The Nigerian Banking sector is one of the most competitive sectors in the economy and perhaps the most profitable. Despite having about 23 deposit money banks in the country, only a dozen are listed on the Nigerian Stock Exchange (NSE).
Banking sector performance is something we track regularly at Nairametrics using several well-known metrics. Most of the data can be found in the financial statements of the banks within our repository of reports. While we track all banks, the following banks are included in our universe of measuring financial performance. They are Access Bank, GT Bank, Fidelity Bank, FCMB, Sterling Bank, FBNH, Union Bank, Zenith Bank, UBA, Stanbic IBTC and Wema Bank.
In this report, we take a cursory look at the performance of listed banks in Nigeria based on the six (6) metrics, these include Total Assets, Net Assets, Total Deposits, Profit After Tax, Return on Average Equity and Return on Total Assets.
Best Banks by Total Assets.
In this case, banking assets include equity plus bank deposits. According to the data, 11 of the listed banks reported a combined total asset of N42.4 trillion as at the first quarter of 2020.
This represents a 10.3% rise from total assets of N38.4 trillion as at December. Growth in Total Assets is indicative of how strong our financial institutions are particularly banks.
The size of their total assets also indicates how much support they can give to the Nigerian Economy. At N42 trillion bank total assets represent roughly 29% of Nigeria’s GDP of N145 trillion. That is roughly one-third of our GDP. When you compare to South Africa at 77% and the US at about 62.4% you realize there is room for growth.
So who are the leaders?
First Position – Access Bank N7.28 trillion
Second Position– Zenith Bank – N7.12 trillion
Third Position – FBNH N7.02 trillion
Fourth Position – UBA N6.3 trillion
Upshots – Access Bank has maintained the number one position since 2019 after overtaking Zenith Bank following its merger with Diamond bank However, Zenith bank’s asset jumped 12.3% in the first quarter of 2020 to N7.1 trillion compared to Access Bank’s 1.8% rise.
We won’t be surprised if Zenith Bank takes this position again come August when we update this ranking. Also interesting to note that the 4 banks make up more than half the entire total assets. Suffice to say these are indeed “too big to fail” banks.
Banks’ net assets represent the total equity or shareholders’ funds of all the banks on our list. It includes the bank’s share capital, reserves, and its retained earnings in a period. The net asset is a very strong metric for measuring how strong banks are and it is also used by the CBN in assessing banking sector ability to withstand credit losses.
We observed that at the end of Q1 2020, bank net assets rose from N4.64 trillion at the end of 2019 to N4.7 trillion. This presents a 1.4% rise over the three months period. However, this also represents a 20.5% jump from N3.9 trillion posted in 2018. Banks’ net assets are also circa 10% of their total assets.
The top 4 by Net Assets
First Position – Zenith Bank, N925.9 billion
Second Position – FBNH, N680.3 billion
Third Position – GT Bank, N661 billion
Fourth Position – Access Bank, N635.5 billion
Upshots: We noticed a remarkable rise from FBNH and Stanbic IBTC two bank holding companies. After falling 21.8% to N530.6 billion in 2018, FBNH clawed back 21% to N642.6 billion in 2019 and posted N680.3 billion as at March 2020. Also, Stanbic IBTC increased its net assets by 26.1% in 2019 to 302.2 billion respectively.
The bank now has a net asset of N320.7 billion. Zenith Bank at N925.9 billion is down from the N941.8 billion reported at the end of 2019. This may be due to dividend payments.
It should be noted that most banks recorded a drop in their total net assets in the first quarter, it may largely be due to dividend payments. However, we expect Zenith Bank to crack the N1 trillion mark in net assets by the end of the year.
Customer deposits are perhaps one of the most competitive banks’ performance metrics to track. The more deposits a bank has the more money it can make. In a country where a lot of cash remains outside the banking system, how well a bank can mobilize deposits from its customers shows how well it can compete in a very aggressive market.
