Economy

Nigeria’s GDP to Record 2.44% Growth in Q4 2018—FSDH

Published

7 years ago

28/12/2018

By Dipo Olowookere

A Lagos-based investment firm, FSDH Research, has projected that the Gross Domestic Product (GDP) of Nigeria will increase by 2.44 percent or N19.05 trillion in the fourth quarter of 2018.

In the third quarter of this year, according to the National Bureau of Statistics (NBS), grew by 1.81 percent.

In its report, FSDH Research said though the Q3 2018 GDP figures showed that the Nigerian economy gathered more momentum than in Q2 2018 and in the corresponding period of Q3 2017, the real GDP growth rate still remains sluggish, lower than the population growth rate in the country of about 2.75 percent (according to the figure from the International Monetary Fund).

It said the three largest sectors of the economy, which account for 56 percent of the total GDP, recorded positive growth rates in Q3 2018, while the other dominant sectors of the economy which contracted during the quarter recorded lower contractions than were recorded in Q2 2018.

‘Financial Institutions and Insurance’ is the only sector among the top ten biggest sectors that moved from growth in Q2 2018 to contraction in Q3 2018. The Q3 GDP numbers show that additional policies are required for the Nigerian economy to achieve and sustain strong growth that could create jobs.

The driver of the GDP growth rate in Q3 was the Non-Oil sector of the economy which expanded by 2.32 percent in Q3, higher than 2.05 percent in Q2 2018.

‘Information and Communication’ was the largest contributor to the GDP growth rate in Q3 2018 and despite the double-digit growth rate recorded in ‘Information and Communication,’ the World Economic Forum (WEF) rates Nigeria low in its Information and Communication Technology adoption in The Global Competitiveness Report 2018.

FSDH Research said it believes this is an indication of huge untapped opportunities within the sector, pointing out that policies are needed that could create an enabling environment for this sector to thrive.

The Oil sector of the Nigerian economy entered a recession in Q3 2018 following two consecutive quarters of contraction. FSDH Research notes, however, that the contraction in the sector moderated in Q3 2018 compared with the contraction recorded in Q2 2018.

Anecdotal evidence shows that Nigeria was not able to sell some of its crude oil in Q3 2018. Subsequently, crude oil production was reduced in addition to other technical challenges the industry faced. Nigerian economic managers need to engage in high-level international negotiations with crude oil buyers on a global scale to guarantee a market for Nigerian crude oil.

The fact that the Real Estate sector is still in economic depression is of concern to FSDH Research. Real Estate is a labour-intensive sector, which provides job opportunities for different categories of labour: unskilled, semi-skilled and highly skilled. Strong economic activities that propel growth in the Real Estate sector could employ many unemployed Nigerians, which would help to address the high unemployment level in the country.

In addition, the sector has a multiplier effect on other sectors of the economy such as manufacturing (cement production) and construction. Improved activities in the Real Estate sector could improve the standard of living through the provision of quality and affordable housing for Nigerians, which in itself should increase labour productivity.

FSDH Research recommends additional measures to stimulate economic activities in Nigeria, including the immediate abolition of additional income taxes that some state governments in Nigeria charge on employees of companies who obtain mortgage loans below market rates; the tax is a major hindrance to the growth of the real estate sector in Nigeria. Government at all levels should provide long-term guarantees for civil servants to access mortgage loans at low interest rates. Longterm funds, specifically for the development of affordable housing units, can be sourced from international development corporations.

It also suggested that government could donate land free of charge for such housing developments and that state governments should also reduce the time and costs involved in property registration.

Economy

FrieslandCampina, Okitipupa Trigger 0.64% Loss at NASD OTC Bourse

Published

3 hours ago

03/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Five securities caused the NASD Over-the-Counter (OTC) Securities Exchange to experience a setback of 0.64 per cent on Monday, February 2.

During the first trading session of February 2026, FrieslandCampinaWamco Nigeria Plc shrank by N4.46 to end at N63.54 per unit versus the previous session’s N68.00 per unit, as Okitipupa Plc depreciated by N3.83 to close at N230.77 per share versus last Friday’s N234.60 per share.

Further, Central Securities Clearing System (CSCS) dropped 50 Kobo to sell at N40.00 per unit compared with the previous closing price of N40.50 per unit, UBN Property Plc dipped by 21 Kobo to N1.99 per share from N2.20 per share, and Acorn Petroleum Plc lost 3 Kobo to end at N1.35 per unit versus N1.38 per unit.

As a result, the market capitalisation went down by N13.98 billion to settle at N2.158 trillion, in contrast to the previous value of N2.171 trillion, and the NASD Unlisted Security Index (NSI) contracted by 23.35 points to settle at 3,606.76 points compared with last Friday’s closing value of 3,630.11 points.

Amid the loss, Geo-Fluids Plc managed to finish green after it chalked up 9 Kobo to sell at N6.84 per share versus the N5.75 per share it ended in the last trading day.

Yesterday, the volume of securities traded by investors surged by 1,238.5 per cent to 3.9 million units from 287,618 units, the value of securities increased by 1,075.2 per cent to N36.0 million from N3.1 million, and the number of deals soared by 90.5 per cent to 40 deals from 21 deals.

At the close of trades, CSCS Plc remained the most traded stock by value (year-to-date) with 15.4 million units valued at N623.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 1.7 million units worth N110.2 million, and Geo-Fluids Plc with 10.6 million units sold for N69.9 million.

