Economy

Business, Consumer Expectations Improve in Nigeria

Published

8 years ago

17/07/2017

By FSDH Research

The Business Expectations Survey (BES) and the Consumer Expectations Survey (CES) Reports that the Central Bank of Nigeria (CBN) published for Q2, 2017 show that confidence of both the firms and consumers about the Q3, 2017 and the next 12 months has improved.

The BES shows that the respondents’ overall confidence index on the macro-economy in Q2, 2017 was less pessimistic when compared with the level recorded in Q1, 2016.

The major drivers of the improved optimism in Q2, 2017 were services, wholesale/retail trade, industrial and construction sectors. The respondent firms identified the following as major business constraints: insufficient power supply, financial problem, high interest rate, unfavourable economic climate, competition, unclear economic laws, and unfavourable political climate.

Most of the surveyed firms expect the value of the Naira to appreciate against the US Dollar in the next two quarters. The report also shows that businesses with expansion plans are in the following sectors: wholesale/retail trade, services, construction and industrial.

The BES added that respondent firms expect inflation rate and interest rate to moderate in the next two quarters.

The CES shows that the respondents’ overall confidence outlook moderated in Q2, 2017.

According to the survey, some respondents attributed the improved outlook to the increased confidence in the economy. Despite the improved confidence the overall outlook was negative, majority of the respondents ascribed this development to a decline in their net income leading to draw-down on savings/getting into debt.

The consumer outlook for the next quarter and that of the next 12 months were positive. The outlook is attributed to the anticipated improvement in the Nigerian economic conditions, expected increase in net household income and expectation to save in the next 12 months.

On the expectation of consumer expenditure, the survey says more households across the country expect some increase in their expenditure on basic commodities and services in the next 12 months. Most consumers expect to spend a substantial amount of their income on food and other household needs, education, savings, purchase of consumer durables, medical expenses and investment.

Nevertheless, they do not plan to spend on large ticket items such as purchase of car/motor vehicle and house.

Most surveyed consumers expect the prices of goods and services to increase in the next 12 months. The major drivers are: house rent, education, medical care, transport and electricity. On the consumer buying outlook, consumers believe Q2, 2017 was not the ideal time to buy consumer durables like motor vehicle and house.

It also added that the next 12 months are not the best time to buy items such as furniture, gas cooker, refrigerator, air conditioners, television and other durables. However the next 12 months seem to be an ideal time to buy big-ticket items like motor vehicles and house.

Although consumers expect inflation rate to rise in the next 12 months, they expect exchange rate to appreciate and interest rate (borrowing rate) to drop.

We note that there are still some challenges in the economy that need to be addressed.

However, our review of the Nigerian economy shows that the worst performance may be over. Thus the economy is ready for a recovery. We are of the view that inflation rate will decline for the rest of the year 2017 (but still in double digits).

We also expect the Monetary Policy Committee (MPC) of the CBN to adopt a more accommodating monetary policy stance when there is sustainable stability in the foreign exchange rate and inflation expectation is properly anchored within the level that is not growth retarding. Such a change in the monetary policy stance will lead to a drop in the interest rates (both deposit and lending) and yields on the fixed income securities.

The Federal Government of Nigeria (FGN) needs to address the challenges in the power sector in order to reduce firms’ operating cost and increase the spendable and investible income of consumers. Other areas that need attention in order to improve business and consumer confidence are the political and policy uncertainties in the country.

Economy

Customs Street Chalks up 0.12% on Santa Claus Rally

Published

4 hours ago

25/12/2025

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.

Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.

In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.

Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.

Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.

On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.

Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.

Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.

Economy

Yuletide: Rite Foods Reiterates Commitment to Quality, Innovation

Published

4 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.

In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.

Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.

“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.

He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.

Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.

“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”

Economy

Naira Appreciates to N1,443/$1 at Official FX Market

Published

4 hours ago

25/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.

Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.

At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.

Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.

This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.

Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.

Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.

As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.

The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.

Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.