Analysis of the data collected showed that total banks’ deposits rose from N19.1 trillion in 2017 to N29.1 trillion in the first quarter of 2020. Whilst this is impressive growth, it did not adjust for the defunct Diamond Bank.
Thus, a better comparison would be between the N26.8 trillion in deposits recorded in December 2019 and N29.1 trillion in the first quarter of this year. This implies an 8.8% rise in just three months. Listed banks are on track to cross N30 trillion in customer deposits.
Top banks based on deposits
First Position – Access Bank, N5.6 trillion
Second Position – FBNH. N5.4 trillion
Third Position – UBA, N4.6 trillion
Fourth Position – Zenith Bank, N4.4 trillion
Upshots: UBA’s total deposits rose a whopping 14% to N4.6 trillion in the first quarter of 2020, adding about N467 billion in new deposits in just 3 months. An even more notable jump was from Stanbic IBTC with a 31.6% rise to N1.1 trillion in three months. The bank broke into the N1 trillion club from N886 billion it had at the end of 2019.
The bank has now leapfrogged Sterling Bank and is on the heels of Fidelity Bank and FCMB. Fidelity Bank also impressed with a 10.4% rise in its numbers. FBNH, one of the oldest banks also rose 12.5% and at its rate could outpace the number one on the list, Access Bank.
Profits After Tax
Corporate Profits are often viewed positively or negatively depending on how you view the impact of capitalism. For banks, it can attract scrutiny if it comes at the expense of small businesses or the wider economy. Nigerian banks reported a total profit after tax of N815.5 billion at the end of 2019. This, compared to N754.7 billion reported in 2018 and N630.3 billion in 2017.
Though banks have often been criticized for reporting fat profits at the expense of the wider economy, we are better off having profitable banks than unprofitable ones. The more profitable banks are (consistently) over time, the more robust they are to support economic growth.
Banks that declared the most profits.
First Position – Zenith Bank, N208.8 billion.
Second Position – GT Bank, N196.8 billion
Third Position – Access Bank, N97.5 billion.
Fourth Position – UBA – N89 billion
Upshots – Zenith Bank and GT Bank appear to be in a world of their own as they make more than double their closest rival. Both banks are neck and neck again in the first quarter with N50 billion in profits for GTB and N50.5 billion for Zenith Bank.
In terms of the most improved bank based on profitability growth year on year, the winner goes to Wema Bank with a 56.3% rise in profits to N5.2 billion. Union Bank also saw its profits rise by 34.7%. Others with significant profit increases in 2019 were Sterling Bank, FCMB, and UBA with 17.2%, 13.2%, and 13.3% respectively.
Return on Equity
This is another important metric used in assessing how well a bank has performed in terms of returns to shareholders. We consider this the most important in terms of performance and efficiency. You can post the largest profits but just like any regular investment you want to know what that translates to in terms of return on equity capital.
Based on our pool of banks’ data, a return on average asset of 18.1% was achieved in 2019 compared to 17.5% a year earlier. This is higher than the inflation rate for 2019, higher than MPR, and just lower than banks’ lending rate. This figure was 11.39% in the US
How have they performed?
First Position – GT Bank, 31.2%
Second Position – Stanbic IBTC, 27.7%
Third Position – Zenith Bank, 23.8%
Fourth Position – Access Bank, 17.7%.
Upshots – Whilst Stanbic yielded the first place to GTB after catapulting to the top in 2018 with a return on average assets of 35%, it was interestingly the only notable drop from all the banks except Access Bank. Union Bank’s numbers increased from 6.3% to 10.2% one of the most improved performances in 2019. We note FBNH broke the single-digit ceiling to 10.6% as the bank continues with its growth comeback.
Return on Average Assets
This measures how well a bank is sweating its assets to generate profits. It is one thing for a bank to have all the assets in its balance sheet but is it providing returns to all providers of capital? We like this metric at Nairametrics because it tells us how well a bank is able to run efficiently using all the resources at its disposal to generate profits for its shareholders.