CSCS Plc was also the most active stock by volume (year-to-date) with 15.4 million units traded for N623.9 million, trailed by Geo-Fluids Plc with 10.6 million units worth N69.9 million, and Mass Telecom Innovation Plc with 10.1 million units transacted for N4.1 million.

Economy

Renewed FX Pressure Weakens Naira to N1,390/$1 at Official Market

Published

3 hours ago

03/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The value of the Naira dropped against the United States Dollar in the the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Monday, February 2 by N3.81 or 0.27 per cent to N1,390.36/$1 from the N1,386.55/$1 it traded last Friday.

This was driven by stronger demand for forex at the official market, which outweighed to what was available to meet customers’ needs. But the local currency remained within the expected trading range.

In the same market window, the domestic currency further appreciated against the Pound Sterling during the session by N6.72 to close at N1,899.51/£1 compared with the preceding session’s rate of N1,906.23/£1 and improved against the Euro by N7.70 to trade at N1,644.52/€1 versus the previous trading day’s value of N1,652.22/€1.

In the parallel market, the exchange rate of the Nigerian Naira to its American counterpart remained unchanged yesterday at N1,465/$1 and at the GTBank FX counter, it also maintained stability at N1,419/$1.

The Naira is expected to remain relatively stable in the coming days, boosted by stronger FX liquidity, enhanced price discovery, and a gradual restoration of offshore investor confidence while Nigeria’s external reserves, which provide the Central Bank of Nigeria (CBN) with the capacity to defend the Naira and stabilise the foreign exchange market, have continued to grow steadily.

Updated data showed that Nigeria’s gross external reserves printed at $46.18 billion as of January 29, 2026, reflecting an addition of $62.40 million.

As for the cryptocurrency market, it was bullish after a sharp weekend sell-off while a resurgent US Dollar index, which has logged its strongest two-day gain in nine months, threatened to keep gains in check.

Expectations that US Federal Reserve chair nominee, Mr Kevin Warsh, will be cautious on interest-rate cuts, along with upcoming US jobs data, are seen as potential drivers of further Dollar strength.

The biggest gainer for the session was Cardano (ADA), which rose by 6.2 per cent to trade at $0.2976, Ethereum (ETH) appreciated by 5.5 per cent to $2,319.80, Dogecoin (DOGE) grew by 5.3 per cent to $0.1066, Binance Coin (BNB) gained 4.8 per cent to sell for $776.00, and Solana (SOL) added 4.6 per cent to sell at $103.75.

In addition, Litecoin (LTC) improved by 4.5 per cent to trade at $59.95, Bitcoin (BTC) appreciated by 3.6 per cent to $78,445.62, and Ripple (XRP) expanded by 3.4 per cent to $1.60, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.

Economy

NGX Index Records Marginal 0.01% Rise Amid Weak Investor Sentiment

Published

6 hours ago

03/02/2026

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited managed to finish in the green territory on Monday after it marginally closed higher by 0.01 per cent.

The last minute escape from the bears was triggered by the gains posted by large-cap equities like Zenith Bank, Aradel Holdings and others, offsetting the losses recorded by GTCO, Oando, First Holdco and others.

According to data obtained by Business Post, only 29 stocks ended on the gainers’ chart, while 44 equities landed on the losers’ table, indicating a negative market breadth index and weak investor sentiment.

Universal Insurance rose by 10.00 per cent to sell for N1.32, Premier Paints appreciated by 10.00 per cent to N11.00, DAAR Communications improved by 9.93 per cent to N1.55, RT Briscoe increased by 9.92 per cent to N8.64, and Morison Industries advanced by 9.91 per cent to N10.98.

On the flip side, Omatek declined by 10.00 per cent to N2.70, Union Homes REIT declined by 9.96 per cent to N85.40, AXA Mansard shrank by 9.94 per cent to N14.31, Deap Capital decreased by 9.90 per cent to N8.46, and C&I Leasing moderated by 9.80 per cent to N6.90.

On the first trading session of this week, market participants bought and sold 762.8 million shares valued at N18.4 billion in 55,374 deals compared with the 687.4 million shares worth N15.0 billion traded in 41,553 deals last Friday, a spike in the trading volume, value, and number of deals by 10.97 per cent, 22.67 per cent, and 33.26 per cent, respectively.

Tantalizers ended the day as the most active stock with 88.5 million units sold for N329.4 million, Zenith Bank traded 40.2 million units worth N2.9 billion, Veritas Kapital transacted 39.2 million units valued at N92.1 million, Universal Insurance exchanged 29.3 million units for N38.1 million, and First Holdco transacted 27.6 million units worth N1.1 billion.

The sectorial performance yesterday showed that the mood of investors was in the sell region despite the slight growth recorded by Customs Street, as only the energy index closed in green, rising by 2.00 per cent.

The insurance counter was down by 1.99 per cent, the banking industry depleted by 0.64 per cent, the consumer goods shrank by 0.37 per cent, and the industrial goods retreated by 0.08 per cent.

When the first trading day of February 2026 ended on Monday, the All-Share Index (ASI) went up by 14.23 points to 165,384.63 points from 165,370.40 points, while the market capitalization chalked up N9 billion to finish at N106.162 trillion compared with the previous session’s N106.153 trillion.