There are slight changes in the business sector, herein are some business updates for the week:
Nigerian equities recorded highest return on investment in May
The Nigerian equities market fetched investors the highest returns in the month of May 2016 globally despite the economic headwinds.
The market has been bearish, recording a year-to-date decline of 4.9 percent as of last Friday. However, the negative trend in the market notwithstanding, investors made 10.38 percent gain recorded by the Nigerian Stock Exchange.
Forex reserves gain positive momentum, rise for five straight days
Nigeria’s foreign exchange (forex) reserves have maintained positive momentum this month rising slightly for five consecutive days.
Data gathered from the Central Bank of Nigeria (CBN) showed that the reserves derived mainly from the proceeds of crude oil sale, climbed from $26.373 billion to $26.401 billion within a week.
The slight uptick was primarily due to a rise in crude oil prices, which climbed to $51 per barrel last week.
Deposits in banks shrink by N1.03tn
The Bankers Committee has sent a proposal to the Central Bank of Nigeria to limit across-the-counter withdrawals to N10,000, following a major drop in customer’s deposit.
The total deposits of bank customers dropped by 5.6 percent or N1.03tn from N18.54tn to N17.51tn. The banking sector also recorded a decline of N154bn in total assets within the one year period, from N27.58tn in April 2015 to N26.43tn as of April 2016.
No respite for capital market this week
The capital market is unlikely to see advancements in the performances of indices this week owing majorly to the continued delay by the Central Bank of Nigeria in developing the new foreign exchange framework for the country, analysts have said.
The Nigeria Stock Exchange was unable to shake the previous week’s negative mood particularly as a result of this inaction. Consequently, the NSE All-Share Index pared on four out of five trading days to accumulate a week-on-week loss of 1.45 percent.
UK Approves N4.74bn for solar power in Nigeria
The United Kingdom, through its Department for International Development, has approved N4.74bn for the development of electricity from solar energy in Nigeria.
The agency in charge of the program in Nigeria, Solar Nigeria, the finds from the UK DFID will be used to scale the marker for solar home lighting and power across the country through to 2020.
All stakeholders should work assiduously to ensure that the gradual increase in the business sector is maintained so that Nigerians can experience respite from this current economic challenges that has impacted negatively on the country in the last few months.
(Source: Punch and This Day newspapers)