Dear Subscriber,

FAAC allocation in December is up 3.13% to N812.76bn. Annualised, the total disbursement to governments is 36% (N8.52trn) higher than 2017 (N6.25trn). In spite of higher government revenue, the purchasing power of Nigerian consumers is falling, leading to a slide in headline inflation for most of 2018.

The biggest threat to macroeconomic stability is the sharp fall (9%) in the price of oil in December to $53.54pb. The increased liquidity due to a higher FAAC disbursement is likely to put pressure on domestic commodity prices over the Christmas break.

The attached slides address these and other issues in the domestic and global commodities market.

Enjoy your read!