Economy

Niger’s Overall Macroeconomic Performance Okay In 2016—IMF

Published

8 years ago

07/11/2016

Modupe Gbadeyanka

imf-office

By Modupe Gbadeyanka

A recently released report by the International Monetary Fund (IMF) has said Niger’s overall macroeconomic performance has remained satisfactory in 2016 despite the security and humanitarian shocks, the unfavourable commodity prices, and the reduction of trade flows to neighbouring countries.

An IMF team to Niger led by Mr Anta Gueye visited Niamey from October 24 to November 7, 2016 to conduct the 2017 Article IV consultation and discuss a successor Extended Credit Facility (ECF) arrangement that could support Niger’s medium-term economic and financial program.

At the end of the mission, Mr Gueye said the Nigerien authorities and the IMF team reached a staff-level agreement on a medium-term program (2017-2020) that could be supported by a successor ECF.

According him, the new program builds on lessons of the current ECF arrangement.

He said in the report that while the 2012-2016 ECF-supported program helped maintain macroeconomic stability despite a series of substantial adverse exogenous shocks and implementation slippages, allocations for health and education were crowded out by priority security expenses, which constrained the achievement of broader development objectives.

“The new program aims at preserving macroeconomic stability and at achieving the development objectives of the Economic Development Document,” he explained in the report obtained by Business Post.

He added that in view of the elevated security spending needs and the persisting shocks to government revenue, policies under the new program focus on domestic revenue mobilization, by broadening the tax base, and on strengthened budget management, to provide the needed fiscal space and ensure debt sustainability.

The program, Mr Gueye explained, also includes a strong agenda for structural reforms to strengthen public financial management, support the diversification of the economy and enhance resilience, while reflecting limited capacity.

He said the country’s growth is projected to increase to 4.5 percent in 2016 from 3.5 percent in 2015, helped by a strong 2016/17 crop year and despite continued weakness in the oil and mining sectors. Inflation would be contained at 1.6 percent in 2016.

“Budget execution has been impacted by lower-than-targeted revenue collection partly due to unfavourable developments in commodity sectors and continued economic problems in neighbouring countries.

“At end-June 2016, most fiscal targets other than for government revenue were however met. Progress was made in implementing structural reforms, albeit with delays.

“In response to a larger shortfall of revenue collection in the second half of 2016, the authorities curtailed commitments on non-priority expenditures for the last quarter of 2016. This measure enacted by the inter-ministerial budget regulation committee will help avoid the accumulation of payments arrears and the resort to domestic financing,” the report said.

“The economic outlook for the medium-term is favourable, but remains subject to substantial external and domestic risks. Real GDP growth is projected to increase to 5.2 percent in 2017, driven by agriculture and an expected pick-up in oil production. Inflation is expected to remain contained below 2 percent.

“Real GDP growth is expected to average 6.0 percent during 2018- 2021, mainly as a result of the expansion of the extractive industries sector and an increase in public and private investments. Inflation is expected to remain below the 3 percent WAEMU convergence criterion.

“Key risks include negative externalities of regional conflicts, vulnerability to natural disasters, and the economic turmoil in the sub-region.

“The Article IV discussions focused on preventing and managing natural disasters, harnessing the demographic dividend, and dealing with the gender issue in Niger.

“The mission met with President Issoufou Mahamadou and Prime Minister Brigi Rafini. The mission held also working sessions with the Minister of Finance, Mr, Massoudou Hassoumi, other Ministers in charge of Planning, Petroleum, Mines, the Minister Delegate for Budget, the National Director of the BCEAO, as well as other senior government officials. The staff also met with representatives of civil society, the private sector, and the donor community,” the report said.

Economy

NGX All-Share Index Tumbles 0.05% as Investors Recalibrate Portfolios

Published

15 minutes ago

24/01/2025

Dipo Olowookere

By Dipo Olowookere

The recalibration of portfolios by investors further depressed the Nigerian Exchange (NGX) Limited on Thursday by 0.05 per cent in the absence of a positive trigger.

Amid the profit-taking, the banking space continued to witness bargain-hunting during the session, rising at the close of business by 1.04 per cent.

However, sell-offs crushed the insurance sector by 1.23 per cent, the consumer goods index depreciated by 0.81 per cent, and the energy sector lost 0.36 per cent, while the industrial goods counter closed flat.

As result, the All-Share Index (ASI) depreciated by 47.93 points to 102,788.20 points from 102,836.13 points and the market capitalisation gained N1 billion to close at N63.148 trillion compared with the preceding day’s N63.147 trillion.

Like the previous session, the market breadth index was flat after the bourse ended with 28 price gainers and 28 price losers.

Morison Industries depleted by 9.98 per cent to N3.61, C&I Leasing slumped by 9.91 per cent to N3.91, Ikeja Hotel crashed by 8.89 per cent to N12.30, Neimeth went down by 8.51 per cent to N3.44, and Sunu Assurance shed 8.03 per cent to settle at N5.50.

But SCOA Nigeria gained 9.76 per cent to sell for N3.60, DAAR Communications increased by 9.09 per cent to 84 Kobo, May and Baker jumped by 8.43 per cent to N9.00, Prestige Assurance appreciated by 6.82 per cent to N1.41, and Red Star Express chalked up 4.99 per cent to finish at N5.05.

