The Nigerian economy has improved significantly so far this year. Although weak, GDP is on the path of recovery, inflation is moderating, and FX rate has been relatively stable over the last six months. 
The four factors responsible for the above include, OPEC's output cap agreement, government peace deal with N/Delta militants, FGN's ease of doing business initiative/massive spending efforts and the currency market reform.
Evidently, the factors above have boosted investors interest in Nigeria, the equities market is at a record high, up 37.5 percent YTD,
Evidently, the factors above have boosted investors interest in Nigeria, the equities market is at a record high, up 37.5 percent YTD,
Q3-17 GDP growth is expected to come in higher, while the inflation rate has also moderated further moderate for the 9th consecutive month amid improved dollar liquidity and stability in the currency market.
Looking ahead, however, we ask, what factors will drive the performance of the Nigerian economy in 2018?
With 2018 being a pre-election year, the build-up to the 2019 general election is a factor to watch. Monetary policy operation must also be watched closely as the investors look forward to a rate cut in Q1-18 after a prolonged period of monetary tightening.
With 2018 being a pre-election year, the build-up to the 2019 general election is a factor to watch. Monetary policy operation must also be watched closely as the investors look forward to a rate cut in Q1-18 after a prolonged period of monetary tightening.
Finally, OPEC's decision as to whether to extend its output deal beyond 2018 and FGN's handling of the N/Delta militancy are critical to economic performance.
(C) United Capital
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