PwC: Nigeria economic outlook
PwC’s Nigeria Economic Outlook: August 2023 provides key perspectives and insights on the outlook of the Nigerian economy through analysis of key macroeconomic developments and their impact on government, businesses, and consumers in the short to medium term.
The report captures key assumption drivers impacting businesses such as the rise in regulatory reforms, increase in inflationary pressures and volatility in the FX markets, as well as the weakening consumer demand and the slow but improved prospects for fiscal and monetary dynamics.
The publication further assesses the impact areas on businesses and seeks to encapsulate the current drivers shaping business productivity and growth, including an evaluation of consumer spending, floating naira, the general rise in prices and the cost of borrowing. Finally, the report also includes responses required to build resilience in the short to medium-term.
In this edition: Inflation and the Nigerian Economy
Inflation rose marginally to 23% in June from 22.4% in the previous month fueled by both food (25%) and core inflation rates (20%). The rise was primarily due to the increases in food and transport costs by 2.4% respectively. Though the removal of PMS subsidies in May drove petroleum prices upward by 120% (from ₦238/litre (c. $0.3/litre) to ₦617 (c. $0.8/litre) in June), the pass-through effect on inflation was partial.
Key content in this report includes:
– Prices and markets development: inflation rising.
– Regulatory and policy environment, with new bills signed into law.
– Consumer and demand with the public sector dialogue on the increase of minimum wage.
– Fiscal dynamics.
– Monetary dynamics.
Download Nigeria Economic Outlook: August 2023 here