Nigeria Economic Outlook
October 15, 2019Incoming data suggests that the economy gathered momentum somewhat in Q3, after growth slowed in Q2 on disappointing non-oil sector activity. Bank lending remained strong in July–August and the PMI hit a 15-month high in September, hinting at improved private-sector dynamics. Moreover, preliminary OPEC data showed that oil output averaged higher in Q3 than in Q2, spelling good news for the vital oil industry. That said, lower global crude prices may have capped some of the gains. In late September, the Central Bank raised the minimum loan-to-deposit ratio to 65% from 60%, the second increase in three months, to further pressure banks to boost credit to SMEs and consumers. Concerns have emerged, however, over the measure’s impact on loan quality. Meanwhile, President Buhari presented a record NGN 10.3 trillion 2020 budget to the National Assembly on 8 October, which aims to revive sluggish growth.
Nigeria Economic GrowthEconomic activity is seen gaining speed next year amid the ongoing recovery. The full implementation of the minimum wage hike and increased credit provision to the private sector should support domestic demand. However, the outlook is weighed on by elevated unemployment, high dependence on the oil sector, power shortages, insecurity, and a bleaker global economic backdrop. FocusEconomics panelists see GDP growing 2.5% in 2020, which is down 0.1 percentage points from last month’s estimate, and 2.9% in 2021.
Nigeria Economy Data
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|Bond Yield||14.13||0.0 %||Sep 04|
|Exchange Rate||306.5||3.08 %||Sep 04|
|Stock Market||0.1||0.0 %||Sep 04|
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Nigeria Economic News
October 15, 2019
Consumer prices increased 1.04% on a month-on-month basis in September, up from August’s 0.99% rise.
October 14, 2019
On 8 October, President Muhammadu Buhari presented a record NGN 10.3 trillion 2020 budget to the National Assembly, the first of his second term after winning re-election in February.
October 4, 2019
The Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) rose from 56.4 in August to 57.1 in September, marking the highest reading since June 2018.
September 23, 2019
At its 19–20 September meeting, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) unanimously decided to hold its monetary policy rate, as well as all other monetary policy parameters for the third consecutive meeting, as had been broadly expected by analysts.
September 17, 2019
Consumer prices rose 0.99% on a month-on-month basis in August, marginally below July’s 1.01% climb.