Tuesday, 12 January 2016

Nigeria's Economic Crisis Worsens‏

Nigeria might be the richest economy in Africa but that does not impress hard-nosed investors who buy and sell shares at the local stock exchange.



The West African financial market had another losing day today, closing at its lowest level for more than three years, down 2.5%.
Investors are growing increasingly worried about the outlook for the biggest economy in sub-Saharan Africa, largely because the country is too dependent on revenues from the energy industry and the price of oil has fallen through the floor.

Last week, Brent crude oil, the benchmark blend of oil traded in London, fell below $35 (£24) a barrel and prices of West Africa’s Bonny Light crude oil has followed the downward spiral.
Last year, the benchmark gauge of Nigerian shares fell more than 17 % as the market reflected investors fears about the huge economic challenge the government faces.  

Nigeria might be the richest economy in Africa but that does not impress hard-nosed investors who buy and sell shares at the local stock exchange.
The West African financial market had another losing day today, closing at its lowest level for more than three years, down 2.5%.

Investors are growing increasingly worried about the outlook for the biggest economy in sub-Saharan Africa, largely because the country is too dependent on revenues from the energy industry and the price of oil has fallen through the floor.

Last week, Brent crude oil, the benchmark blend of oil traded in London, fell below $35 (£24) a barrel and prices of West Africa’s Bonny Light crude oil has followed the downward spiral.
Last year, the benchmark gauge of Nigerian shares fell more than 17 % as the market reflected investors fears about the huge economic challenge the government faces.  


Six months ago, Nigeria's central bank imposed measures to restrict access to US dollars, used to import certain items, in an effort to conserve its reserves of foreign currency, amid sinking oil prices. 
However, the move has made it more difficult for Nigerian manufacturers to buy raw materials from sources abroad, because of limits of supplies of dollars and that is restricting economic growth.

The top shares among the losers today reflect the impact of the central bank’s policy, the cement maker Lafarge Africa is down 9.6%, Unity Bank 9.4% and Dangote Cement, which accounts for about a third of total market capitalisation, shed 4.3%, according to Reuters news agency.
It is reported pension funds are selling shares bought last year to hold cash as a buffer against expected losses caused by Nigeria’s weak economy.


BBC Reportage.




40 comments:

Linda ikeji said...

I guess we should be more careful when electing a President next time. The economy has been on a downward spiral since the coming of this govt.

Roseline Dakok said...

May God help Nigeria

Bimfem hair care products for edges and healthy hair. whatsapp (07032378915) bbm chanel (C0039356C) said...

Very very true. To be honest dollar is not smiling. Imagine paying with master card to buy goods and they. Charge more dan the 280 and you pay for shipping and yet you had to give a good sales. Mayb I she just venture into Nigeria goods. Our brothers are even doing more of fake. Products and sell at lower price. It's well with Naija oo.

Linda ikeji said...

I am expecting the President and his team to blame their lack of economic vision and technical know how on the past govt.

SMT 042 said...

Wahala done dey ooo ! APC where is dat magic touch yu promised us . Where is dat midas touch to our economy @ Lai Mohammed @ PMB @ APC.

I am the queen and the boss of this blog said...

Buhari's shange is here!...
This is just the beginning!..
Kwakwakwakwa...

Somadina Obi said...

Shame.

Kehinde Ake said...

Expressing Nigeria as the largest or richest economy in. Sub-Sahara Africa is a cliché that grates my nerves. I don't care about economic index if 90% of its populace works its fingers to the bone to have two triangular meals a day. Nigeria should return the title to a befitting country and focus on making the common have the basics of life. Abeg make I no comment this morning make I no go vex.

Iphie dearie said...

I wish I can copy and paste my comment concerning this last year.

So true,but we will overcome this.
This is where I miss Adesina(former minister for Agriculture)

Let's fight corruption and still focus on agriculture.

Jennifer Amieno said...

Naija which way?

Amaka Hundeyin said...

:-(

POTABLE viv said...

Dollar keep rising.

Monieve Cakes08063414655 Abuja09094393977 said...

May God help us

LaFRESH said...

it's going to be hard but things will get better- Pastor E. A. Adeboye. #ibelieve

Home Services PH said...

We Av to make a sacrifice today for the best of our tmr. I am positive that soon things will bounce back right for Nigerians.
Let's join hands and support the good policies of the 'change government'.

Roseflower said...

And they are busy arresting Olisah Methu and others while the common Nigerian wallows in abject misery and penury.
Which way forward Buhari?
Please effect your CHANGE already Sir.

Anonymous said...

Shut the fuck up you retard... Because the destruction happened in 8 months. People like you should be given cyanide tablets to chew... You are just another Ben Bruce #YouDontHaveCommonSense

FRUITILICIOUS said...

