Foreign capital imported to Nigeria declined by 32% from US$5.6 billion to US$3.8 billion between Q3 and Q4 2019, indicating a decline for the third consecutive quarter1. The decline during the period was driven by a fall in two components of foreign capital imports as portfolio investment and other investment declined by 37.7% and 30.5% respectively, while foreign direct investment increased by 24.5%. In 2019, the United Kingdom, the United States, and South Africa emerged as the top-three countries importing the highest capital while Lagos and Abuja remain the top destinations within the country. By sector, banking (31.92%), financing (26.18%) and shares (22.24%) emerge as the top sectors. Despite the decline in capital imports between Q3 and Q4 2019, there has been a 42.7% increase in the total value of capital imported between 2018 and 2019. Taking into consideration the impact of the COVID-19 pandemic on the global economy due to the decline in demand and widespread uncertainty, a further decline in foreign capital inflows is expected going forward.
March 30, 2020
Nigeria Economic Update (Issue 11)
Power sector analysis shows an increase in power generated by 15.5 percent from 3639.2 megawatt to a peak of 4196.2 megawatt between April 22, 2016 and April 29, 201612, albeit a sharp fall to 25.2 megawatts on April 23, 2016 following a system collapse13. In a bid to attain the targeted 10,000 megawatts by 2019, the Federal Government is set to complete the ongoing 47 power transmission projects across the country, which would boost power supply14. However, the delays in passing the budget into law is a major constraint to the completion of the projects. Thus government needs to speed-up the passage of the 2016 budget to provide the funds to complete the projects.
Gross Domestic Product Growth Rate: The information and communication sector has grown overtime but witnessed an unusual decline in 2011, which has remained low in 2016Q1 possibly due to declining con
OPEC weekly basket price increased marginally from $45.09 on June 17, 2016 to $45.95 on June 24, 2016, while Nigerias bonny light increased from $47.61 to $48.90 (with a peak of $49.2 on June 23, 2016)within the same period. The rise in oil price, amidst downward pressures, was likely driven by expectations that the UK would remain in the EU. However, price fell (to $47.61) on June 24, 2016 following the outcome of the UK referendum (on June 23, 2016) to leave the EU. This was driven by concerns over a possible contagion effect of further disintegration on the EU (a major oil consumer) which could drive down oil demand in the longer term. In the medium term, oil prices could face further pressure as a result of rising crude oil output and attenuating production disruptions in Canada and Nigeria. Although, the recent rise in oil prices seem transient, Nigeria can benefit from the marginal rise if disruptions in oil production is quickly resolved