CENTRAL BANK OF NIGERIA
ECONOMIC REPORT FOR THE FIRST
HALF OF 2013


Central Bank of Nigeria
Corporate Head Office
33 Tafawa Balewa Way
Central Business District
P. M. B. 0187
Garki Abuja
Website: www.cbn.gov.ng

Tel:
+234(0)946238707

+234(0)946238762


© 2013 Central Bank of Nigeria

ISSN 1597 - 2976


iii


Vision

“By 2015, be THE MODEL CENTRAL BANK delivering
PRICE and FINANCIAL SYSTEM STABILITY and promoting
SUSTAINABLE ECONOMIC DEVELOPMENT”.


Mission

To be proactive in providing a stable framework for the
economic development of Nigeria, through the
effective, efficient and transparent implementation of
monetary and exchange rate policy, and
management of the financial sector.


iv


THE CENTRAL BANK OF NIGERIA


Established by the Central Bank of Nigeria (CBN) Act of 1958,
the Principal objects of the Bank as contained in the new CBN
Act, 2007 are to

ensure monetary and price stability

issue legal tender currency in Nigeria

maintain
external
reserves
to
safeguard
the
international value of the legal tender currency

promote a sound financial system in Nigeria

act as banker and provide economic and financial
advice to the Federal Government of Nigeria


v
MEMBERS OF THE BOARD OF DIRECTORS OF THE BANK
AS AT JUNE 30, 2013

1.
Sanusi Lamido Sanusi, CON
-
Governor (Chairman)
2.
Suleiman A. Barau, OON
-
Deputy Governor (Corporate Services)
3.
Sarah O. Alade (Mrs), OON
-
Deputy Governor (Economic Policy)
4.
Kingsley C. Moghalu, OON
-
Deputy Governor (Financial System Stability)
5.
Tunde Lemo, OFR

-
Deputy Governor (Operations)
6.
Anastasia M. Daniel-Nwobia -
Director (Permanent Secretary, Federal Ministry of
Finance)
7.
Jonah O. Otunla -
Director (Accountant General of the Federation)
8.
Muhammad M. Kafarati
-
Director
9.
Collins C. Chikeluba

-
Director
10.
Anthony A. Adaba

-
Director
11.
Stephen O. Oronsaye, CFR
-
Director
12.
Ayuli Jemide

-
Director


Yunusa M. Sanusi

-
Secretary to the Board


MEMBERS OF THE COMMITTEE OF GOVERNORS OF
THE BANK AS AT JUNE 30, 2013

1.
Sanusi Lamido Sanusi, CON
-
Governor (Chairman)
2.
Suleiman A. Barau, OON
-
Deputy Governor (Corporate Services)
3.
Sarah O. Alade (Mrs), OON
-
Deputy Governor (Economic Policy)
4.
Kingsley C. Moghalu, OON
-
Deputy Governor (Financial System stability)
5.
Tunde Lemo, OFR

-
Deputy Governor (Operations)


