Macroeconomic Report & Economic Updates
April 5, 2016
Nigeria Economic Update (Issue 14)
The
considerable increase in inflation continued to be driven by
exchange-rate-pass-through from imported items as well as the lingering
scarcity in the availability of Premium Motor Spirit (PMS). One of the key ways
to reduce inflationary pressures in the near term is to improve the supply of
PMS to filling stations. In the medium to long term, the Nigerian National
Petroleum Corporation (NNPC) may need to revitalize local refining and bridge
the gap between the supply and demand for PMS by households and businesses.
Related
Institutions And Sustainable Industrial-led Development In Sub-Saharan Africa
In 2015, economic growth in Sub-Saharan Africa
(SSA) slowed to 3.4 percent from 4.6 percent the previous year. The economic
slowdown in the region was the result of an interplay of several external and
domestic factors such as lower commodity prices, slowdown in the economies of
major trading partners, tightening borrowing conditions, political instability
and conflict, electricity shortages and other infrastructure deficiencies (World Bank, 2016). This sluggish
growth trends is in contrast to the impressive growth recorded in the region,
over the past decade.