What To Expect From The Markets This Week- 190218


Saturday, February 17, 2018 08:00 AM / Proshare 

Economic Dashboard 

  Proshare Nigeria Pvt. Ltd.

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From the Editor’s Desk

Non-oil revenue rose from N665.17 billon at the end of Q3 2017 to N814.55 billion in Q4 2017, implying a 22.4% buffering in non-oil income. The buffering in non-oil revenue was as a product of rising inflows from company income taxes and custom exercise duty. 

Total non-oil revenue generated in 2017 stood at N3.24 trillion, thus reflective of a 13% boost in non-oil revenue compared to the previous year.  A combination of exchange rate stability and improved collection in value added tax was responsible for the boost. At the same time readjustment by firms to cycle lifted non–oil revenue. 

Fig 1: Non-Oil Revenue from 2014 t0 2017

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 Source: CBN   


Inflow from value added taxes have maintained an upward trajectory, as it increased from N248 billion in Q3 2017 to N253 billion Q4 2017.   Total revenue from Value added taxes for the period stood at N967.66 billion, which is a 19.11% increase compared to the previous year. The custom revenue also witnessed a 12.6% increase compared to the previous year. Thus, total revenue from custom rose from N557.48 billion 2016 to N628 billion in 2017. 

The accretion witnessed in indirect taxes highlighted government push to increase its indirect tax’s base coupled with relatively stable exchange rate that supported custom revenue. Company income tax’s fell from N546 billion in Q3 2017 to N297.56 billion, Q4 2017 underlining a 45% fall in company income taxes. Expectedly, company income tax was expected to take a downward trajectory, given earlier trend. 

The total company income taxes for 2017 stood at N1.206 trillion, reflective of 22% increase compare to the previous year of 2017. Thus the combination of more aggressive push towards Non-oil revenue and improvement in the business cycle is largely responsible for the improvement in company income pool.  The other sources of revenue pool fell from N574.95 billion in 2016 to N437.57 billion in 2017.  Although other sources of revenue is characterised by a random nature and relatively not a stable purse. 

Regardless, the inability of government  to follow through with earlier decentralization policy such as  freeing up its hold on certain economic space especially infrastructure and reducing its size of real assets is hurting other sources of revenue.   

Obviously efforts geared towards non-oil revenue is bearing fruit, however a lot more is needed to hit the 2018 budget projection of N4.165trillion. The in ability to hit such projection is a downside risk to circumventing the domestic money market. At the same time a more creative approach towards other sources of revenue, which hinges more on taping into private participation, is desperately needed moving forward.  

The Federal Government through the Debt management office will auction both 5 year and 10 year instrument to the individual tune of N50 billion each in the week ahead.   The further dwindling in inflation in the month of January is positive for the yield on the 10 year bond, due to its inverse relationship with inflation. Regardless, the mild-bearish sentiment in the money market remains a concern. The overall picture still slant towards a tight money market in the week ahead.     

Monday, February 19, 2018

The Ministry of Mines and Steel Development in partnership with the Australian High Commission will today commence a two day policy and capacity building workshop on the mining sector, while the Nigeria International Petroleum Summit commences in Abuja.                                                                                                           

 Tuesday, February 20, 2018

KPMG will hold its #KPMGTaxChat today focusing on “VAIDs and Responsible Tax Practice”, while Premium Times launches its online fact-checking platform (DUBAWA) and Nigeria's budget implementation tracking platform (UDEME). 

Wednesday, February 21, 2018

The FGN Monthly Bond Auction will be opened for subscription today, while CIBN holds its training on the Fundamentals of Banking Operations. 

The Institute of Chartered Secretaries and Administrators of Nigeria (ICASAN) will today host its Company Secretaries/Registrars’ Forum in Lagos to discuss “A Functional Partnership for Capital Market Development”, while the February 2018 Nextier Power Dialogue themed “Evacuating the Root of Market Inefficiencies in the Value Chain” and the Nigeria Real Estate Summit & Expo holds in Abuja and Lagos, respectively. 

Thursday, February 22, 2018

The Nigeria South Africa Chamber of Commerce (NSACC) will hold its Breakfast meeting today in Lagos, while the Centre for Democracy and Development (CDDWestAfrica) will today hold the Nigeria Political Parties Discussion Series (#NPPDS2018) in Abuja. 

The Green Institute supported by MacArthur Foundation will host the Environmental Journalism Workshop today in Lagos, while Academy Press Plc hold its Annual General Meeting. 

Friday, February 23, 2018

The Federal Government’s 5th Eurobond Issuance expected to attract over 7.143% rates will close today.  

Main One’s Nerds Unite 2018 themed: “Radical Digital Transformation” and the Silverbird Man of the Year Awards will hold today in Lagos. 

Saturday, February 24, 2018

InvestData Consulting will hold its Chart Summit 2018 for Traders & Investors today in Lagos.


 Check out our Events Calendar for event details and follow us on Web, TV, APP and Social Media for updates as the week unfolds. Yours to Serve! 

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Contact for Details:

For further information, enquiry or submission of information, kindly contact market@proshareng.com and research@proshareng.com Tel: 0700PROSHARE (070077674273)

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