Financial development

[Okeowo]

Nigeria’s economy grew by 3.6% in 2021 from a 1.8% contraction in 2020, underpinned on the supply side by 4.4% expansion in the non-oil sector against 8.3% contraction in the oil sector; non-oil growth was driven by agriculture (2.1%) and services (5.6%). On the demand side, public and private consumption were contributors to GDP growth. Per capita income grew by 1.0% in 2021. The fiscal deficit narrowed to 4.8% of GDP in 2021 from 5.4% in 2020, due to a modest uptick in revenues, and was financed by borrowing. Public debt stood at $95.8 billion in 2021, or about 22.5% of GDP.
Annual average inflation stood at 17.0% in 2021 against 13.2% the previous year and above the central bank’s 6–9% target. Inflation was fueled by food price rises at the start of the year and exchange rate pass-through. The central bank kept the policy rate unchanged at 11.5% in 2021 to support economic recovery. The current account deficit narrowed to 2.9% of GDP in 2021 from 4% the preceding year, supported by recovery in oil receipts. Improved oil exports and disbursement of the SDR allocation of $3.4 billion (0.8% of GDP), pending decision on its use, helped to boost gross reserves to $40.1 billion in 2021. The ratio of NPLs to gross loans was 4.9% in December 2021 (regulatory requirement 5%), while the capital-adequacy ratio was 14.5% (regulatory benchmark 10%). Poverty and unemployment remained high, broadly unchanged from 40% and 33.3%, respectively, in 2020

https://www.afdb.org/en/countries-west-africa-nigeria/nigeria-economic-outlook

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[jackg]

This has made me wonder whether a 17% inflation for people used to 9% inflation is actually easier to manage than those who have seen 7-9% who are used to 1-2%. I'm not sure there's going to be a credible way to actually know whether this is easier or harder to adjust to though.

A growth of 2% is quite good since a lot of economies don't seem to have grown much over the past few years (maybe 5 for some European countries).

[hugeblack]

It is the first time that I know that Nigeria exports oil. I used to think that most African countries do not depend mainly on oil in their budget.
I also do not think that Covid-19 has affected many African countries, especially since Nigeria is considered developed compared to the rest of the countries, so the current inflation rate appears to be very excellent amid all this chaos in the world.
I thought that we would witness some comparisons to the price of Bitcoin, but all the talk is purely economic, and the language of numbers will seem misleading to those who do not know the situation in Nigeria.

[Doan9269]

It is the first time that I know that Nigeria exports oil. I used to think that most African countries do not depend mainly on oil in their budget.

As a matter of fact, ever sincr the boom of petroleum resources, the country Nigeria has deviated from its initial major source of income which is solely agriculture and they produce basically "Cocoa" unlike present days nkw where the oil sectors has emerger to swindle them away their initial source in it entirety, and now petroleum exportation is the major means they export to generate revenues majorly but i guess the country could have do better it it had rather combine the both agricultural and petroleum oil exportation together.

I also do not think that Covid-19 has affected many African countries, especially since Nigeria is considered developed compared to the rest of the countries

It's still a developing country but can be considered drveloped within the African continent.

so the current inflation rate appears to be very excellent amid all this chaos in the world.
I thought that we would witness some comparisons to the price of Bitcoin, but all the talk is purely economic, and the language of numbers will seem misleading to those who do not know the situation in Nigeria.

You're right.

[kryptqnick]

Inflation isn't so bad for a developing country. As someone who is very used to living in a country where inflation rate at 15% isn't anything surprising, I can say that people tend to get used to prices growing significantly and to changes in affordability of some things (but there are usually things that get or start feeling more affordable while it happens, which also balances out the effect). Also, think of it this way: even if we imagine that inflation translates into the same increase of a supermarket receipt (which it doesn't), would you really notice that much if you used to pay an average of $40, and now it's $46? You might notice it, but it is unlikely to be a big deal. Things like that always hit those most vulnerable hardest, so it's bad that unemployment and poverty are so high in Nigeria, but overall it's usually not something that drastically changes one's life.

[Hydrogen]

I'm generally not a fan of "economic outlooks" as they omit key relevant information such as tax rates.

It is known that china has taken an interest in africa. I wondered what their primary motive was. Now that we know nigeria has oil. Perhaps it begins to make sense.

European nations in the EU should have a greater interest in africa's petroleum industry. Near to 40% of africa's petrol exports go to europe. Planned diminishing of oil production in africa would appear to threaten the supply of fossil fuels europeans rely upon.

The more information and data that is released. The more we realize what a strange place the world is.