Macroeconomic Report & Economic Updates

May 8, 2019

Nigeria Economic Update (Issue 14)

Nigeria’s officially recorded debt obligation reached a record high of N24.39 trillion in 2018 relative to the N21.73 trillion in 201721, according to the DMO’s latest debt report. This represents a year-on-year 12.2% growth or N2.66 trillion2. Further decomposition of the data shows that both domestic and external components experienced increments: while domestic debt rose […]

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Nigeria’s officially recorded debt obligation reached a record high of N24.39 trillion in 2018 relative to the N21.73 trillion in 201721, according to the DMO’s latest debt report. This represents a year-on-year 12.2% growth or N2.66 trillion2. Further decomposition of the data shows that both domestic and external components experienced increments: while domestic debt rose from N15.94 trillion to N16.63 trillion, external debt increased from N5.79 trillion to N7.76 trillion. However, the external debt component saw a higher increment implying that progress has been made towards achieving the 60:40 target of domestic-external debt stock mix. The share of domestic debt fell from 73.4% in 2017 to 68.2% in 2018 producing a total debt mix of 68.2% (domestic) and 31.8% (external). The review year saw the DMO make use of relatively cheaper and longer tenured external funds (Eurobonds) to achieve the debt stock mix objectives which also includes creating more space for other borrowers in the domestic market.3 With the growth in the issuance of Eurobonds, DMO should internalize the costs and risks of these changes such as currency and refinancing risk. This could limit the frequency of public borrowing.




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Nigeria Economic Update (Issue 3)

The Nigeria stock market indices; All Share Index (ASI) and Market Capitalization declined by 2.4 percent to close at 26537.36 points and N9.12 trillion respectively at the end of the trade session this week8 The decline in the indices, which is attributed to the low subscription for stocks in the market, led to the partnership between Security and Exchange Commission (SEC) and Debt Management Office (DMO) to salvage the financial system.

Monetary Policy Rate

Monetary Policy Rate: The fluctuations in MPR reflect CBNs intermittent effort to promote growth, stymie inflation or incentivize capital flows. Particularly, the rise in MPR in 2016Q1 was effort to

Africa Economic Update (Issue 6)

Available data shows that headline inflation reduced in most countries in the region in May 2017 relative to preceding months. Notably, headline inflation decreased in Nigeria (16.25 percent), Ghana (12.26 percent), Tanzania (6.1 percent), Senegal (1.8 percent), Namibia (6.3 percent) and Rwanda (11.7 percent), while it grew in South Africa (5.4 percent), Kenya (11.7 percent), Ethiopia (8.7 percent) and Uganda (7.2 percent). Cote dIvoire (-0.4 percent) recorded consumer price deflation. The decrease in consumer price in Nigeria, Tanzania and Ghana can be attributed to decreases in both food and non-food components of inflation. Regionally, all countries in Southern Africa recorded single digits inflation, however consumer price marginally increased in South Africa, for the first time in 2017 owing to spike in food prices6, and Botswana (both by 0.1 percent).

Gross Domestic Product Growth Rate And Contribution To GDP (Transport Sector)

Gross Domestic Product Growth Rate: Growth in the sector which stalled in the second and third quarters of 2015 witnessed a considerable decline in 2015Q4; the stall in growth in 2015 is attributable