Macroeconomic Report & Economic Updates

April 15, 2019

Nigeria Economic Update (Issue 12)

The Nigerian mining and quarrying sector recorded growth in the production of solid minerals in 2018. The total quantity of solid minerals produced rose from 45.7 million tons in 2017, to 55.9 million tons in 20181 – representing a 22% increase. Disaggregated by type of solid mineral, Limestone was the most produced – production grew […]

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The Nigerian mining and quarrying sector recorded growth in the production of solid minerals in 2018. The total quantity of solid minerals produced rose from 45.7 million tons in 2017, to 55.9 million tons in 20181 – representing a 22% increase. Disaggregated by type of solid mineral, Limestone was the most produced – production grew by 95% to 27.2 million tons in 2018, and accounted for about 49% of the total tons of minerals produced. The growth witnessed in the sector may have emerged from the government’s efforts and incentives to develop the sector and also in a bid to diversify the economy. The government had offered mining companies a three to five year “tax holiday”, duty and tax-free importation of equipment, full ownership of their businesses and the ability to take profits out of the country2. In addition, the government committed about $100 million intervention fund for the sector and awarded mining contracts to ten exploration and consulting firms, in 20183. In addition to ongoing interventions, there is need to minimize the indiscriminate export of mineral commodities especially gold, tin and lead-zinc to foreign smelters, as formalizing these activities offers great potential for a significant source of revenue for Nigeria, away from oil.




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Nigeria Economic Update (Issue 39)

Nigerias external reserve fell marginally by from $25.36 billion to $25.16 billion. The decline likely reflects the continued sales of dollar by CBN amid fall in oil revenue. Similarly, the naira/dollar exchange rate depreciated marginally by 0.5 percent to N424/$ at the parallel segmentas also seen in preceding weeks. The continued depreciation likely points to banks low level compliance to CBNs dollar sales directive made in August, 2016, thus creating artificial dollar scarcity in the parallel market.

Real GDP Growth Rate

On average, Nigerias GDP growth rate has averaged about 5 percent; attaining an unusual trough of nearly -10 percent in 2003Q4 and a peak of nearly 20 percent in 2004Q4. However, the Nigerian economy