The unemployment rate rose to 5.3% in Q1 2024, up from 5.0% in the previous quarter, while youth unemployment slightly decreased to 8.0%. The labour force participation rate dropped to 77.3% from 79.5%, this was followed by a fall in the employment-to-population ratio to 73.2%. Informal employment remained relatively steady at 92.7%, with the share of self-employed workers dipping to 84%. Urban unemployment increased to 6.5%, and rural unemployment remained at 4.3%

According to the National Bureau of Statistics (NBS), Nigeria's total goods trade stood at ₦31,892.46 billion in Q2 2024, down 3.76% from the previous quarter but up 150.39% from the number reported in Q2 2023. Exports accounted for 60.89% of overall trade, worth ₦19,418.93 billion. Nigeria's export trade was dominated by crude oil (₦14,559.56 billion), accounting for 74.98% of total trade, followed by agricultural goods (₦973.69 billion), raw materials (₦366.91 billion), solid minerals (₦58.56 billion) and manufactured goods (₦480.82 billion). Total imports accounted for 39.11% of total commerce in Q2 2024, totaling ₦12,473.53 billion, a 10.71% decline from Q1 2024. Mineral fuels were the most popular import category, followed by machinery and transportation equipment, chemicals, and allied items, which accounted for 35.40%, 23.08% and 15.12% of total imports respectively. While a decrease in imports may help reduce trade deficits and highlight Nigeria's improving export strength relative to import demand, it also implies slower economic activity or limited access to vital imports such as machinery and transportation equipment. Furthermore, Nigeria's strong reliance on oil exports, which account for nearly 75% of total commerce, indicates that the country's trade performance is extremely vulnerable to global oil price swings, and demand changes. The government must devote its attention to diversification policies that will improve the contribution of non-oil sectors to Nigeria's export base such as agriculture, raw materials, solid minerals and manufactured goods to promote economic stability and resilience to external shocks. 

The naira rebounded against the U.S. dollar, gaining significant value this week, closing at N1,593.32/$1 in the official market.3 This improvement is linked to the recent settlement of a $500 million domestic dollar bond, which was fully subscribed by investors. The move injected confidence into the market and provided a brief cushion for the currency. On September 6, 2024, the Central Bank of Nigeria (CBN) took additional steps to ease pressure on the naira by approving the sale of $20,000 to each Bureau de Change (BDC) operator at a rate of N1580/$1. To stabilise exchange rates and meet the growing demand for invisible transactions, the CBN instructed the operators to maintain a margin of no more than 1%. This intervention comes after months of currency volatility that have put the naira under immense pressure, and by increasing liquidity in the market, the CBN aims to close the gap between official and parallel market rates, which has widened in recent weeks. This, if sustained, could temporarily boost the naira’s value and bring more stability to the foreign exchange market. However, to sustain the positive momentum and strengthen the naira over time, the government needs to implement a more holistic approach that goes beyond periodic interventions. Additionally, the government should intensify its efforts to attract foreign investment by fostering an enabling business environment with policies that promote stability, transparency and growth.

In Africa, where gender inequality remains a big problem, addressing gender-based socio-economic vulnerability should be a priority to enhance the resilience of women (and the society) as countries deal with the multitude of crises facing the world. Building on the work by the South African Institute of International Affairs which demonstrated that the lack of gender inclusivity was the biggest factor responsible for the high socio-economic vulnerabilities faced by African countries during the COVID-19 pandemic, this policy brief seeks to enhance the understanding of the intersectionality of gender and poverty and how it can contribute to socio-economic vulnerability especially during crises. It further proposes ways in which these vulnerabilities can be addressed through gender inclusive policies. To achieve these goals, the brief analyses the key factors that drive gender-based socio-economic vulnerabilities in countries across Africa and make recommendations on how these can be improved to minimize such vulnerabilities.

In the post-pandemic world, Africa has found itself with limited options to finance key development projects. A rapid rise in debt levels over the last decade has left African economies with little fiscal space to finance development. The financial outlook for Africa’s low-income resource-rich (LIRR) countries, which are characterized by the central role commodities play in their economies, is especially dim. Collectively, these countries have not had success converting their resource wealth into economic development apart from a China-driven commodity super cycle from 2002 to 2012.

This article was Frist Published at t20brasil

The global economy has experienced unprecedented challenges posed by the pandemic. Central to these enduring repercussions is the escalation of public debt, casting a shadow over the fiscal space of governments and their ability to make progress in achieving the Sustainable Development Goals (SDGs) and address the growing impacts of climate change. It is thus urgent to reconsider debt restructuring strategies, the conditionalities associated with International Financial Institutions loans, and emerging fiscal frameworks for the developing world. In this policy brief, we develop four concrete proposals involving international financial institutions, which can function as avenues to tackle the challenges mentioned above: (a) alternative ways to define sustainability in international financial institutions debt analysis; (b) to promote debt-for-climate swaps; (c) support the implementation of green tax reforms; and (d) support government implementing non-regressive tax reforms.

This article was Frist Published at t20brasil

According to the National Bureau of Statistics (NBS) recent Transport Fares report, the average fare paid by commuters for bus travel within the city has decreased from N963.58 in June to N942.61 in July 2024, representing a 2.18% decrease MoM. However, year-on-year, it has declined by 29.46% from N1,336.29 in July 2023. Similarly, the average fare paid by commuters for intercity bus travel per drop rose to N7,117.17 in July from N7,029.23 in June 2024, representing a 0.35% increase. However, compared to July 2023, this fare has increased by 20.23%, from N5,919.19. Air transport fares have risen to N98,561.74 in July 2024, representing a 9.65% increase month on month. The average fare for motorbike (Okada) transportation increased by 1.22% to N483.49 in July 2024, from N477.49 in June 2024. On a year-over-year basis, this is down by 25.20% from N646.12 recorded in July 2023

The Purchasing Managers' Index (PMI) survey report of the Central Bank of Nigeria (CBN) has revealed that the composite PMI stood at 49.7 in July 2024, an improvement from 48.8 recorded in June 2024. The PMI measures a country's economic activity direction and extent. An index below 50.0 points indicates a contraction in business operations, while an index over 50.0 points indicates a growth in business activities. A 50.0 index denotes no change in the circumstances. The PMI value for July, which is below the critical threshold of 50.0, is the thirteenth consecutive contraction recorded by the CBN and signifies that business operations are still contracting, though at a slower pace compared to June. A sectoral disaggregation of the PMI shows that industry and agriculture recorded contractions of 48.3 and 49.7 respectively, while services recorded 50.3

The Nigeria Customs Service, in its monthly bulletin, reveals that, the Apapa Area command recorded a revenue collection of N1.023 trillion for the first half of 2024. This represents an increase of over 14% compared to the revenue collected in 2023. The increment might be linked with currency depreciation. The additional revenue comes at a crucial time for Nigeria's economy. Despite this positive development, the Nigeria Customs Service must strike a balance between revenue generation and trade facilitation. This is important because an excessive focus on revenue generation might incentivise behaviours that seek to maximise revenue while neglecting trade facilitation activities