FDC BI-MONTHLY ECONOMIC & BUSINESS UPDATE – MARCH 27, 2017 (Re: Confluence of prosperity or a crisis of false expectations)

A slew of positive indicators all at the same time is making most Nigerians pinch themselves saying this cannot be true. Naira at 380, PTA at 360, diesel at N215 per liter and FAAC at N514bn.

Before we get carried away  and become victims of a crisis of false expectations, it is important we take a deep breadth and remember that this is all due to high oil price and production( revenue).

With oil price now trending around $50pb and the forward contracts (postdated cheques) now maturing the pressure on the external reserves will soon begin to pile up. Therefore let us step cautiously before we say Uhuru.

This publication of the FDC bi-monthly breaks down the recent developments in the context of the new oil market realities.