Best Banks based on ROAA
First Position – GT Bank, 5.6%
Second Position – Stanbic IBTC 4.2%
Third Position – Zenith bank, 3.4%
Fourth Position – UBA, 1.7%
Upshots – Just like the impressed with ROAE, GT Bank is again the best bank based on Return on Average Assets at a whopping 5.6%. That just shows how very well run the bank is and that it maintained this return in a struggling economy is even more remarkable. We noticed a drop in return on assets across most of the banks highlighting how difficult the economy has been for banks.
Which is the best bank overall for the first quarter of 2020? Well, we leave that to you our readers to judge.
Access, GTBank, two others pay PWC & EY N1.5 billion as Audit fees in H1 2020
PWC earned N1.24 billion, while EY got only N282 million from the total.
Four out of the FUGAZ banks – Access Bank, GTB, UBA, and Zenith Bank, paid a sum of N1.52 billion to Pricewaterhouse Cooper (PWC) and Ernst & Young (EY), as audit fee in the first half of 2020, from a total revenue of N1.27 trillion.
Despite the downturn caused by the COVID-19 pandemic, which put most aspect of the economy on hold in Q2 2020, two of the biggest audit firms in the country received a sum of N1.52 billion from four of the five tier–1 banks in Nigeria. The audit fees paid by the four banks however, declined by 5.23% compared with the N1.61 billion paid in the same period of 2019.
Audit fees paid
- Access Bank paid a total of N467 million to PWC – the highest
- GTBank paid N409 million to PWC
- Zenith Bank paid N364 million to PWC
- UBA paid N282 million to EY.
- Access Bank paid N467 million in H1 2020, 16.8% less when compared with N561 million paid in H1 2019.
- GTBank increased its audit expenses by 4.6%, from N391 million paid to PWC in H1 2019 to N409 million in H1 2020.
- Zenith Bank paid a sum of N364 million to PWC in H1 2020, which represents a 3.9% decrease compared to N379 million paid to KPMG in H1 2019. It should be noted that Zenith Bank changed its Auditors in 2020 from KPMG to PWC.
- UBA paid a sum of N282 million to EY in H1 2020, 2.5% more than the N275 million paid to PWC in H1 2019.
The four banks boast of a total asset value of N26.63 trillion, aggregate market value of N1.73 trillion as of 15th September 2020, and posted an aggregate profit after tax of N303.56 billion in H1 2020.
What it means
PWC audited three of the accounts under consideration with UBA being the only exception. It is handled by EY. Findings revealed that while PWC earned N1.24 billion (81.6%) out of the total audit fee of N1.52 billion, EY got only N282 million (18.4%).
Decline in profit
The four banking giants posted an aggregate profit after tax of N303.6 billion in H1 2020, a marginal decrease of 1% compared to N306.6 billion posted in the comparable period of 2019. However, only Zenith Bank managed to record a positive growth in profit, as it grew its profit after tax by 16.8% from N88.9 billion in H1 2019 to N103.8 billion in H1 2020.
UBA on the other hand, recorded the highest negative growth in profit. It posted a profit after tax of N44.4 billion, as against N56.7 billion recorded in H1 2019. This is followed by GT Bank, which recorded a 4.9% decline in profit, from N99.1 billion to N94.3 billion. Access Bank posted a profit after tax of N61.04 billion, 1.4% decline compared with the N61.9 billion recorded in the previous year.
Explore the Nairametrics Research Website for Economic and Financial Data
The decline in profit posted by the tier-1 banks could be attributed to the ripple effect of the COVID-19 pandemic, which also reflected in the audit fees paid to auditors during the year. However, despite the economy contracting by 6.1% in Q2 2020, the banking sector saw its activities grow by a massive 28.4% (year-on-year).
