Dear Subscriber,

The spectre of unemployment and its impact on you

Most Nigerians believe that the unemployment rate is far higher than the 23.1% published in 2018. It was therefore, refreshing to see in the NBS Covid Impact Monitor for June 2020 that over 36% of urban residents in Nigeria are either idle, underemployed or unemployed. In the absence of a detailed unemployment survey, this provides anecdotal indication as to the true level of unemployment.

CBN not to be left out in the fight against unemployment

In line with analysts’ expectations, the MPC voted to maintain status quo on all monetary policy parameters. The decision was influenced by the need to curtail inflation, support infrastructure and create jobs.

Although ambitious with its infrastructure goal of N15trn, the CBN was more cautious and realistic about the economic recovery. The apex bank admitted that recovery in 2020 is not feasible and a U-shaped recovery is more likely in 2021.

Cement price remains competitive

The domestic price of cement has defied the current upward trend of headline inflation and remained stable at N2,600 (50kg) for over 6 months thanks to the trio of Dangote Cement, Lafarge and BUA. The price skirmish between these ‘frenemies’ has given consumers a breathing space. Aggregate demand for cement has also declined due to the rainy season and economic contraction in the real estate sector. The only saving grace for building materials manufacturers is the ambitious Civil Construction & Engineering programme of the country.

In this edition of the FDC Bi-monthly publication, the FDC Think-Tank analyses these issues and their implications on businesses and the economy at large.

Enjoy your read!