businessday market monitor NSE Bitcoin Everdon Bureau De Change FMDQ Close FOREIGN EXCHANGE TREASURY BILLS FGN BONDS - $43.19bn Foreign Reserve Market Spot ($/N) 3M 6M 5 Y 10 Y 20 Y Biggest Gainer Biggest Loser BUY SELL Cross Rates - GBP-$:1.28 YUANY-N53.06 ₦1,297,150.35 -3.18 pc 0.29 0.00 Dangcem Stanbic $-N 359.00 362.00 I&E FX Window 364.00 -0.02 -0.01 0.15 N184.8 0.98 pc N47.95 -9.95 pc Commodities Powered by £-N 456.00 464.00 CBN Official Rate 307.00 14.27 13.41 14.57 15.57 15.54 Cocoa Gold Crude Oil 30,962.26 €-N 405.00 413.00 Currency Futures NGUS MAR 27 2019 NGUS JUN 26 2019 NGUS DEC 24 2019 US$2,415.00 $1,283.90 $53.33 ($/N) 364.89 365.34 366.24 NEWS YOU CAN TRUST I **WEDNESDAY 02 JANUARY 2019 I VOL. 15, NO 215 I N300 g www. g @ g COMMODITIES Wheat farmers What the big 5 investment banks bank on govt support for price stability, off-take think of Nigeria, EM in 2019 TEMITAYO AYETOTO LOLADE AKINMURELE group is for a recovery in emerg- on the impact of a stronger dollar compared to other currencies, aving trudged through a ing market assets, particularly, in the early part of the year and Nigerian equities lost 18 percent, year that saw prices de- he central theme equities. volatile oil prices. as foreign capital fled emerging cline by 10.3 percent to in the investment JP Morgan Chase, however, While global growth acceler- markets on the back of rising H N130,000 per metric tonne and outlooks for 2019 by was the only one of the five ated, 2018 was harsh to emerg- interest rates in the United States limited off-taking channel con- Goldman Sachs, Bank investment banks surveyed by ing market assets, including and slower global growth. trolled by flour millers, Nigeria’s of America Merrill BusinessDay to adopt a cautious Nigerian equities. Although the wheat farmers are banking on Lynch, Morgan Stanley and Citi- Continues on page 4 T stance, as it cast a worrying look naira was relatively unscathed the federal governments inter- vention to open a new chapter L-R: Basirat in price stability and off-taking Adegbesan, of the cereal grain. mother of the The lack of price stability and first baby of the adequate off-taking has been a year; Bolanle source of concern for farmers Ambode, wife of the Lagos as the benchmark price fixed by State governor, millers only pared the profitabil- carrying the ity on local production, accord- baby of the ing Salim Saleh the President year; Jide Idris, Wheat Farmers Association of commissioner Nigeria (WFAN). for health, La- In 2017, millers and farmers gos State, and related on the basis of N145, Femi Onanuga, 000 metric tonne agreement but special adviser this was slashed to N130, 000 in to the Lagos what appeared an expensive deal State governor when import particularly from on primary the US at that time was cheaper at health care, $218 (N78, 480) per metric tonne. during the “There is no stability for wheat 2019 baby of the year born Continues on page 4 12:00am, weighs 3.7kg, at Lagos Island Inside Maternity in Lagos, yester- CBN inflation attitudes day. survey points to weaker Pic by Olawale Amoo economy P. 2 2 BUSINESS DAY g www. g @ g Wednesday 02 January 2019 NEWS Ghana leads Africa’s top economies in MSMEs’ contribution to GDP ISRAEL ODUBOLA ria are 37.1 million, while their contribution to GDP and export espite efforts by the earnings stood are 48.7 percent Nigerian government and 7.2 percent, respectively. to promote small Things seem to be auguring and medium-sized well for the Ghanaian economy, D(MSMEs) enterprises, Ghana is as GDP expanded by 7.4 per- leading the rest of Africa in the cent, year-on-year in the third contribution of these organisa- quarter of 2018, following a 5.4 tions to total output of goods and percent expansion in the previ- services, figures show. ous period. MSMEs contribute A BusinessDay analysis of the 70 percent to GDP in Ghana and contributions of MSMEs produc- account for 92 percent of busi- tion in five African economies nesses, data from Bank of Ghana showed that those in Ghana con- (BoG) showed. tributed more to GDP, compared Africa’s second largest econ- to Nigeria, South Africa, Kenya, omy, South Africa, recorded 2.2 and Egypt. percent growth in GDP in third According to International quarter of the year, up from 0.7 Picnickers having fun at the Apapa Amusement Park, during the 2019 New Year celebration in Lagos, yes- Finance Corporation (IFC), percent in the previous quarter. terday. Pic by Olawale Amoo MSMEs account for up to 90 According to the South African percent of all businesses in de- Ministry of Trade and Industry, veloping markets, and the ones MSMEs account for between 52 operating in the formal sector percent to 57 percent in GDP CBN inflation