerian market and the increase in demand of foreign exchange.
 
“The external reserves recorded persistent drawdown in July 2018. This was due to the foreign investors’ pull-back from the Nigerian market and the increase in demand at the foreign exchange market,” the analysts said.
 
Two days ago, the Nigerian Stock Exchange (NSE), in its monthly Domestic and Foreign Portfolio Participation in Equity Trading for July 2018, had said there was a decrease of 64.68 percent in total foreign transactions from N102.41 billion in June 2018 to N36.17 billion in July.
 
Meanwhile, the CBN, yesterday, injected $210 million into the inter-bank foreign exchange market to meet customers’ requests in various segments of the market.
 
Consequently, the naira maintained its stability, exchanging at an average of N361/$ in the Bureau De Change segment of the foreign exchange market.
 
The CBN Acting Director, Corporate Communications Department, Isaac Okorafor, said $100 million was offered to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises segment received the sum of $55 million.
 
He said the customers requiring foreign exchange for tuition fees, medical payments and Basic Travel Allowance among others, received $55 million.
 
Okoroafor stressed that the apex bank would continue to intervene in the interbank foreign exchange market in line with its desire to sustain liquidity in the market and maintain stability.
 
Recall that the CBN had last week injected a total sum of $543.22 million and 63.21 million Chinese Yuan into the inter-bank foreign exchange market.
 
 
Source: The Ripples
Published in Bank & Finance
Wednesday, 29 August 2018 06:13

FG unveils 8 firms for minerals exploration

The Federal Government has unveiled eight firms that will begin the exploration of minerals under the Integrated Exploration Project (IEP).
 
The Minister of State for Mines and Steel Development, Abubakar Bwari, disclosed this recently in Abuja while launching the first IEP which is under the Natural Resources Fund.
 
According to him, the eight firms emerged winners of bid for the exploration project.
 
The minister said the project would be executed by his ministry, stressing that Nigeria’s abundant resources cannot remain untapped.
 
Bwari said it was imperative for the ministry to contribute to the growth of the nation’s economy by industrialising minerals for local consumption and import substitution, using metallic minerals for generating foreign exchange and energy minerals for power generation.
 
“This integrated project is therefore long overdue, and its success will be critical in determining how far government can go in its efforts to reposition the sector.
 
“Actually, the credibility of this ministry, as well as the seriousness with which the international community will evaluate our effort at becoming a viable mining jurisdiction will be dependent on the way we handle this critical project.
“At this juncture, we want to particularly thank all who worked hard to make this event possible. We expect maximum commitment in the execution of this project because a lot is at stake,” the minister said.
 
The minister urged the National Geological Survey Agency (NGSA), which will be supervising the project on behalf of the ministry, to strictly adhere to the job specifications and contractual agreements on a duration of 12 months and also ensure adequate employment of local expertise.
 
“I therefore, expect regular updates on work progress, particularly from the Nigerian Geological Survey Agency which will be supervising this project on behalf of the Ministry. I urge you to strictly adhere to the job specifications and contractual agreements stipulated in the terms of engagement while also ensuring that local expertise is adequately employed,” he added.
 
 
The Ripples
 
Published in Engineering
The Nigerian Bureau of Statistics (NBS) has reported that for the first time since Nigeria’s exit from recession, the Gross Domestic Product (GDP) has recorded growth.
 
Driven by the non-oil sector, GDP which grew by 2.05 per cent in the second quarters of 2018 represented the strongest growth in non-oil GDP since fourth quarter of 2015.
 
“Non-oil GDP growth was -0.18% in Q1 2016, -0.38% in Q2 2016, 0.03% in Q3 2016, -0.33% in Q4 2016, 0.72% in Q1 2017, 0.45% in Q2 2017, -0.76% in Q3 2017, 1.45% in Q4 2017and 0.76% Q1 2018.
 
“GDP grew strongly in Q2 2018 by 2.05%. Non-oil growth was driven by transportation which grew by 21.76% supported by growth in construction which grew by 7.66% and electricity which grew by 7.59%.
 