Yunusa M. Sanusi

-
Secretary


vi
TABLE OF CONTENTS


PAGE
Summary

xiv


1.0
INTRODUCTION


2.0 OPERATIONS OF THE CENTRAL BANK OF NIGERIA ..
..
..

2.1 Liquidity Management


2.2 Monetary Policy Committee (MPC) Decisions
..
..
..

2.3
Developments in the Payments system


2.3.1 Retail Payments System


2.3.1.1 Cheque


2.3.1.2 Electronic Payments..


2.3.1.2.1 ATM Transactions ..
..
..
..

2.3.1.2.2 Web Transactions. ..
..
..
..

2.3.1.2.3 Point of Sale (POS) Transactions..
..

2.3.1.2.4 Mobile Payments ..
..
..
..

2.3.2 Wholesale Payments System..


2.3.2.1 Real Time Gross Settlement (RTGS) System
..

2.3.2.2 NIBSS Instant Payment (NIP)
..
..
..

2.3.2.3 NIBSS Electronic Fund Transfer (NEFT)
..
..

2.3.3 Currency Operations


2.3.3.1 The Issue of Legal Tender ..
..
..
..

2.3.3.2 Currency in Circulation (CIC)
..
..
..

2.4
Financial Sector Surveillance


2.4.1 Banking Supervision


2.4.2 Target Examination


2.4.3 Routine/Special Foreign Exchange Examinations ..
..

2.4.4 Banking Sector Soundness ..


2.4.5 Compliance with the Code of Corporate
Governance for Banks in Nigeria ..
..
..
..

2.4.6 Financial Literacy and Consumer Protection
..
..

2.4.7 Fraud and Forgeries..


2.4.8 Examination of Other Financial Institutions..
..
..

2.5
Foreign Exchange Management ..


2.5.1 Spot Segment of the Market..


2.5.2 Forwards Segment of the Market ..
..
..
..

2.5.3 Wholesale Dutch Auction (wDAS) Exchange Rate
Movements


2.5.3.1 Spot Exchange Rates


2.5.4 Foreign Exchange Flows


2.5.5 Sectoral Utilization of Foreign Exchange ..
..
..

2.5.6 Foreign Exchange Receipts by Top Hundred Exporters ..

2.5.7 Nominal Effective Exchange Rate (NEER) and Real
Effective Exchange Rate (REER) Indices ..
..
..

2.6
Development Finance Operations


2.6.1 Agricultural Credit Guarantee Scheme
Fund (ACGSF)


2.6.2 Interest Drawback Programme


vii
2.6.3 The Trust Fund Model (TFM) ..


2.6.4 Entrepreneurship Development Centres (EDCs)..
..

2.6.5 Commercial Agricultural Credit Scheme (CACS)..
..

2.6.6 N200 Billion Restructuring and Refinancing Facility (RRF)

2.6.7 N200 Billion SME Credit Guarantee Scheme (SMECGS)..

2.6.8 N300 Billion Power and Airline Intervention Fund (PAIF)
Initiative ..


2.6.9 Nigeria Incentive-Based Risk Sharing System for
Agricultural Lending (NIRSAL) ..


2.6.10 Financial Inclusion ..


2.7 CBN Assets and Liabilities


ECONOMIC REPORT


3.0
GLOBAL ECONOMIC DEVELOPMENTS ..


3.1
Global Commodity Prices ..


3.2
Global Inflation..


3.3
International Financial Markets


3.4
World Economic Outlook for the Rest of 2013
..
..
..

4.0
DEVELOPMENTS IN THE DOMESTIC ECONOMY
..
..
..

4.1
Monetary and Credit Developments


4.1.1 Reserve Money


4.1.2 Broad Money (M2) ..


4.1.3 Narrow Money (M1) ..


4.1.4 Quasi Money (QM) ..


4.1.5 Currency-in-Circulation and Deposits at the CBN ..
..

4.1.6 Drivers of Growth in Monetary Aggregates..
..
..

4.1.6.1 Net Foreign Assets (NFA) ..
..
..
..

4.1.6.2 Net Domestic Assets (NDA) ..
..
..
..

4.1.6.2.1Net Domestic Credit (NDC) ..
..
..

4.1.6.2.1.1 Credit to the Government (Cg)..

4.1.6.2.1.2 Credit to the Private Sector (Cp) ..

4.1.6.2.2 Other Assets (Net) of the Banking System ..

4.1.7 Sectoral Distribution of Credit..


4.1.8 Maturity Structure of DMBs‟ Outstanding
Loans and Advances, and Deposit Liabilities..
..
..

4.1.9 Market Structure of the Banking Industry ..
..
..

4.1.10 Consumer Credit .. ..


4.1.11 Deposit Money Banks‟ Cost of Funds ..
..
..
..

4.1.12 Money Market Developments..


4.1.12.1 Money Market Assets Outstanding..
..
..

4.1.12.2 Primary Market..


4.1.12.3 Open Market Operations (OMO)..
..
..

4.1.12.4 OMO Auctions


4.1.12.5 The Two-Way Quote Trading in NTBs..
..
..

4.1.12.6 Repurchase Transactions..
..
..
..

viii
4.1.12.7 Central Bank of Nigeria (CBN) Standing Facilities..

