Macroeconomic Report & Economic Updates
July 8, 2016
Nigeria Economic Update (Issue 29)
OPEC weekly basket
price decreased marginally from $45.95 on June 24, 2016 to $45.26 on July 1,
2016,while Nigerias bonny light fell by $1, from $48.90 to $47.91.
The apparent decline in crude oil price was driven by lingering market demand
uncertainty, following the unexpected Brexit referendum. More so, ease
in supply disruptions in Nigeria and Canada may have contributed to the
downward pressure on prices. Going forward, until there is greater regulatory
precision on global oil output levels, prices may likely remain stuck or continue
to exhibit a downward trend. Although, Nigerias fiscal constraints slightly
relaxed with oil production increasing in the review week (following repairs on
sabotaged pipeline channels), potential global crude oil oversupply threatens
governments revenues. However, oversupply threats could be reduced if there is
a consensus on oil production quotas in the upcoming OPEC meeting.
Related
Nigeria Economic Update (Issue 44)
Latest
Doing Business report by the World Bank ranks Nigeria as one of the top 10 economies
that showed notable improvements in doing business in 2016/2017. Precisely, the
report which presents quantitative indicators on business regulation compared
across 190 economies and ranked Nigeria 145th - up by 24 positions from
the previous report ranking, to reach its highest rank since 2013. This may not
be unexpected, given that it is consequent upon various business environment
reforms in 2016. Particularly, the Presidential Enabling Business Environment
Council (PEBEC) set up in 2016 enacted 31 reforms to improve
business(such as improving credit to small and medium-size
businesses) all of were enacted into law in May 2017.