Macroeconomic Report & Economic Updates
February 26, 2016
Nigeria Economic Update (Issue 9)
The naira depreciated by 8.2 percent from
N305/$ on February 5th, to N330/ $ on February 12th 20166. The apex body identified the
increased domestic demand for forex to pay for foreign medical treatments and
schools fees (15 percent of total demand) 7 as the main drivers. As
a result, the apex bank is considering to discontinue the provision of forex for
payment of medical bills and school fees abroad and to re-channel the forex
towards the manufacturing sector of the economy. With the continuous
depreciation of the naira, and the CBNs resistance from calls to devalue the
currency, the options for alternatives measures seem to be diminishing.
Related
Nigeria Economic Update (Issue 45)
Recently
released report by Nigeria Extractive Industries Transparency
Initiative (NEITI)shows a significant decline in revenue
allocation across the three tiers of government for 2016H1 (January to June). Specifically, total disbursements dropped
(year-on-year) by 30.45 percent to N2.01 trillion in 2016H1. The
drop in revenue allocations is accountable to the decline in both oil and
non-oil revenue. While lower oil revenue was triggered by the drastic fall in
oil price and production in 2016H1, lower non-oil revenue was driven by the decline
in tax revenue occasioned by contraction in economic activities in the review
half-year.
Enhancing Oil Sector Governance In Nigeria Through Transparency Reforms
The
paper highlights the importance of oil sector transparency in order to support governments push towards structural
reforms and inclusive growth.