20 Jan

Daily Watch – FG signs agreement for 100k housing units, Crude output rises

  • The FG has signed an MOU with Shelter Afrique and the Real Estate Developers Association of Nigeria for the construction of about 100,000 housing units across the country at a cost of ₦610 billion. $200 million would be used for the construction of about 10,000 houses nationwide on a yearly basis over a period of 10 years. The Acting Managing Director of the Federal Mortgage Bank, Richard Esin, said that the Nigerian housing market did not require anything less than $200 million annually over the next 10 years to build a considerable number of houses.
  • Nigeria’s crude oil output increased by about 403,900 barrels per day (bpd) to 1.940 million bpd in December 2016, above November levels of 1.536 million bpd, according to the current figures released by OPEC. Compared to Q3 2016, 1.2 million bpd output, the boost in production is attributed to the FG’s conciliatory moves to militant groups in the Niger Delta. Due to the vandals and militants activities Nigeria’s crude oil output dropped to as low as 900,000 bpd in early 2016, a far cry from the 2.2 million barrels benchmarked in the budget.
  • The Nigerian stock market (equities category) has sustained its losing streak for three straight days, posting a ₦15 billion drop in market capitalisation. NSE market capitalisation, at the close of trading on Thursday, dropped to ₦9.015 trillion from ₦9.030 trillion, while the NSE All-Share Index closed at 26,201.60 basis points from 26,245.34 basis points. Amid persistent mixed trading across key sectors, the equity market traded lower as the NSE ASI shed 0.17 percent. Market breadth turned positive with 20 advances and 19 declines.