‘Nigeria’s Macroeconomic Outlook Remains Tough’

Nigeria’s macroeconomic outlook remains tough and companies and governments may continue to face low financial performance.

In its latest macroeconomic review, analysts at FSDH Capital said while Nigeria’s Gross Domestic Products (GDP) growth has remained strong in 2022, driven mainly by the non-oil sector, the country will continue to face structural fiscal and monetary challenges.

The report outlined that national growth in recent period has been driven by improved consumer spending in the service sectors with sub-sectors such as trade, transport, finance and information and communication technology (ICT) playing key roles in driving growth, although their impact on quality job creation and living standards are unclear.

According to the report, developments in the oil sector show that Nigeria’s oil production dropped to 1.1 million barrels per day in August 2022 from 1.2mbpd in June, according to OPEC. This lower oil production is not only affecting government revenue but also GDP growth as the oil sector has been in recession since the third quarter of 2020.

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