Total value of Nigeria’s merchandise trade contracted in 2018Q2. Valued at N6.6 trillion1, total trade fell quarter-on-quarter by 8.9 percent from the N7.2 trillion recorded in the previous quarter. Both exports and imports declined during the period: Exports shrunk by 4.9 percent down to N4.5 trillion and was triggered by a huge fall in solid minerals and manufacturing exports. On the other hand, imports declined from N2.5 trillion to N2.1 trillion. Further review shows that crude oil accounted for 83.5 percent of total foreign merchandise trade, and trade to GDP lowered to 22.5 percent from 25.5 percent. However, there was a recorded trade surplus during the period, valued at N2.4 trillion. Going forward, there is a need for export promotion strategies, including subsidies, tax exemptions, and special credit lines to support non-oil business growth.
Macroeconomic Report & Economic Updates
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.
Latest Doing Business report by the World Bank ranks Nigeria as one of the top 10 economies that showed notable improvements in doing business in 2016/2017. Precisely, the report which presents quantitative indicators on business regulation compared across 190 economies and ranked Nigeria 145th - up by 24 positions from the previous report ranking, to reach its highest rank since 2013. This may not be unexpected, given that it is consequent upon various business environment reforms in 2016. Particularly, the Presidential Enabling Business Environment Council (PEBEC) set up in 2016 enacted 31 reforms to improve business(such as improving credit to small and medium-size businesses) all of were enacted into law in May 2017.
Gross Domestic Product: Agriculture Gross Domestic Product growth rate recorded its highest point in 2006Q1 but fell sharply subsequently. Particularly, the slow growth recorded in 2015 and 2016Q1 is
There is a link between primary commodity export prices and economic performance. Many African economies are primary commodities export biased, often in few primary commodities. Previous studies focus on the impact of commodity prices on growth in Africa with little attention paid to different primary commodities and level of diversification in primary commodities export. This study, investigates the effect of primary commodity prices on the long-run growth of 24 primary commodities-based African economies; by commodity types and level of diversification in primary commodities exports.