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Nigeria Market Monitoring Bulletin

  • Special Report
  • Nigeria
  • June 11, 2017
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
    • Stability in the Niger Delta coupled with a recent slight recovery in the FOB price per barrel of crude oil have jointly provided relief to the ailing Nigerian economy, thereby resulting in better economic conditions in March 2017 compared to previous months. 

    • The Central Bank of Nigeria continued to supply foreign exchange reserves to the exchange market through weekly sales, making available more supplies of U.S. Dollars and other essential foreign currencies. This has led to the strengthening of Naira (NGN) and a narrowing the gap between official and parallel exchange rates. The strengthening of the Naira is believed to have contributed to the decrease in the prices of some imported commodities on local retail markets, including but not limited to rice. 

    • Market recovery in the North East of Nigeria is ongoing and activities are becoming more favorable in some markets, especially in cities along and in proximity to the Nigeria-Cameroon border. Relatively higher supplies and lower prices were observed in Mubi (Adamawa state) compared to markets in neighboring areas, inclusive of southern Borno state. 

    • Insurgents’ activities in the North East of Nigeria have largely halted. However, occasional attacks on roads linking major markets in parts of southern Borno and Northern Adamawa as well as lack of civilian access to some parts of Northern Borno have caused deterioration in the functioning of some markets. Markets in these areas are either non-functioning or at minimal level.

    • For markets that are functioning in the North-East Nigeria, both supplies and stocks are relatively above last year levels but well below normal level (before crisis period). Lack of and reduced level of cultivation as well as risks along the trading routes were responsible for this lower stock levels. 

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