Nigeria Economic Report, November 2015
The Nigeria Economic Report (NER) is a regular publication of the World Bank. Each edition provides an overview of recent macroeconomic developments and devotes special attention to a topic of particular relevance or urgency. In this edition the ma...
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| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2015/12/25668988/nigeria-economic-report http://hdl.handle.net/10986/23581 |
| Summary: | The Nigeria Economic Report (NER) is a
regular publication of the World Bank. Each edition provides
an overview of recent macroeconomic developments and devotes
special attention to a topic of particular relevance or
urgency. In this edition the macroeconomic overview is
followed by both a detailed analysis of the country’s fuel
subsidy and an assessment of the current state and economic
potential of its natural gas sector. 2015 has been a
momentous year for Nigeria. The general elections held in
March brought about the first democratic transition of power
from a ruling party to an opposition party, heightening
expectations for meaningful political change. The new
Government is taking power during a very challenging time,
however, marked by a sharp decline in global oil prices and
continuing violence in the country’s northeast. This creates
a difficult context for realizing the new administration’s
ambitious reform agenda for job creation, the power sector,
oil and gas, agriculture, and public administration. Chapter
two of the report analyzes the costs and benefits of
Nigeria’s fuel subsidy, including their implications for
low-income households. Fuel subsidy costs are expected to
amount to 18 percent of government oil revenues in 2015, and
this share could increase to more than 30 percent by 2018
even if oil prices remain low. There is a general consensus
that increasing the supply of power in Nigeria is critical
to the future development of the country. The success of the
current plans to boost generation capacity will hinge on the
development of the natural gas sector. Nigeria is endowed
with substantial natural gas reserves, but major reforms
will be necessary to attract the investment necessary to
harness the potential of the natural gas sector to supply
the domestic energy market. Chapter three of this report
summarizes the current regulatory situation in the natural
gas sector and outlines potential avenues for reform. |
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