Macroeconomic Report & Economic Updates

October 23, 2015

Nigeria Economic Review (First Half Report 2015)

The modest growth in the
global output witnessed in the first quarter of 2015 was driven mainly by
advanced economies, particularly the United States. Growth slowed down significantly
in emerging and developing economies, primarily natural resource-dependent
countries which were adversely affected by falling commodity prices.

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Real Gross Domestic Product
(GDP) growth in Nigeria continued to decelerate in 2015H1, with a growth rate
of 2.4 percent in the 2015Q2. Non-oil sector remained the driver of growth, in
contrast to oil-GDP which witnessed a significant negative growth. The huge
drop in global crude oil prices was the main cause of the contraction in
Oil-GDP growth.

The slump in oil prices
resulted in a substantial fall in oil revenue by 41.2 percent in 2015Q1. A
remarkable increase in non-oil revenue in April dampened the effect of the fall
in oil revenue in the first half of 2015. In general, total federally collected
revenue increased by 3.4 percent in 2015H1. Fiscal deficits which increased at
the start of 2015, was reversed at the last month of 2015Q1, an impact of the
austerity measures which has led to a consistent decline in government
expenditure.




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Nigeria Economic Update (Issue 10)

Nigerias external reserve rose to its 19-month high in the week under review (March 3, 2017 to March 10, 2017). Precisely, the reserve improved by a daily average-percentage-increase of 0.21 percent, from $29.79 billion on March 3, 2017 to $30.04 billion on March 10, 2017  the highest level since August 2015. The rising reserve at the backdrop of steady revenue from improved domestic crude oil production/prices and forex inflows from rising exports, has reduced pressure on the Naira the naira has witnessed marginal but steady appreciation. While the recent improvement in oil revenue is a welcome development, concerted efforts need be made to develop the Non-oil sector so as to mitigate future oil revenue shocks.