4.1.13.7.1 Standing Lending Facility (SLF). ..
..

4.1.13.7.2 Standing Deposit Facility (SDF). ..
..

4.1.12.8 Inter-Bank Funds Market ..
..
..
..

4.1.13 Interest Rates Developments..


4.1.13.1 Money Market Rates..


4.1.13.1.1 Deposit Rates..


4.1.13.1.2 Lending Rates.. ..


4.1.14 Yield on Fixed Income Securities ..
..
..
..

4.1.15 Recent Developments in the Money Market
..
..

4.1.16 Institutional Savings ..


4.1.17 Other Financial Institutions ..


4.1.17.1 Development Finance Institutions..
..
..

4.1.17.2 Microfinance Banks (MFBs)..
..
..
..

4.1.17.3 Discount Houses


4.1.17.4 Finance Companies (FCs)..
..
..
..

4.1.17.5 Primary Mortgage Banks (PMBs) ..
..
..

4.1.17.6 Bureaux-de-Change (BDCs)..
..
..
..

4.1.17.7 Asset Management Corporation of Nigeria
(AMCON).. ..


4.1.17.8 Mortgage Refinancing Company
..
..

4.1.18 Capital Market Developments..


4.1.18.1 Institutional Developments..
..
..
..

4.1.18.2 The Nigerian Stock Exchange(NSE)..
..
..

4.1.18.3 New Issues Segment..


4.1.18.4 The Secondary Market.. ..
..
..
..

4.1.18.5 All-Share Index and Aggregate Market
Capitalisation


4.2 Fiscal Operations

4.2.1 Federation Account Operations.. ..
..
..
..

4.2.1.1 Federation Account Distribution ..
..
..

4.2.1.2 VAT Pool Account..


4.2.2 Federal Government Finances..


4.2.2.1 Federal Government Retained Revenue ..
..

4.2.2.2 Total Expenditure of the Federal Government ..

4.2.3 State Governments‟ Finances


4.2.4 Local Governments‟ Finances


4.2.5 Public Debt ..


4.2.5.1 Consolidated Government Debt ..
..
..

4.2.5.2 Domestic Debt..


4.2.5.3 External Debt..


4.2.5.4 Total Debt Service Payments..
..
..
..

4.3 Real Sector Developments ..


4.3.1 Agriculture.. ..


4.3.1.1 Agricultural Policies and Institutional Support.. ..

4.3.1.2 Agricultural Production and Prices..
..
..

4.3.2 Industry..


4.3.2.1 Industrial Policy and Institutional Support ..
..

4.3.2.2 Industrial Production..


4.3.2.3 Manufacturing..


4.3.3 Crude Oil


ix
4.3.3.1 Crude Oil Production and Demand
..
..

4.3.3.2 Crude Oil Prices..


4.3.4 Gas


4.3.5 Petroleum Products


4.3.6 Solid Minerals ..


4.3.7 Electricity Generation ..


4.3.8 Electricity Consumption..


4.3.9 Industrial Financing.. ..


4.3.9.1 NEXIM ..


4.3.10 Telecommunications ..


4.3.11 Consumer Prices


4.3.11.1 Headline Inflation ..


4.3.11.2 Core Inflation..


4.3.11.3 Food Inflation..


4.3.11.4 Urban and Rural Consumer Price Indices and

Inflation Rates ..


4.3.12 Health ..


4.3.14 Aviation Services


4.3.14.1Domestic and International Operations ..
..

4.3.15 Maritime Services ..


4.3.16 Railway Services


4.4
External Sector Developments


4.4.1 Current Account


4.4.1.1 Trade ..


4.4.1.2 Services ..


4.4.1.3 Income ..


4.4.1.4 Current Transfers..


4.4.2 Capital and Financial Accounts ..
..
..
..

4.4.2.1 Foreign Direct Investment ..
..
..
..

4.4.2.2 Portfolio Investment ..


4.4.3 Capital Importation by Sector and Capital Outflows
..

4.4.4 Reserve Assets and Months of Import Commitments
..

4.4.5 External Assets of Financial Institutions ..
..
..
..

5.0
INTERNATIONAL ECONOMIC RELATIONS

5.1
Regional Institutions ..


5.1.1 African Development Bank (AfDB) Annual Meetings..

5.1.2 Association of African Central Banks (AACB)..
..

5.1.3 West African Monetary Zone (WAMZ)
..
..
..

5.1.4 West African Institute for Financial and Economic
Management (WAIFEM).. ..


5.1.5 Economic Community of West African States (ECOWAS)..

5.1.6 ECOWAS, WAMI and WAMA Joint Multilateral Surveillance
Mission


5.2
Multilateral Economic and Financial institutions..
..
..

5.2.1 World Economic Forum Annual Meeting
..
..
..

5.2.2 The World Bank/IMF Spring Meetings..
..
..
..

5.2.3 Committee of Ten (C10)


6.0
OUTLOOK FOR THE SECOND HALF OF 2013 ..
..
..
..

x
TABLES
Selected Macroeconomic Indicators

xix

Monetary Policy Benchmarks and Outcomes
..
..
..

Structure of the CIC ..


Nominal and the Real Effective Exchange Rate Indices
..

Analysis of CACS Financed Projects by Value Chain
..
..

Sources and Uses of Reserve Money


Growth in Monetary Aggregates ..


Credit to the Core Private Sector ..


