Economy
Niger’s Overall Macroeconomic Performance Okay In 2016—IMF
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.
By Adedapo Adesanya
The duo of MRS Oil and FrieslandCampina Wamco Nigeria Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Friday, June 5.
MRS Plc lost N19.00 during the session to sell at N171.00 per share compared with Thursday’s value of N190.00 per share, and FrieslandCampina Wamco Nigeria Plc depreciated by N8.70 to finish at N181.68 per unit compared with the preceding session’s N190.38 per unit.
As a result, the market capitalisation further lost N22.59 billion to close at N2.607 trillion versus the N2.630 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropped 37.76 points to settle at 4,358.32 points, in contrast to the previous day’s 4,396.08 points.
The alternative stock market closed the last trading day of this week with a price gainer, Central Securities Clearing System (CSCS) Plc, which gained 6 Kobo to quote at N78.40 per share compared with the preceding session’s N78.34 per share. However, it could not prevent the market from going down at the close of business.
Yesterday, the volume of securities bought and sold by investors went down by 50.0 per cent to 140,345 units from the preceding day’s 280,714 units, the value of stocks decreased by 16.5 per cent to N17.9 million from the previous session’s N21.5 million, and the number of deals carried out by market participants fell by 35.7 per cent to 27 deals from the 42 deals recorded on Thursday.
When trading activities closed for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
By Dipo Olowookere
Renewed interest in financial stocks and others lifted the Nigerian Exchange (NGX) Limited by 0.15 per cent on Friday.
Customs Street closed higher yesterday despite the 1.37 per cent loss recorded by the consumer goods sector as a result of profit-taking.
This was offset by gains in the other key sectors of the local bourse, as the insurance counter chalked up 1,14 per cent. The banking space appreciated by 0.90 per cent, the industrial goods segment grew by 0.46 per cent, and the energy sector expanded by 0.01 per cent.
Consequently, the All-Share Index (ASI) went up by 366.00 points to 242,593.31 points from 242,227.31 points, and the market capitalisation gained N235 billion to close at N155.594 trillion compared with the previous day’s N155.359 trillion.
The trio of International Energy Insurance, Abbey Mortgage Bank, and DAAR Communications improved by 10.00 per cent each yesterday to N7.26, N9.35, and N1.98, respectively, while Zichis advanced by 9.39 per cent to N32.38, with Sovereign Trust Insurance up by 8.70 per cent to N2.50.
On the flip side, Academy Press lost 9.84 per cent to quote at N8.25, University Press depreciated by 9.73 per cent to N5.10, Africa Prudential dipped by 2.63 per cent to N12.95, Chams crumbled by 2.44 per cent to N4.00, and International Breweries slipped by 1.59 per cent to N12.35.
Business Post reports that the market breadth index was positive during the session after recording 37 appreciating equities and 14 depreciating equities, implying strong investor sentiment.
Abbey Mortgage Bank led the activity chart with a turnover of 164.1 million units worth N1.5 billion, Ellah Lakes sold 76.7 million units for N767.2 million, Access Holdings transacted 44.8 million units valued at N1.1 billion, Linkage Assurance exchanged 23.0 million units worth N41.2 million, and The Initiates traded 20.2 million units for N562.1 million.
At the close of trades, market participants transacted 608.5 million units worth N32.0 billion in 53,826 deals versus the 588.5 million units valued at N27.9 billion executed in 57,352 deals in the previous session. This showed that the number of deals eased by 6.15 per cent, the volume of transactions rose by 3.40 per cent, and the value of transactions soared by 14.70 per cent.
By Adedapo Adesanya
The Naira further depreciated against the United States Dollar by N3.46 or 0.25 per cent to N1,362.21/$1 from N1,358.75/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 5.
However, it appreciated against the Pound Sterling in the same market window during the session by N4.47 to trade at N1,823.59/£1 compared with the previous day’s N1,828.06/£1, and gained N7.00 against the Euro to sell at N1,574.58/€1, in contrast to Thursday’s closing price of N1,581.58/€1.
For another trading session, the Nigerian Naira maintained stability against the Dollar in the parallel market and the GTBank forex counter on Friday at N1,375/$1 and N1,372/$1, respectively.
The Naira is expected to remain strong in the near term, backed by a rise in external reserves, which are nearing $50 billion, enhancing analysts’ confidence about its outlook in the second half of 2026.
Heightened global uncertainty has reduced the incentive for importers and corporates to demand FX, as cautious trade weighs on import needs. Analysts estimate a $40 billion net FX position for the year, a projection anchored in oil windfall gains.
As for the cryptocurrency market, prices remained depressed following a strong US jobs report that spurred markets to price in higher-for-longer interest rates, sending Treasury yields and the dollar up while hammering stocks, especially AI-related names. Crypto markets saw heavy leverage washouts with about $1.6 billion in positions liquidated over 24 hours.
Ethereum (ETH) gave up 4.9 per cent to trade at $1,584.68, Solana (SOL) fell by 3.3 per cent to $63.22, Bitcoin (BTC) crashed by 1.9 per cent to $61,333.23, Dogecoin (DOGE) slipped by 1.8 per cent to $0.0821, and Ripple (XRP) moderated by 1.8 per cent to $1.09.
Further, TRON (TRX) dropped 1.6 per cent to sell at $0.3197, Binance Coin (BNB) slumped by 1.0 per cent to $581.18, and Cardano (ADA) declined by 0.4 per cent to $0.1589, while the US Dollar Tether (USDT) gained 0.07 to sell at $0.9997, and US Dollar Coin (USDC) closed flat at $0.9998.
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