Macroeconomic Report & Economic Updates

August 25, 2016

Nigeria Economic Review

This report provides an evidence-based analysis
of the state of the Nigerian economy in a bid to inform economic policies
in Nigeria. The report presents some analyses of significant economic events in
Nigeria within the period, and provides an outlook on what policymakers,
businesses, and individuals should expect in subsequent quarters of 2016. It also provides valuable insights
into potential drivers of the economic trends and outlines expectations for
subsequent quarters of the year. The area of focus are Global Economic
Performance, Domestic Economic Performance, External Sector Performance, and
Sectoral Performance. 

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Nigeria Economic Update (Issue 51)

Recently released data by the National Bureau of Statistics (NBS) shows that there was significant increase in Nigerias total merchandise trade for 2016Q3. Basically, the total merchandise trade increased (quarter-on-quarter) by 16.29 percent to N4, 722 billion in 2016Q3;owing to 29.1 percent increase in exports and 6.2 percent rise in imports. Oil exports increased by 31 percent to N1, 943 billion, while non-oil exports increased by 20.5 percent to N440 billion. However, on the aggregate, Nigeria recorded yet another trade deficit of N104 billion, indicating continuous higher imports relative to exports. Overall, though there is improvement in the performance of non-oil sector, however, this is insufficient to effectively complement the loss in oil trade sustained since the beginning of oil price crash. This suggests that diversification into non-oil sector may not be able to rescue the economy in the short term. However, while the diversification efforts should be sustained, eliminating hurdles in oil production may be instrumental to higher exports, especially as oil price increase is gaining momentum.

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