The activity chart was mixed yesterday after the trading volume shrank by 0.10 per cent, the trading grew by 50.00 per cent, and the number of deals leapt by 12.95 per cent.

A total of 394.4 million stocks valued at N22.8 billion were traded in 12,160 deals during the session versus the 394.8 million stocks worth N15.2 billion transacted in 10,766 deals in the preceding day.

GTCO ended as the busiest equity after the sale of 42.2 million units for N2.6 billion, UBA traded 37.5 million units worth N1.3 billion, Zenith Bank transacted 25.2 million units valued at N1.2 billion, Access Holdings exchanged 24.3 million units for N601.6 million, and Jaiz Bank traded 13.8 million units worth N41.4 million.

Economy

Oando Wins Bid to Operate Angola’s KON 13 Oil Block

Published

17 hours ago

23/01/2025

Adedapo Adesanya

By Adedapo Adesanya

Nigerian energy company, Oando Plc, has won the bid for the operatorship of oil block KON 13 in Angola.

The company, which recently acquired Eni of Italy’s oil assets in Nigeria, disclosed on Wednesday that the award of the oil block located in Angola’s onshore Kwanza Basin followed a competitive bidding process by the country’s oil and gas sector regulator.

Oando disclosed that the asset, in which it owns 45 per cent participating interest, has an estimated prospective resources of 770 to 1,100 million barrels of oil. Oando is handling its operations relating to the asset through its upstream subsidiary, Oando Energy Resources (OER).

“Oando Plc (the company), Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange Limited and Johannesburg Stock Exchange is pleased to announce that its upstream subsidiary, Oando Energy Resources (OER), has been awarded operatorship of Block KON 13 in Angola’s Onshore Kwanza Basin, following a competitive bidding process organised by the Angolan National Agency for Petroleum, Gas, and Biofuels (ANPG).

“Block KON 13 is strategically located in the prolific Kwanza Onshore Basin which represents significant exploration potential in both pre-salt and post-salt plays, with estimated prospective resources of 770 to 1,100 million barrels of oil.

“The block has two exploration wells previously drilled to a target depth of 3,000m, with oil and gas observed across various depths. With a 45 per cent participating interest, OER will lead the development of the block as an operator, alongside Effimax (30 per cent) and Sonangol (15 per cent) as co-venturers,” it stated.

Commenting on the award, the chief executive of Oando Plc, Mr Wale Tinubu, expressed confidence in the capacity of the company, in collaboration with its co-venturers, to unlock the full potential of the asset for the country.

“We look forward to collaborating with our co-venturers and other key stakeholders to harness this opportunity and unlock its full potential for Angola and Africa as a whole,” Mr Tinubu said.

This milestone, the company said, marks its strategic entry into the Angolan oil and gas market and represents a significant step in its long-term vision to grow its upstream operations across Africa.

According to Oando Plc, it also solidifies the company’s position as a prominent player in the continent’s energy landscape, evolving from a local indigenous operator to a regional powerhouse.

Following the company’s recent successful acquisition of NAOC Ltd in Nigeria, the addition of Block KON 13, the energy firm stressed, further bolsters the company’s upstream portfolio and reflects its commitment to driving regional growth and energy security.

Economy

NASD Index Gains 0.74%

Published

19 hours ago

23/01/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange appreciated by 0.74 per cent on Wednesday, January 22 as a result of buying pressure on the market.

Yesterday, the NASD Unlisted Security Index (NSI) garnered 22.86 points to wrap the session at 3,123.19 points compared with 3,100.33 points recorded in the previous session, as the value of the unlisted securities market went up at midweek by N5 billion to close at N1.076 trillion, in contrast to the preceding day’s N1.071 trillion.

The alternative bourse ended with three price gainers and two price losers at the Wednesday session.

Mixta Real Estate Plc improved its value by 25 Kobo to end at N2.83 per unit compared with the previous day’s N2.58 per unit, Okitipupa Plc jumped by N3.56 to close at N43.55 per share versus N39.99 per share, and First Trust Mortgage Bank Plc added 2 Kobo to settle at 39 Kobo per unit compared with Tuesday’s trading price of 37 Kobo per unit.

On the flip side, UBN Property Plc lost 16 Kobo to end at N1.86 per share, in contrast to the preceding session’s N2.00 per share, and Mass Telecomm Innovation Plc went down by 1 Kobo to 41 Kobo per unit from 40 Kobo per unit.

During the session, there was a 216.2 per cent rise in the volume of securities traded to 581,160 units from 183,780 units, the value of securities traded by investors decreased by 48.9 per cent to N2.3 million from N4.5 million, while the number of deals increased by 84.6 per cent to 24 deals from 13 deals.

When the bourse closed for the day, Industrial and General Insurance (IGI) Plc was the stock with the highest trading volume (year-to-date) with 25.3 million units valued at N5.9 million, followed by Geo-Fluids Plc with 9.1 million units sold for N44.0 million, and FrieslandCampina Wamco Nigeria Plc with 4.1 million units worth N162.9 million.

By value, FrieslandCampina Wamco Nigeria Plc topped the activity chart after selling 4.1 million units worth N162.9 million, trailed by Geo-Fluids Plc with 9.1 million units sold for N44.0 million, and 11 Plc with 55,358 valued at N14.5 million.