Macroeconomic Report & Economic Updates
May 10, 2017
Nigeria Economic Update (Issue 17)
Activities
in the manufacturing sector remained at levels recorded in 2016Q3.
Specifically, manufacturing capacity utilization (a measure of potential
manufacturing output that is actually realized) remained at 48.46 percent in
2016Q4 below average. During the quarter, structural bottlenecks
such as epileptic power supply (average of 2, 548 Megawatts) in
addition to forex constraints, hampered manufacturing activities. As such, high
cost of raw materials and cost of production subdued activities in the short
term. Recent efforts by the monetary authority to increase forex access to the
manufacturing sector as well as improvement in gas supply and electricity
generation would help minimize production costs and enhance production process.
Related
Rising Inflation: Will The MPC Raise The Policy Rate Or Support Economic Growth
This brief examines global and domestic developments in
Nigeria as well as the effect of slowdown in economic growth of key oil
consuming nations on the Nigerian economy.
Nigeria Economic Update (Issue 37)
OPEC Monthly oil report reveals that Nigeria
recorded the highest month-on-month increase in crude oil production among the
OPEC member countries in August 2017. Specifically, at an increasing rate of 8
percent, domestic oil production rose to pre-2016 level of 1.86 million barrels
per day in August 2017. With ongoing repairs in the sector, oil
production could get to 2.2 million barrels per day in the near term, albeit
the prior voluntary agreement to cap production at 1.8 million barrels per day.
Going forward, there is need to address poor planning and policy
inconsistencies in the sector, in order to ensure the influx of investors who
have channeled their investments to other African countries due to laxity in
policies in the sector.