November 6, 2020

Nigeria Economic Update (Issue 42)

Total geographical distribution of credit by state increased by 1.82 percent to N18.9 trillion in the second quarter of 2020 from N18.56 trillion in the first quarter of 2020.1 Lagos State (N14.92 trillion) accounted for 78.94 percent of the total credit. Further disaggregation shows N77.6 billion was distributed as loan for mortgages in 2019 compared to N25 billion in 2018. 220,935 individuals registered for the National Housing Fund, representing a 33.6 percent increase from 2018. Also, N4 trillion was distributed under the Agricultural Credit Guarantee Scheme Fund in 2019, an increase from N2.9 trillion in 2018. The increase in credit particularly towards the agriculture sector will not only improve the living standard of beneficiaries but also enhance development through an increase in economic activities and trade; alongside building the resilience of the economy by improving the balance of payment account. However, providing loan guarantees to borrowers can considerably increase the contingent liability of the government with implications on its fiscal performance. As such, a cost-benefit analysis of these credit facility programmes and other available options to boost economic activities is required in order to determine the best approach.

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Nigeria Economic Update (Issue 50)

In the third quarter of 2017, NBS report show that Nigeria recorded a marginal quarter-overquarter and significant Year-on-Year increases in the value (in Naira terms) of merchandise (goods) foreign trade. At N5.92 trillion, total merchandise trade increased 3.9 percent over the preceding quarter and 23.9 percent over the corresponding quarter in 2016. Specifically, with exports rising QOQ by 15.2 percent to N3.57 trillion and imports shrinking by 9.4 percent to N2.35 trillion, trade balance amounted to a surplus of N1.22 trillion in 2017Q3- a substantial 142 percentage increase (QOQ) in trade surplus value.