Business News
In a rare consensus, CBN, IMF and World Bank all share the same view about Nigeria’s spiraling debt
The economic recession that hit Nigeria last year meant that desperate measures had to be taken in order to revive the country’s economy. One of these measures was increased public spending from the Federal Government in a bid to boost infrastructure and stimulate the real sector.
Unfortunately for the FG, the recession coincided (and was probably aided) by low fuel prices caused by crude oil glut in the international market as well as Niger-Delta militancy. Both have culminated in record low revenues for the FG. In order to actualize its recovery plan, the FG looked to borrowing as a solution. However, once the first Eurobond was over-subscribed 8 times over, the FG has been borrowing at an alarming rate. This is now becoming a source of worry to stakeholders who foresee greater problems to the economy.
The Central Bank
Arising from its Monetary Policy Committee meeting on Tuesday, the CBN expressed concern about the FG’s borrowing plan. A communique released at the end of the meeting reads
“The Committee was concerned that credit to government continued to outpace the programmed target of 33.12% for fiscal 2017, while credit to the private sector declined considerably far below the programmed target of 14.88%.”
Simply put, the FG is over-borrowing and not much of it is being used to develop the real sector.
The International Monetary Fund (IMF)
According to the IMF’s World Economic and Financial Surveys released Wednesday, Nigeria will at the end of 2017 been indebted to the tune of 23.3% of the GDP. To put this in perspective, Nigeria ended 2016 with a debt to GDP ratio of 18.6% while at the end of 2015, Nigeria’s debt to GDP ratio stood at 12.1%. Nigeria’s debt to GDP ratio would have surged by 100 per cent, from 12.1 per cent in 2015 to 24.1 per cent in a space of 3 years. Thus, for every N100 worth of goods produced or services Nigeria provides in 2018, N24.1 will be used to repay debts.
The World Bank
The World Bank has also sounded warnings about the high debt profile Nigeria has created on the past one year. According to Yue Man Lee, a senior economist at the World Bank office in Nigeria, the debt payment to revenue ratio coupled with possible reduced revenue earnings might render the country’s debt unsustainable. Thus, Nigeria has to increase its revenue base or work towards balancing the debt profile.
On the part of the FG, no one seems to be saying anything about how sustainable the borrowing is, but rather more and more requests for debts are being piled on the National Assembly. Will it be as many Nigerians fear, that the future generation will inherit a debt-ridden Nigeria?
Coronavirus
COVID-19 Update in Nigeria
On the 5th of June 2020, 328 new confirmed cases and 10 deaths were recorded in Nigeria bringing the total confirmed cases recorded in the country to 11,844.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to rise as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 11,844 confirmed cases.
On the 5th of June 2020, 328 new confirmed cases and 10 deaths were recorded in Nigeria.
To date, 11844 cases have been confirmed, 3696 cases have been discharged and 333 deaths have been recorded in 35 states and the Federal Capital Territory having carried out 73,064 tests.
COVID-19 Case Updates- 5th June 2020
- Total Number of Cases – 11,844
- Total Number Discharged – 3,696
- Total Deaths – 333
- Total Tests Carried out – 73,064
The 328 new cases were reported from 14 states- Lagos (121), FCT (70), Bauchi (25), Rivers (18), Oyo (16), Kaduna (15), Gombe (14), Edo (13), Ogun (13), Jigawa (8), Enugu (6), Kano (5), Osun (2), Ondo (2).
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
The latest numbers bring Lagos state total confirmed cases to 5663, followed by Kano (985), Abuja at 862, Katsina (385), Edo (364), Kaduna (335), Oyo (334), Ogun (329), Borno (322), Rivers (308), Jigawa (282), Bauchi (281), Gombe (184), Kwara (127).
