Macroeconomic Report & Economic Updates

June 30, 2016

Nigeria Economic Update (Issue 28)

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

Download Label
March 13, 2018 - 4:00 am
application/pdf
322.29 kB
v.1.7 (stable)

Related

 

Nigeria Economic Update (Issue 37)

Recent data by the CBN shows a decline in manufacturing capacity utilization by 2.0 percentage points to 50.7 percent in 2016Q2. Foreign exchange challenges in addition to cash squeeze in the review quarter, led to the decline in capacity utilization. This has hindered activities in the sector while impacting negatively on business confidence. Nonetheless, the CBN recently directed authorized FX dealers to dedicate 60 percent of FX purchases to manufacturers. This policy measure is therefore expected to meet the sectors critical FX need for the purchase of imported raw material and other machineries, while boosting the potential for economic growth in the long term.

Balance Of Trade (Export And Import)

Balance of Trade (Export and Import): With export and, to lesser extent, import declining balance of trade fell deeply in 2015 and, to lesser extent, in 2016Q1.

Nigeria Economic Update (Issue 15)

Nigerian Naira depreciated by 1.2 percent at the parallel foreign exchange market between April 7, 2017 and April 14, 2017. The naira exchanged at N410/$ as against N405/$ the previous week. Despite the CBNs weekly dollar sales to BDCs ($20,000 to each BDC in the review week) and spot market sales of $100 million to SMEs, the nairas depreciated in the week. This may likely be attributable to speculative motives (on the basis that speculators likely anticipate that the CBN forex interventions may not be sustainable).