Macroeconomic Report & Economic Updates

September 3, 2018

Nigeria Economic Update (Issue 33)

Media highlights suggest that leading manufacturers quoted in the Nigerian Stock Exchange, NSE, which operate across sectors have recorded significant upsurge of 20.2 percent in their operating expenses, OPEX, in the first half of 2018. Specifically, compared to the corresponding half-year in 2017, costs incurred rose from N194.6 billion to N233.9 billion in 2018H11. The […]

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Media highlights suggest that leading manufacturers quoted in the Nigerian Stock Exchange, NSE, which operate across sectors have recorded significant upsurge of 20.2 percent in their operating expenses, OPEX, in the first half of 2018. Specifically, compared to the corresponding half-year in 2017, costs incurred rose from N194.6 billion to N233.9 billion in 2018H11. The firms also operated on short term borrowings of N101 billion, up by 1.8 percent in 2017. The rising expenses may be at the backdrop of general rise in cost of: products distribution, running campaigns and innovations, and brand marketing in a bid to increase sales volume.  To reduce operating expenses and support non-oil sector growth which is yet to pick up, there is need for the government to quickly implement Focus Lab projects.




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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.

Nigeria Economic Update (Issue 47)

Recently released data by the Debt Management Office reveals a further increase in Nigerias debt stock as at the end of 2017Q3. Total debt stock stood at N20.37 trillion as at September 20172, increasing by 3.75 percent Quarter-over- Quarter and 20.67 percent Year-on-Year. External debts rose 2 percent to N4.69 trillion, while domestic debts (FGN and States) grew by 4.3 percent to N15.68 trillion both accounting for approximately 23 percent and 77 percent of total debt stock respectively. Obviously, Nigerias increasing debt accumulation at a rate faster than GDP growth rate, clearly exacerbates difficulties in meeting debt repayment and sustainability of debt servicing measures. The recent borrowing surge should be utilized to provide socially viable and profitable infrastructure so as to minimize the future debt burden.