By FDC Research,
On-grid power supply declined sharply last week due to the shutdown of 6 gas generating power plants. This was as a result of the rupture in the Nigerian Gas Company (NGC) pipeline. Hopefully, the joint declaration signed by the Moroccan and Nigerian governments on June 10th would improve economic relations in gas resource development and global investments, feeding positively into power supply in the long term.
Nigeria’s FDI dipped by 21.3% to US$3.5bn in 2017, due to the nation’s tepid growth recovery. This was more than compensated by the increase in Foreign Portfolio Investment (FPI). FDI flow to West Africa is expected to increase in 2018 owing to stronger commodity prices.
The 2018 budget (N9.1trn) has been signed into law by the president, five weeks after it was approved by the senate. This is expected to have a multiplier effect on the economy through a boost in government spending. However, increased government spending could trigger inflationary pressures in the near term.
In this edition of the FDC Monthly publication, the FDC Think-Tank analyzes these issues and their implications on businesses and the economy at large. Enjoy your read….FDC Economic May Monthly Update – June 21, 2018