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Review of Key Developments in the Nigerian Economy Week 3 of 2019

Monday, January 22, 2019 11.00AM / Ottoabasi Abasiekong for Proshare WebTV

It was an eventful third week of Nigerian Economy and we present the key developments that occurred during the week.

Economy

Nigeria and Brazil signed a bi-lateral agreement with a $1.1bn loan from the Brazilian government, for the launch of the “Green Imperative”. This is a mechanized agriculture programme for Nigeria, which will improve Agricultural output and create more jobs.
Nigeria’s Inflation rate figure for December, 2018 was released by the National Bureau of Statistics and increased from 11.28% in November 2018 to 11.44% in December 2018.
The National Bureau of Statistics reported that about N812.76bn was disbursed by the Federal Account Allocation Committee (FAAC) across the Federal, State and Local Governments, in December 2018.
The Africa Development Bank “Africa Economic Outlook Report” projected that the African region will grow by 4% in 2019.

Business

The House of Representatives passed the amended Company Allied Matters Act 2018 into Law.
The London Stock Exchange launched its “Companies to Inspire Africa Report” with Proshare making the list alongside about 359 other companies from Africa.

Financial Market

The Central Bank of Nigeria hosted a two-day stakeholder conference in Abuja, to produce three key policy documents that will see the nation achieve an 80% financial inclusion strategy by 2020.
Access Bank Plc obtained an in-principle regulatory approval from the Securities and Exchange Commission (SEC) and Central Bank of Nigeria (CBN), on its proposed merger plans with Diamond Bank Plc.

Capital Market

NSE

The NSE All-Share Index (ASI) and Market Capitalization appreciated by 3.94% to close the week at 31,005.17 and N11.562 trillion respectively. Similarly, all other indices finished higher with the exception of the NSE Banking Index that depreciated by 1.04% while the NSE ASeM index closed flat.

NASD

As at close of trade week on 18 January 2019, market Capitalisation increased to ₦541.99 billion from last week's previous ₦540.56 billion, which shows a 0.26% increase in Capitalisation. Also the USI for the week ending 18 January, 2019 recorded an increase from 752.42 points to 754.40 points.