Nigeria’s Q3 GDP Grows 2.54% – NBS

In the third quarter of 2023, Nigeria’s Gross Domestic Product (GDP) grew by 2.54 per cent (year-on-year) in real terms. This growth rate is higher than the 2.25 per cent recorded in the third quarter of 2022 and higher than the second quarter 2023 growth of 2.51 per cent. In its Gross Domestic Report Q3 2023, released on Friday, the statistics bureau noted that Q3 performance was driven mainly by the Services sector, which recorded a growth of 3.99 per cent and contributed 52.70 per cent to the aggregate GDP. The agriculture sector grew by 1.30 per cent, from the growth of 1.34 per cent recorded in the third quarter of 2022. The growth of the industry sector was 0.46%, an improvement from -8.00% recorded in the third quarter of 2022. In terms of share of the GDP, agriculture, and the industry sectors contributed less to the aggregate GDP in the third quarter of 2023 compared to the third quarter of 2022. In the quarter under review, aggregate GDP stood at N60,658,600.37 million in nominal terms. This performance is higher when compared to the third quarter of 2022 which recorded aggregate GDP of N52,255,809.62 million, indicating a year-on-year nominal growth of 16.08%. The NBS noted that in real terms the oil sector growth was –0.85 per cent (year-on-year) in Q3 2023, indicating an increase of 21.83 percentage points relative to the rate recorded in the corresponding quarter of 2022 (-22.67%). Growth also increased by 12.58 percentage points when compared to Q2 2023 which was –13.43 per cent. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 12.47 per cent in Q3 2023. Nigeria recorded an average daily oil production of 1.45 million barrels per day (mbpd), higher than the daily average production of 1.20mbpd recorded in the same quarter of 2022 by 0.25mbpd and higher than the second quarter of 2023 production volume of 1.22 mbpd by 0.23mbpd. According to the NBS, “the sector contributed 5.48 per cent to the total real GDP in Q3 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 5.66 per cent and 5.34 per cent respectively.” The non-oil sector grew by 2.75 per cent in real terms during the period under review. This rate was lower by 1.52 percentage points compared to the rate recorded in the same quarter of 2022 and 0.84 percentage points lower than the second quarter of 2023. “The sector was driven in the third quarter of 2023 mainly by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Agriculture (Crop production); Trade; Construction; and Real Estate, accounting for positive GDP growth. In real terms, the non-oil sector contributed 94.52% to the nation’s GDP in the third quarter of 2023, higher than the share recorded in the third quarter of 2022 which was 94.34% and lower than the second quarter of 2023 recorded as 94.66%,” the report stated.

MPC Postponement, Blessing In Disguise – Uwaleke

The postponement of the MPC meeting for the second consecutive time could be a blessing in disguise, Professor Uche Uwaleke said. The Central Bank of Nigeria had on Monday announced the indefinite postponement of the Monetary Policy Committee meeting. The meeting, early scheduled for Monday and Tuesday, November 20 and 21, has again been postponed for the second time since Dr. Olayemi Cardoso became the governor of the apex court in September. The CBN’s Director of Corporate Communications, Dr Isa Abdulmumin, who gave this hint in a text message, confirmed that “MPC is not holding”. However, in a chat with NIGERIAN ANCHOR, Uwaleke, who is a Professor of the Capital Market at the Nasarawa State University Keffi, noted that had the MPC had held in September, it most likely would have jerked up the MPR thereby further increasing the cost of doing business and reducing access to credit. “This would have been the outcome of the meeting against the backdrop of the pressure by the IMF for an MPR hike to reduce money supply which would not have had any significant impact on the rising inflation,” he said.

