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Nigeria’s capital importation report in focus as US eyes unemployment data

Digital transformation: A pathway to address Nigeria’s unemployment crisis

The National Bureau of Statistics is expected to give a breakdown of the total capital importation into the country between January to March this year.

In the last quarter of 2023, total capital importation into Nigeria stood at $1.08 billion.

Also, the United States unemployment rate has been on the increase, hitting almost 4 percent in April. The US Labor Statistics will release the percentage of unemployed people in the country on Friday.

Read also: Hunger, poverty, unemployment trail Tinubu 1st year Report

Monday, June 3, 2024

NBS to release Nigeria capital importation report

The National Bureau of Statistics will be releasing the country’s capital importation report for the first three months of 2024 on Monday.

In the last quarter of 2023, the NBS said total capital importation into Nigeria stood at $1.08 billion, slightly higher than the $1.06 billion recorded in Q4 2022, indicating an increase of 2.62 percent.

In comparison to the preceding quarter, capital importation rose by 66.27 percent from $654.65 million in Q3 2023.

The production and manufacturing sector recorded the highest inflow with $450.11 million, representing 41.35 percent of total capital imported in Q4 2023, followed by the banking sector, valued at $283.30 million.

Capital importation during the reference period originated largely from the United Kingdom, Mauritius, and the Netherlands, while Lagos State remained the top destination for investors.

Read also: ILO sees unemployment in Nigeria, others falling in 2024

Domestic and foreign debt report

The National Bureau of Statistics is expected to release the domestic and foreign debt report for the first quarter of 2024 on Monday.

Nigeria’s public debt stock, which includes external and domestic debt, stood at N97.34 trillion in the last quarter of 2023, up from N87.91 trillion in Q3 2023, indicating a growth rate of 10.73 percent on a quarter-on-quarter basis.

Total external debt stood at N38.22 trillion in Q4 2023, while total domestic debt was N59.12 trillion.

The share of external debt (in naira value) to total public debt was 39.26 percent in Q4 2023, while the share of domestic debt (in naira value) to total public debt was 60.74 percent.

Lagos State recorded the highest domestic debt in Q4 2023 with N1.05 trillion, while

Jigawa State recorded the lowest domestic debt with N42.76 billion.

Again, Lagos State had the highest external debt in Q4 2023 with $1.24 billion.

May Purchasing Managers’ Index (PMI)

In April, the Purchasing Managers’ Index (PMI) by Stanbic IBTC Bank improved to 51.1 last month from 51.0 in March. Readings above 50.0 signal an improvement in business conditions, while those below show deterioration.

Business activity in Nigeria rose to the highest in three months in April 2024 as a result of the improvement in the strength of the currency.

 “Business activity in Nigeria rose to the highest in three months in April 2024 as a result of the improvement in the strength of the currency.”

“The headline PMI points to a fifth consecutive monthly improvement in business conditions in the Nigerian private sector, but one that was only slight overall. Conditions for firms continued to be heavily influenced by movements in the naira and the subsequent impact on prices,” the report said.

It said an improvement in the strength of the currency over the past month led to sharp slowdowns in rates of increase in purchase prices and output charges, although inflationary pressures remained substantial nonetheless.

Thursday, June 6, 2024

Foreign trade in goods statistics report

The National Bureau of Statistics will release a report showing the volume of trading activities Nigeria engaged in in the first three months of 2024.

Between October and December 2023, Nigeria’s total trade rose to N26.8 trillion from N18.8 trillion. Africa’s fourth-largest economy’s exports totaled N12.69 trillion, and total imports stood at N14.11 trillion, indicating a trade deficit of N1.41 trillion.

A trade deficit occurs when a country’s imports exceed its exports during a given period. In simpler terms, it means a country is buying more goods and services from other countries than it is selling to them.

The bureau reported that on an annual basis, Nigeria’s total trade was N71,880.01 trillion, of which imports amounted to N35,917.62 trillion and exports were recorded at N35,962.39 billion.

Read also: A review of Nigeria’s new unemployment methodology

Meanwhile, Nigeria had a trade surplus of N1.31 trillion in Q3 2023, meaning that the value of the country’s exports (N10.35 trillion) was higher than imports (N9.04 trillion).

However, by Q4 2023, the trajectory changed with Nigeria’s trade recording a deficit as the value of imports outweighs exports.

Nigeria’s statistics bureau said that the country’s exports witnessed a boom in the fourth quarter of last year, with the Netherlands, India, and Spain emerging as the top destinations.

These three countries, along with Canada and France, accounted for nearly half (45.29 percent) of Nigeria’s total exports in Q4 2023.

Friday, June 7, 2024

US unemployment rate

The US Bureau of Labour Statistics will be releasing its unemployment data for May 2024 on Friday.

The unemployment rate ticked higher to 3.9 percent in April, against expectations that it would hold steady at 3.8 percent as it was in March.

Amid increasing labour supply, the jobless rate remained below 4 percent for the 27th straight month.

The jump in the unemployment rate in April reflected a further decline in household employment. The mixed report boosted the odds that the Federal Reserve will start cutting interest rates before September, as the labour market remains fairly tight.

Read also: Nigeria, US expect April inflation rate as UK releases unemployment data

The unemployment rate measures the percentage of the total workforce that is not working yet actively seeking employment.

A reading that is higher than forecast is generally negative for the USD, while a lower than forecast reading is generally supportive for the USD.

Naira has yet to stabilise despite CBN’s interventions

The naira has continued to depreciate despite various interventions by the Central Bank of Nigeria to strengthen it against the bullish dollar.

At the official window, the naira jumped to a one-month high of N1,173.88 on Tuesday but lost steam as it fell to N1,329.65/$ on Wednesday while sliding by 30.05 percent on Thursday.

The naira last Thursday weakened further to N1,484.75/$ at the official foreign exchange (FX) market, following a drop in dollar sales by market players.

At the parallel market, also known as the black market, the naira closed unchanged at N1,480.

Analysts have said the naira is expected to moderate at N1,400/1,500 per USD as Nigeria’s external reserves, which give the CBN the firepower to defend the naira, continue to decline.