Maturity Structure of DMBs Assets and Liabilities..
..
..

9 Weighted Effective Average Cost of DMBs Funds (WEACF)
and Composition of DMBs Funds.. ..


Bid-Cover Ratios of Selected Securities


Money Market Rates..


DMBs Deposit and Lending Rates. ..


Open Market Operations (OMO) Sessions
..
..
..

Treasury Bills: Issues and Subscription


Monetary and Credit Developments..


Value of Money Market Assets..


Selected Interest Rates


Federation Account Operations ..


Summary of Federal Government Finances..
..
..
..

Functional Classification of Federal Government


Capital Expenditure..


Functional Classification of Federal Government
Recurrent Expenditure..


Summary of Statutory & VAT Revenue Allocation to
State Governments..


Allocation to Local Governments from the Federation
and VAT Pools Accounts


Domestic Debt of the Federal Government
..
..
..

Domestic Debt Service Payments to the Federal Government
by Instruments


External Debt Outstanding ..


External Debt Service Payments.. ..


Consolidated Debt Outstanding ..


Gross Domestic Product at 1990 Constant Basic Prices ..
..

Gross Domestic Product at Current Basic Prices ..
..
..

Selected Real Sector Indicators.. ..


Composite Consumer Price Index ..


Urban and Rural Consumer Price Index ..
..
..
..

Balance of Payments Analytic Presentation (US$)..
..
..

Balance of Payments Analytic Presentation (Naira)
..
..

Foreign Exchange Flows Through the Economy..
..
..

Nigeria‟s Gross External Reserves.. ..


Nigeria‟s Foreign Exchange Cross Rates.. ..
..
..
..

Monthly Average Exchange Rate Movement.. ..
..
..

Demand and Supply of Foreign Exchange
..
..
..

Sectoral Utilization of Foreign Exchange ..
..
..
..

Total External Assets of Financial Institutions..
..
..
..

xi
CHARTS

Volume of Cheques Cleared..


Value of Cheques Cleared..


Classification of Electronic Payments by Volume
..
..

Classification of Electronic Payments by Value ..
..
..

Volume of Electronic Payments


Value of Electronic Payments


Volume of ATM Transactions


Value of ATM Transactions..


Volume of Web Transactions


Value of Web Transactions ..


Volume of POS Transactions


Value of POS Transactions ..


Volume of Mobile Transactions


Value of Mobile Transactions


Volume of RTGS Transactions


Value of RTGS Transactions ..


Volume of NIP Transactions ..


Value of NIP Transactions ..


Volume of NEFT Transactions


Value of NEFT Transactions ..


Demand, Supply and Net Demand of Foreign Exchange
Spot Market ..


Exchange Rate Movements..


Bureau-de-Change Premium..


Foreign Exchange Disbursements Through the CBN..
..
..

Foreign Exchange Transactions Through the CBN..
..
..

Sectoral Utilization of Foreign Exchange (Visibles)..
..
..

Sectoral Utilization of Foreign Exchange (Invisibles)..
..
..

Nominal (NEER) and Real Effective Exchange Rate (REER) .. ..


Indices..


Sectoral Distribution of ACGSF Loans (By Purpose)..
..
..

Analysis of CACS Financed Projects by Value Chain
..
..

NIRSAL Credit Risk Guarantee (CRG) Issued..
..
..
..

Performance of the Naira against Major Currencies
..
..

Performance of the Naira against Regional Currencies
..

34 (a)
Reserve Money and its Components..


34 (b)
Sources of Reserve Money ..


Growth in Money Supply.. ..


Distribution of Net Domestic Credit..


Sectoral Distribution of DMBs Credit


Maturity Structure of Deposit Money Banks Loans and Advances

Maturity Structure of DMBs Deposits ..


Distribution of Private Sector Credit..


Market Concentration Ratios of DMBs


Consumer Credit of DMBs ..


Trends in Weighted Effective Average Cost of DMBs Funds.. ..

Money Market Assets Outstanding..


Treasury Bills Outstanding ..


Distribution of FGN Bonds By Tenor..


xii

Money Market Rates..


Government Bonds Average Yield Curve
..
..
..

Volume and Value of Transactions at the NSE.. ..
..
..

Market Capitalization and NSE Value Index..
..
..
..

Structure of Gross Federation Revenue.. ..
..
..
..

Breakdown of Federally-Collected Revenue..
..
..
..

Composition of Federal Government Retained Revenue..
..

Composition of Federal Government Expenditure..
..
..

Federal Government Fiscal Balance..


Composition of Total Allocation to State Governments ..
..

