Macroeconomic Report & Economic Updates

April 8, 2019

Nigeria Economic Update (Issue 11)

Nigeria’s aviation sector witnessed substantial improvements in 2018 in both air passenger traffic and cargo movements. Figures from the Federal Airport Authorities of Nigeria show that the number of passengers through Nigerian airports stood at 15.2 million in 20181, about 13.4 percent increase from the 13.4 million passengers in 20172. The total cargo movement stood […]

Download Label
March 13, 2018 - 4:00 am
application/pdf
332.30 kB
v.1.7 (stable)
Read →

Nigeria’s aviation sector witnessed substantial improvements in 2018 in both air passenger traffic and cargo movements. Figures from the Federal Airport Authorities of Nigeria show that the number of passengers through Nigerian airports stood at 15.2 million in 20181, about 13.4 percent increase from the 13.4 million passengers in 20172. The total cargo movement stood at 245.89 million kilograms compared to 161.80 million kilograms recorded in 2017. With improvements in infrastructure, launch of new aircrafts by air operators, full-capacity schedule flight services, improved regulation, and less inference from the government in 20183, the sector attracted more customers and ultimately garnered more revenue from the sales of tickets. By implication, these improvements in the industry bolstered the remarkable sectoral annual real growth rate which grew from 1.83 percent in 2017 to 20.7 percent in 20184. Despite the improvements, there is need to create tax incentives that can attract investors that would invest in airport infrastructure upgrade and continuous maintenance to help unlock the full potential of the Nigerian airline industry.




Related

 

Nigeria Economic Update (Issue 28)

OPEC weekly basket price increased marginally from $45.09 on June 17, 2016 to $45.95 on June 24, 2016, while Nigerias bonny light increased from $47.61 to $48.90 (with a peak of $49.2 on June 23, 2016)within the same period. The rise in oil price, amidst downward pressures, was likely driven by expectations that the UK would remain in the EU. However, price fell (to $47.61) on June 24, 2016 following the outcome of the UK referendum (on June 23, 2016) to leave the EU. This was driven by concerns over a possible contagion effect of further disintegration on the EU (a major oil consumer) which could drive down oil demand in the longer term. In the medium term, oil prices could face further pressure as a result of rising crude oil output and attenuating production disruptions in Canada and Nigeria. Although, the recent rise in oil prices seem transient, Nigeria can benefit from the marginal rise if disruptions in oil production is quickly resolved

External Reserve

External Reserve: External reserve picked up from its year-2000 level below $10,000 million to above $60,000 million in 2008. However, the external reserve fell deeply in 2010/11 and even further in 2

Public Debt-to-GDP Ratio

Public Debt-to-GDP Ratio: The ratio of Nigerias cumulative government debt to national GDP has maintained an upward trend indicating the countrys declining economic productivity and ability to repay

The Role Of Fiscal Policy In Promoting Growth

The paper examines fiscal policy as it influences growth through taxes and service delivery. It also reviews Nigerias experience with fiscal policy as well as challenges to its current system.