Economy
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Beyond Nigeria’s GDP numbers: Is it icing on the cake or the cake itself?
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…
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Nigeria’s inflation rate hits 19.64% in July 2022, the highest in 17 years
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%…
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Is Nigeria’s Population a problem?
Nigeria’s population exploded from 60 million at independence - 1960, to 150m in 2010. Currently, Nigeria has a population of 206 million, growing at a 2.67% annual CAGR. Meanwhile, Nigeria’s food production index…
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Nigeria’s Inflation Rate rose to an 8-month High of 16.82% in April 2022
We expect headline inflation to continue its upward trend in the coming months due to the supply disruptions that have ensued from the conflict in Eastern Europe which has left a mark on…
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Aftereffect of the festive season Leads to a Marginal Slowdown in Inflationary Pressure
Looking further into the year, we recognize the possibility of upside inflation surprises, as the sub-par food harvests of last year could cause food supply to be slim during this year’s planting season,…
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Fiscal Stability – A Need for States to Look Inward
The existing revenue-sharing structure of the government stifles innovation and prevents the state from looking inward to improve revenue since the Federal Allocation remains intact. The major source of revenue for most States…
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The Upsurge in Cooking Gas Prices – Views and Prospects
Nigeria’s large infrastructure gap has made it difficult to improve the production and distribution of LPG locally. Therefore, the country resorted to importing LPG of about 65%, while 35% of consumers’ demand is…
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Nigeria’s Quest to Start Local Oil Refining and its Implications
Without subsidy payments, the decline in the expected open market price of PMS will be marginal with the full operation of the Dangote refinery. This is given that coastal cost and freight charges…
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Maintaining PMS Subsidy Payments to Put more Pressure on Nigeria’s Fiscal Burden
The cost of the PMS subsidy rose from 4 percent of Federation oil and gas revenue captured by the NNPC in 2020 to 35 percent in 2021, an untenable fiscal burden for a…
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Why Has the Subsidy Removal Policy Failed?
At the moment, there seems to be a consensus among intellectuals and institutional bodies like the IMF and the World Bank on the potential positive impact of the removal of subsidy on the…
