Macroeconomic Report & Economic Updates

March 1, 2017

Nigeria Economic Update (Issue 6)

The
nations foreign reserves have been on a steady rise. In the review week,
reserves increased by $415.2 million from $28.3 billion on February 3, 2017 to
$28.8 billion on February 10, 2017. The increase is likely the
reflection of a sustained crude oil revenue complemented by moderating global
crude oil price and increasing domestic production. This should help strengthen
the ability of the CBN to foster forex liquidity, and thus help maintain
stability in the domestic forex market. If sustained, it should also help
improve the value of the naira overtime. Hence, the government should implement
proactive and effective policy strategies to, not only, sustain improvements in
oil revenue but also boost non-oil revenue.

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Nigeria Economic Update (Issue 35)

Recent report in the media highlights that Nigerias GDP has dropped to $296 billion in 2016, in contrast to the $481 billion recorded in 20151 and Nigeria has lost its position as Africas largest economy to South Africa. This conclusion was based on the computation of GDP with current naira-dollar exchange rate. However, while the naira has significantly lost its official value since the adoption of a flexible exchange rate, estimating GDP merely with a single exchange rate figure (rather than its yearly average) cannot be regarded as an appropriate method to conclude on Africas largest economy.