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Nigeria Market Monitoring Bulletin

  • Special Report
  • Nigeria
  • February 27, 2018
Nigeria Market Monitoring Bulletin

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  • Key Messages
  • Preface

  • Preface

    In June 2016, FEWS NET released an alert describing the national and regional implications of declining global crude oil prices on the Nigerian economy and subsequent currency depreciation since 2015. Within the context of this national economic shock, more than 3 million people in Northeast Nigeria already face significant food insecurity due to the Boko-Haram conflict. The Nigeria Market Monitoring Bulletin provides a summary of emerging market trends in Nigeria and the broader region. 

    Key Messages
    • Steady increases in oil production and export prices, which have reached a two year high, have supported oil revenues. As a result, foreign exchange reserves (FOREX) have continued to increase. These indicators, combined with an improved inflation rate are continuing to help to gradually bring Nigeria’s economy out of recession. 

    • The value of the Naira (NGN) remains well below historical levels. Nevertheless, there have been slow gains in value in recent months and the gap between the official inter-bank and the parallel market (Bureau de Change) exchange rates continues to narrow. 

    • Nigeria now has a positive balance of trade, which exceeded NGN 1,000 billion (about USD 2.8 billion) for the first time in Q3 2017 since 2014. This is estimated based on the exchange rate at the end of Q3 of 2017.

    • The Nigerian Government announced that rice imports will remain banned for the 2018 consumption year with the goal of encouraging local production while reducing demand for FOREX. Rice prices are generally lower in rice surplus producing areas compared to deficit areas. 

    • Prices are generally higher in northeastern markets. Staple prices in markets such as Maiduguri, Damaturu, and Potiskum are higher than average but are notably declining relative to previous months and are lower than last year at the same time. 

    Occasionally, FEWS NET will publish a Special Report that serves to provide an in-depth analysis of food security issues of particular concern that are not covered in FEWS NET’s regular monthly reporting. These reports may focus on a specific factor driving food security outcomes anywhere in the world during a specified period of time. For example, in 2019, FEWS NET produced a Special Report on widespread flooding in East Africa and its associated impacts on regional food security.

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