The National Bureau of Statistics (NBS) released inflation report for May 2017 during the week with Headline Inflation further slowing on a Year on Year (Y-o-Y) basis - due to high base effect – although it significantly lagged consensus forecast. The Consumer Price Index (CPI) rose 16.25% Y-o-Y (fourth consecutive month of decline) in May, 99 bps lower than 17.2% recorded in April 2017 but 25bps shy of consensus forecast of 16.0%.
How quick narratives change in frontier markets investing. Just three months back, as the Naira weakened below N500.00/US$1.00 in the parallel market and business confidence waned due to foreign currency shortages, macroeconomic risk became the most fundamental short term basis for forecasting Nigerian equities despite cheap valuation of assets.
Issues of corporate governance continue to attract considerable attention nationally and internationally, especially with current global financial volatility. The ongoing global financial ‘tight spot’ has further reinforced the message that governance of organisations should always aim at protecting the interests of all stakeholders, including shareholders/ investors, employees, suppliers, customers, regulators, communities and the public.
During the week, the Central Bank of Nigeria released the Purchasing Managers’ Index (PMI) data for May 2017. The survey which gauges sentiment in the Manufacturing and Non-Manufacturing sectors expectedly came in stronger with the Manufacturing composite index recording an increase for the 2nd consecutive month while the Non-Manufacturing composite index expanded above 50 points for the first time in 17 months as the positive impact of the improvements in FX management continued to boost business activities.
DEMOCRACY DAY SPEECH BY HIS EXCELLENCY, PROF. YEMI OSINBAJO, SAN, THE ACTING PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA, COMMEMORATING THE SECOND ANNIVERSARY OF THE BUHARI ADMINISTRATION, MAY 29, 2017.
Dear Nigerians, I bring you good wishes from President Muhammadu Buhari, GCFR, who as we all know is away from the country on medical vacation.
The National Bureau of Statistics released the Q1:2017 GDP report during the week with estimates showing that the economy contracted for the fifth consecutive quarter, albeit at a slower pace than previous quarters. The report showed that economic output contracted 0.5% Y-o-Y in Q1:2017 (better than -0.7% in Q1:2016 and -1.7% in Q4:2016). We present further analysis of the report below.
This week Monday and Tuesday, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) will be meeting to review major developments in the global and domestic space since its last meeting. This 3rd meeting in 2017 is coming at a time when the global economy is viewed to be in a sweet spot following respite in global downside risks related to the US elections, Brexit uncertainty and concerns of slower growth in China. The impact of the expectations of expansionary fiscal policy is evident in the bullish trend in US equities as well as a stronger dollar.
The Inequality report released by Oxfam International on Wednesday, revealed that the combine wealth of five richest Nigerians, put at $29.9 billion, could end extreme poverty in the country.
The report, entitled ‘’Inequality in Nigeria, Exploring the Drivers” exposed the large and growing gap between the rich and poor in Nigeria, the News Agency of Nigeria reports.
It revealed that the benefits of the nation’s economic growth had been captured by a few wealthy elite at the expense of the ordinary Nigerians.