Total capital imported into Nigeria declined in 2018Q2, compared to 2018Q1 – the first quarterly decline since 2017Q1. At $5.5 billion in 2018Q21, capital importation dropped by 12.5 percent from the $6.3 billion recorded in the preceding quarter. The quarter-over-quarter decline may be attributable to decreases in both portfolio and other investments, which fell by 9.8 percent and 24.1 percent respectively. However, portfolio investment maintained its leading role in contributing to total capital importation, at $4.1 billion or 74.5 percent. On the flip side, FDI continues to be the least contributor since 2017Q1, and accounted for only 4.7 percent ($264.1 million) in the review quarter. The overall lower capital inflows, particularly portfolio investments, puts into perspective the recent persistent downward trend in Nigeria’s capital and money markets.
Macroeconomic Report & Economic Updates
The paper examines the importance of fuel subsidy reforms and how the Nigerian government can achieve a successful reform. It also examines the link between safety nets and growth to help facilitate reform and inclusive growth.
Nigerias Bonny light price declined by 7.1 percent from $40.19 per barrel on March 24, 2016 to $37.32 per barrel on April 1, 20162. OPEC weekly basket price also decreased by 3 percent from $35.81 per barrel to $34.74 per barrel within the same period3. The remerged downward trend in crude oil price is traceable to concerns over the likely failure of the oil production freeze deal between Saudi Arabia and Iran4. The outcome of the oil production freeze meeting which is scheduled to hold on April 17, 2016, will give further direction for oil supply regulation.