Research and Analytics
Research and Analytics
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 locally supplied. Even though the LPG is precluded from Value Added Tax (VAT) according to section 38 of the Value Added Tax Act, the imported LPG is not free from the 7.5% VAT charges.
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 country with Nigeria’s enormous infrastructure deficit and vast underserved population. Moreover, the PMS subsidy distorts efficiency incentives, promoting its nonessential or inefficient use. The subsidy also creates a very large price differential between Nigeria and neighboring countries that encourages smuggling, benefitting criminal syndicates at the expense of the public.
The global economic recovery continues, but with a widening gap between advanced economies and many emerging market and developing economies. Our latest global growth forecast of 6 percent for 2021 is unchanged from the previous outlook, but the composition has changed.
Growth prospects for advanced economies this year have improved by 0.5 percentage point, but this is offset exactly by a downward revision for emerging market and developing economies driven by a significant downgrade for emerging Asia. For 2022, we project global growth of 4.9 percent, up from our previous forecast of 4.4 percent. But again, underlying this is a sizeable upgrade for advanced economies, and a more modest one for emerging market and developing economies.
High public debt levels and the uncertain outlook for international aid limit the scope for growth through large public investment programs. The private sector will have to play more of a role in economic development if countries are to enjoy a strong recovery and avoid economic stagnation. Heads of state from Africa made this one of their resounding messages during the recent summit on “Financing African Economies” held in Paris in May.
Get the 2020 financial performance summary of some of the big names listed on the Nigerian Stock Exchange.
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 been devalued three times, losing 33% of its value, insecurity has increased, and the general investment climate has waned. All these have happened while Nigerians have not seen any meaningful increase in their economic welfare: the country slumped into a second recession in five years. Many states have found it challenging to implement the new minimum wage signed into law in 2019. We also note that even if all the states had implemented the new minimum wage, the total number of civil servants to the entire labour force is considerably low. To sum it, you would still be worse off if you hold 2X the same Naira note you had in 2010 today.
Dangote cement plc reported a 23% Return on Invested Capital (ROIC), which overshot its nearest competitor (BUA) by 600bps. Lafarge came in a distant third with an ROIC of 6%. We, however, note the gradual increase in Lafarge’s performance over the last five years as it continues to grow its ROIC from the 1% it reported in 2016. We believe this continued uptrend in its performance is hinged on the selloff of its South Africa operations, a strategic action that has continued to impact performance favourably.
The regional paradox – The Richer the oil, the higher the unemployment.
Cashless policy a myriad in Nigeria payment transactions amongst other countries.
FDI Inflows into selected African countries in 2019
![[Infographics] Financial Performance Summary of Selected Companies in Nigeria (2020)](https://giftedanalysts.com/wp-content/uploads/2021/04/MTNN-scaled.jpg)
![[INFOGRAPHICS] Regional Unemployment Rate (August 2020)](https://giftedanalysts.com/wp-content/uploads/2020/09/New-Data-07-1-scaled.jpg)
![[INFOGRAPHICS] Cash As A % Of Total Payments(Selected Countries)](https://giftedanalysts.com/wp-content/uploads/2020/09/New-Data-06-scaled.jpg)
![[INFOGRAPHICS] FDI Inflows Into Selected African Countries In 2019](https://giftedanalysts.com/wp-content/uploads/2020/09/New-Data-02-3-1-scaled.jpg)