Composition of Total Allocation to Local Governments ..
..

Composition of Federal Government Consolidated Debt
..

Breakdown of External Debt Stock


Breakdown of Extenal Debt Service Payments ..
..
..

GDP Growth Rate.. ..


Industrial Production Index..


Average Manufacturing Capacity Utilisation
..
..
..

Crude Oil Production and Exports..


Average Spot Prices of Selected Crudes Traded in
the International Oil Market..


Gas Production and Utilization..


Distribution of Petroleum Products..


Sectoral Disbursement of NEXIM Loans


Total Active Lines and Tele-density..


Consumer Price Indices..


Inflation Rate ..


Urban and Rural Consumer Price Indices..
..
..
..

Exports, Imports and Trade Balance..


Non-Oil Exports by Products..


Non-Oil Imports by Sectors..


Share of Services Out Payments.. ..


Private Home Remittances..


Net FDI and Portfolio Investment Flows.. ..
..
..
..

Capital Importation by Sectors.. ..


Capital Outflows and Outward Transfers ..
..
..
..

Stock of External Reserves and Months of Import Commitments

Nigeria‟s Total External Assets..


xiii
SUMMARY
POLICY FRAMEWORK
The Central Bank of Nigeria (CBN) continued to pursue its primary
mandate of ensuring monetary and price stability during the first half of
2013 using an eclectic framework that encompasses a combination of
price based (interest rate) and quantity based (reserve money)
approaches in the conduct of monetary policy. In this regard, the
Bank‟s monetary management relied on the open market operations
(OMO), complemented by cash reserve ratio (CRR), liquidity ratio (LR),
discount windows operations and primary market transactions in CBN
bills as well as interventions in the foreign exchange market. In
addition, the monetary policy rate (MPR) was retained as the major
signal of the Bank‟s policy stance and also the main anchor for shortterm interest rates. The Bank intensified its supervisory and surveillance
activities through regular review of banks‟ returns, spot checks, on-site
and off-site monitoring, and special investigations, among others, to
ensure
a
sound
financial
system.
The
Bank
sustained
the
implementation of its various developmental initiatives such as; the
N200 billion Restructuring and Refinancing Facility, the N200 billion SME
Credit Guarantee Scheme Fund (SMECGS), and the N300 billion Power
and Airline Intervention Fund (PAIF). Others included the Agricultural
Credit Guarantee Scheme (ACGS), the Commercial Agricultural Credit
Scheme (CACS) and the Nigeria Incentive-Based Risk Sharing System
for Agricultural Lending (NIRSAL).
CBN OPERATIONS


Liquidity
Management
The main tool for liquidity management remained the OMO,
complemented by the CRR, standing facilities (SF), discount window
operations and the issuance of CBN bills. In addition, interventions in the
foreign exchange market under the Wholesale Dutch Auction System
(wDAS)
through
spot
auctions
and
interbank
segments
were
undertaken.
Payments
&
Clearing System
To enhance the efficiency of the payment systems, the Bank undertook
the following activities: granted commercial licences to two (2)
additional mobile money operators which brought the number to
twenty-two (22) and licensed one (1) Third Party Processor (TPP)
company. Furthermore, it completed the installation of the new Real
Time Gross Settlement (RTGS) software and the Users‟ Acceptance Tests


xiv
with a view to its operationalization during the third quarter of 2013. In
line with the Bank for International Settlements‟ (BIS) “Principles for
Financial Market Infrastructure”, the Bank commenced the review of
the payment infrastructure namely: the RTGS system, Automated
Clearing House (ACH), Cheques, Cards, Instant Payment, Mobile
Money, and the Scriptless Securities Settlement System (SSSS). Pursuant
to its cashless policy, the Bank extended the implementation of the
N150,000.00 limit on encashment of 3rd party cheques nationwide on
June 1, 2013. It also developed the Format of Evidence for Electronic
Transactions for gazetting as a subsidiary legislation in continuation of
the Payment System Vision 2020 (PSV 2020).