Delta State has recorded 116 cases, Sokoto (115), Plateau (113), Nasarawa (90), Ebonyi (80), Zamfara (76), Yobe (52), Osun (49), Imo (47), Akwa Ibom (45), Adamawa (42), Niger (41), Ondo (38), Kebbi (33), Bayelsa and Enugu (30), Ekiti (25), Taraba (18), Abia (15), Benue (13), Anambra (12), while Kogi state has recorded only 3 cases.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, President Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
| Date | Confirmed case | New cases | Total deaths | New deaths | Total recovery | Active cases | Critical cases |
|---|---|---|---|---|---|---|---|
| June 5, 2020 | 11844 | 328 | 333 | 10 | 3696 | 7815 | 7 |
| June 4, 2020 | 11516 | 350 | 323 | 8 | 3535 | 7646 | 7 |
| June 3, 2020 | 11166 | 348 | 315 | 1 | 3329 | 7522 | 7 |
| June 2, 2020 | 10819 | 241 | 314 | 15 | 3239 | 7266 | 7 |
| June 1, 2020 | 10578 | 416 | 299 | 12 | 3122 | 7157 | 9 |
| May 31, 2020 | 10162 | 307 | 287 | 14 | 3007 | 6868 | 7 |
| May 30, 2020 | 9855 | 553 | 273 | 12 | 2856 | 6726 | 7 |
| May 29, 2020 | 9302 | 387 | 261 | 2 | 2697 | 6344 | 7 |
| May 28, 2020 | 8915 | 182 | 259 | 5 | 2592 | 6064 | 7 |
| May 27, 2020 | 8733 | 389 | 254 | 5 | 2501 | 5978 | 7 |
| May 26, 2020 | 8344 | 276 | 249 | 16 | 2385 | 5710 | 7 |
| May 25, 2020 | 8068 | 229 | 233 | 7 | 2311 | 5524 | 7 |
| May 24, 2020 | 7839 | 313 | 226 | 5 | 2263 | 5360 | 7 |
| May 23, 2020 | 7526 | 265 | 221 | 0 | 2174 | 5131 | 7 |
| May 22, 2020 | 7261 | 245 | 221 | 10 | 2007 | 5033 | 7 |
| May 21, 2020 | 7016 | 339 | 211 | 11 | 1907 | 4898 | 7 |
| May 20, 2020 | 6677 | 284 | 200 | 8 | 1840 | 4637 | 7 |
| May 19, 2020 | 6401 | 226 | 192 | 1 | 1734 | 4475 | 7 |
| May 18, 2020 | 6175 | 216 | 191 | 9 | 1644 | 4340 | 7 |
| May 17, 2020 | 5959 | 388 | 182 | 6 | 1594 | 4183 | 7 |
| May 16, 2020 | 5621 | 176 | 176 | 5 | 1472 | 3973 | 7 |
| May 15, 2020 | 5445 | 288 | 171 | 3 | 1320 | 3954 | 4 |
| May 14, 2020 | 5162 | 193 | 168 | 3 | 1180 | 3815 | 4 |
| May 13, 2020 | 4971 | 184 | 164 | 6 | 1070 | 3737 | 4 |
| May 12, 2020 | 4787 | 146 | 158 | 6 | 959 | 3670 | 4 |
| May 11, 2020 | 4641 | 242 | 152 | 10 | 902 | 3589 | 4 |
| May 10, 2020 | 4399 | 248 | 142 | 17 | 778 | 3479 | 4 |
| May 9, 2020 | 4151 | 239 | 127 | 11 | 745 | 3278 | 4 |
| May 8, 2020 | 3912 | 386 | 118 | 10 | 679 | 3115 | 4 |
| May 7, 2020 | 3526 | 381 | 108 | 4 | 601 | 2818 | 4 |
| May 6, 2020 | 3145 | 195 | 104 | 5 | 534 | 2507 | 1 |
| May 5, 2020 | 2950 | 148 | 99 | 5 | 481 | 2370 | 4 |
| May 4, 2020 | 2802 | 245 | 94 | 6 | 417 | 2291 | 2 |
| May 3, 2020 | 2558 | 170 | 88 | 2 | 400 | 2070 | 2 |
| May 2, 2020 | 2388 | 220 | 86 | 17 | 351 | 1952 | 2 |
| May 1, 2020 | 2170 | 238 | 69 | 10 | 351 | 1751 | 2 |
| April 30, 2020 | 1932 | 204 | 59 | 7 | 317 | 1556 | 2 |
| April 29, 2020 | 1728 | 196 | 52 | 7 | 307 | 1369 | 2 |
| April 28, 2020 | 1532 | 195 | 45 | 4 | 255 | 1232 | 2 |
| April 27, 2020 | 1337 | 64 | 41 | 0 | 255 | 994 | 2 |
| April 26, 2020 | 1273 | 91 | 41 | 5 | 239 | 994 | 2 |
| April 25, 2020 | 1182 | 87 | 36 | 3 | 222 | 925 | 2 |
| April 24, 2020 | 1095 | 114 | 33 | 1 | 208 | 855 | 2 |
| April 23, 2020 | 981 | 108 | 32 | 3 | 197 | 753 | 2 |
| April 22, 2020 | 873 | 91 | 29 | 3 | 197 | 648 | 2 |
