Economy

Nigeria: Broad Money Grows 6.51% in December 2016

Published

9 years ago

23/02/2017

By Modupe Gbadeyanka

Central Bank of Nigeria (CBN) Depository Corporations Survey has shown that broad money supply (M2) expanded month-on-month by 6.51 percent in December 2016 to N23.84 trillion, a report by Cowry Asset has revealed.

It was gathered that the increase in M2 followeda0.70 percentincreaseinNet Domestic AssetstoN14.38trillion, accompanied by a 16.98 percent decrease in Net Foreign Assets to N9.35trillion.

The increase in net foreign assets partly reflected recovery in international crude oil prices since October last year juxtaposed with improved crude oil production.

Narrow money supply, M1, increased by 10.46 percent to N11.52 trillion as demand deposits grew by 9.69 percent to N9.70 billion and currency outside the banks increased by 14.70 percent to N1.82 trillion.

Also, net domestic credit upped by 0.45 percent to N26.97 trillion as credit to the private sector declined by 2.91 percent to N22.37 trillion while credit to the government increased by 20.85 percent to N4.60 trillion; which was indicative of crowding out of the private sector in a high interest rate environment.

In the real sector, Nigeria’s economy recorded sustained increase in annual inflation rate, to 18.72 percent in January 2017 (from 18.55 percent in December 2016).

However, monthly increase in composite consumer price index slowed to 1.01 percent in the review month (from 1.06 percent in December).

Increase in general price level was partly due to increased pressure from higher foreign exchange rates and their subsequent impact on consumer goods and services –Naira/USD exchange rates increased month-on-month by 1.78 percent and 1.63 percent to average N490/USD and N495.38/USD at the Bureau De Change and Parallel market segments respectively.

Similarly, the prices of refined petroleum products increased on a monthly basis–Premium Motor Spirit increased by 1.36 percent to average N148.7/litre; Automotive Gas Oil increased by 22.59 percent to average N240.52/litre; Household Kerosene spiked by 87.12 percent to average N433.84/litre; while average price for Liquefied Petroleum Gas increased by 22.91 percent to N5,500 per 12.50kg refill.

Food inflation rate rose to 17.82 percent in January (faster than 17.39 percent in December), driven by increases in prices of bread and cereals, meat oil and fats, and fish.

However, core inflation rate fell to 17.90 percent in January (from 18.10 percent in December).

The price index of housing water, electricity, gas and other fuel grew by 27.17 percent in January (slower than 27.25 percent in December); imported food index rose by 20.97 percent in January (slower than 21.08 percent in December); while transportation index increased at a faster pace by 17.22 percent in January (from 17.30 percent in December).

The clothing and footwear price index also increased at a faster pace by 17.85 percent in January (from 17.81 percent in December).

On the foreign scene, inflation rate in the United States increased year-on-year to 2.5 percent in January 2017 (higher than 2.1 percent recorded in December; above market expectations of 2.4 percent and higher than 2.0 percent target set by the Federal Open Markets Committee), mainly driven by gasoline prices.

In the same vein, inflation rate in the United Kingdom increased to 1.8 percent in January 2017 (higher than 1.6 percent in December, but below mark expectations of 1.9 percent), mainly driven by rising cost of fuel.

Consumer prices in China also increased year-on-year by 2.5 percent in January 2017 (higher than 2.1 percent recorded in December), driven by a faster increase in cost of food and non-food items.

The annual inflation rate in Ghana slowed to 13.3 percent in January (from 15.4 percent in the previous month), driven by slower increase in prices of food and non-food items (7 percent from 9.7 percent and 16.6 percent from 18.2 percent respectively).

View full report here: Cowry Asset

Economy

Customs Street Chalks up 0.12% on Santa Claus Rally

Published

6 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

7 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

7 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.