Macroeconomic Report & Economic Updates
May 20, 2016
Nigeria Economic Update (Issue 22)
Power
sector analysis shows a decline in power generated by 15.07 percent from a peak
of 3,424 mw to 2,908 mw between May 8, 2016 and May 15, 20169. The
declining power supply is attributable to vandalism of pipelines and gas
shortages, which has a debilitating effect on power generation. As part of the
efforts by the Federal Government to improve power supply in the country, the
Bank of Industry (BoI) is currently funding intervention projects to provide
alternative source of energy (solar) in rural areas across the country10.
Since the major problem facing power generation in the country is gas
shortages, the government should make concerted efforts to combat vandalism.
Related
Nigeria Economic Update (Issue 41)
The
naira continued its downward trajectory in the review week. Specifically, naira
depreciated significantly at the parallel segment by 3.5 percent to a record
low of N440/$ on September 23, 2016. Notably, this was driven by
the worsening liquidity constraints at the interbank market which left the
excess forex demand to be sourced at the parallel market, and thus exerted
downward pressure on the naira. The naira is likely to further
weaken given that most of the liquidity constraints are exogenously determined
and thus forex supply will likely remain subdued by its demand.
Capital Importation And Gross Domestic Product Growth Rate And Contribution To GDP (Construction Sector)
Capital Importation: Capital expenditure into the construction sector remained above 10 percent since 2005 until 2015. Similar to the manufacturing sector, overall capital imported into the constructi
Business Confidence Index
Business Confidence Index: After its peak in 2011, business confidence fell sizeably in 2012 as well as 2015Q2. Most recently, BCI has declined to a negative levels in 2016Q1 and Q2. The recent declin