“Other non-oil sectors that drove growth in Q2 2018 include telecommunication which grew by 11.51%, water supply and sewage which grew by 11.98% and broadcasting which grew by 21.92%.’’
 
The non-oil sector performance was however constrained by agriculture that grew by 1.3% compared to 3.00% in Q1 2018 and 3.01% in Q2 2017.
 
Q2 2018 GDP growth was also constrained by oil GDP with crude oil and gas production contracting by -3.95% compared to 14.77% in Q1 2018 and 3.53% in Q2 2017
 
Services GDP recorded its best performance in 9 quarters, growing by 2.12% in Q2 2018 compared to -0.47% in Q1 2018 and -0.85% in Q2 2017.
 
Statistician General and Chief Executive Officer of National Bureau of Statistics (NBS), Dr. Yemi Kale, last week denied reports quoting that Nigerian economy had yet to recover from recession.
 
Kale categorically said that Nigeria was out of recession and that at no time did he suggest otherwise.
 
His denial was contained in a statement released on Monday by the Bureau’s Public Relations Officer, Mr. J. Ichedi.
 
NBS said that it reported in the second quarter of 2017 that the country was out of recession as the country recorded the first positive growth in Gross Domestic Product (GDP) following five quarters of contradiction.
 
He said that economic growth as measured by GDP has remained positive ever since with 0.72% in second quarter of 2017; 1.17% in third quarter of 2017; 2.11% in fourth quarter; and 1.95% in first quarter of 2018.
 
Ichedi said that NBS had continued to explain that there would be economic recovery after the recession.
 
The economic after recession moves gradually towards sustainable strong growth which “is the stage we are now’’.
 
This is the position which the CEO told Arise Television in an interview, he said.
 
The CEO, he said, told the television that the economy was in the second state of recovery and heading toward sustainable growth which is the last stage’’.
 
“This should not be wrongly interpreted as the economy is still in recession,’’ Ichedi said.
 
According to a report by a local newspaper on Monday, the Statistician-General was quoted to have lamented the performance of the nation’s economy in the second quarter of the year.
 
 
Source: NAN
Published in News Economy

Following the two-day holiday declared by the Federal Government to celebrate this year’s Eid-El-Kabir, the stock market resumed on Thursday on a positive note as equities investors gained N198 billion.

The domestic bourse had recorded a bearish performance on Monday as the market capitalisation shed N219 billion to close at N12.66 trillion before the holiday.

But the market rebounded on Thursday as the benchmark index of the Nigerian Stock Exchange (NSE), All-Share Index (ASI), rose by 157 basis points to close at 35,206.16 points from 34,663.48 points recorded on the first trading session of the week.

Specifically, the market capitalisation appreciated to N12.85 trillion from N12.65 trillion, while the year-to-date losses of the ASI stood at 7.99 percent.

However, market breadth weakened as 25 stocks declined as against 11 that gained. The volume of stocks traded at the exchange rose by 0,1 percent, while the value of the stocks fell by 20.59 percent.

A total of volume of 210.71 million stocks valued at N2.53 billion were exchanged in 3,287 deals as against total of 220.49 million stocks worth N3.19 billion traded in 3,054 deals on Monday.

Wapic Insurance was the highest gainer today rising by 8.82 percent to close at 37 Kobo per share. Veritas Kapital Assurance trailed with 7.69 percent gain to close at 28 Kobo per share, while Dangote Cement appreciated by 6.98 percent to close at N230 per share.

Dangote Flour garnered 6.49 percent to close at N8.20 per share, while Oando rose by 5.26 percent to close at N5 per share.

On the other hand, Livestock Feeds led the laggards by shedding 9.84 percent to close at 55 Kobo per share. Red Star Express followed by dropping 9.65 percent to close at N5.15 per share, while Jaiz Bank lost 9.43 percent to close at 48 Kobo per share.

Equity Assurance depreciated by 9.09 percent to close at 20 Kobo per share, while Secure Electronic Technology fell by 8.70 percent to close at 21 Kobo per share.

