Economy
Nigeria’s Consumer Confidence Level Gains 3 Points in Q4 2016—Report
By Modupe Gbadeyanka
A new report released by Nielsen Holdings Plc, a a global performance management firm providing a comprehensive understanding of what consumers watch and buy, has revealed that Nigeria climbed three points to 116 in the fourth quarter of 2016, after a steep decline in the third quarter.
In the latest Consumer Confidence Index (CCI) figures for Quarter 4 of 2016, it was observed that sentiment in the west of Africa is on the increase with Ghana rising by two points to 111.
Managing Director of Nielsen East and West Africa, Mr Abhik Gupta, while explaining the reasons for Nigeria’s improved consumer sentiment in a statement made available to Business Post, stated that, “Despite previous drops in consumer confidence, Nigerians are now more positive than Kenyans, South Africans and Ghanaians, in terms of their job prospects and personal finances and as the country’s macro, business and retail prospects recover we expect to see continued positivity amongst Nigerian consumers.”
Adding to this positive outlook, the latest Nielsen Africa Prospects Indicator (APi), which integrates macro-economic, business, retail and consumer factors points to the fact that predictions are that the worst is over and it will not take much to drive the Nigerian economy into positive growth levels in 2017.
Short term positivity in Nigeria
In light of this, all confidence indicators in Nigeria increased in the fourth quarter. The percentage of respondents who predict that their personal finances will be good or excellent in the next 12 months jumped five percentage points to 80 percent, and 59 percent of Nigerian respondents said job prospects will be good or excellent, up one percentage point from the third quarter.
Immediate-spending intentions increased four percentage points, rising to 39 percent while more than four in 10 Nigerian respondents (44 percent) said they had spare cash, up from 36 percent in the third quarter.
In terms of what they would use this spare cash for, the highest number of Nigerians are seeking to batten down the hatches on their current financial future, with 80 percent saying they would put it into savings.
The second highest number (69 percent) wants to use their spare cash on home improvements and decorating and 62% on investing in shares and mutual funds. Unsurprisingly, 60 percent would spend it on out-of-home entertainment as they seek some respite from their current daily stresses and strains.
Mixed positivity in Ghana’s results
The overall increase in Ghana’s CCI, was due to a higher proportion of “Excellent” responses even though “Good” responses have declined.
This means that despite the positive outlook for jobs dropping two percentage points from Q3 to an overall 55 percent, this was made up of 12 percent saying “Excellent” (up from 10 percent previous quarter) and 43 percent saying “Good”.
This was followed by positive personal-finance sentiment decreasing by one point to 76 percent, of which 23 percent said “Excellent” (up by 4 points) and 52 percent said “Good”.
Immediate-spending intentions dropped by two percentage points to 40 percent of which 10 percent said “Excellent” (up by 4 points) and 30 percent said “Good”.
Less than half of Ghanaian respondents said they had spare cash (47%) – a drop of 3 percentage points from the third quarter, however this proportion of consumers is higher than Nigerians (44 percent) and Kenyans (42 percent).
In terms of what they would use this spare cash for, Ghanaians remain financially conservative in their outlook, with the highest number (82 percent) saying they would put it into savings, the second highest number of respondents 72 percent see home improvements as a worthwhile investment while (59 percent) saying they would invest in shares/mutual funds.
Overall Gupta comments; “In the backdrop of improved confidence levels, businesses need to adjust to the altered daily habits that consumers are displaying to deal with the tough market conditions. As consumers have been forced to reduce consumption, only buying on an immediate need basis, businesses need to meet these new consumers realities with agility, flexible product offerings, packaging and pricing.”
By Adedapo Adesanya
The Minister of Solid Minerals Development, Mr Dele Alake, has called on foreign investors to consider Nigeria amid prevailing barrage of tariffs imposed by the United States, which he says may be a blessing in disguise for African countries.
Speaking during the Fireside Chat session on Foreign Direct Investment in Abu Dhabi, United Arab Emirates, the Minister called on African countries to adopt an introspective approach by looking inward and adjusting their domestic policies to focus more on intra-African trade, with less dependence on external forces.
In a statement by his Special Assistant on Media, Mr Segun Tomori, on Sunday in Abuja, it was stated that the Minister’s remarks were part of his contribution to the discourse on the impact of the tariffs on Africa’s economic climate.
“The barrage of tariffs imposed carries wide-ranging implications for the global economy, U.S. trade relationships, and developing nations, including those in Africa,” he said.
He stressed the need need for African countries to organise economic imperatives to ensure a balance of trade and strengthen intra African trade among countries.
Mr Alake highlighted the persistent challenge faced by African countries, where rare mineral resources were exported without any value addition, noting that the old ‘pit-to-port’ model, where resources are extracted and sent out of the continent can no longer be allowed to continue.
“Interested investors, who wish to come into Africa are welcome to set up their factories in the continent, add value to our mineral resources and create jobs here, rather than just shipping our wealth out of our shores”, he stated.
The minister said that his stance on protecting Africa’s mineral wealth has been adopted by many African countries, particularly mineral-producing nations, where he served as the pioneering chairman of the African Minerals Strategic Group (AMSG).
He reaffirmed that Nigeria’s policy on mineral sector development remained strictly focused on value addition and boosting the local economy through job creation.
