July 14, 2020

Nigeria Economic Update (Issue 26)

The manufacturers Purchasing Managers Index (PMI) declined by 3 percent to 41.1 index points between May and June 2020, indicating an increased shrinking in the sector1. The slowdown was noted across 9 of the 14 surveyed subsectors and was attributed to continued decline in production levels, supply deliveries and new orders within the manufacturing sector. Conversely, the non-manufacturers PMI rose from 25.3 to 35.7 index points albeit lower than the 50-point benchmark. This was driven by an increase in employment, inventories and overall business activity. This rise follows the gradual removal of the lockdown measures and is expected to persist as next month’s business outlook for the manufacturing and non-manufacturing sectors is 2.7 and 2.4 percent higher respectively2. Firms should be prepared to shift their supply chains and adjust to the new business environment. For instance, as remote working becomes the new normal, the increased demand for computing infrastructure is an opportunity firms can seize.

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Nigeria Economic Update (Issue 35)

Nigeria's Real Gross Domestic Product (GDP) increased at an annual rate of 0.55 percent in 2017Q21, compared to the -0.91 percent (revised) in 2017Q1 indicating the first quarterly positive growth rate since 2016Q1 and an evidenced exit from five quarters of economic recession. The acceleration in real GDP in 2017Q2 reflects the significant increase in oil sector GDP from -11.64 percent in 2017Q1, to 1.64 percent in 2017Q2 a 13.3 percentage points Quarter-on-Quarter increase. However, Non-oil GDP moderated by 0.3 percentage points to 0.45 percent. Despite the recent favorable economic performance, growth prospect remains fragile.