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Economy

Growth in Money Supply Falls Below Targets

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By FSDH Research

The monetary aggregates (narrow money and broad money) as at July 2017 show that the annualised growth rate in money supply is below the target that the Central Bank of Nigeria (CBN) has set for the year 2017. In Nigeria, narrow money supply (M1) is the sum of demand deposits and currency in circulation less the cash currency held in deposit money banks’ vaults.

Quasi money supply (QM) is the savings deposits plus time deposits. Broad money supply (M2) is the sum of M1 and QM (M2 = M1 + QM). The M2 decreased by 5.08% to N22.20trillion in July 2017 from N23.39trillion in December 2016. This is lower than the CBN’s growth target of 10.29% for the year 2017. The major drop in M2 is from M1, which dropped by 6.71% to N10.33trillion in July 2017, from N11.07trillion in December 2016.

The QM also dropped by 3.62% to N11.87trillion from N12.32trillion in December 2016. The need to maintain foreign exchange stability and to curb the high inflation rate in the country, which stood at 16.05% as at July 2017, were the main reasons the CBN adopted restrictive monetary policy stance.

According to the CBN, the net domestic credit increased marginally by 1.92% to N27.16trillion in July 2017 from N26.65trillion in December 2016.

The annualised growth rate in the net domestic credit in July 2017 was 3.29%, below the target growth rate of 17.93% for 2017. The net domestic credit to the Federal Government increased by 6.88% to N4.99trillion in July 2017 from N4.67trillion in December 2016. The net domestic credit to private sector also increased marginally by 0.87% to N22.17trillion in July 2017 from N21.98trillion in December 2016.

In another development, the Nigerian economy recorded a favourable trade balance for the third consecutive quarter in Q2 2017. According to the National Bureau of Statistics (NBS) the trade surplus stood at N506.5billion in Q2 2017. The total trade stood at N5.70trillion in Q2, 2017, an increase of 7.7% from N5.29trillion recorded in Q1 2017. Exports recorded an increase of 3.2% to N3.10trillion in Q2 2017, from N3trillion in Q1 2017. Imports on the other hand, increased by 13.5% to N2.60trillion in Q2, 2017, from N2.29trillion in Q1 2017. A further analysis of total trade by sector in Q2, 2017 shows that Crude Oil trade accounted for 42.57% (N2.42trillion) of total trade during the period. This was followed by the Other Oil sector, accounting for 21.90% (N1.24trillion).

The value of agriculture imports stood at N232.1billion in Q2, 2017, 16.01% higher than N200billion in Q1, 2017 and 61.02% higher than Q2, 2016 figure. Raw Materials imports increased by 17.4% to N298.84billion in Q2, 2017, from N246.35billion in Q1, 2017. Manufactured Goods imports also recorded a growth of 9.5% to N1.1trillion in Q2, 2017, compared with N995billion in Q1, 2017 but 18.33% lower than Q2, 2016 figure. Solid Minerals imports increased by 1,527.4% to N191.5billion in Q2, 2017, from N11.7billion in Q1, 2017, and 1,947.5% higher than Q2, 2016 figure.

On the exports side; Agriculture exports stood at N29.71billion in Q2, 2017, a marginal decrease of 1.03% from N30.02billion in Q1, 2017 but 94.05% higher than Q2, 2016 figure. Raw Materials exports increased by 31.76% to N21.76billion in Q2, 2017, from N14.85billion in Q1, 2017.

Manufactured Goods exports decreased by 16.98% to N81.5billion in Q2, 2017, from N95billion in Q1, 2017. Solid Minerals exports decreased by 27.58% to N3.06billion in Q2, 2017, from N4.24billion in Q1, 2017 but 122.01% higher than Q2, 2016 figure. We expect foreign trade to remain favourable for Nigeria for the rest of 2017.

The CBN may maintain the current tight monetary policy stance until there is sustainable stability in the foreign exchange market. There are opportunities for revenue and exports diversification from the developments of solid minerals and agriculture sectors to meet the consumers’ and industrial sectors’ in Nigeria. Agriculture can supply the raw material requirements of the manufacturing sector if there are appropriate policies to increase production and quality of yields. More job opportunities and additional revenue will also be generated through the linkage between agriculture and manufacturing sectors.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

Economy

Wems BO Plans Personal Finance Retreat to Empower Nigerians

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Wems BO personal finance

By Adedapo Adesanya

Financial educator and coach, Mrs Wemimo “Wems BO” Bolu-Opaniran, is set to host the maiden edition of the Wems BO Personal Finance Retreat 1.0, a weekend event aimed at helping participants improve their financial literacy and develop practical money management skills.

According to a statement, the retreat is designed to make personal finance engaging and accessible through interactive sessions, games, networking opportunities, and one-on-one coaching sessions.

The organisers said the event will focus on providing attendees with practical and actionable financial knowledge rather than conventional lecture-style teaching.