attitudes survey contribute about 60 percent to and 60 percent in employment. total employment and account In Egypt, Minister of Finance, for 40 percent of national income Mohammed Ma’it, said the in developing economies. achieved an increase in GDP points to weaker economy The Nigeria economy expand- of 5.3 percent in 2017/2018, up ed slightly by 1.81 percent in the from an average of 2.3 percent HOPE MOSES-ASHIKE support for price stability, as months was that prices would third quarter of last year, accord- between 2011 and 2014. In a majority (44.0 per cent) agreed inch up by 2.3 percent. From the ing to the National Bureau of disclosure made by the Gen- he Central Bank of that the economy will end up total responses, 48.2 percent of Statistics. Dikko Radda, Director- eral Authority for Investment Nigeria (CBN)’s infla- weaker. This is consistent with the respondents expected prices General, Small and Medium En- in Egypt, MSMEs account for tion attitudes survey the notion that inflation con- to rise by at least 3 per cent over terprises Development Agency of 80 percent of all enterprises, report for the fourth strains economic growth. the next 12 months, 14.3 per Nigeria (SMEDAN) said in 2018, but their contribution to GDP is quarter of 2018 is Godwin Emefiele, governor of cent expected prices to increase that MSMEs operating in Nige- below 25 percent. Tpointing to a weaker econo- the CBN, said in November 30, by more than 1 percent, but less my, as 44.0 percent of Nigerian 2018 that Nigeria’s rate of infla- than 3 per cent. However, 30.9 households have raised concern tion is projected to rise slightly to per cent of the respondents were that the economy would end up about 11.4 percent for the rest of optimistic that prices over the Why FG should change its weaker if inflation rate increase 2018 and towards mid-2019 and next 12 months would either go further. then moderate thereafter. down or remain the same. The Q4 2018 Inflation At- The Nigerian households The consumer price index, stance on business in 2019 titudes Survey was conducted asked how prices have changed (CPI) which measures infla- during the period November over the past 12 months, respon- tion increased by 11.28 percent ... anti-business perception hitting real estate 24 -December 7, 2018 from a dents gave a median answer of (year-on-year) in November sample size of 1770 households 3.8 per cent. The report show 2018. This is 0.02 percent points CHUKA UROKO or relocating to other African countries. randomly selected from 207 that 23.9 per cent of the total higher than the rate recorded in he federal government The expectation is that these Enumeration Areas (EAs) across respondents thought prices had October 2018 (11.26) percent, has a burden to correct developments might increase in the country, with a response rate gone down or not changed, 53.7 according to the National Bureau the impression that it tempo if the status quo persists of 99.2 percent. per cent felt that prices had risen of Statistics (NBS). is anti-business. This this new year and for real estate However, 14.2 per cent of by at least 3.0 per cent, while 17.0 On the issue of interest rates, Tsentiment has prevailed in some which is struggling at the mo- the respondents believe that percent felt that prices inched up the percentage of respondent quarters of the business com- ment, there are grave implica- the economy would be stron- by more than 1.0 per cent, but households who felt that inter- munity in the last three and half tions. The boom that this sector ger, 18.3 per cent said it would less than 3.0 per cent. Those that est rates had risen in the last 12 years. In some cases, those who witnessed in the past was as a make a little difference, while had no idea were 5.3 per cent. months declined by 0.7 points 22.8 per cent did not know. The On median expectation of could not cope with the changed result of the good business cli- Continues on page 4 business environment have had mate in the country before now. responses opined considerable price changes over the next 12 to relocate from the country. “Businesses leaving the coun- Experts cite as reasons for this try has implications for the impression the unfavourable tax property market; it means that policies, the continued delay in the high vacancy situation in the Nigeria’s terms of trade rose marginally signing the Petroleum Industry market is going to worsen; more Bill (PIB) into law to attract pri- buildings will be empty and that vate investment into that sector, will affect their market value,” in 2018 Q3, NBS report shows and punitive and anti-investor Roland Igbinoba, President/ policies as reflected in recent CEO, Pison Housing Company, ..