Daily Watch

23rd July 2015

US$2.67 billion of fresh capital flowed into Nigeria’s economy in Q1 2015, representing a decline of 40.5 percent and 31.6 percent, in comparison with its level in Q4 2014 and Q1 2014, the Central Bank of Nigeria has said. A breakdown of imported capital showed that inflow into the equities market accounted for 48% or $1.3 billion of the total in Q1 2015. According to the report, estimated total external trade which was recorded at US$26.74 billion, showed a decline of 17.1 and 27.2 per cent, respectively, from their levels recorded in the preceding and corresponding quarters in 2014 due largely to the decline in crude oil receipts.

Foreign exchange speculators may be forced to cut their bullish bets on a naira devaluation as little or no surprises will be expected from the CBN on both the monetary policy front and the foreign exchange front. Some analysts are settling with the view that the Monetary Policy Committee, which will hold its 4th meeting on Thursday and Friday, may disappoint traders and choose to maintain status quo rather than devalue the currency.
Nigerian aviation industry stakeholders are saying that the sector may be losing more than ₦100 billion annually to shoddy implementation of open sky agreements with foreign countries. According to them, the granting of flight entries “indiscriminately’ to foreign airlines is harming local carriers. Since the liquidation of the erstwhile Nigeria Airways, out of over 47 airlines that had been licensed to operate, 31 of them are comatose while only about six are operational currently.
Flour Mills of Nigeria said its full-year pre-tax profit dropped by 6 percent to ₦7.72 billion from ₦8.22 billion the previous year. Gross earnings fell to ₦308.75 billion in the year to March 31 compared with ₦325.79 billion in the year, the company said in a filing to the Nigerian Stock Exchange on Wednesday. It did not give reason for the drop in earnings.