By Adedapo Adesanya
Arnergy, a cleantech startup, has raised a $15 million Series B extension, on top of a $3 million B1 round last year, bringing its total for the round to $18 million to boost solar energy access in Nigeria.
According to TechCrunch, the new funding round was led by Nigerian private equity firm CardinalStone Capital Advisers (CCA) and saw participation from Breakthrough Energy Ventures as well as British International Investment, Norfund, EDFI MC, and All On.
Launched in 2013, Arnergy was established to provide solar systems to homes and businesses across sectors like hospitality, education, finance, agriculture, and healthcare.
The firm raised a $9 million Series A in 2019 backed by Bill Gates’s Breakthrough Energy Ventures.
The Lagos-based cleantech is in talks to raise additional local debt from banks and development financial institutions (DFIs) to support some of its projects including energy-as-a-service (EaaS) solutions for multinationals.
The cleantech is planning to install more than 12,000 systems by 2029 to help boost access to solar energy, which Nigerians have began to adopt increasingly following policy shifts, particularly the removal of fuel subsidies, that led to rise in energy costs.
Arnergy has so far deployed over 1,800 systems across 35 Nigerian states, totaling 9MWp of solar and 23MWh of battery storage.
Over the next four years, it will be targeting a 567 per cent increase to the set 12,000 systems goal.
According to the founder, Mr Femi Adeyemo, there has been increased adaptation of solar energy and this presents the perfect opportunity.
Its lease-to-own product, Z Lite, has gained more traction as customers pay fixed monthly fees over 5 to 10 years before owning the system while outright purchases comprised 60 per cent to 70 per cent of revenue in 2023, accounting for just 25 per cent of sales last year, as per TechCrunch.
“Imagine paying N200,000 (~$125) every month for power. With our product, that drops to N96,000 (~$60). Over five years, it’s a no-brainer what you’ll save,” Mr Adeyemo told the tech publication.
Recall that the federal government has also announced plans to ban importation of solar panels as part of efforts to boost local capacity. This has been projected to see a substantial increase in prices.
Speaking on this, Mr Adeyemo said, “We’re advocates for local manufacturing. But let’s build capacity before shutting the door on imports. Otherwise, we risk doing more harm than good, both to the industry and to the millions of Nigerians who now rely on solar as their primary energy source.”
By Adedapo Adesanya
The total value of stocks at the NASD Over-the-Counter (OTC) Securities Exchange increased by 0.40 per cent or N9.21 billion to N1.919 trillion in the 15th trading week of 2025 from the N1.911 trillion it ended in Week 14.
The growth was mainly influenced by the inclusion of new shares of Infrastructure Credit Guarantee Company Plc (InfraCredit) to the trading platform in the week.
InfraCredit joined the alternative stock market on March 6 and last week, it brought addition 11.166 million equities, which increased its total securities at the NASD OTC exchange to 26.421 million units.
However, the NASD Unlisted Securities Index (NSI) went down by 0.20 per cent or 31.89 points to 3,277.57 points from the 3,309.46 points it ended a week earlier.
In the week, the total value of trades ballooned by 29,234.5 per cent to N4.79 billion from the N16.3 million recorded in the previous week, and the total volume of transactions increased by 1,485.1 per cent to 171.4 million units from 10.8 million units.
The bourse recorded seven price losers led by Nipco Plc, which depreciated by 20.2 per cent to close at N199.00 per share versus N220.00 per share, Central Securities Clearing System (CSCS) Plc lost 2.5 per cent to finish at N22.70 per unit versus N25.21 per unit, FrieslandCampina Wamco Nigeria Plc shed 1.3 per cent to sell for N35.55 per share against the former value of N36.80 per share, and Afriland Properties Plc went down by 0.6 per cent to N17.80 per unit from N18.42 per unit.
Further, Geo-Fluids Plc slipped by 0.5 per cent to N2.00 per share from N2.48 per share, Acorn Petroleum Plc slid by 0.2 per cent to N1.17 per unit from N1.30 per unit, and InfraCredit Plc declined by 0.09 per cent to N2.34 per share from N2.43 per share.
On the flip side, Mixta Real Estate Plc improved by 0.4 per cent to N4.55 per unit from N4.14 per unit, Lagos Building Investment Company (LBIC) Plc expanded by 0.2 per cent to N2.63 per share from N2.80 per share, First Trust Microfinance Bank Plc appreciated by 0.04 to 62 Kobo per unit from 58 Kobo per unit, and Paintcom Investment Plc gained 0.02 per cent to end at N10.74 per share compared with the preceding week’s N10.72 per share.
The most active stock in the week by value was Okitipupa Plc with N4.6 billion, Paintcom Investment Plc recorded N190.9 million, FrieslandCampina Wamco Nigeria Plc traded N28.0 million, Nipco Plc transacted N3.5 million, and 11 Plc recorded N1.7 million.
Okitipupa Plc was also the most traded stock by volume with 152.1 million units, Paintcom Investment Plc transacted 17.8 million units, FrieslandCampina Wamco Nigeria Plc recorded 0.751 million, Geo-Fluids Plc traded 0.356 million units, and Food Concepts Plc exchanged 0.180 million units.
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