Nigeria Economic Update Issue 23

This document provides brief information on the Nigerian Economic Situation. The first article is on the Gross Domestic Product - Recent Data on Nigeria’s Real GDP growth rate (Year-on-Year) declined by 2.47 percentage points, from 2.11 % in 2015 Q4 to -0.36 % in 2016 Q1. This is the lowest GDP growth rate since 2004 Q2 (-0.81 %). Inflation is discussed next - The Consumer Price Index (CPI) increased for the third consecutive month. Precisely, the index grew by 0.95 percentage points, from 12.77 % recorded in March 2016 to 13.72 % in April 2016. This is the highest rate since the 14.1 % recorded in June 2010, representing a 6-year high. Both Food and Core sub-indices of the CPI increased. Under the heading - Unemployment Rate - A brief analysis was made with recent data on Nigeria’s labour market which points to a rise in unemployment and underemployment rates in 2016 Q1. Specifically, relative to 2015 Q4, the unemployment and underemployment rates rose to 12.1 % and 19.1 %, from 10.4 % and 18.7% respectively. Under the heading Fiscal Focus - The N6.06 trillion 2016 Appropriation Act indicates a 34.88 % budget increase from the N4.49 trillion in 2015. Disaggregated data shows that capital expenditure increased by 185.03 % –from N557 billion in 2015 to N1.589 trillion in 2016, recurrent expenditure marginally increased by 1.51% – from N2.607 trillion to N2.646 trillion, and debt servicing increased by 54.71 % –from 953.6 billion to N1.48 trillion within the same period.