This is really sad!
Lord have mercy!

Naive Newbie said...

Almost 1 year in office

ziona said...

I will b optimistic despite the obvious. I don't want to b negative. Nigeria must get out of these evil hands.amen

Obama's Sister said...

God will see us true. Tis rilly a serious situation.

Justina Michael said...

May God help us in this country.

lami said...

I am sure you are very delusional,like seriouly? Smh.

lami said...

Who was dolling out dollars in the last election? Some of you are just blinded by sentiments that prevents you from rationalizing issues clearly.
The good thing is we are all in this together cos this is the only country we ve got, so is either we put aside the sentiments and do our own bit by supporting the current government in its policy and demand good governce from them or we just sit and sink this country by criticizing and sabotaging government's efforts.

Nwa Amaka said...

Don't mention buhari. Blame it on oil. We neglected so many things while focusing on oil. Agriculture for instance and mining abandoned while the oil price boomed. The question I keep asking is where is the excess crude oil that we made when crude was sold @ $90 per barrel and our benchmark was $54 and we were exporting almost 2million barrel a day. Ok now I remember, they were still 1 million Barrels and still stealing the excess on the crude oil and yet we are wallowing in lack. I guess the title for giant of Africa is a mimic/mockery. Our government failed long ago because we refused to see the handwriting on the wall. Our failure in looking inward is what we are suffering now. Nothing is working. When I say nothing I mean nothing and I wonder if this is how we will remain.

Anonymous said...

Imposter!!! Shame on you for stealing someone else's identify. You ought to be ashamed of yourself!!!

Loveme Jeje said...

Painful. they way the market is going, God help your children.

Buhari please bring your magic you promised the electorate. Things are going downhill.

CHANGE INDEED

Mao Akuh said...

We elected a man that doesn't know anything about our ECONOMY.
Ask him a question concerning economy, he will start talking about corruption.
Using EFCC to recover funds and no tangible development so far instead people are losing their jobs more and more.

We don't even know the state/level of our agriculture sector now since Mr Adesina left and Mr Aganga... that guy is good too.

I guess he thought with announcement one dollar can be equalled to N1.

Even in the midst of crisis, I will make it cos my God got my back - Amen

tracy James said...

Buhari pls fix it

naija dj said...

We seriously need prayers. Brent crude has actually fallen to $32 - a 12 year low! Something that was selling for almost $120 two years ago!?

Jennah said...

Most of people talking like Linda have no knowledge on what they are saying, they rather use their feeling to judge the whole thing.

@sugarcassie said...

Kudos @ Nwa Amaka... some people can be so sentimental. they don't see beyond Pdpp n Apc , or Easteners, westerners, northerners n southerners. Its high time we start reasoning with our brains and not our ass.. mmtssschewww! Some comment makes me wonder if the commenter(xcuse thst word) actually typed the comment cos it shows that the person is read to an extent, or if she is being helped to type.. God help us!!!!!

Anonymous said...

Thank you, there is no point mentioning richest country if this wealth is not going to be refelcted on the street.

Anonymous said...

Igbaaa. Effect what change. Truth is that by the time Buhari is through with this economy, Nigerians will not have change to collect.

Anonymous said...

N400m taken by Metuh could pay a lot of minimum wage workers. Everything is tied together.

Anonymous said...

We are back to 1984. Let's focus on morality while the economy goes to shit!!!

Can we not pursue economic goals (as that will directly affect the common man) while at the same time fighting corruption or whatever moral decadence we want to fight? Why let the ordinary man suffer for something he knows nothing about?

usani osim said...

Nigeria is in some major deep shit!
D early we stop d blame game,the better for us......

We have the population to over come this for told economical hardship

The Gej administration saw it coming; and it started preaching diversification of economy; as such agriculture received a sort of major boost.
In as much as am no fan of the policies of PMB,i think they have to declare a state of emergency on the economy ASAP or anything to prevent an economic recession.

This metallic policy we've relied on since independence is already gone into extinction.

Active steps most be taken;else
"Nigeria is ganna be ungovernable "
For the ruling class

babyeyez izzy said...

I believe in this government..i believe in change.things will get better

kreme de la kreme said...

This issue on ground has nothing to do with Buhari. You all need to educate yourselves. Haba! Which kind people be this. Shuooo

Anonymous said...

You're clearly too dumb t understand macroeconomics. The economic issues are global and are neither due to Buhari nor Johnathan. It is a global problem affecting every major oil producing country. We saw last year the massive currency crash in Russia. Saudi Arabia's budget deficit from last year is 3 times the Nigerian budget for this year. Become informed before opening your mouth and prove yourself ignorant