Equity Market Resumes Week Negatively, Sheds N57bn

The domestic equity market on Monday opened the week bearish, declining by N57 billion as the fall in the shares price of RTBriscoe, Nigeria Breweries, Stanbic IBTC, Transacorp and others impacted negatively on the market. The market capitalisation of listed equities which went down by 0.15 per cent to N39.050 trillion from N39.107 trillion it closed last week Friday. The NGX All Share Index also depreciated by 104.29  basis points to 71008.70 points from 71112.99 points traded on Friday. An analysis of the investment showed that Mecure led gainers table in percentage terms, gaining 9.95 per cent to close at N6.30 per share, Multiverse followed with a gain of 9.92 per cent to close at N3.99 per unit, ABC Transport added 9.88 per cent to close at N0.89 per unit, C& I Leasing gained 9.84 per cent to close at N5.47 per unit. Northern Nigeria Flour Mills Nigeria Plc increased by 9.83 per cent to close at N26.25 per unit. On the contrary, RTBriscoe recorded the highest loss during the day, dropping by 9.84 per cent to close at N0.55 per share, Prestige insurance trailed with a loss of 9.09 per cent to close at N0.50 per unit, Stanbic IBTC down by 7.08 per cent to close at N65.00, CWG fell by 3.04 percent to N7.70 per share, Caverton Business Solutions declined by 2.78 per cent to close at N1.40 per unit. Volume of trades also dropped by  83.134 million, representing 18.82 percent as investors traded 358.445 million shares valued at N4.357 billion in 6551 deals against 441.579 million shares worth N6.032 billion exchanged hands the previous day in 5883 deals. The result further showed that transactions in the shares of AccessCorp led market activities during with 27.583 million shares valued at N474.629 million, AIICO Insurance followed with 21.931 million shares cost N16.649 million, Japaul Gold traded 21.240 million shares cost N37.212 million, Veritas Kapital exchanged 18.995 million shares valued at N5.881 million while Transnational Corporation of Nigeria exchanged 17.073 million shares valued at N104.631 million.

Naira Depreciates To N827.83/$1 At Official Market

The naira again declined against the US dollar at the official market on Thursday, exchanging for N827.83 to one U.S dollar after a slight appreciation on Wednesday which saw the local currency exchanging at N818.99/$1. This is still a slight gain when compared to the N850.22 it recorded on Tuesday. However, the naira closed flat at the parallel forex market where forex is sold unofficially, the exchange rate closed at N1140/$1 as against the same N1140/$1 it quoted on Wednesday, representing 0.00 per cent, while peer-to-peer traders quoted around N1127.01/$1.  The intraday high recorded was N1100/$1, while the intraday low was N751.00/$1, representing a wide spread of N348.78/$1. Similarly, the naira also fell to the Euro, exchanging at N1,175/€1 at the parallel market, while it goes for N898.44/€1 at the official market. Also the pound sterling goes for N1,370 and N1029.7441 at the parallel and official market respectively. According to data obtained from the official NAFEM window, forex turnover at the close of the trading on Wednesday was $173.51 million, representing a 20.87 per cent increase compared to the previous day.  The local currency struggle at the foreign exchange market is coming on the heels of rising inflation in the country which saw the inflation rate jump to 27.33 per cent in October 2023 as prices of foodstuff continued to increase in the aftermath of the removal of fuel subsidy by the President Bola Tinubu administration. This was according to the October 2023 Consumer Price Index (CPI) and Inflation Report released by the National Bureau of Statistics (NBS) on Wednesday. The CPI, which measures the changes in the prices of goods and services, rose from 26.72 per cent to 27.33 per cent showing an increase of 0.61 per cent points. “In October 2023, the headline inflation rate increased to 27.33 per cent relative to the September 2023 headline inflation rate which was 26.72 per cent,” the report partly read. “Looking at the movement, the October 2023 headline inflation rate showed an increase of 0.61 per cent points when compared to the September 2023 headline inflation rate. “Furthermore, on a year-on-year basis, the headline inflation rate was 6.24 per cent points higher compared to the rate recorded in October 2022, which was (21.09 per cent). “This shows that the headline inflation rate (year-on-year basis) increased in October 2023 when compared to the same month in the preceding year (October 2022).”

Nigeria’s Equity Market Gains N6bn

The local equity market, on Thursday advanced by N6 billion as gains recorded in the shares of Nigerian Breweries, C&I Leasing, Northern Nigeria Flour Mills among others lifted market activities. Market capitalisation of listed equities increased by N6 billion or 0.02 per cent to N39.059 trillion from N39.053 trillion reported the previous day. The NGX All Share Index also appreciated by ç basis points to 71025.16 points from 71014.34 points reported the previous day. Volume of transactions increased by 186.494 million, representing 63.72 per cent as investors traded 483.847 million shares valued at N4.378 billion in 6545 deals against 297.353 million shares valued at N6.161 billion in 6172 deals. A review of investment showed that Deep Capital and NSLTech  led gainers table,gaining  10 per cent each to close at N0.44 and N0.33 per unit, C&I Leasing followed with a gain of 9.95 per cent to close at N4.53 per share, Northern Nigeria Flour Mills gained 9.85 per cent to close at N22.75 per unit while SCOA Plc added 9.82 per cent to close at N1.23 per share. On the contrary, ABC Transport recorded the highest loss in percentage terms, dropping by 10 per cent to close at N0.90 per unit, ETranzact trailed with a loss of 9.93 per cent to close at N6.80 per unit, Thomas Way fell by 8.95 per cent to close at N3.46 per share. Guinea Insurance dipped by 8.33 per cent to close at N0.22 per unit, Ellah Lakes fell by 7.89 per cent to close at N3.50 per share. Transactions in the shares of Regal insurance led market activities with 104.341 million shares valued at N36.490 million, Oando Plc followed with account of 55.280 million shares worth N676.637 million, Universal insurance traded 53.351 million shares cost N12.338 million, Japaul Gold exchanged 24.949 million shares cost N46.772 million while United Bank for Africa sold a total of 21.492 million shares cost N445.446 million.

