Macroeconomic Report & Economic Updates

October 23, 2014

Nigeria Economic Review (First Half Report 2014)

Globally,
advanced economies showed strong signs of recovery during 2014H1 despite the
adverse effect of the severe winter (especially on the United States economy)
while economic activities slowed and growth was below projection in emerging
and developing economies.

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Total
federally collected revenue increased to N2.42 trillion in 2014Q1 compared to
N2.20 trillion in 2013Q4 as a result of a significant increase in crude oil and
gas exports to some countries like India, Malaysia and China. Also, the federal
government consistently incurred fiscal deficit from 2013Q1 to 2014Q1; the
level of deficit increased drastically in 2013Q4 and was sustained through 2014Q1.

Inflation
rate remained within the Central Banks target (6 9 percent) for 2014
although it ticked up marginally from 7.7 percent in February to 8.0 percent in
May. Inflationary pressures are expected in the second half of the year but it
is expected that monetary policies and supply-side interventions can be used to
cushion the effect.




Related

 

Nigeria Economic Update (Issue 11)

Recently released report by the National Bureau of Statistics (NBS) indicates price increase of selected food items for the month of February 2017, relative to January 2017. Specifically, prices of the selected 24 food items ranged from N47.42 N1, 812 in January to N42.90 N1, 955.10 in February 2017. Average price of all selected items increased month-on-month by 2.7 percent to N540.05. Non-seasonal agriculture factors such as rising cost of crop production, imported products, and transportation continue to drive domestic food prices higher as domestic food supply contracts. This is also reflective of the high food inflation rate in February (18.53 percent) relative to 17.82 percent recorded in January 2017. Strengthening Nigerias crude oil production, supporting local agricultural production, and improving forex policies to straighten the naira remain critical in improving food supply and reducing inflation.

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.