The recent NBS survey found that 40.1% – 82.9 million – Nigerians are living in poverty with the national poverty line estimated at ₦137,430per year 1. As such, 4 out of 10 Nigerians spend less than ₦376 per day on both food and non-food basic needs. A further disaggregation shows that the population in rural and urban areas living in poverty are 52.1% and 18% respectively. On inequality, the report found that the national Gini coefficient was 35.1 while the coefficient for the rural and urban population are 32.8 and 31.9 respectively. The level of inequality in Nigeria is comparable to that of in India (35.2) but significantly below countries like South Africa (62.5)2. Based on the experiences of countries that have improved the living standard of a large proportion of their population, Nigeria will need to achieve sustained and high economic growth, substantial infrastructural development, provide large-scale structured and targeted poverty alleviation programs alongside social development programs. In doing this, the government will not only provide immediate relief to the poor but will also enhance the income-generating potential of citizens and minimize the risk of falling into poverty.
June 1, 2020
Nigeria Economic Update (Issue 19)
Nigerias Petroleum Products Imports statistics show a gradual reduction in the volume and value of petroleum imports (PMS, AGO, HHK) between May and September 2016. Specifically, volume of imports declined by 34.1 percent for PMS, 37.6 percent for AGO, and 60.3 percent for HHK in the period.The significant decline in imports in the reporting periods may be as a result of persistent forex scarcity issues faced by importers. On account of stagnation in domestic production of refined petroleum products, continuous decline in oil imports may create a demand gap with upward pressure on gasoline prices in the economy.
The external reserves decreased week-on-week marginally by 0.2 percent from June 9, 2017 to June 16, 2017. The reserve declined from $30.27 billion to $30.21 billion. Given that crude oil revenue constitutes the most part of the reserve, the decline may be reflective of the week-on-week drop in global crude oil price (Crude oil price fell by approximately 2 percent to $47.377 per barrel as at June 16 2017). The ongoing forex intervention by the monetary authority also poses a challenge to foreign reserve conservation. Given the unimpressive performance of global oil prices in recent time, there is need to explore other areas with great potentials to generate foreign exchange earnings. Diversification of forex earnings remains the key to insulating foreign reserve against fluctuations in global commodity prices. The country can tap into solid minerals sector as alternative source of foreign exchange. Huge investment together with investor-friendly policies in solid minerals would make the sector attractive to investors.