Nigeria goes back to the Future : Market vs. Control Economy - LBS EBS - Aug 2015

Proshare

Friday, August 7, 2015 10:30 AM / FDC

The CBN has come out with a rash of new regulations to defend the naira, the latest being the suspension of dollar cash deposits into domiciliary accounts in Nigeria. The naira has swung like a pendulum in the parallel market between N208 and N245. Most investors are deferring any decisions until there is some clarity, as to the Buhari economic direction.

Federal and state government officials have cut back on international travels and reckless expenditure, which has resulted in airline summer load factors dropping to 65%. Power supply from the grid is up at 4,800MW while airport immigration and customs officers are behaving themselves professionally.

In the meantime there has been a sharp lull in economic activity with retail sales of garments and electronics down to 30%. There is also the problem of 55% of flats in Lekki being vacant and rents likely to fall.

The impact of the uncertainty and slowdown on investment, output and profit margins is discussed in this edition of the August LBS Executive Breakfast session with B.J. Rewane and the FDC team.

DOWNLOAD the Economic Update Report from FDC HERE

Editors NOTE:
“Back to the Future” is an  American comic science fiction film released on July 3, 1985, grossing over $300 million worldwide, becoming the highest-grossing film of 1985 and won multiple awards and Ronald Reagan even quoted the film in his 1986 State of the Union Address. The script was written by Zemeckis and Bob Gale. In the film, teenager Marty McFly (played by Michael J.Fox) is sent back in time to 1955, where he meets his future parents in high school and accidentally becomes his mother's romantic interest. Marty must repair the damage to history by causing his parents-to-be, to fall in love, and with the help of eccentric scientist Dr. Emmett "Doc" Brown (played by Christopher Lloyd), he must find a way to return to 1985.

 

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