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Nigeria Enters Second Recession In Five Years

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Nigeria has slipped into a second recession in five years after its gross domestic product (GDP) contracted for the second consecutive quarter, the data released by the statistician general, Yemi Kale, said on Saturday.

Africa’s biggest economy was last in recession in 2016, its first in a generation, and emerged the following year.

But growth had been fragile and the coronavirus pandemic hit the economy hard, as did low oil prices. The continent’s top oil exporter relies on crude sales for 90% of foreign exchange earnings.

The National Bureau of Statistics, in its Gross Domestic Product report for Q3, said the GDP, the broadest measure of economic prosperity, fell by 3.62 in the three months to September.

“Q3 2020 Real GDP contracted for second consecutive quarter by -3.62%,” Yemi Kale said on Twitter.

“Cumulative GDP for the first 9 months of 2020 therefore stood at -2.48%,” he added.

The government had previously said it expected the economy to contract by as much as 8.9% this year in a worst-case scenario without stimulus.

Last month, the World Bank revised its 2020 forecast for Nigeria’s economy to -4.1 per cent from its previous projection of -3.2 per cent, saying the country’s near-term outlook was subject to “considerable uncertainty”.

The bank had said in June that the collapse in crude oil prices, coupled with the COVID-19 pandemic, was expected to “plunge the Nigerian economy into a severe recession, the worst since the 1980s”.

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Algeria Reduces Hydrocarbon Exports by 11 Per Cent

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Algeria reduced its hydrocarbon exports by 11 per cent to 82.2 million tonnes of oil equivalent (TOE), the country’s Ministry of Energy has said.

According to the ministry, the total volume of hydrocarbon exports in 2020 reached 82.2 million TOE amounting to $20 billion, “i.e. down by 11% and 40% respectively compared to 2019.”

Oil exports from the North African country stood at 571,000 barrels per day in 2019, while exports of the natural gas were 42.5 million cubic meters (over 1.5 billion cubic feet), in line with the data from the Organisation of the Petroleum Exporting Countries.

With Algeria ranked in the world’s top ten gas producers, authorities adopted in November 2019, a law on hydrocarbon resources, designed to facilitate the work of foreign companies.

The law is also expected to boost the inflow of much-needed investment in the country’s oil industry, which has been halted and required foreign investments in order to recover.

Earlier in the month, Algerian Energy Minister Abdelmadjid Attar expressed hope that oil prices would remain above $50 per barrel in the first half of 2021.

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Nigeria Bourse Resumes Week With N40Bn Loss

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Nigerian Stock Exchange to complete public listing

The Nigerian stock market opened for the week on Monday with a loss of N40 billion, halting five consecutive days positive run.

Speficially, the market capitalisation which opened at N21.530 trillion shed N40 billion to close at N21.490 trillion.

Also, the All Share Index which opened at 41,176.14 lost 93.76 points or 0.23 per cent to close at 41,082.38.

The downturn was impacted by losses recorded in medium and large capitalised stocks, among which are; Dangote Cement, Flour Mills, Guinness, NASCON Allied Industries and FBN Holdings.

Analysts at United Capital said that investors would take advantage of gains posted recently to book profit.

“While we expect investors to book some profit from last week’s gains, demand for high-yield dividend companies should sustain the market’s bullish momentum,” they said.

An analysis of the price movement chart shows that Japaul Gold and Ventures led the losers’ chart in percentage terms, losing 6.58 per cent to close at N1.42 per share.

Flour Mills trailed with a loss of 5.49 per cent to close at N31, while Wema Bank dipped 5.33 per cent to close at 71k per share.

Neimeth shed 4.76 per cent to close at N2, while GlaxoSmithKline depreciated by 4.29 per cent to close at N6.70 per share.

Conversely, African Alliance Insurance, AIICO Insurance, Cadbury Nigeria, R.T. Briscoe, Trans-Nationwide Express and Universal Insurance dominated the gainers’ chart in percentage terms, gaining 10 per cent each, to close at 22k, N1.32, N10.45, 22k, 88k and 22k per share, respectively.

BOC Gases followed with 9.98 per cent to close at N13.77, while Livestock Feeds rose by 9.95 per cent to close at N2.32 per share.

Meanwhile, the total volume of shares traded increased by 10.77 per cent as investors bought and sold 738.53 million shares worth N4.17 billion in 7,396 deals.

This was in contrast with 666.61 million shares valued at N6.39 billion achieved in 6,980 deals on Friday.

Transactions in the shares of Japaul Gold and Ventures topped the activity chart with 92.36 million shares worth N145.79 million.

Universal Insurance followed with 51.79 million shares valued at N10.41 million, while Transcorp traded 43.15 million shares worth N46.17 million.

FBNH traded 39.77 million shares valued at N298.25 million, while AXA Mansard Insurance transacted 38.19 million shares worth N63.88 million.

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Uganda Extends Central Bank Governor’s Contract for Five Years

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Emmanuel Mutebile will head the Bank of Uganda for another five years after his contract was extended by President Yoweri Museveni.

According to local reports, Mutebile’s contract was extended on the eve of Uganda’s parliamentary and presidential election last week. It was gathered that the details of the extension were not released because of Internet shutdown in Uganda.

The Acting Director communications at BoU, Mr Kelvin Kiyingi confirmed the development.

“We have learnt that the president has re-appointed Prof Emmanuel Mutebile as governor bank of Uganda for the next five years,” he said.

Mutebile will be appearing before the Parliamentary Committee for approval.

Mutebile, 71, has been at the helm of Bank of Uganda since 2001. The new term makes him one of the longest servicing governors of the Central Bank..

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