ECONOMIC UPDATE: Analysis Of 2017 Budget

The proposed spending plan by Federal Government of Nigeria is pegged at N7.298 trillion Naira for 2017 fiscal year. This represents an increase of c.20.43% over the N6.06 trillion Naira appropriated for 2016 fiscal year.

In this exclusive Economic update by Dunn Loren Merrifield (DLM) Asset Management & Research Co., the report notes a marginal increase in year-on-year expenditure growth rate from 19.13% in 2016.

A constructive review of the proposed Budget bears some assumptions highlighted by our analyst, which includes an average exchange rate of N305 Naira to the USDollar and a projected oil production level of ~2.2 million barrels per day.

The benchmark oil price is set at $42.5/barrel, higher from $38/barrel approved in the 2016 Budget. “We believe this is realistic particularly in view of the Organisation of Exporting Countries (OPEC) to begin production cuts in a bid to address the global supply glut”.

Read more details here on the report.

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