March 5, 2021

Nigeria Economic Update (Issue 8)

Data released by the National Bureau of Statistics indicates that Nigeria’s real Gross Domestic Product (GDP) grew by 0.11% in Q4 20201. Further disaggregation shows that the oil sector contributed 5.87% to total real GDP while the non-oil sector contributed 94.13% during the period. Although the growth rate in Q4 2020 is lower than the corresponding quarter of 2019 which was 2.55%, it represents a 3.74% improvement over the previous quarter (Q3 2020). More importantly, it is the first positive quarterly growth since the economy contracted in both the second and third quarters of 2020, thereby ending the recession experienced due to the pandemic. The growth reflects the gradual return of economic activities following the resumption of movements which limited commercial activities in the previous quarters. Considering that economic activities are returning to pre-COVID levels and COVID vaccination is underway, economic expansion is expected in the near term. However, the size of the expansion will depend on the spending choices of the government as it responds to the new and evolving challenges. As such, budgetary allocations to sectors capable of delivering an inclusive recovery such as the agriculture sector should be prioritized.

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Nigeria Economic Update (Issue 48)

Data released by the National Bureau of Statistics shows that Internally Generated Revenue by states increased in 2017H1. The IGR increased from N392.1 billion in 2016H1, to N396.9 billion in 2017H1, a slight 1.2 percentage half Year-on-year growth. Also, N149.5 billion was generated in 2017Q3. Lagos state remains top in internal revenue generation, with a significant 42.3 percent share of total IGR in the review half year. The improvements in IGR may be attributable to efficient revenue collection by each reported state from the various sources of internal revenue: taxes, fines and fees, licenses, earnings & sales, rent on government property, interests and dividends, among others.