Nigeria is the 6th largest producer of Sesame seeds and the 4th highest producer of cocoa in the world. While agricultural exports might be growing, its significance as a contributor to external balance is declining. The total non-oil exports revenue is only 12.2% of aggregate export earnings. Therefore, we are seeing a volume increase and value decrease in agricultural exports.
The Nigerian economic recovery has been tepid and anaemic, with income per capita expected to decline over the next 11 years, according to the IMF. This has left most economists scratching their heads.
One of the major constraints to output growth has been the slow to negative growth in credit to the private sector which declined by 0.18%. On the other hand, credit to the government jumped by 47%. There is an urgent need to ensure credit to the private sector, especially MSMEs, is boosted, if GDP growth is to make any appreciable increase in the near term.
Inflation declined in May but is approaching the point of inflection, with Kwara state being the best performing of the 36 states in the country.
In this edition of the Bi-monthly Publication, the FDC Think Tank provides an in-depth analysis of these economic issues and trends, with implications for your business and investments.
Enjoy your read!