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Nigerian Economy- External Uncertainties and Domestic Vulnerabilities

The newly rebased GDP was released last week. It magnified the size of the economy by approximately one-third. The GDP now stands at $245bn. It also revealed a growth of 3.13% for the first quarter.

The implication of the new number is that it creates statistical room for increased borrowing, since the debt-to-GDP ratio is now below 40%

A major drawback with the new data is that it makes the goal of achieving a GDP of $1trillion by 2030 almost impossible at the current growth rate. Whilst the required growth rate is a tall order, you never say never in circumstances like this.

The price of aluminium increased to $2,636/tonne

The global price of aluminium rose by 7.5% (YTD) to $2,636/tonne following President Trump’s increased tariffs on aluminium and steel imports to the U.S. to 50%. This could lead to higher domestic construction costs, further escalating housing costs and rent.

FDC’s M.D., Mr. Bismarck Rewane, and analyst, Onyeluka Emefiene, discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated programmes respectively.

Click the link below to watch the video.

Enjoy your read!