“Come and unravel financial wisdom and leave with a practical and concrete action plan,” the organisers stated in a statement.

Activities lined up for the retreat include interactive finance sessions, networking opportunities, personal finance workbooks, games and activities, food and souvenirs, as well as three months of exclusive access to the event replay.

Speaking on the rationale for organising the event, Wems BO noted that lack is primarily not always the reason people have bad finances, but often, money culture is.

“The way one sees and treats money has been a development from years and decades past. So, what to do about money is not the solution. It is mindset, defaults and motivations shaping decisions.

The solution is an inner inquiring on why you do what you do, beyond money. Understanding who you are, then beginning to drive decisions that make you grow, manage and scale your finances in a way that aids the life you want,” she told Business Post.

Participants will also have the opportunity to receive one-on-one coaching with the finance guru.

The event is scheduled to be held from Friday, July 17 to Saturday, July 18, 2026, at an in-house venue on Lagos Mainland.

Ticket prices were pegged at N40,000 for individual attendees and N76,000 for duo tickets, with organisers noting that limited slots remain available.

Interested participants can register through the official registration link.

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Economy

Unlisted Securities Index Rises 0.91%

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Unlisted Securities Market

By Adedapo Adesanya

A 0.91 per cent growth was recorded by the NASD Over-the-Counter (OTC) Securities Exchange on Friday, May 22, after the share prices of four securities ended in green.

According to data, FrieslandCampina Wamco Plc went up by N15.61 to N179.67 per share from N164.06 per share, Newrest Asl Plc grew by N6.11 to N67.26 per unit from N61.15 per unit, Food Concepts Plc appreciated by 17 Kobo to N2.75 per share from N2.58 per share, and Nitrox Industrial Gases Plc added 6 Kobo to sell at N25.50 per unit compared with the previous day’s N25.44 per unit.

At the close of business, the market capitalisation chalked up N23.22 billion to settle at N2.561 trillion versus Thursday’s N2.538 trillion, and the NASD Unlisted Security Index (NSI) increased by 38.81 points to 4,281.28 points from 4,242.47 points.

During the session, the price of Central Securities and Clearing System (CSCS) Plc was down by N3.13 to N71.07 per share from N74.20 per share.

The activity chart showed that the volume of securities transacted by the market participants decreased yesterday by 81.6 per cent to 590,339 units from the 3.2 million units recorded on Thursday, as the number of deals shrank by 28.6 per cent to 30 deals from the 42 deals recorded a day earlier, while the value of securities increased by 0.5 per cent to N95.3 million from the preceding session’s N94.8 million.

Great Nigeria Insurance (GNI) Plc closed the day as the most active stock by value on a year-to-date basis, with a turnover of 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 61.2 million units traded for N4.1 billion.

The most active stock by volume on a year-to-date basis was GNI Plc, with the sale of 3.4 billion units for N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units exchanged for N415.7 million.

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Economy

Stock Investors Gain N344bn amid Decline in Transactions

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stock investors' portfolios

By Dipo Olowookere

The Nigerian Exchange witnessed a decline in transactions on Friday despite closing higher by 0.22 per cent on the back of sustained bargain-hunting.

During the last trading session of the week, investors transacted 711.9 million equities valued at N29.1 billion in 62,386 deals compared with the 1.1 billion equities worth N31.0 billion traded in 62,448 deals in the previous day, indicating a decline in the trading volume, value, and number of deals by 35.28 per cent, 6.13 per cent, and 0.10 per cent, respectively.

Fidelity Bank closed the day as the most active stock with the sale of 198.1 million units for N4.6 billion, Access Holdings traded 69.7 million units worth N1.8 billion, Mutual Benefits exchanged 42.7 million units valued at N197.4 million, Japaul transacted 33.9 million units worth N134.4 million, and Zenith Bank sold 24.4 million units valued at N3.2 billion.

Yesterday, the industrial goods index rose by 0.53 per cent, the consumer goods sector jumped 0.28 per cent, the banking industry improved by 0.25 per cent, and the energy counter soared by 0.18 per cent, while the insurance space shed 0.18 per cent.

At the close of business, the All-Share Index (ASI) gained 536.98 points to finish at 249,712.37 points compared with the previous day’s 249,175.39 points, and the market capitalisation grew by N344 billion to N160.077 trillion from N159.733 trillion.

Aluminium Extrusion and DAAR Communications expanded by 10.00 per cent each to sell for N9.90 and N2.09, respectively, RT Briscoe surged by 9.93 per cent to N14.06, Learn Africa increased by 9.79 per cent to N12.90, and Red Star Express advanced by 9.56 per cent to N34.95.

On the flip side, Trans-Nationwide Express depreciated by 9.92 per cent to N5.72, Livestock Feeds dipped by 9.64 per cent to N8.90, The Initiates crashed by 8.65 per cent to N33.80, Ellah Lakes drowned by 8.64 per cent to N10.05, and Neimeth lost 6.36 per cent to trade at N10.30.

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