Economy
-
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…
-
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…
-
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…
-
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…
-
Nigeria: A Frail Giant?
Since President Muhammadu Buhari's re-election in 2019, the country has faced a myriad of social and economic challenges. Inflation had surged from 11.40% in May 2019 to 17.33% last month; the Naira has…
-
The Unholy Union Between the Naira and Devaluation
In 2020, the Naira lost 25% and 27% of its value at the NAFEX and parallel exchanges, respectively. This quickly disrupted my plans, as I had planned to upskill and purchase some courses…
-
A Beginner’s Guide to CBN’s Ways and Means to the Federal Government of Nigeria
CBN’s financing of the FGN deficits seems to be a structural one and not a one-off event. This is because historical data has shown that the CBN has been financing a huge part…
-
Policy Trilemma and Interest Rate Behaviour in Nigeria
Policy makers face trade-off in dealing with exchange rate management, monetary independence and concerns about capital mobility simultaneously. This study empirically examines the effects of Nigeria’s trilemma policy path on interest rate using…
-
The Economics of Big Brother Naija (BBN)
A huge part of the revenue from SMS goes to the telecoms operators. Specifically, MTN rakes in 70% of the revenue, Glo rakes in 80% while Airtel rakes in 75%. Withholding tax of…
-
Implication of the Forex Ban on Food Items
With 84% of Nigeria’s export (as at Q2’2020) as oil products, we reiterate that Nigeria does not really have an import problem. Nigeria has an export problem and until that problem is solved,…
