Nigeria Economic Outlook
October 18, 2016Nigeria’s economy is in recession. The contraction in GDP intensified in Q2, dragged down by depressed oil prices, falling oil production, a lack of foreign currency, and fuel and power shortages. In Q3, business confidence fell to an unprecedented low in September and the PMI was depressed in August and September. The black market naira depreciated drastically in Q3 and at the outset of October, while the continuation of import restrictions kept the official exchange rate artificially strong. To make matters worse, a ceasefire between the government and the militant group whose attacks on infrastructure caused Q2’s drop in oil output seemed to fade in late September, renewing concerns about production. Much-needed support for the economy may come from an USD 1.0 billion AfDB-loan, which will likely be approved in November. Meanwhile, President Muhammadu Buhari plans a record budget of USD 22.6 billion for 2017, which still needs to be approved by lawmakers and is based on an oil price of USD 42.5 per barrel, to revive the ailing economy.
Nigeria Economy Data
5 years of Nigeria economic forecasts for more than 30 economic indicators.
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|Bond Yield||14.88||0.23 %||Oct 26|
|Exchange Rate||305.0||0.0 %||Oct 26|
|Stock Market||1.5||0.0 %||Oct 25|
Nigeria Economic Growth
October 18, 2016Nigeria’s economy is set to contract for the first time in over two decades this year. Our panelists revised down the country’s 2016 growth prospects for an eleventh consecutive month, this time by 0.5 percentage points. They now see the economy shrinking 0.4% this year. For 2017, they expect a return to growth with a 2.5% expansion.
Nigeria Economic News
October 15, 2016
In September, consumer prices increased 0.8% from the previous month, which was below August’s 1.0% rise. Inflation edged up from August’s 17.6% to 17.9% in September, marking the highest reading since October 2005, which reflects that the weakening naira has been heightening inflationary pressures in recent months.
October 5, 2016
In September, the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose to 46.8, inching up from August’s record low of 46.3.
September 30, 2016
In September, the Standard Chartered-MNI Business Sentiment indicator (BSI) dropped from August’s 55.1 to a record low of 41.6.
September 20, 2016
At its 19–20 September monetary policy meeting, the members of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) decided to keep the monetary policy rate at a record high of 14.00%.
September 16, 2016
In August, consumer prices increased 1.0% over the previous month, which was below July’s 1.3% rise. Inflation jumped from July’s 17.1% to 17.6% in August, marking the highest reading since October 2005 and reflecting that the weakening naira has been heightening inflationary pressures in recent months.