As a policy objective, the attainment of food security in Nigeria began facing challenges prior to independence when oil exportation began in 1958. But the challenges became pronounced and persistent after the commencement of large-scale oil exports in the early 1970s, when the country nearly abandoned agriculture in pursuit of newfound oil wealth. Self-sufficiency in food production and agricultural export earnings, aided by widespread cultivation of food crops and regional specialisation in cash crops – the cocoa mountains in the west, the oil palm and kernel heaps in the east, and groundnut pyramids in the north – began to diminish and disappear respectively. Within a few years after independence in 1960, the agricultural sector transitioned from a net foreign exchange earner to net foreign exchange drain.
Recently released data by the Debt Management Office reveals a further increase in Nigerias debt stock as at the end of 2017Q3. Total debt stock stood at N20.37 trillion as at September 20172, increasing by 3.75 percent Quarter-over- Quarter and 20.67 percent Year-on-Year. External debts rose 2 percent to N4.69 trillion, while domestic debts (FGN and States) grew by 4.3 percent to N15.68 trillion both accounting for approximately 23 percent and 77 percent of total debt stock respectively. Obviously, Nigerias increasing debt accumulation at a rate faster than GDP growth rate, clearly exacerbates difficulties in meeting debt repayment and sustainability of debt servicing measures. The recent borrowing surge should be utilized to provide socially viable and profitable infrastructure so as to minimize the future debt burden.
CSEA in collaboration with the South African Institute of International Affairs (SAIIA) and the Overseas Development Institute (ODI) organised a policy dialogue on December 8-9,2014 in London, to di
Recent NBS data on Nigerias real GDP growth rate declined from -0.36 percent in 2016Q1 to -2.06 percent in 2016Q2. With negative GDP growth rate in two consecutive quarters, Nigeria records its first recession in 23 years. Both the oil and non-oil sectors continued to contract by -15.59 and -0.20 percentage points, respectively, relative to preceding quarter. The worsening growth rate in the oil sector was largely driven by the decline in domestic crude oil production by 14.5 percent relative to preceding quarter
Recently released survey report by the CBN shows an improvement in the availability of secured and unsecured banks credit and loans to households, corporate and small businesses in 2017Q3, and an optimistic outlook in 2017Q4. Among other indices, availability of overall secured and unsecured lending to households improved from -6.2 and -19.2 to -0.9 and -15.0 index points respectively; although still in the negative territory. Index for availability of credit to small businesses improved from -20.1 to -6.7. Lenders and respondents noted that anticipation of a brighter economic outlook, favorable liquidity positions, market share objectives and higher appetite for risk were major factors behind the increase.