| April 21, 2020 | 782 | 117 | 26 | 3 | 197 | 560 | 2 |
| April 20, 2020 | 665 | 38 | 23 | 1 | 188 | 466 | 2 |
| April 19, 2020 | 627 | 86 | 22 | 2 | 170 | 436 | 2 |
| April 18, 2020 | 541 | 48 | 20 | 2 | 166 | 356 | 2 |
| April 17, 2020 | 493 | 51 | 18 | 4 | 159 | 317 | 2 |
| April 16, 2020 | 442 | 35 | 13 | 1 | 152 | 277 | 2 |
| April 15, 2020 | 407 | 34 | 12 | 1 | 128 | 267 | 2 |
| April 14, 2020 | 373 | 30 | 11 | 1 | 99 | 263 | 2 |
| April 13, 2020 | 343 | 20 | 10 | 0 | 91 | 242 | 2 |
| April 12, 2020 | 323 | 5 | 10 | 0 | 85 | 228 | 2 |
| April 11, 2020 | 318 | 13 | 10 | 3 | 70 | 238 | 2 |
| April 10, 2020 | 305 | 17 | 7 | 0 | 58 | 240 | 2 |
| April 9, 2020 | 288 | 14 | 7 | 1 | 51 | 230 | 2 |
| April 8, 2020 | 274 | 22 | 6 | 0 | 44 | 226 | 2 |
| April 7, 2020 | 254 | 16 | 6 | 1 | 44 | 204 | 2 |
| April 6, 2020 | 238 | 6 | 5 | 0 | 35 | 198 | 2 |
| April 5, 2020 | 232 | 18 | 5 | 1 | 33 | 194 | 2 |
| April 4, 2020 | 214 | 5 | 4 | 0 | 25 | 185 | 0 |
| April 3, 2020 | 209 | 25 | 4 | 2 | 25 | 180 | 0 |
| April 2, 2020 | 184 | 10 | 2 | 0 | 20 | 162 | 0 |
| April 1, 2020 | 174 | 35 | 2 | 0 | 9 | 163 | 0 |
| March 31, 2020 | 139 | 8 | 2 | 0 | 9 | 128 | 0 |
| March 30, 2020 | 131 | 20 | 2 | 1 | 8 | 121 | 0 |
| March 29, 2020 | 111 | 22 | 1 | 0 | 3 | 107 | 0 |
| March 28, 2020 | 89 | 19 | 1 | 0 | 3 | 85 | 0 |
| March 27, 2020 | 70 | 5 | 1 | 0 | 3 | 66 | 0 |
| March 26, 2020 | 65 | 14 | 1 | 0 | 2 | 62 | 0 |
| March 25, 2020 | 51 | 7 | 1 | 0 | 2 | 48 | 0 |
| March 24, 2020 | 44 | 4 | 1 | 0 | 2 | 41 | 0 |
| March 23, 2020 | 40 | 10 | 1 | 1 | 2 | 37 | 0 |
| March 22, 2020 | 30 | 8 | 0 | 0 | 2 | 28 | 0 |
| March 21, 2020 | 22 | 10 | 0 | 0 | 1 | 21 | 0 |
| March 20, 2020 | 12 | 4 | 0 | 0 | 1 | 11 | 0 |
| March 19, 2020 | 8 | 0 | 0 | 0 | 1 | 7 | 0 |
| March 18, 2020 | 8 | 5 | 0 | 0 | 1 | 7 | 0 |
| March 17, 2020 | 3 | 1 | 0 | 0 | 0 | 3 | 0 |
| March 16, 2020 | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
| March 15, 2020 | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
| March 14, 2020 | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
| March 13, 2020 | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
| March 12, 2020 | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
| March 11, 2020 | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
| March 10, 2020 | 2 | 0 | 0 | 0 | 0 | 2 | 0 |
| March 9, 2020 | 2 | 1 | 0 | 0 | 0 | 2 | 0 |
| March 8, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| March 7, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| March 6, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| March 5, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| March 4, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| March 3, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| March 2, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| March 1, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| February 29, 2020 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| February 28, 2020 | 1 | 1 | 0 | 0 | 0 | 1 | 0 |
Business News
Dangote, BUA Cement drag Nigerian Stock market down, investors lose N154.28 billion
Investors lost N154.28 billion in value, as market capitalization dropped to N13.04 trillion at the Nigerian Stock market.