United Bank for Africa emerged the most traded stock as total turnover hit 54.33 million volume of shares valued at N436.11 million. Zenith Bank followed with a volume of 25.99 million shares worth N571.42 million, while FBN Holdings recorded a volume of 14.19 million shares valued at N138.64 million.

 

Vanguard.

Published in Bank & Finance

The total value of capital importation into Nigeria dropped by $790 million in the second quarter of 2018, the largest decline in more than two years when the nation’s economy was at the brink of recession.

The capital importation data obtained from the National Bureau of Statistics (NBS) show that the total value of capital imported into country in the second quarter of 2018 fell to $5.51 billion from $6.30 billion recorded in the preceding quarter.

An analysis of the data by our correspondent showed that the value dropped by 12.53 percent, making the $790 million depreciation the highest since the first quarter of 2016 when capital importation declined by $845.98 million from $1.56 billion.

However, when compared on a year-on-year basis, the total value of capital importation in the review quarter rose by 207.63 percent from $1.79 billion recorded in the second quarter of 2017.

According to the data, Nigeria imported highest capital from United Kingdom, United States of America and the United Arab Emirates with values of imported capital accounting for 32.15 percent, 22.20 percent and 9.72 percent of the total value of capital imported from 39 countries in the review quarter.

During the period, foreign portfolio investment and other investment dropped by 9.76 percent and 24.07 percent respectively, while foreign direct investment paltry rose by 5.97 percent.

The statistics bureau in its report attributed the decline to the drop in both the foreign portfolio investment and other investment.

The two types of investment accounted for $4.22 billion, representing about 96 percent of the entire capital imported into the country in the second quarter of 2018.

Investment indicators in Nigeria have been unimpressive lately as foreign portfolio investors continued to divest their assets from the country ahead of the 2019 general elections and following the recent interest rate hike by the United States Federal Reserve Bank.

The persistent exit of the investors led the domestic market into a bear market – more than 21 percent drop from its recent peak – last week as the All-Share Index of the Nigeria Stock Exchange fell to 34,663.48 points, while the market capitalisation shed N219 billion to close at N12. 66 trillion on Monday before the Eid-El-Kabir Holiday.

Ripples Nigeria investigations also showed that the development had taken its toll on the nation’s external reserves, causing the country to lose over $1.43 billion in less than two months as the reserves settle at $46.373 billion as of Friday, August 17, 2018 since it peaked $47.799 billion on July 2, 2018.

 

The Guardian

Published in Business
Thursday, 23 August 2018 18:40

Buhari signs 2010 International Cocoa Agreement

President Muhammadu Buhari on Monday signed an Instrument of Accession to the International Cocoa Agreement (ICA), 2010.

The pact was the seventh ICA adopted at the United Nations Cocoa Conference in 2010 following the contribution of ICA, 1972, 1975, 1980, 1986, 1993 and ICA, 2001 to the development of the world cocoa economy.

The ICA, 2010 was administered by the International Cocoa Organization, which was established by the ICA, 1972 and functions through the International Cocoa Council, the highest authority of the organization.

A statement signed by the Senior Special Assistant on Media and Publicity to the President, Garba Shehu, said that decision followed the approval by the Federal Executive Council (FEC) for Nigeria to accede to the agreement.

Following the execution of the instrument of accession, Nigeria undertakes “faithfully to abide by all the stipulations therein contained” in the agreement, according to the statement.

“Among other benefits, the agreement is expected to strengthen cooperation between exporting and importing member countries; improve their cocoa economies through active and better focused project development and strategies for capacity-building,” the statement read.

It is also expected to build on the successes of the 2001 Agreement by “implementing measures leading to an increase in the income of cocoa farmers and by supporting cocoa producers in improving the functioning of their cocoa economies.”

The statement added that the 2010 agreement would also “deliver cocoa of better quality, take effective account of food-safety issues and help establish social, economic and environmental sustainability, so that farmers are rewarded for producing cocoa that meets ethical and environmental considerations.”

