The manufacturers Purchasing Managers Index (PMI) declined by 3 percent to 41.1 index points between May and June 2020, indicating an increased shrinking in the sector1. The slowdown was noted across 9 of the 14 surveyed subsectors and was attributed to continued decline in production levels, supply deliveries and new orders within the manufacturing sector. Conversely, the non-manufacturers PMI rose from 25.3 to 35.7 index points albeit lower than the 50-point benchmark. This was driven by an increase in employment, inventories and overall business activity. This rise follows the gradual removal of the lockdown measures and is expected to persist as next month’s business outlook for the manufacturing and non-manufacturing sectors is 2.7 and 2.4 percent higher respectively2. Firms should be prepared to shift their supply chains and adjust to the new business environment. For instance, as remote working becomes the new normal, the increased demand for computing infrastructure is an opportunity firms can seize.
July 14, 2020
Nigeria Economic Update (Issue 26)
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A Cost-Effectiveness Analysis Of School Feeding And Education Assistance Programs In Nigeria
The study conducts a cost-effectiveness analysis on two education interventions
in Nigeria: Education Assistance program and the Home Grown School
Feeding and Health Program with the aim of increasing school enrollment.
Infrastructure Financing In Nigeria:
Similar to most sub-Saharan
African (SSA) countries, Nigeria has a huge infrastructure deficit which
considerably limits efforts towards achieving inclusive growth, sustainable
development, and poverty reduction. With infrastructure stock estimated at
20-25 per cent of Gross Domestic Product (GDP), Nigerias infrastructure stock
is still significantly lower than the recommended international benchmark of 70
per cent of GDP. The 2014 National Integrated Infrastructure Master Plan (NIMP)
estimates that a total of US$ 3 trillion of investments, or US$100 billion
annually, is required over the next 30 years to bridge Nigerias infrastructure
gap. In particular, the Plan estimates that Nigeria will have to spend an
annual average of US$ 33 billion infrastructure investments for the period 2014
-2018. This means that Nigeria will have to more than double its spending on infrastructure
from the current 2-3 per cent of GDP to around 7 per cent to make appreciable
progress in infrastructure development over the next three decades.