Financial Sector
Surveillance


As part of its supervisory and surveillance activities on the banking
system, the CBN conducted seven (7) joint and two (2) solo on-site
examinations of the foreign subsidiaries of Nigerian banks. The Bank
also reviewed the foreign exchange activities of twenty (20) banks to
ascertain their compliance with extant foreign exchange regulations.
The exercise revealed major infractions by banks, and appropriate
sanctions were imposed on errant banks.
The health of the banking system further improved as all the banks,
except one (1) met the minimum capital adequacy ratio of 10.0 per
cent. The affected bank has commenced efforts to raise fresh capital
through private placement to complement the capital injection from a
core investor. With an industry-wide average liquidity ratio (LR) of 67.8
per cent, all the banks met the minimum requirement of 30.0 per cent,
while the industry‟s ratio of non-performing credit to total loans of 3.7
per cent was within the threshold of 5.0 per cent stipulated by the CBN.
In line with the regulation on the scope of banking activities, ten (10)
banks had fully complied with the provision of divestment from
prohibited equity investments; six (6) had obtained commercial
banking licence and two (2) of the three (3) that obtained approval
for holding company structure had fully complied. In addition, the two
(2) merchant banks and one regional bank that were licensed in
November 2012 commenced operations. As part of the framework
governing compliance with the principles of Islamic commercial
jurisprudence, the Bank developed guidelines for the setting up of the
Financial Regulation Advisory Council of Experts (FRACE). The Council is
also to provide expert opinion and guidance on matters referred to it


xv
by the CBN and other regulatory authorities. The Bank approved the
Financial Literacy Framework (FLF) which articulates the strategic
direction
for
the
implementation
of
the
financial
literacy
initiatives/programmes towards the attainment of financial inclusion in
Nigeria. To further strengthen the code of corporate governance and
risk management practices, the CBN issued guidelines to banks and
other financial institutions to evolve effective governance mechanisms
for whistle-blowing in the industry.


Foreign Exchange
Management
The exchange rate remained stable within the band of N155/US$+/-3%
during the first half of 2013, owing to the interventions by the CBN and
huge inflows from autonomous sources. The average spot rate of
WDAS, inter-bank and BDC segments were N157.30/US$, N158.18/US$
and N159.66/US$, respectively. Foreign exchange inflows into the
economy increased by 17.5 per cent during the first half of the year,
reflecting high autonomous inflows. However, foreign exchange
outflow fell relative to the level in the corresponding period of 2012.
Consequently, the net inflow into the economy was US$53.09 billion,
compared with US$36.39 billion at end-June 2012.

THE FINANCIAL
SECTOR


Growth in monetary aggregates decelerated in the first half of 2013.
Available data indicated that broad money supply (M2) grew by 0.7
per cent, compared with 2.7 per cent in the corresponding period of
2012. Narrow money supply (M1) fell by 6.5 per cent compared with
the decline of 2.5 per cent at end-June 2012. The development
reflected the tight monetary stance of the Bank which was aimed at
containing potential inflationary pressures from government‟s fiscal
activities.
However,
reserve
money
exceeded
the
indicative
benchmark for the second quarter of 2013 by 5.0 per cent. Credit to
the domestic economy grew marginally in the first half of the year due
to the slow growth in claims on the private sector and the net claims
on the Federal Government. Though credit to government (net) rose
slightly by 2.3 per cent at end-June 2013, the Federal Government
remained a net creditor to the banking system, while claims on the
private sector increased by 3.0 per cent. Short-term instruments
remained dominant in the portfolios of deposit money banks. Banks‟
average prime lending rate fell by 50 basis points, while the maximum
lending rate edged-up by 90 basis points in the first half of 2013. The
spread between banks‟ average term deposit and maximum lending


xvi
rates widened to 17.31 percentage points, from 16.46 percentage
points in the first half of 2012. With the year-on-year inflation rate at 8.4
per cent at the end of June 2013, all the term deposit rates were
negative in real terms. At N9,085.6 billion, aggregate institutional
savings grew by 20.4 per cent at end-June 2013 relative to the level in
the corresponding half year of 2012. The DMBs remained the dominant
saving institutions, accounting for 95.2 per cent of the total.
Transactions on the floor of the Nigerian Stock Exchange were bullish
as at end-June 2013, as the All-share Index (ASI) and aggregate
market capitalization (MC) rose by 28.8 and 27.3 per cent, to close at
36,164.31 and N15.78 trillion, respectively.


