Macroeconomic Report & Economic Updates

March 15, 2019

Nigeria Economic Update (Issue 8)

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The total amount of non-performing loans (NPL) of Nigerian banks declined for the year 2018, relative to 2017. At N1.79 trillion, the stock of NPL fell by 24.2 percent from N2.36 trillion in 20171. Also, gross loans as of the end of 2018 stood at N15.35 trillion, as against N15.96 trillion as at the end of 2017. The reduction in NPL shows that debtors may have relieved more of their indebtedness in 2018 compared to 2017; this may have been complemented by the Asset Management Company of Nigeria’s (AMCON) resolve to achieve its recovery mandate against erring debtors2. AMCON is saddled with the statutory responsibility, among others, of recovering the NPL hitherto disbursed by eligible banks to their customers. The decline in non-performing loans is expected to continue as the overconcentration of banking sector loans to the unpredictable and volatile oil and gas sector has been reduced to a great length.  Monetary authorities should tighten mechanisms to ensure that commercial banks strictly adheres to the macroprudential guidelines that stipulate a 5 percent NPL benchmark.



Understanding The Ongoing Recession In Nigeria:A Synthesis Of The Events And Policy Options

In the second quarter of 2016, the Nigerian economy witnessed its first recession in twenty years due to the interplay of several external and internal factors. The recession has continued until date and has given rise to relentless unemployment rate and job losses, double digit and soaring inflation, currency depreciation and widening gap between parallel market and official exchange rates, amongst other adverse effect on individuals and firms in the country. Thus, there is a need to take a deeper look into the nature of the present recession as well as the impact of monetary and fiscal policy responses thus far, in order to shed light on the way forward towards tackling the recession and ensuring sustainable economic growth. This paper analyses the ongoing recession in the Nigerian economy to provide insights into the interplay of events and recommendations for policy.

Nigeria Economic Update (Issue 12)

The naira/dollar exchange rate remained largely stable at the parallel market at ?320/$ during the period7, albeit slight fluctuations on February 29, 2016 (?325/$) and March 2, 2016 (?328/$). The decline in the hoarding of foreign currency as well as the substantial reduction in the speculative demand for dollars were the two key factors responsible for the ease of fluctuations in the forex market8. With the slight increase in the price of crude oil, Nigerias foreign reserve slightly grew by $56 million, from 27.81 billion to $27.84 billion9. With the continued increase in the price of crude oil, a modest build-up of foreign reserve to guard against unfavourable commodity price movements is expected in the near term.

Cost Effectiveness Analysis Of Selected Malaria Interventions In Nigeria

This brief highlights the findings of a cost effectiveness analysis conducted on two malaria intervention programs implemented in Jigawa State, Nigeria under the National Malaria Control Programme: the long-lasting insecticide treated nets intervention and the indoor residual spraying program.