Note: FBN was exempted from this analysis because their Half year 2020 financial is unaudited
Prices of flour, rice, beans, tomatoes, pepper, others jump, as low patronage hits major markets
The report contains information on items that witnessed price increase, price decrease, as well as insights.
Despite the ease of lockdown in the country, the prices of household items continue to trend upwards, as traders across Lagos markets have once again lamented the sustained decline in patronage. This is according to the latest Household Market Survey conducted by Nairalytics, the research arm of Nairametrics.
The persistent increase in the price of food items across major markets in Lagos State continues to hit harder on consumers, as local and foreign rice, tomatoes, pepper, flour amongst others, recorded significant surges in their prices.
Explore the Nairametrics Research Website for Economic and Financial Data
According to the latest report, a 50kg bag of Mama Gold flour that was initially sold for an average of N11,575, now sells for an average of N16,500 – a 42.6% increase. Also, a 50kg bag of Mama Gold rice now sells for an average of N28,875, as against N24,375 recorded two weeks ago.
The survey further shows that a big bag of pepper increased by 23.1%, to sell for an average of N16,000, compared to an initial average of N13,000. A big basket of round-shaped tomatoes, now sells for an average of N12,000.
The report contains information on items that witnessed price increase, price decrease, as well as information on special markets, and insights.
Items that witnessed price increase
Listed below are the items that recorded significant price increase:
- A 50kg bag of Honeywell flour increased by 24.7%, from an initial average of N11,525 to sell for N14,375, while Mama Gold brand sells for an average of N16,500.
- A 50kg bag of Dangote flour now sells for an average of N14,333, compared to N11,067 recorded a fortnight ago.
- A big bag of pepper that was initially sold for an average of N13,000, now sells for an average of N16,000 – a 23.1% increase.
- A big basket of round shaped tomatoes increased by 9.1% to sell for an average of N12,000, compared to an initial average of N11,000.
- The cost of a big basket of oval shaped tomatoes spiked by 14.3%, from an initial average of N7,000 to sell for an average of N8,000.
- A 50kg bag of Mama Gold rice now sells for an average of N28,875, from an initial average of N24,375 – a 18.5% increase.
- A big bag of brown beans increased by 8.6%, from an initial average of N30,375, to sell for an average of N33,000.
- A 5-litre gallon of vegetable oil that was sold for an average of N2,525 two weeks ago, now sells for N2,750 – 8.91% increase.
- A bag of bush mango seeds (Ogbono) increased by 5% to sell for an average of N105,000. It was initially sold for an average of N100,000.
Items that witnessed price decrease
Some of the items that recorded slight decrease in prices include:
- A 50kg bag of garri (Ijebu) that reduced by 5.31%, to sell for an average of N13,375, compared to an initial average of N14,125.
- A big basket of sweet potatoes that was initially sold for an average of N18,000, now sells for N14,000 – a 22.2% decrease.
- A 5-litre gallon of Kings oil now sells for an average of N3,000, as against N3,050 recorded last month.
- A big bag of dry onions reduced marginally by 2.11%, to sell for an average of N34,750, compared to N35,500 recorded two weeks ago.
- A big bag of new onions now sells for an average of N25,500, a 1.92% reduction, compared to an initial average of N26,000.
Items that maintained initial prices
Items whose prices remained the same, compared to two weeks ago include:
- A crate of egg which continues to sell for an average of N1,200, same as recorded in the previous report.
- A medium-sized basket of round shaped tomatoes continues to sell for an average of N7,000.
- A 50kg bag of beans (Oloyin) sells for an average of N20,375.
- A 400g tin of Peak Powdered Milk sells for an average of N1,200, while 900g still sells for an average of N2,363.
- The various sizes of cartons of noodles maintained their initial prices – 305g Indomie (N3,150), 210g Indomie (N3,200), and 100g Chikki (N2,150).