According to the United Nations Conference on Trade and Development, the ICA, 2010 was agreed with a view to strengthening the global cocoa sector, supporting its sustainable development and increasing the benefits to all stakeholders.

It highlighted eleven objectives as rationales for the pact, they comprise to; promote international cooperation in the world cocoa economy; provide an appropriate framework for discussion on all cocoa matters among governments, and with the private sector; contribute to the strengthening of the national cocoa economies of Member countries; obtain fair prices leading to equitable economic returns to both producers and consumers in the cocoa value chain.

The objectives also include to; promote a sustainable cocoa economy; encourage research and the implementation of its findings; promote transparency in the world cocoa economy, and in particular in the cocoa trade, as well as to promote the elimination of trade barriers; promote and to encourage; consumption of chocolate and cocoa-based products in order to increase demand for cocoa.

Others include to; encourage Members to promote cocoa quality and to develop appropriate food safety procedures in the cocoa sector; encourage Members to develop and implement strategies to enhance the capacity of local communities and small-scale farmers to benefit from cocoa production and thereby contribute to poverty alleviation; facilitate the availability of information on financial tools and services that can assist cocoa producers, including access to credit and approaches to managing risk.

Currently, Nigeria rely on crude oil as its major source of revenue, accounting for about 70 percent of its total revenue and over 90 percent for its export earnings. The nation’s economy recorded its worst decline since 1987 in 2016 on the back of drop in the prices of crude oil in the international market in 2014.

Nigeria recorded five consecutive negative Gross Domestic Product growth rates from -0.67 percent in Q1 2016 to -0.91 percent in Q1 2017. It officially emerged from recession in Q3 2017 after two consecutive positive GDP growth. A development which had prompted the Federal Government to devise other means to diversify the economy away from oil into solid minerals, agriculture, among others to forestall a recurrence of the 2016 economic distress.

With the latest agreement, Nigeria is now a cocoa exporting member of the International Cocoa Organization and the International Cocoa Council, implying cocoa could become another alternative source of revenue generation and foreign exchange earnings as global organizations renewed their efforts to develop the cocoa sector.

Published in News Economy
Nigeria’s revenue from oil export hit an estimated $26 billion between January and July this year as the price of global oil benchmark, Brent crude, rose to the highest level in two weeks on Wednesday.

According to the new OPEC Revenues Fact Sheet recently released by the Energy Information Administration (EIA), revenue from oil export rose by 30 percent to $34 billion in 2017 from $26 billion in 2016.

The oil price appreciation followed a sharp drop in the United States crude inventories and the country’s sanctions on Iran, the third-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), causing tighter supply of the commodity.

The price of Brent crude, against which Nigeria’s oil is priced, rose by $1.38 to $74.19 per barrel, the highest since August 8, while US West Texas Intermediate (WTI) gained $1.28 to $67.12 per barrel.

Nigerian economy was battered due to the fall in the prices of crude oil in the international market in 2014, at the end of 2017, a development which led the country into its worst economy crisis since 1987 in 2016.

However, the country officially emerged from recession in Q3 2017 after two consecutive positive GDP growth. The economy shock occasioned by the drop in crude price prompted the Federal Government to devise other means to diversify the economy away from oil into solid minerals, agriculture, among others to forestall a recurrence of the 2016 economic distress.

But while the Mining and Quarry sector of the economy grew by 14.85 percent (year-on-year) in Q1 2018, 30.25 percentage points and 4.14 percentage points higher than the same quarter of 2017 and Q4 2017, the agriculture sector grew by 3.00 percent (year-on-year) in real terms in the review quarter, a decrease by 0.38 percentage points from the corresponding period of 2017 also a decrease by 1.23 percentage points from the preceding quarter.

Currently, Nigeria still rely on crude oil as its major source of revenue, accounting for about 70 percent of its total revenue and over 90 percent for its export earnings.

The Brent crude price rose to $66.87 per barrel from around $53 per barrel at the beginning of the year.

