Articles

Beyond Nigeria’s GDP numbers: Is it icing on the cake or the cake itself?

By Lawal Adekunle HamzahPosted on September 13, 2022Posted in Articles, EconomyTagged Agriculture, Economy, Finances, GDP, insurance, Nigeria, Non-oil sector, Oil production, Oil Sector2 Comments

According to the National Bureau of Statistics (NBS), Nigeria’s Gross Domestic Product (GDP) rose by 3.54% y/y in real terms in the second quarter of 2022 (Q2-2022). This shows that the economy expanded in Q2-2022 by 0.44% when compared to the 3.11% y/y recorded in the preceding quarter (Q1-2022) as the non-oil sector remains the key driver of growth. Similarly, this outturn represents an economic expansion on a year-on-year basis, albeit at a slower rate when compared to Q1-2021 (5.01% y/y) as the growth rate declined by 1.47%.

Nigeria’s inflation rate hits 19.64% in July 2022, the highest in 17 years

By Solomon Sele AyebawanaemiPosted on August 23, 2022Posted in Articles, Business & Finance, EconomyTagged Core inflation, Economy, Food prices, Inflation, NBS, NigeriaNo Comments

An examination of the NBS inflation data shows that this is the highest since September 2005 when the inflation rate hit 24.32% year-on-year. On a month-on-month basis, the headline inflation rose by 1.82% in July 2022. This is the same as the rate recorded in June 2022 (1.82% m/m). In our view, higher energy prices and continued depreciation of the local currency against the US Dollar were the key drivers behind this uptick.

The Global Economic Reset- Promoting a More Inclusive Recovery

By Joshua OlorunsaiyePosted on June 12, 2020Posted in Articles, EconomyTagged COVID-19, Economy, Fiscal Policy, Global, IMF, StimulusNo Comments

By Kristalina Georgieva The COVID-19 crisis is inflicting the most pain on those who are already most vulnerable. This calamity could lead to a significant rise in income inequality. And it could jeopardize development gains, from educational attainment to poverty reduction. New estimates suggest that up to 100 million people worldwide could be pushed into extreme poverty, […]

Capital Importation in Nigeria: Why is FDI so Low?

By Sheriffdeen AdeotiPosted on June 11, 2020Posted in Articles, EconomyTagged Banks, Bonds, capital, COVID-19, FDI, FPI, Importation, Nigeria, SharesNo Comments

In a recent publication by the NBS, total value of capital imported into the country stood at $5,854.38m in Q1 2020. This represents an increase of 53.97% compared to Q4 2019 and -31.19% decrease compared to the first quarter of 2019. Foreign Portfolio Investment (FPI) accounted for 73.61% ($4,309.47m) of total capital imported, followed by Other Investment, which accounted for 22.73% ($1,330.65m) of total capital.

Global economy on a Tripod: Deflation, Inflation and Recession in 2020

By Abdulazeez KurangaPosted on June 10, 2020Posted in Articles, EconomyTagged COVID-19, Deflation, Global Economy, Inflation, Japan, Nigeria, Recession, StagflationNo Comments

From economic theories, one characteristics of a recession is that price level of goods and services will become low. If this should go by and considering that economic theories are in favour of low inflation to boost economic growth, then the low prices of goods and services is meant to be a factor that will lift economies from contraction to boom. However, this is not always the case especially for countries experiencing deflation.

The Economics of Printing the Naira

By Gifted AnalystsPosted on May 31, 2020Posted in Articles, EconomyTagged Bond, cbn, External Reserve, Federal Government, forex, naira, Print1 Comment

This article explains why the idea of printing more money is unfounded given the state of the Nigerian economy.

2019 States IGR Report: States are not Taxing the Informal Sector Enough

By Sheriffdeen AdeotiPosted on May 27, 2020Posted in Articles, EconomyTagged FAAC, IGR, informal sector, Lagos State, local government, Salaries, StatesNo Comments

65% of the total revenue of the 36 states and the FCT in 2019 came from FAAC while the remaining 35% came from IGR of the states. From the IGR, over 60% came from the formal sector (PAYE) while 20% came from the informal sector (Other Taxes and Direct Assessment).

April 2020 Consumer Price Index Report: A continuous rise in Inflation

By Sheriffdeen AdeotiPosted on May 21, 2020Posted in Analytics, ArticlesTagged 2020, COVID-19, CPI, Inflation, Inflation Rate, NBSNo Comments

The consumer price index, (CPI) increased by 12.34% (year-on-year) in April 2020. This is 8bps higher than the rate recorded in March 2020 (12.26%). This is the eighth consecutive month of increase since August 2019 (11.02%) and the highest level since April 2018 (12.48%).

Cashing In: How to Make Negative Interest Rates Work

By Joshua OlorunsaiyePosted on May 16, 2020Posted in ArticlesTagged Cash, Coronavirus, COVID-19, IMF, Interest Rate, NegativeNo Comments

By Ruchir Agarwal and Signe Krogstrup, IMF Blog / Image Credit: IMF Many central banks reduced policy interest rates to zero during the global financial crisis to boost growth. Ten years later, interest rates remain low in most countries. While the global economy has been recovering, future downturns are inevitable. Severe recessions have historically required 3–6 percentage points cut […]

Tracking Trade During the COVID-19 Pandemic

By Abubakar AbdulrahmanPosted on May 15, 2020Posted in Africa & World Economy, Agencies, ArticlesTagged Coronavirus, COVID-19, IMF, Lockdown, Pandemic, TradeNo Comments

Most trade takes place by sea, and—for navigational safety purposes—virtually all cargo ships report their position, speed, and other information many times a day. A new IMF methodology using these data can help better inform us how international trade is affected by the COVID-19 pandemic.