- 500g and 900g Milo tins still sell for N1,038 and N2,125 on average respectively across the four markets.
- A carton of Golden Penny Pasta sells for an average of N4,325.
Nairalytics had reported two weeks earlier, that prices of major food items such as rice, beans, pepper, and other items recorded significant increase. This was partly attributed to seasonal fluctuations and supply chain bottlenecks caused by the COVID-19 induced lockdown.
In the latest increase, traders decried the sudden jump in price of flour. Flour, which is a necessity for the production of items like bread, cakes, and confectioneries, recorded a significant spike, as a 50kg bag of flour witnessed a 29.5% increase in price.
(READ MORE: Yearn.finance: Buyers earn 125,322% profits)
An interview with a trader at Oyingbo market revealed that customers have become disgruntled with the persistent increase in prices of most food items, as it has become a cause for worry to the traders, “We are worried about this continued increase in price of food, as some of our customers now decide to buy less due to the price increment, while others just take a walk,” She said.
She further revealed, “Bakeries have now increased the price of bread, as the increase in price of flour has affected their already declining profits.”
Below are the prices of various brands of rice sighted at Daleko market:
Mama Gold (10kg) – N4,500; Royal Stallion (50kg) – N29,000; Rice Master (10kg) – N5,000; Mama Gold (50kg) – N29,000; Caprice (50kg) – N29,000; Mama’s Pride(50kg) – N24,500; Umza (50kg) – N24,500; Labana (50kg) – N25,000; Alamzat (50kg) – N23,500; Big Bull (50kg) – N25,000; Mama’s Choice (50kg) – N24,000.
Major tomato traders at Mushin market, during the week, blamed the increase of tomatoes on the fact that, the season for the oval shaped tomatoes is coming to an end. According to Mrs. Jamiu, “Very soon, oval shaped tomatoes will no more be available in the market, as its season is almost over.”
Nairametrics, earlier reported that a small basket of oval shaped tomatoes was sold for an average of N800 at Mushin market last month. However, it has doubled in price, and now sells for an average of N1,700.
Mrs. Olaoluwa, who also sells at Mushin market, shared a contrary opinion. She attributed the increase in price of major food items including tomatoes to the approaching festivity.
“As the year is coming to an end, it is normal for prices of items in Nigeria to jack up, it is just hitting harder this year because of the effect of the COVID-19 pandemic.” She said
When Nairalytics Research visited Daleko market, Mrs. Oladayo, reiterated that the Federal Government’s decision to restrict importation of rice, is the major cause of the increase in price of rice. According to her, Nigeria is not able to produce enough rice that can circulate across the country, hence the unavoidable scarcity.
She reiterated that the stony rice being sold in the markets also affects the prices of the commodity, as most consumers who do not wish to buy the inferior quality, will have to pay more for neater brands of rice.