In May 2018, Brent rose above $80 per barrel for the first time since November 2014 but dropped afterward amid rising US crude inventories.

 

Source: The Ripples

Published in News Economy
With the myriads of problems facing the nation’s stock market, stakeholders have expressed divergent views on the relevance of the routine ‘Bell Ringing’ exercise at the Nigerian Stock Exchange (NSE) and the impact on the market.
 
While some stakeholders believe that the ceremony has increased stock market visibility and attracted more stakeholders, others argued that the impact has not reflected on the market.
 
The Managing Director of High Cap Securities, David Imafidon, explained that the NSE uses the gong sounding ceremony to publicise itself and attract stakeholders to its platform.
 
According to him, efforts must be made not to trivialise the programme, considering the level of visibility and competitiveness the exercise has attracted to the exchange.
 
Also speaking, the Managing Director of High Cap Securities Limited, Mike Eze, who described the exercise as a routine, said: “Bell ringing in any stock exchange is the exclusive preserve of the President of the stock exchange.
 
The President, who is not on ground day to day, on his part, delegates this function to the Chief Executive Officer (CEO) of the exchange, who is on ground running the exchange day to day.
 
“The CEO in his wisdom, may decide to invite any reputable hand to assist him in bringing the market to a close. This is the interplay you see going on every day in the last eight years. It is just the process of opening and closing of a stock market.”
 
The Managing Director of Dependable Securities Limited, Chinenyem Anyanwu, said: “It has a way of impacting the market positively by making the stock Exchange and the capital market to always be in the news, sometimes occupying the front pages of the print media.
 
However, the President of Progressive Shareholders association of Nigeria, Boniface Okezie, explained that the exercise has not attracted the expected investments into the market.
 
According to him, it is expected that the ceremony would serve as a platform for listed firms to unfold their growth plans and present their scorecards to stockbrokers for share price appreciation.
 
He noted that in other exchanges across the world, due to the amount of coverage the opening and closing bells receive, many companies coordinate new product launch and other marketing-related events with the day their company representative rings the bell.
 
“The purpose of the exercise is to boost the market in terms of liquidity, volume of shares and attract new investments. Listed companies may also use the platform to inform stockbrokers on new products they are about to lunch or any other information that can boost their share price. But these are not happening.
 
“I have not seen the impact. They should look at how to improve on the exercise, so that it would be more impactful and add value to the market. Those undervalued stocks need to improve.
 
“We need the companies to come to the market and tell stockbrokers their growth plans so that it would lift their stock prices and in turn, grow the market.”
 
The Guardian 
Published in News Economy
The Nigerian Welders Association (NWA) has appealed to government to ban importation of finished furnitures as part of efforts to boost production in the country.
 
The NWA Zonal Chairman, Alhaji Ola Balogun who made the appeal in Lagos, South west Nigeria, said that a large number of furniture factories and welders had been laid off work as a result of the increase on importation of furnitures.
 
According to him, the imported furniture is only flashy and could not compete with the locally made ones in terms of quality and durability.
 
He appealed to the government to intervene, by placing embargo on importation of some furniture, to encourage local manufacturers.
 
He insisted that the local furniture industry, with proper legislation, could provide huge revenue for the economy.
 
“One of the biggest challenges of the Nigerian economy is that it is import dependent. A number of companies that should have engaged in local production were importing finished products for domestic projects, which reduced gross domestic products and increased unemployment rate of the country.
 
“The Federal Government in 2004, under President Olusegun Obasanjo, introduced a new policy banning the importation of furniture into the country. This policy is to encourage economic growth and to promote local production of furniture.
 
“But recent developments have seen a downturn in investments and growth in the industry. The importation of finished furniture products has become rampant in the country. It is time for the Federal Government to revisit and re-introduce the policies that will create growth in the furniture industry,’’ he explained.
 
 
The Ripples
Published in Business
  1. Opinions and Analysis

Calender

« June 2021 »
Mon Tue Wed Thu Fri Sat Sun
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30