THE
GOVERNMENT
SECTOR
Provisional data indicated that total federally-collected revenue (gross)
was N4,797.05 billion in the first half of fiscal 2013. At that level, it
represented a shortfall of 15.4 and 14.0 per cent from the 2013 budget
benchmark and the actual revenue in the corresponding period of
2012, respectively. Oil-revenue contributed 76.1 per cent and non-oil
revenue accounted for the balance. At N1,834.77 billion, the Federal
Government retained revenue was lower than the 2013 proportionate
budget estimate and the level in the first half of 2012 by 25.2 and 3.5
per cent, respectively. Aggregate expenditure of the Federal
Government, at N2,229.03 billion at the end of June 2013, was 19.2 per
cent lower than the budget benchmark, but exceeded the outlay
during the first half of 2012 by 2.2 per cent. The development reflected
the
delayed
disbursements
of
capital
budget
and
transfers.
Nevertheless, the fiscal operations of the Federal Government resulted
in an overall deficit of N394.25 billion (1.9 per cent of GDP), as against
the 2013 budget benchmark of N443.53 billion and the actual deficit of
N278.55 billion in the corresponding period of 2012. At N7,939.33 billion,
the stock of Federal Government consolidated debt comprising
domestic N6,850.75 billion and external US$6.92 billion (N1,088.58 billion)
grew by 5.0 per cent above the level at end-December 2012.


THE REAL
SECTOR

Provisional data from the National Bureau of Statistics (NBS) indicated
that the gross domestic product (GDP) at 1990 constant basic prices
grew by 6.6 per cent, compared with 6.4 per cent in the first half of
2012. The growth was driven by the non-oil sector, which rose by 7.9 per
cent. Agriculture and industry grew by 4.2 and 1.0 per cent,
respectively. Building and construction, wholesale and retail trade, and


xvii


services increased by 15.5, 8.4 and 12.8 per cent, respectively.
Domestic crude oil production, including condensates, at an average
daily production of 1.99 million barrels per day in the first half of 2013
dropped by 4.8 per cent below the 2.09 million barrels per day in the
first half of 2012. The average spot price of Nigeria‟s reference crude,
the Bonny Light (370 API), was US$110.29 per barrel during the first half of
the year, down by 4.1 per cent from the level in the corresponding
period of 2012. Inflationary pressures moderated in the first half of 2013
as the composite Consumer Price Index (CPI) stood at 146.6
(November 2009 = 100), compared with 135.3 and 141.1 at end-June
and end-December 2012, respectively. The year-on-year headline
inflation stood at 8.4 per cent at end-June 2013, compared with 12.0
per cent at end-December 2012 and 12.9 per cent at end-June 2012.
Similarly, the 12-month moving average trended downward to 10.4 per
cent, compared with 11.3 and 12.2 per cent at end-June and endDecember 2012, respectively.


EXTERNAL
SECTOR


The external sector remained viable in the first half of 2013, with
balance of payments surplus of N184.84 billion or 0.9 per cent of GDP.
The outcome was accounted for the sustained high crude oil prices in
the international market and huge capital flows. The current account
recorded an estimated surplus of N1,844.84 billion or 8.9 per cent of
GDP while the financial account was overwhelmed by huge portfolio
flows. Provisional data indicated that Nigeria‟s external assets at endJune 2013 grew substantially to N9,940.10 billion, from N7,889.03 billion
in the corresponding period of 2012 reflecting the low holdings.
Consequently, the stock of external reserves rose to US$44.96 billion at
end-June 2013 and could support 10.8 months of cover.
Global output growth remained subdued despite varying speeds of
recovery across countries and regions. The IMF reported that the steps
taken towards reducing fiscal deficits had constrained growth in the
advanced economies. In the emerging markets, the resurgence of
new downside risks was capable of dampening growth prospects and
induce capital flow reversals. Activities in the developing economies
also showed various forms of cyclicality and vulnerabilities as a result of
unimpressive export performance, due largely to the sluggish growth in
the advanced economies. The sub-Sahara Africa remained resilient
but with growth slowing down as some of the largest economies in the


xvii
region, including Nigeria and South Africa, grappled with domestic
issues. Global inflation was stable, even though the problem of
unemployment
persisted.
The
advanced
economies
witnessed
economic slack and subdued response of inflation to cyclical
conditions. Some emerging economies including Brazil had to
contend with intermittent inflationary pressures, while Japan reflated its
economy through stimulus measures. The IMF posited that the on-going
global monetary expansions were unlikely to result in significant
inflationary pressures.