Nigeria’s stock market finished the week on a poor note, extending its previous day’s loss. The ASI declined by -1.17% to 25,016.00 index points. Consequently, the Year to Date loss dipped to -6.88%. Also, investors lost N154.28 billion in value, as market capitalization dropped to N13.04 trillion.
In terms of activity levels, market activity mirrored the broad index as total volumes and values declined by -20.61% and -52.51% to 214.49 million units and 2.51 billion respectively. ZENITH BANK was the most traded stock by volume at 22.2 million units, while NB topped by value at N666 million.
READ ALSO: List of Dividends announced so far in 2020 (June)
Market sentiment, measured by market breadth, was however positive with 22 gainers led by BOCGAS (10.00%), against 18 losers topped by CABDURY (-9.47%).
Across the major indexes we cover, four out of five indexes closed negative. The Industrial goods (-3.91%) index was the worst performer, due to BUACEM (-5.44%) and DANGCEMENT (-2.04%) price decline. The Consumer Goods (-1.23%) and Energy (-0.96%) indices followed, owing to sell-offs in CADBURY (-9.47%); NB (-4.55%); GUINNESS (-3.68%) and OANDO (-2.22%).
Also, the Banking (-0.28%) index lost points, as prices of GUARANTY (-2.45%) and FBNH(-1.82%) fell. The Insurance index was the lone gainer, up +0.06% on price appreciation in CHIPLC, CUSTODIAN & AIICO Insurance.
READ MORE: GTBank, Zenith Bank, Nestle emerge Renaissance Capital’s top stock picks
Top gainers
BOCGAS up 10.00% to close at N4.4; SKYAVN up 9.64% to close at N2.73; NASCON up 1.77% to close at N11.5; CUSTODIAN up 3.42% to close at N6.05; and NEIMETH up 9.94% to close at N1.77.
Top losers
CADBURY down 9.47% to close at N7.65; BUACEMENT down 5.44% to close at N40; NB down 4.55% to close at N42; GUINNESS down 3.68% to close at N18.3; and DANGCEM down 2.04% to close at N139.
Outlook
Market dropped close to the N13 trillion market capitalization support level, as heavy selling was observed among blue-chip stocks. Nairametrics recommends caution as price swing momentum strengthens.
Business News
Buhari reappoints Danbatta as NCC Vice Chairman/CEO
With the reappointment, Danbatta will continue serving in the capacity of NCC Vice Chairman and CEO for another 5 years.
President Muhammadu Buhari has approved the reappointment of of Prof. Umar Garba Danbatta as Executive Vice Chairman, and Chief Executive Officer of the Nigerian Communications Commission (NCC).
This means that Danbatta will continue serving in the capacity of NCC Vice Chairman and CEO for another 5 years.
Personal assistant on New Media to President Muhammadu Buhari, Bashir Ahmad announced this via his twitter handle on Friday evening.
READ MORE: Nigerian economy going into recession, might contract by -8.9% – Finance Minister
President @MBuhari has approved the reappointment of Prof. Umar Garba Danbatta as Executive Vice Chairman of the Nigerian Communications Commission (NCC). He will be serving another 5 years as the Chief Executive Officer of the Commission, a statement from @FMoCDENigeria.
— Bashir Ahmad (@BashirAhmaad) June 5, 2020
This reappointment was based on the recommendations of the Honourable Minister of Communications and Digital Economy, Dr Ali Ibrahim Pantami, and contained in a Press statement from the ministry.
https://twitter.com/FMoCDENigeria/status/1268927885726924808/photo/1
READ ALSO: Construction of ICT Parks nudges Nigeria into digital transformation
While wishing him well in his second tenure, Pantami urged Professor Danbatta to consolidate on gains and achievements of his first term.
“The honourable minister directed him to significantly improve on the overall performance of the commission as well as ensure that adequate mechanisms are put in place to facilitate the implementation of all policies of the Federal Government through the ministry” the statement read.
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The professor of Telecommunications engineering had lectured for about three decades before his previous appointments. At different times, he also served as a member of the Implementation Committee of the Northwest University Kano, as well as served as the Acting Vice-Chancellor of the Kano University of Science & Technology, Wudil.
