Macroeconomic Report & Economic Updates
September 2, 2016
Nigeria Economic Update (Issue 37)
Recent
data by the CBN shows a decline in manufacturing capacity utilization by 2.0
percentage points to 50.7 percent in 2016Q2. Foreign exchange
challenges in addition to cash squeeze in the review quarter, led to the
decline in capacity utilization. This has hindered activities in the sector
while impacting negatively on business confidence. Nonetheless, the CBN
recently directed authorized FX dealers to dedicate 60 percent of FX purchases
to manufacturers. This policy measure is therefore expected to meet
the sectors critical FX need for the purchase of imported raw material and
other machineries, while boosting the potential for economic growth in the long
term.
Related
Fuel Subsidy Reform, Social Safety Nets (SSNs) And Pro-poor Growth
The
paper examines the importance of fuel subsidy reforms and how the Nigerian
government can achieve a successful reform. It also examines the link between
safety nets and growth to help facilitate reform and inclusive growth.