|Items||Brand||Unit||MUSHIN (10/09/2020)||DALEKO (10/09/2020)||OYINGBO (10/09/2020)||MILE 12 (10/09/2020)||Average||MUSHIN (27/08/2020)||DALEKO (27/08/2020)||OYINGBO (27/08/2020)||MILE 12 (27/08/2020)||Average|
|Bag of Rice||Basmati||5kg||NA||NA||NA||NA||NA||NA||NA||NA|
|Bag of Rice||Mama Gold||10kg||NA||4000||4500||5000||4500||NA||4000||4500||4700||4400|
|Bag of Rice||Royal Stallion||50Kg||30000||NA||29000||31000||30000||30000||NA||29000||29000||29333.333333333|
|Bag of Rice||Rice Master||10kg||4000||NA||4500||4250||4000||NA||4000||4000|
|Bag of Rice||Mama Gold||50kg||29500||29000||29000||28000||28875||25000||23500||25000||24000||24375|
|Bag of Rice||Caprice||50kg||30000||NA||29000||30000||29666.666666667||30000||NA||29000||29000||29333.333333333|
|Bag of Rice||Mama's Pride||50kg||25000||24000||25000||25000||24750||25000||24000||23000||24000||24000|
|Bag of Rice||Falcon||25kg||NA||NA||NA||NA||NA||NA|
|Bag of Beans||Oloyin||50kg||20000||19500||20000||22000||20375||20000||19500||20000||22000||20375|
|Bag of Beans||White||50kg||30000||30000||35000||32000||31750||30000||29500||35000||32000||31625|
|Bag of Beans||Brown||>50kg||32000||34000||35000||31000||33000||27000||29500||35000||30000||30375|
|Tuber of Yam||Abuja||1 Big Size Tuber||1000||900||1000||1000||975||1000||900||900||800||900|
|Tuber of Yam||Abuja||1 Medium Size Tuber||600||800||650||800||712.5||600||800||500||800||675|
|Carton of Noodles||Indomie||305g (Belle full)||3200||3100||3200||3100||3150||3200||3100||3200||3100||3150|
|Carton of Noodles||Indomie||210g (Hungry man)||3200||3200||3200||3200||3200||3200||3200||3200||3200||3200|
|Carton of Noodles||Chikki||100g||2200||2200||2100||2100||2150||2200||2200||2100||2100||2150|
|Carton of Noodles||Minimie||70g||2100||1650||1700||1650||1775||2100||1650||1700||1650||1775|
|Carton of Noodles||Golden Penny||70g||1700||1400||1400||1400||1475||1700||1400||1400||1400||1475|
|Bag of Garri||Ijebu||50kg||14000||13500||13000||13000||13375||14000||14000||14000||14500||14125|
|Bag of Garri||White||50kg||13000||12500||12500||12500||12625||13000||11500||13000||12000||12375|
|Bag of Garri||Yellow||50kg||12500||13000||12000||13000||12625||11500||12500||12000||12000||12000|
|Basket of Potato||Sweet||Big Basket||14000||14000||20000||16000||18000|
|Basket of Potato||Sweet||Small Basket||700||700||700||700||600||650|
|Basket of Potato||sweet||Smallest Basket||400||250||325||400||200||300|
|Basket of Potato||Irish||Biggest Basket||33000||28000||30500||33000||28000||30500|
|Basket of Potato||Irish||Small Basket||2500||2500||2500||2500|
|Basket of Potato||Irish||Smallest Basket||1700||1500||1600||1700||1500||1600|
|Packet of Pasta||Golden Penny||500g||4400||4400||4300||4200||4325||4400||4400||4300||4200||4325|
|Packet of Pasta||Dangote||500g||4100||4100||4200||4100||4125||4100||4100||4200||4100||4125|
|Packet of Pasta||Power (1 pc)||500g||220||220||220||220||220||220||220||220||220||220|
|Packet of Pasta||Bonita (1 pc)||500g||200||200||230||220||212.5||200||200||230||220||212.5|
|Gallon of Palm Oil||Local||5 Litres||2700||2300||2300||2400||2425||2700||2300||2300||2400||2425|
|Gallon of Palm Oil||Local||25 Litres||12000||11500||12500||13000||12250||12000||11500||12500||12500||12125|
|Gallon of Vegetable Oil||Local||5 Litres||2700||2500||2300||3500||2750||2700||2500||2300||2600||2525|
|Gallon of Vegetable Oil||Local||25 Litres||14000||13500||13500||14800||13950||14000||13500||13500||14000||13750|