Nigeria’s Local Equities Gain N25bn

Trading activities on the floor of Nigerian Exchange (NGX) on Thursday appreciated by N25 billion. Market capitalisation of listed equities appreciated by 0.06 per cent to N38.910 trillion from N38.885 trillion it closed on Wednesday. The NGX All Share Index also increased by 46.18 basis points to 70819.49 points from 70773.31 points reported the previous day. An analysis of the investment showed that UPDC led gainers table in percentage terms, appreciating by 9.91 per cent to N1.22 per share, Mecure followed with a gain of 9.85 per cent to close at N3.57 per unit, SCOA Plc up by 9.73 per cent to close at N1.24 per unit. Japaul Gold gained 9.58 per cent to close at N1.83 per share while UACN went up by 8.47 per cent to close at N16.00 per unit. On the contrary, VFD group topped losers chart, dropping by 9.37 per cent to close at N2.90 per share, TIP down by 9.35 per cent to close at N0.97 per share. Regal insurance fell by 8.57 per cent to close at N0.32 per unit while Daar Communications dipped by 8.33 per cent to close at N0.22 per share. Investors traded 569.194 million shares valued at N16.790 billion in 6169 deals against 558.344 million shares worth N9.794 billion exchanged hands the previous day in 6401 deals. Transactions in the shares ofJapaul Gold led market activities with 113.964 million shares valued at N208.554 million, Stanbic IBTC followed with 96.917 million shares worth N6.777 billion, United Bank for Africa exchanged 75.218 million shares valued at N1.548 billion, FBNHoldings traded 42.644 million shares cost N849.768 million while Fidelity Bank traded 34.700 million shares cost N319.058 million.

Bulls Lead As Domestic Equities Gain N88bn

The Nigerian equities market on Wednesday closed on a positive note, gaining 158.71 basis points. The NGX All Share Index also appreciated by 0.22 per cent to 70773.31 points from 70613.60 points traded. Market capitalisation of listed equities also increased by N88 billion  to N38.885 trillion from N38.797 trillion reported the previous day. The trading result for the day showed that Japaul Gold led gainers table in percentage terms, gaining 9.87 per cent to close at N1.67 per share, Mecure followed with a gain of 9.80 per cent to close at N3.25 per unit, Prestige insurance added 9.76 per cent to close at N0.45 per unit, Cornerstone Insurance up by 9.72 per cent to close at N1.58 per share while Omatek increased by 9.62 per cent to close at N0.57 per share. Conversely, Caverton Business Solutions recorded the highest loss with 9.87 per cent to close at N1.37 per share, Meyer Pant trailed with a loss of 9.85 per cent to close at N2.47 per share, SCOA Plc fell by 9.60 per cent to close at N1.13 per share, Thomas Way dipped by 8.60 per cent to close at N3.72 per unit, UPDC dropped by 8.26 per cent to close at N1.11 per share. Volume of activities increased by 139.061 million, representing 30.95 per cent as investors traded 558.344 million shares valued at N9.794 billion in 6401 deals against 449.283 million shares worth N5.444 billion exchanged hands the previous day in 7100 deals. Transactions in the shares of FBNHoldings Plc led market activities with 209.898 million shares valued at N4.042 billion, United Bank for Africa followed with account of 53.724 million shares worth N1.099 billion, Universal insurance traded 43.685 million shares cost N10.194 million, Fidelity Bank exchanged 22.253 million shares worth N203.733 million, Unity Bank exchanged 18.028 million shares valued at N16.860 million.

