Macroeconomic Report & Economic Updates
August 19, 2016
Nigeria Economic Update (Issue 35)
Recent report in the media highlights that Nigerias
GDP has dropped to $296 billion in 2016, in contrast to the $481 billion
recorded in 20151 and Nigeria has lost its position as Africas
largest economy to South Africa. This conclusion was based on the computation
of GDP with current naira-dollar exchange rate. However, while the naira has
significantly lost its official value since the adoption of a flexible exchange
rate, estimating GDP merely with a single exchange rate figure (rather than its
yearly average) cannot be regarded as an appropriate method to conclude on Africas
largest economy.
Related
Capital Importation And Budgetary Allocation (ITC)
Capital Importation: Given the positive outlook on the ITC sector in the past few years, investments in the sector reached a 10-year peak in 2014. However, the foreign investment fell marginally in 2