Business Latest

BUSINESS ROUNDUP: Customer borrowing prediction; Low capacity of local refinery; See other stories that made our pick

BUSINESS ROUNDUP: Nigeria to disconnect Togo and Benin; China displaces America. See other stories that made our pick

Hello, and welcome to Business Roundup this week. In this post, we bring you top highlights of events that happened during the week -from the capital market, mainstream business activities and economy build up.

 

Here are the Headlines:

 

• Consumer borrowing to fall this year —CBN
• CBN retains 65% loan deposit ratio
• Nigeria records biggest oil output shortage among OPEC members
• Local refineries produce less than 1% of petrol consumed in Nigeria

 

Summary:

 

The rate at which the consuming public borrows money to meet domestic needs and other personal financial obligations may take a plunge this year, a recent survey by the Central Bank of Nigeria (CBN) has shown.

Titled Consumer Expectations Survey Report Q4 2019, the publication posted on the website of the apex bank on Thursday, detailed a couple of socio-economic considerations as factors to govern the projected shift in consumer behaviour this year. While highlighting a number of factors, it suggests that consumer spending will plunge in 2020 in response to consumers’ shrinking appetite for borrowing. Read full report.

 

The Central Bank of Nigeria (CBN) on Wednesday announced it had retained the Loan to Deposit Ratio (LDR) for Deposit Money Banks (DMB) at 65%. LDR measures a bank’s liquidity by comparing its total loans to its total deposits for the same period.

 

The disclosure was made in a circular signed by Ahmad Abdullahi, CBN’s Director of Banking Supervision in Abuja. Read more.

 

The latest report from Petroleum Products Pricing Regulatory Agency (PPPRA) has revealed that a total of 19.18 billion litres of petroleum products was imported into the country in 2019.

 

It equally disclosed that only 166.33 million litres of Premium Motor Spirit (PMS) were produced by Nigeria’s four moribund refineries. Put differently, Nigeria produced a meagre 0.87% of its local petrol demand in 2019 while import accounted for the rest 99.13%. Read more.

 

Nigeria’s daily oil output shortfall of 80,000 barrels was the biggest among the Organisation of Petroleum Exporting Countries (OPEC) for December 2019 according to ship-tracking data and loading schedules. The bulk of the shortage stemmed from reduced shipments of Bonga crude, which according to traders had been undergoing maintenance.

Given OPEC estimates, Nigeria’s oil production for November plunged to 1.79 million barrels per day (bpd) compared to the 1.80 million bpd posted in October. Read more.

READ ALSO: BUSINESS ROUNDUP: Electricity tariff hike; rising oil price; See other stories that made our pick

On NSE ROUNDUP: Strategic positioning for companies’ full year results lifts market performance.

Series of bargain hunting actions, targeted at reaping from the potential impressive results of quoted companies boosted the key market indicators of the Nigerian Stocks Exchange (NSE) during the week.

Investors sustained a momentum of interest in blue chip equities, especially bank stocks, in view of the likelihood that such companies would declare dividend any moment from now.

The week was quite a rewarding one for investment as all the key market performance indicators recorded significant appreciation Monday through Friday.

A positive market breadth was recorded as 51 gainers were recorded compared to 44 losers. The All Share Index (ASI) grew by 9.07% to 29,415.39 basis points. See full report here.

 

Meanwhile, on our editorial Business Review segment;

 

We reviewed the anticipated market war between Ghanaian KudiGo and Nigerian IderaOS as KudiGo makes moves to enter the Nigerian SMEs space with its Storefront ecommerce platform.

 

With Storefront’s business model similar to that of Nigeria’s Listbuy, analysts predict an inevitable market-share war between the 2 firms.

 

KudiGo claims to have recorded success in Ghana and sees potentials (population counts, obviously) in Nigeria. Thus, its motivation to lock horns with IderaOS’ Listbuy. We were asking if Nigerians would prioritise Nigeria-origin Listbuy over the Ghanaian counterpart. Read complete review.

 

We also looked at Airtel’s foray into television serviceswhere we noted that the network service provider might be delving into not-too-promising venture.

 

We noted that its offers are nothing different but a close mimic of existing products. We fear its chances of thriving and nurses concerns on how Airtel stakeholders will deal with investments. Find review here.

 

Thanks for joining the roundup this week. See you next week for another serving of Business Roundup. Don’t forget, for the latest news and updates from around the globe, keep reading Ripples Nigeria.

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

Join the conversation

Opinions

About the author

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
www.ripplesnigeria.com

Do NOT follow this link or you will be banned from the site!