Nigeria Records a Massive 5.01% Real GDP Growth Y-o-Y in Q2 2021
Nigeria’s Gross Domestic Product (GDP) grew by 5.01% (year-on-year) in real terms in the second quarter of 2021, marking three consecutive quarters of growth following the negative growth rates recorded in the second and third quarters of 2020. The Q2 2021 growth rate was higher than the -6.10% growth rate recorded in Q2 2020 and the 0.51% recorded in Q1 2021 year on year, indicating the return of business and economic activity near levels seen prior to the nationwide implementation of COVID-19 related restrictions.
Food Prices Hike
Food prices in Nigeria increased further in the month of July according to selected food price watch data for July 2021. The average price of 1 dozen of Agro Mechanised Eggs (medium size) increased year-on-year by 21.82% and month-on month by 3.79% to N577.55 in July 2021 from N556.47 in June while the per unit price increased year-on-year by 24.20% and month-on-month by 2.95% to N52.73 in July 2021 from N51.22 in June 2021.
Last week, the Nigerian Treasury Bills (“NT-Bills”) secondary market sustained a bullish run amidst pressured liquidity levels which fell to N72.3bn short on Friday, due to persistent demand on the long-dated maturities leading to 56bps W-o-W (Week-On-Week) contraction on average yields. Consequently, average yield dipped by 8bps W-o-W to close at 4.69% from 4.77% in the previous week.
The FGN bonds secondary market sustained its bullish trend last week, as funds were channelled from unmet bids at the PMA. As a result, average yield across all maturities dipped 16bps W-o-W to settle at 11.38% from 11.56% the previous week, with the most buying interests recorded on the 17-Mar-27 (-76bps W-o-W) and 14-Mar-24 (-39bps W-o-W) maturities.
The Naira further declines to the U.S. dollar at the unofficial market on Thursday. Sources from abokiFX.com states that the local unit closed at N522.00 per $1 at the black market, representing a N1.00 or 0.20 per cent devaluation from the N521.00 it traded in the last two sessions. The naira however gained against the foreign currency at the Investors and Exporters (I&E) window.