Macroeconomic Report & Economic Updates
November 7, 2016
Nigeria Economic Update (Issue 46)
The
Executive council recently approved a three-year external borrowing plan
(2016-2018) which specifies external borrowing of approximately $30 billion (to
be sourced mostly from MDBs) for infrastructure development.
Although, the plan is yet to be approved by the Senate, the planned concessional
loans for infrastructural development would imply inflows of foreign exchange which
could help moderate the exchange rate volatilities in the near term, and offer
potential improvement in business productivity and job creation.
Related
Nigeria Economic Update (Issue 9)
Crude oil prices fluctuated during the
review week. OPEC weekly basket price decreased marginally from $53.63 on
February 24, 2017 to $53.34 on March 3, 2017. Similarly, Brent
crude declined (week-on-week) by 0.84 percent to $55.15, while
Bonny light decreased by 2.4 percent to $54.4 per barrel. During
the week, reports of Russias incomplete compliance to agreed production cut and
rising United States crude production/inventories, led to the
slight pressure exerted on oil prices. The uncertainties and volatility of
global crude oil price stresses the need for the government to channel efforts
at developing other key sectors of the economy, particularly the manufacturing
sector.
Capital Importation And Budgetary Allocation (Transport Sector)
Capital Importation: Since the dramatic decline in 2013, private and government sector investments in the sector have remained low in 2016.
Budgetary Allocation: Budgetary allocations to the transpo