Macroeconomic Report & Economic Updates
March 13, 2017
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.
Related
Nigeria Economic Update (Issue 39)
The monthly monetary survey by the CBN shows a decline in money supply for the month of August 2017, relative to July 2017. Narrow and broad money supply dropped by 4.2% and 1.5% to N9,891 billion and N21,851 billion respectively. The continuous monetary contraction witnessed over the past months may be associated with aggressive sale of treasury bills by the CBN through open market operations. This act is capable of mopping up liquidity in the economy, reduce loanable funds in the banking system, and constrain the easing of lending rates in the near term.