Nigeria’s infrastructure stock, comprising of roads, water-ways, seaports, airports, etc, increased slightly albeit a slower pace in recent years. At an estimated 35 percent of GDP in 2018, infrastructure stock grew marginally from the recorded 20-25 percent in 20141. The increase may be premised on slightly improved capital spending (the Federal government budgetary capital spending increased from N691 billion in 2015 to N2.2 trillion in 2017) for the four years under review. However, Nigeria’s infrastructure stock continues to be significantly lower than the recommended international benchmark of 70 percent- a point it hopes to reach by 2043 if the required annual $100 billion is invested over the next three decades.
Macroeconomic Report & Economic Updates
Nigerias domestic crude production increased significantly in April 2017. OPECs Month-on-Month data shows a 22.6 percent increase to 1.5 million barrels per day constituting the biggest increase among oil producing group. Crude production increased at the backdrop of completion of scheduled maintenance/repairs at the Bonga oil field, implying resumption of crude production by an additional 225,000 barrels. Remarkably, Nigeria is progressively moving towards meeting daily output benchmark/target (2.2 million barrels per day). Given recent boost in domestic crude oil production, considerable effort should be made to improve the countrys refining capacity in order to reduce fuel importation and conserve foreign exchange.
Export and its Components: In 2015 and 2016Q1, overall export earnings declined significantly to a record low of less than $3000 million in 2016Q1, as against the peak of above $10,000 million in 2008