Economy

The Economics of Big Brother Naija (BBN)

By Abdulazeez KurangaPosted on October 2, 2020Posted in Economy5 Comments

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 10% is also charged and the value-added service provider (the shortcode- 32052) receives 5%. By taking the average, we estimate that Multichoice only receives 15% of the SMS revenue.

Hence, It is not as rosy as you might have been thinking especially when it comes to revenue from the SMS voting platform. Multichoice gets more revenue from sponsorships than from the voting platforms.

Implication of the Forex Ban on Food Items

By Sheriffdeen AdeotiPosted on September 19, 2020Posted in EconomyTagged BDC, cbn, Export, Food, forex, InflationNo Comments

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, average Nigerians will always suffer higher commodity prices due to the demand management strategy of the CBN anytime external shocks occur in the oil market.

[Archive] From Recession to Growth: The Story Of Nigeria’s Recovery from the 2016 Economic Recession

By Abdulazeez KurangaPosted on August 30, 2020Posted in EconomyTagged cbn, Fiscal Policy, Foreign Exchange, Foreign Reserve, Growth, Monetary Policy, Nigeria, Recession, RecoveryNo Comments

Being a Paper presented by Godwin I. Emefiele, Governor, Central Bank of Nigeria at the Special Convocation of the University of Nigeria, Nsukka, on Friday, May 17, 2019 at the Princess Alexandra Auditorium, University of Nigeria, Nsukka, Enugu State

2021-2023 MTEF: Key Implications and Market Impact

By Abdulazeez KurangaPosted on August 28, 2020Posted in EconomyTagged Budget, Consumption, Expenditure, GDP, MTEF, population, RevenueNo Comments

We recently received the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) released by the budget office of the Federation. We have thus provided an update on the key highlights, their implications and market impacts.

Analysis of Nigeria’s Fiscal Revenue from January to April 2020

By Sheriffdeen AdeotiPosted on August 27, 2020Posted in EconomyTagged Brent, COVID-19, Expenditure, FG, Fiscal Operation, Fiscal Revenue, PPT, RevenueNo Comments

₦1.25 trillion was expected to be generated in January and February, however, ₦952.5 billion and ₦845.1 billion was generated respectively implying that only 76% and 68% of expected revenue were achieved.
The month (March) which ushered in the Great Lockdown, saw a steep decline in revenue by 14% to ₦729.64 billion (M-o-M) compared to ₦1.32 trillion expected to be collected showing underperformance of 45% revenue collection. Mild recovery was experienced in April’s revenue to ₦915.28bn against ₦1.32trillion expected, an improved 70% target revenue generated.

Nigeria’s Double Whammy of Inflation and Unemployment Increases

By Sheriffdeen AdeotiPosted on August 20, 2020Posted in EconomyTagged Economic Growth, forex, Inflation, Nigeria, UnemploymentNo Comments

Persistent rise in the general price of goods within an economy is acclaimed inflation. Increasing prices could signal consumption spending by economic agents within the economy, however persistent rise makes fixed income earners and fixed securities like bonds worse off. A healthy level of inflation (1-3%) is acceptable to propel economic growth. If consumption spending […]

Fallacy of an African Giant

By Sheriffdeen AdeotiPosted on August 15, 2020Posted in EconomyTagged analysis, Ghana, Giant, IMF, Kenya, Nigeria, South Africa, World BankNo Comments

This exposition tries to carry out a comparative analysis between Nigeria and selected economies in Africa. South Africa in Southern Africa, Egypt from Northern Africa, Kenya from East Africa and our neighbour (Ghana) in the same West African coast.

The Inflation Interplay in Nigeria

By Sheriffdeen AdeotiPosted on July 17, 2020Posted in EconomyTagged Exchange Rate, External Reserve, Foreign, Inflation Rate, NBS, Nigeria, South Africa, TradeNo Comments

Five years ago, 5 naira and 10 naira currency were a significant part of our national denomination, and you could walk into any shop and get sweets, biscuits for that amount. This same 5 and 10 naira are becoming hard to come by, with little or no purchasing power. Coins have gone into extinction, confined to the books of accounts only, telling us the currency keeps losing its value with the passage of time.

Impact of COVID-19 on the Nigeria Real Estate and Housing Sector

By Victor Tolu'TaiwoPosted on July 10, 2020Posted in EconomyTagged COVID-19, Nigeria, NIGERIA REAL ESTATE, REAL ESTATE AND HOUSING SECTORNo Comments

It is no doubt that the commercial real estate is the hardest hit of all in the property sector during this pandemic. The hotels, retail space, convention centres were all shut down, except for the exempted essential spaces. As the economy begins to open worldwide without a vaccine to cure the virus yet, the impact of Covid-19 has made work-from-home (WFH) more attractive out of necessity.

Analysis of the Debt Profile of Nigerian States

By Okeowo EbenezerPosted on July 7, 2020Posted in EconomyTagged Debt, Debt Profile, IGR, Nigeria, States2 Comments

Analysis into the domestic debt profile of the 36 states and FCT shows that Lagos state with total debt of N444.23 billion has the highest domestic debt stock outstanding among the states and this represents 10.82% of the total domestic debt stock. Lagos, Abuja and Port Harcourt in combined have total debt worth 19.92% of the total domestic debt stock of the 36 states and the FCT. Of the top 10 states based on debt, only Lagos, Ogun, Rivers, Akwa-Ibom and Delta states are among the top 10 states based on 2019 Internally IGR.