Nigeria’s Equity Sustains Bullish Run, Gains N85bn

The Nigerian equity market closed positively on Tuesday, gaining 133.98 basis points as the market remained favourable. The NGX All Share Index advanced by133.98 basis points or 0.20 per cent closing at N70613.60 points compared to previous day gain of 0.40 per cent which closed at 70479.62 points. Market capitalisation of listed equities also appreciated by N85 billion to N38.787 trillion from N38.712 trillion reported the previous day. The NGX trading result showed that market activities lifted as result of increase in the share price of FBNHoldings, PZ, FCMB, Fidelity Bank Glaxosmith among others. An analysis of the investment showed that PZ Cusson led gainers table in percentage terms, increasing by 10 per cent to close at N22.00, Glaxosmith followed with a gain of 9.93 per cent to N14.95 per unit, Daar Communications added 9.52 per cent to N0.23 per unit, Japaul Gold up by 9.35 per cent to close at N1.52 per share, International Breweries gained 8.43 per cent to close at N4.50 per share. On the contrary, Northern Nigeria Flour Mills topped losers chart, dropping by 10 per cent to N18.00 per share, TIP followed with 9.65 per cent to close at N1.03 per share, Royal Express down by 9.26 per cent to close N0.49 per unit, Omatek fell by 8.77 per cent to close at N0.52 per share while Eterna Plc fell by 8.62 per cent to close at N13.25 per share. Volume of activities during the day rose by 58.27 million, representing 14.90 per cent as investors traded 449.283 million shares valued at N5.444 billion in 7100 deals against 391.013 million shares worth N7.705 billion exchanged hands the previous day in 6837 deals. Transactions in the shares of FBNHoldings led market activities during the day with 52.023 million shares valued at N1.026 billion, Chi Plc followed with account of 49.525 million shares cost N49.462 million, Fidelity Bank traded 42.020 million shares valued at N381.493 million, United Bank for Africa exchanged 41.466 million shares cost N847.006 million while Japaul Gold traded 37.079 million shares cost N55.154 million.

No Plans To Re-Denominate Naira, Says CBN

The Central Bank of Nigeria (CBN) has insisted that it has no plans to re-denominate the Naira, saying such reports are misleading.   According to a statement by the Director, Corporate Communications of the Apex Bank Dr. Isa AbdulMumin, he wondered why a narrative that had been refuted by the Bank continues to gain traction. “The attention of the Central Bank of Nigeria (CBN) has been drawn to the wide circulation of a text message suggesting that the Bank plans to redenominate the country’s legal tender, the Naira, with effect from January 2024. “We are concerned that this narrative, which we had refuted before now, appears to be gaining traction with several debates on the implication of such a policy for the Nigerian economy. “We wish to reiterate that the contents of the message are misleading,” it said. The Apex Bank noted that the “authors of the message, in their mischief, modified text eked from an old policy move by a previous CBN Governor in 2007 to make it appear recent. “For the avoidance of doubt, there is currently no plan by the Bank to restructure and redenominate the naira as it considers reforms”, according to laid down procedures in line with the provisions of the CBN Act, 2007. The regulator advised Nigerians to ignore the news report, “as it is speculative and calculated to cause panic in the polity.”

Equity Market Sheds N21bn

Nigeria’s equity market began the week on a bearish note, shedding N21 billion following profit-taking in the shares of Dangote Sugar, GTCO Plc and other stocks. The development impacted on the market forcing the NGX All Share Index to decline by 38.49 basis points to 66876.92 points from 66915.41 points reported the previous day. Market capitalisation of listed equities also declined by 0.06 per cent to N36.742 trillion from N36.763 trillion reported the previous day. An analysis of the investment showed that Thomas Way led gainers table in percentage terms, gaining 9.92 per cent to N3.99 per share, Academy Press followed with a gain of 9.71 per cent to close at N1.92 per unit, Ikeja Hotel added 9.52 per cent to close at N3.45 per unit, Chams Plc increased by 7.38 per cent to close at N1.60 per unit, Tantalizer added 6.90 per cent to close at N0.31 per share. Volume of trades increased by 135.726 million, representing 65.92 per cent as investors traded 314.619 million shares valued at N4.388 billion in 6133 deals against 205.893 million shares costing N6.380 billion in 4986 deals. On the contrary, VFD group recorded the highest loss during the day, shedding 9.99 per cent to close at N242.40 per share, Mcnichols followed with 9.69 per cent to close at N0.56 per share, UPL dipped by 9.32 per cent to close at N2.14 per unit, Chi pls declined by 5.22 per cent to close at N1.09 per unit, Omatek down by 4.44 per cent to close at N0.43 per unit. Transactions in the shares of United Bank for Africa led market activities with 47.150 million shares valued at N900.695 million, AccessCorp followed with a gain of 40.348 million shares valued at N666.866 million, FCMB group traded 29.054 million shares cost N173.552 million, GTCO Plc exchanged 27.393 million shares worth N959.246 million while Transcorps sold a total of 16.435 million shares valued at N102.039 million.