February 8, 2024

Nigeria Economic Update (Issue 4)

The Oil market report for the fourth quarter of 2023 by the International Energy Agency indicates that the
growth of global oil demand is expected to slow down by 1.2 million barrels per day (mb/d) in 2024 compared to 2.3 mb/d in 2023. The decline in projected oil demand is due to several factors including slow GDP growth in major economies falling below trend, increased energy efficiency and electrification of vehicle fleets. Conversely, the world oil supply was projected to rise by 1.5 mb/d to a new high of 103.5 mb/d, fuelled by record- setting output from non-OPEC countries like the US, Brazil, Guyana, and Canada. OPEC supply is expected to hold steady on previous supply.

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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.

Nigeria Economic Update (Issue 45)

Crude oil prices recorded increase during the review week. Global benchmark, Brent price increased from $61.42 to $63.522. Nigerias Bonny light gained 9.6 percent to trade at $64.78 per barrel. The weeks rise was at the backdrop of further prospective cuts agreement at OPECs meeting in November 2017 and political tensions and uncertainties in Saudi Arabia given that these events may likely reduce supply and support demand in the near term. Meanwhile, global crude oil market events have been favorable to Nigeria, as the price of bonny light at approximately $65 per barrel, reflects the highest in more than two years.