Macroeconomic Report & Economic Updates

July 10, 2017

Nigeria Economic Update (Issue 26)

Power sector statistics indicates a huge decline in power generated in the week under review (June 23, 2017 to June 30, 2017). Power generated, attained a peak of 4,305 MW on June 23, 2017 but fell significantly by 33.1 percent to approximately average of 3,000 MW as at June 30, 2017. The huge decline is attributable to continued poor payment and inability of most GENCOs to pay for gas supply and a system collapse. Consequently, power sector lost huge prospective funds; and daily power supply reduced to 4.5 hours per day7. Going forward, improvement in energy supply is critical to domestic production, job creation, and diversification agenda of the government.

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Nigeria Economic Update (Issue 32)

The naira continued its downward trajectory this week. Specifically, naira depreciated at the interbank segment by 3.45 percent to N300/$; and by 3.56 percent to 378/$ at the parallel segment. Despite the CBNs effort to support the naira with Forwards and FOREX futures, the excess demand for dollar continues to put pressure on the naira. Looking forward, the stabilization of exchange rate depends on the ability of the CBN and government to attract capital inflows; particularly by raising interest rate, tackling inflation and supporting economy recovery.

Nigeria Economic Update (Issue 23)

Recently released report by the NBS shows an increase in Unemployment and Underemployment rates for 2016Q4 relative to preceding and corresponding quarters. The unemployment rate, at 14.2 percent, indicates a 3.8% points YoY4increase, and a 0.3% points QoQ increase with the number of unemployed people increasing by 351,051 persons. Similarly, underemployment rate grew (QoQ) by 1.3% points to 21%, representing about 17 million underemployed persons as at the quarter. The rise in unemployment/underemployment rate is attributable to the disproportionate rise in labour force vis--vis job creation, in addition to slow-down in economic/business activities during the quarter. Going forward, the government should make efforts to strengthen and expand Nigerias entrepreneurial infrastructure.

Nigeria Economic Update (Issue 11)

In the crude oil market, OPECs weekly basket price increased 1.07 percent from $29.02 per barrel in February 19 to $29.33 per barrel in February 26. A combination of factors were responsible for the slight price increase. First, a decrease in the number of active oil rigs in the US2 (the lowest since 2009) may have marginally eased the glut in the crude oil market. The ongoing efforts by OPEC and other major oil producers such as Russia to freeze oil production have also played a significant role in stemming the downward trend in oil prices. With the current market conditions, the price of crude oil is expected to maintain a fairly stable and modest upward trajectory in the near term.