Macroeconomic Report & Economic Updates
November 6, 2017
Nigeria Economic Update (Issue 42)
Recently
released survey report by the CBN shows an improvement in the availability of
secured and unsecured banks credit and loans to
households, corporate and small businesses in 2017Q3, and an optimistic outlook
in 2017Q4. Among other indices, availability of overall secured and
unsecured lending to households improved from -6.2 and -19.2 to -0.9 and -15.0
index points respectively; although still in the negative territory. Index for
availability of credit to small businesses improved from -20.1 to -6.7. Lenders
and respondents noted that anticipation of a brighter economic outlook,
favorable liquidity positions, market share objectives and higher appetite for
risk were major factors behind the increase.
Related
Nigeria Economic Update (Issue 10)
Nigerias inflation rate remained above
CBNs bandwidth of 6-9 per cent. Specifically, the inflation rate increased
slightly from 9.55 percent in December 2015 to 9.62 percent in January 20165.
The Core sub-index remains the main driver of inflation in Nigeria. The higher
prices of items in the Core sub-index such as clothing and foot wears are
reflective of higher domestic production costs as a result of the decline in the
value of the naira relative to the dollar. However, in the period, the price
increase was moderated by the stable price of Premium Motor Spirit (PMS). Going
forward, without any sustainable policy measure to prevent the further
depreciation of the naira, inflation may exceed the current single digit
inflation rate in the near term.