|Gallon of Vegetable Oil||Kings||5 Litres||3200||3000||3000||2800||3000||3200||3000||3000||3000||3050|
|Gallon of Vegetable Oil||Wesson||5 Litres||4500||3900||3900||4300||4150||4500||3900||3900||3900||4050|
|Gallon of Vegetable Oil||Mamador||3.8 Litres||2500||2450||2500||2800||2562.5||2500||2450||2500||2400||2462.5|
|Gallon of Vegetable Oil||Power||3 Litres||1900||1800||1800||2200||1925||1900||1800||1800||1800||1825|
|Bunch of Plantain||Plantain||1 Bunch||500||500||500||600||525||500||500||500||500||500|
|Bag of Flour||Dangote||50kg||13500||15000||14500||14333.333333333||11200||11000||11000||11066.666666667|
|Bag of Flour||Honey well||50Kg||14500||13500||14500||15000||14375||12500||11200||11200||11200||11525|
|Bag of Flour||Mama Gold||50kg||16000||16500||16000||17500||16500||13000||11300||11000||11000||11575|
|Milk||Peak Powdered (Tin)||400g||1200||1200||1200||1200||1200||1200||1200||1200||1200||1200|
|Milk||Peak milk (Refill)||500g||1000||1000||1000||1000||1000||1000||1000||1000||1000||1000|
|Milk||Dano Powdered (Tin)||500g||1000||1000||1000||1000||1000||1000||1000||1000||1000||1000|
|Milk||Three Crown (Refill)||380g||700||700||750||700||712.5||700||700||750||700||712.5|
|Milk||Loya Powdered (Tin)||400g||1000||1000||1050||1016.6666666667||1000||1000||1050||1016.6666666667|
|Cocoa Beverages||Milo (Tin)||500g||1000||1100||1050||1000||1037.5||1000||1100||1050||1000||1037.5|
|Cocoa Beverages||Milo (Tin)||900g||2200||2100||2100||2100||2125||2200||2100||2100||2100||2125|
|Cocoa Beverages||Milo Refill||500g||1000||900||900||900||925||1000||900||900||900||925|
|Cocoa Beverages||Bournvita Refill||500g||1000||950||900||950||1000||950||900||950|
|Cocoa Beverages||Bournvita (Plastic)||900g||2000||2000||2000||2000||2000||2000||2000||2000|
|Cocoa Beverages||Ovaltine Refill||500g||800||850||850||833.33333333333||800||850||850||833.33333333333|
|Tea||Lipton Yellow label||52g||300||290||300||300||297.5||300||290||300||300||297.5|
|Sugar||St' Loius Sugar(Cube)||500g||500||550||550||550||537.5||500||550||550||550||537.5|
|Sugar||Golden Penny Sugar (cube)||500g||300||350||350||400||350||300||350||350||400||350|
|Bottled Water (Refill)||Cway||Refill||600||600||650||600||612.5||600||600||650||600||612.5|
|Juice||5 Alive||1 litre||550||550||550||600||562.5||550||550||550||600||562.5|
|Tomatoes||Big Basket||round shaped||12000||12000||11000||11000|
|Tomatoes||Medium Basket||round shaped||7000||7000||7000||7000|
|Tomatoes||Small Basket||round shaped||5500||5500||5500||5500|
|Tomatoes||Big Basket||Oval Shaped||8000||8000||7000||7000|
|Tomatoes||Small Basket||Oval Shaped||5500||5500||5000||5000|
|Fish||Kote (Horse Mackerel)||1 big Fish||600||600||550||650||600||600||600||550||500||562.5|
|Fish||Titus (Mackerel)||1 big Fish||600||550||550||750||612.5||600||550||550||600||575|
|Onions||Big bag||Dry Onions||35000||34500||34750||35000||36000||35500|
|Onions||Big bag||New Onions||25000||26000||25500||26000||26000|
|Bush mango seed||(Ogbono)||1 big bag||105000||105000||100000||100000|
|Frozen food||Full chicken||Carton||13000||13000||13000||13000||12500||12700||13000||12733.333333333|
|Frozen food||Chicken lap||Carton||13000||13000|
About Nairametrics Food Price Survey
Nairametrics Food Price Watch, is a bi-weekly Household Market Survey that covers the prices of major food items in Nigeria, with emphasis on five major markets in Lagos – Mushin market, Daleko market, Oyingbo market, Idi-Oro market, and Mile 12 market.
