Macroeconomic Report & Economic Updates
May 9, 2016
Nigeria Economic Update (Issue 19)
A recent report by the National Bureau of Statistics
(NBS) indicates that Internally Generated Revenue (IGR) at the subnational
level decreased slightly between 2014 and 2015. Specifically, the report shows
that on the average, the IGR of all 36 states declined by 3.6 per cent from
N707.9 billion in 2014 to N683.6 billion in 20157. A further
disaggregation reveals that while IGR in 11 states improved in 2015 compared to
2014, IGR in 24 states were below their 2014 levels. As expected, Lagos state
generated the most IGR during the period. Given that domestic resource mobilization
is the most viable alternative to complement the shortfalls (driven by lower
oil prices) in budgetary allocations to states from the federal government,
state governments need to do more to improve the effectiveness and efficiency
of revenue collection.
Related
Nigeria Economic Update (Issue 46)
The
Executive council recently approved a three-year external borrowing plan
(2016-2018) which specifies external borrowing of approximately $30 billion (to
be sourced mostly from MDBs) for infrastructure development.
Although, the plan is yet to be approved by the Senate, the planned concessional
loans for infrastructural development would imply inflows of foreign exchange which
could help moderate the exchange rate volatilities in the near term, and offer
potential improvement in business productivity and job creation.
Nigeria Economic Update (Issue 43)
Crude oil prices have sustained upward increases for the past few weeks in October. While upward trajectory of crude oil prices is expected to be sustained in the short term in line with OPECs production cuts deal expected to run until March 2018, it is important to note that crude oil prices would remain volatile. The Nigerian government therefore should take advantage of periods of high revenue from crude oil exports to develop other sectors (such as Agriculture, Manufacturing and Services sectors) of the economy as key exporting and revenue generation sectors, and thus minimize volatility risks