Data released by the National Bureau of Statistics indicates that Nigeria’s real Gross Domestic Product (GDP) grew by 0.11% in Q4 20201. Further disaggregation shows that the oil sector contributed 5.87% to total real GDP while the non-oil sector contributed 94.13% during the period. Although the growth rate in Q4 2020 is lower than the corresponding quarter of 2019 which was 2.55%, it represents a 3.74% improvement over the previous quarter (Q3 2020). More importantly, it is the first positive quarterly growth since the economy contracted in both the second and third quarters of 2020, thereby ending the recession experienced due to the pandemic. The growth reflects the gradual return of economic activities following the resumption of movements which limited commercial activities in the previous quarters. Considering that economic activities are returning to pre-COVID levels and COVID vaccination is underway, economic expansion is expected in the near term. However, the size of the expansion will depend on the spending choices of the government as it responds to the new and evolving challenges. As such, budgetary allocations to sectors capable of delivering an inclusive recovery such as the agriculture sector should be prioritized.
March 5, 2021
Nigeria Economic Update (Issue 8)
Related
Nigeria Economic Update (Issue 15)
Nigerian
Naira depreciated by 1.2 percent at the parallel foreign exchange market
between April 7, 2017 and April 14, 2017. The naira exchanged at N410/$ as
against N405/$ the previous week. Despite the CBNs weekly dollar
sales to BDCs ($20,000 to each BDC in the review week) and spot market sales of
$100 million to SMEs, the nairas depreciated in the week. This may
likely be attributable to speculative motives (on the basis that speculators
likely anticipate that the CBN forex interventions may not be sustainable).
Nigeria Economic Update (Issue 42)
Recently
released survey report by the CBN shows an improvement in the availability of
secured and unsecured banks credit and loans to
households, corporate and small businesses in 2017Q3, and an optimistic outlook
in 2017Q4. Among other indices, availability of overall secured and
unsecured lending to households improved from -6.2 and -19.2 to -0.9 and -15.0
index points respectively; although still in the negative territory. Index for
availability of credit to small businesses improved from -20.1 to -6.7. Lenders
and respondents noted that anticipation of a brighter economic outlook,
favorable liquidity positions, market share objectives and higher appetite for
risk were major factors behind the increase.