Economy

Egypt’s Economy Gathering Strength—IMF

Published

9 years ago

26/09/2017

By Modupe Gbadeyanka

The International Monetary Fund (IMF) has disclosed that the Egyptian economy “is gathering strength” after the country’s authorities embarked on an ambitious reform program and also taking “decisive measures aimed at restoring macroeconomic stability and sustainable public finances.”

In a statement issued on Tuesday, September 26, 2017, the IMF said the North African nation has so far been able to have a flexible exchange rate regime as well as reduced its budget deficit.

In addition, the global financial firm said Egyptian authorities have been able to also come up with energy subsidy reform, include women and youth to share the benefits of growth more broadly, and have higher growth through wide-ranging structural reforms.

Head of the team dealing with Egypt at the IMF, Subir Lall, noted that, “By strengthening social protection measures, they have sought to protect the most vulnerable.

“We have seen that economic activity has been gathering strength and efforts at reining in the budget deficit have begun to bear fruit. With the liberalization of the foreign exchange market, foreign currency shortages have disappeared.

“Looking ahead through the end of this year and into next year, the policy mix is also supportive of a decline in inflation from the high levels in the summer.”

Egypt launched a reform program when its economy faced rising imbalances that led to high public debt, a widening current account deficit, and declining official reserves.

To support the home-grown reforms, the government embarked in November 2016 on an IMF-supported program to restore the stability of its finances, promoted growth and employment, while shielding the poor from the adverse effects of the changes.

With the floating of the Egyptian pound, the foreign exchange market normalized, and the parallel market for foreign currency disappeared. The focus of monetary policy is to bring down inflation, which reached more than 30 percent since April, mainly due to the sharp depreciation of the pound and the impact of energy and tax reforms.

Also, Egypt adopted a value-added tax (VAT) as part of its reform program which aims to increase tax revenues sustainably. The government also took steps to reform expenditures, including notably energy subsidies. Resources from the higher VAT and more efficient spending will slow the accumulation of public debt, which had been rising rapidly.

In addition, government has taken bold steps to reduce energy subsidies which benefit mostly the rich, and also skew production to energy-intensive industries. The government reallocated part of the resources to social spending, including on health and education, and for targeted cash transfers.

Furthermore, government took measures to increase employment and labour force participation for women and youth. It has allocated budget resources to increase access to and the quality of public nurseries to help women join the labour force. It is also planning to improve the safety of public transportation. The government has also implemented specialized training programs and job search schemes for youth.

Recently, the parliament approved several measures to improve the business climate such as less red tape in industrial licensing, and easier access to financing for small and medium-sized enterprises. These measures should create more new jobs and help alleviate unemployment, which is particularly concentrated among women and young people.

According to the IMF, building on the ongoing reform efforts and the restoration of confidence, Egypt has the opportunity to transition to a higher growth trajectory, and increase prosperity for all, by locking in the gains from macroeconomic stabilization and harnessing its full growth potential.

Economy

Lokpobiri Hails Petroleum Reforms Amid Surge in Investments

Published

3 hours ago

15/06/2026

Adedapo Adesanya

By Adedapo Adesanya

The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, has said ongoing reforms and strategic policy implementation in Nigeria’s petroleum sector are driving significant investments and strengthening the country’s position as a leading energy destination in Africa.

Mr Lokpobiri stated this at the Management Retreat of the Ministry of Petroleum Resources, where he stressed the need for improved institutional performance and accountability to sustain growth in the sector.

According to the Minister, the federal government has deliberately pursued far-reaching reforms aimed at creating a stable and investor-friendly environment capable of attracting local and foreign capital into the oil and gas industry.

“From far-reaching institutional reforms to the effective implementation of strategic policies, we have remained committed to carrying all stakeholders along, fostering a conducive environment for investments to flourish,” Mr Lokpobiri said.

“As a result, our petroleum sector has witnessed significant investments that continue to strengthen Nigeria’s position as a leading energy destination.”

The Minister noted that the gains recorded in the sector were the product of collective efforts across the Ministry and its agencies, commending staff for their dedication and professionalism.

“The Management Retreat of the Ministry of Petroleum Resources provided an important platform to reiterate that these accomplishments would not have been possible without the collective dedication, professionalism and teamwork of every staff member across the Ministry and its agencies,” he stated.

Mr Lokpobiri said the retreat, themed Driving Institutional Performance and Accountability in the Petroleum Sector for Sustainable National Development, underscored the importance of continuous improvement in service delivery and operational efficiency.

Drawing lessons from the theme, he urged officials of the Ministry and regulatory agencies to intensify efforts toward enhancing institutional effectiveness and strengthening governance frameworks.

“I encouraged that we must redouble our efforts, continuously improve the quality of our services, and strengthen institutional performance,” he said.

The Minister further emphasised the continued relevance of fossil fuels in the global energy mix, stressing that Nigeria must leverage its hydrocarbon resources to drive economic growth while ensuring citizens benefit from ongoing reforms.

“With fossil fuel as the dominant source of energy, we must ensure that Nigerians experience the benefits of our progress and that Nigeria remains the preferred investment destination in Africa and a globally competitive hub for energy investments,” Mr Lokpobiri added.

Economy

Universal Insurance Extends N3.2bn Rights Issue to June 22

Published

4 hours ago

15/06/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.

The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.

The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.

In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.

Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.

The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).

Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.

Economy

4.964 billion Shares Worth N207.5bn Exchange Hands in 235,966 deals in Four Days

Published

4 hours ago

15/06/2026

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.

In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.

Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.

The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.

Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.

A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.

ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.

The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.

As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.

Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.