The recent report on Nigeria’s Public Debt Stock for the first quarter of 2018 indicates a 4.5 percent Quarter-over-Quarter increase, from N21.7 trillion in Q4 2017 to N22.7 trillion1, and a Year-on-Year increase of 18.5 percent from N19.2 trillion2. The ratio of domestic debt to external debt is put at 70:30, a reduction in domestic debt from the previous share of 73 percent, and an increase of external debt share from 27 percent – a reflection of the need for caution in external borrowings
Macroeconomic Report & Economic Updates
Internally Generated Revenue: Total internally generated revenue particularly declined across the 36 states in Nigeria, in 2015. This is attributable to the weak macroeconomic and financial conditions
All Share Index (ASI) and Market Capitalization declined by 13 percent to close at 23514.04 points and N8.09 trillion respectively at the end of the trade session on January 15. The huge drop in the Index, representing a 3-year low, led to the introduction of the Index Circuit Breakers Rule. While this policy measure may prevent huge losses in the stock market, rising concerns about macroeconomic stability in Nigeria may significantly increase the level of volatility in the stock market. This may have substantial adverse implications for investors in the Stock Exchange.
The paper highlights the importance of oil sector transparency in order to support governments push towards structural reforms and inclusive growth.
The naira depreciated by 4.3 percent to a record low of N313/$ at the interbank market segment on July 29, 2016.Precisely, the lack of liquidity in all FX market segments continues to weaken the naira. In order to increase FOREX liquidity, moderate inflationary pressures, encourage capital inflows and support the naira, the CBN may need to increase the supply of FOREX in the interbank market while simultaneously mopping up idle funds through the sale of securities.