Market Analysts Assess Nigeria’s Oil and Non-oil Economic Prospects

Nigerians are set to become poorer for the fourth year in a row, with economic growth, estimated by the IMF at 2.3 per cent, undershooting the 2.6 per cent increase in population, the Financial Times reported. The fund does not see this scenario reversing before 2022, a grim prospect for the 200m people in a country whose gross domestic product per head is a little over $2,000. Despite lower global prices, the oil sector has made modest progress this year. Production is up thanks to the Egina oilfield coming on line and fewer acts of sabotage by militants in the Niger Delta. Non-oil growth, however, fell back to just 1.6 per cent year-on-year in the second quarter, held back by a lack of investment. Few observers foresee any material change in the near-term, with government finances constrained by weak revenues, consumers under pressure and business hampered by restrictions on access to foreign currency. Read more