Nigeria total public debt hits N31 trillion as debt service gulp over N1.2 trillion in H1 2020
A report recently released by the DMO reveals that the country’s debt has hit N31 trillion.
Nigeria’s Total Debt Stock (Foreign & Domestic), as at June 2020 stood at N31.01 trillion ($85.9 billion)- 8.31% increase when compared with N28.63 trillion ($79.3 billion) recorded in March 2020. This was disclosed in the Nigeria public debt report, recently released by the Debt Management Office (DMO).
The breakdown shows that total external debt stood at N11.36 trillion ($31.47 billion), accounting for 36.65% of the total debt stock, while domestic debt represented 63.35% of the total debt. Domestic debts stood at N19.65 trillion ($54.42 billion) as at June 2020.
The report also reveals that N921.9 billion was used to service domestic debts between January and June 2020, while N288.6 billion ($759.6 million) was used on foreign debts, making a total of N1.21 trillion. Compared to N1.06 trillion spent in the same period of 2019, debt service increased by 14.6%.
- Federal government foreign debt in the period under review stood at N9.82 trillion ($27.2 billion). This represents 86.5% of the total foreign debts, while the 36 States and the Federal Capital Territory recorded external debt of N1.54 trillion ($4.26 billion).
- In terms of domestic debts, the federal government accounted for 78.7% of the federation local debts, as States including the FCT accounted for the remaining 21.3%.
- Foreign debt grew by 13.8%, compared to $27.7 billion (N9.9 trillion) recorded as at the first quarter of the year.
- Nigeria’s public debt grew by $22.09 billion in the last 5 years, indicating an increase of 34.6%.
According to the press release, the recent increase in Debt Stock was as a result of the $3.36 billion Budget Support Loan from the International Monetary Fund (IMF), New Domestic Borrowing, which was used to finance the Revised 2020 Appropriation Act, including the issuance of N162.56 billion Sukuk, and Promissory Notes issued to settle Claims of Exporters.
Meanwhile, a cursory look at the historic trend shows that Nigeria’s total public debt increased by $22.09 billion between June 2015 and June 2020, when multiplied by the prevailing exchange rate of N380/$1, it translates to a total additional loan of N8.39 trillion within 5 years of the current administration.
Despite facing economic downturn caused by the COVID-19 pandemic, and characterized by contraction in economic activities, reduced capital inflows, trade decline across international borders, coupled with reduced government revenue as a result of decline in global oil price; Nigeria spent a sum of N1.21 trillion to service both domestic and foreign debts between January and June 2020.
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The N1.21 trillion debt service expense represents 11.2% of the total revised budget of N10.8 trillion for the year 2020, an indication that over 11% of this year’s budget has been expended on debt servicing just half-year. Meanwhile, the funds being spent on debt servicing can be seen as another way of wasting limited resources while funding very little capital expenditure, that could be used to stimulate the productivity of the country.
Data from the Central Bank of Nigeria (CBN) shows that over the past 5 years spanning 2015 and 2019, the Nigerian government spent about N34.83 trillion, comprising of both recurrent expenditure (73.1%), capital expenditure (19.2%) and transfers (7.8%). This means that only about 19% of the debt load has been invested in further developing the nation through the creation of relevant infrastructure. The rest were spent on recurring expenses like salaries.
More loans to be expected
The DMO stated in its press release, that it expects the Public Debt Stock to grow as the balance of the New Domestic Borrowing is raised, and expected disbursements are made by the World Bank, African Development Bank (AFDB), and the Islamic Development Bank, which were arranged to finance the 2020 Budget.
It also stated that Additional Promissory Notes are expected to be issued in the course of the year, this, and new borrowings by State Governments, are also expected to increase the Public Debt Stock.