OUTLOOK
FOR THE REST
OF 2013
The moderate inflationary pressure that was witnessed in the first half of
2013 is expected to prevail throughout the second half of the year. This
is predicated on the expectation of bumper agricultural harvest,
notwithstanding the disruptions to agricultural activities in some parts of
the country on account of flood in the later part of the first half of the
year. Nevertheless, the viability of the external sector for the rest of the
year remained uncertain due to the slow global recovery, declining
crude oil production and exports. The discovery of the shale oil in the US
is likely to adversely affect the demand for Nigeria‟s crude oil.
Consequently, the expectation of huge foreign exchange inflows in the
second half of 2013 may be constrained and, thereby, jeopardise the
relative stability in the foreign exchange market. Though, the relatively
high international price of crude oil which is substantially above the
2013 budget benchmark price of US$79 per barrel is likely to be
sustained, the incessant pipelines vandalism, leakage and oil theft
remains a threat to crude oil production, exports and earnings. If these
threats remain unabated, it may impose serious strains on the
federation
revenue
with
adverse
implications
for
the
fiscal
management at all levels of government. Furthermore, as is customary
of fiscal operations in recent years, capital budget implementation is
expected to intensify in the second half of the year, thereby
exacerbating excess liquidity conditions in the financial system with
attendant pressures on domestic prices. Against this background
therefore, the monetary authority is expected to remain proactive and
steadfast with its tight monetary policy stance to address any imminent
liquidity upsurge.


xix
Indicator
Jun-09
Jun-10
Jun-11 1/
Jun-12 1/
Jun-13 2/
Domestic Output and Prices
GDP at Current Mkt Prices (N' billion)

GDP at Current Mkt Prices (US$' billion)

GDP per Capita (N)

GDP per Capita (US$)

Real GDP Growth (Growth Rate %)

Oil Sector

Non-oil Sector

Sectoral Classification of GDP (Growth Rate %)
Agriculture

Industry 3/

Services 4/

Oil Production (mbd)

Manufacturing Capacity Utilisation (%) 1/

Inflation Rate (%) (Year-over-Year)

Inflation Rate (%) (12-month moving average)

Core Inflation Rate (%) (Year-over-Year) 5/

Core Inflation Rate (%) (12-month moving average) 5/

Federal Government Finance (% of GDP)
Retained Revenue

Total Expenditure

Recurrent Expenditure

Of which: Interest Payments
Foreign

Domestic

Capital Expenditure and Net Lending

Transfers

Current Balance (Deficit(-)/Surplus(+))

Primary Balance (Deficit(-)/Surplus(+))

Overall Fiscal Balance (Deficit(-)/Surplus(+))

Financing
Foreign

Domestic

Banking System

Non-bank Public

Others

Consolidated Government Debt Stock
External

Domestic

Selected Macroeconomic and Social Indicators


Indicator
Jun-09
Jun-10
Jun-11 /1
Jun-12 /2
Jun-13 /3
Money and Credit ( Growth Rate %)
Reserve Money

Narrow Money (M1)

Broad Money (M2)

Net Foreign Assets

Net Domestic Assets

Net Domestic Credit

Net Credit to Government

Credit to Private Sector

Money Multiplier for M2

Income Velocity of M2

Interest Rates (% per annum)
Monetary Policy Rate (MPR) 6/

Repurchase Rate
Reverse Repurchase Rate
Treasury Bill Rate
91-day

Inter-bank Call Rate

Deposit Rates
Savings Rate

3-months Fixed

6-months Fixed

12-months Fixed

Prime Lending Rate

Maximum Lending Rate

External Sector
Current Account Balance (% of GDP)

Goods Account

Services and Income Account

Current Transfers

Capital and Financial Account Balance (% of GDP)

Overall Balance (% of GDP)

External Reserves (US $ million)

Number of Months of Import Equivalent

Debt Service Due (% of Exports of Goods and Services)
Average Crude Oil Price (US$/barrel)

Average AFEM/DAS Rate (N/$1.00)

End of Period AFEM/DAS Rate (N/$1.00)

Average Bureau de Change Exchange Rate (N/$)

End of Period Bureau de Change Exchange Rate (N/$)

Capital Market
All Share Value Index (1984=100)

Value of Stocks Traded (Billion Naira)

Market Capitalization (Trillion Naira)

Selected Macroeconomic and Social Indicators (Cont...)


xxi
Indicator
Jun-09
Jun-10
Jun-11 /1
Jun-12 /2
Jun-13 /3
Social Indicators
Population (million)

Population Growth Rate (%)

Life Expectancy at Birth (Years)

Adult Literacy Rate (%)

Incidence of Poverty 7/

1/ Revised
2/ Provisional
3/ Includes Building and Construction
4/ Includes Wholesale and Retail Trade
5/ Core Inflation is measured as the rate of change of all-item Consumer Price Index (CPI) less farm produce.
6/ MPR replaced MRR with effect from December 11, 2006.
7/ The incidence of poverty in Nigeria was projected to increase from 65.6 per cent in 1996 to 70.0 per cent in 2000.
However, the result of a Nigeria Living Standard Survey of 2003/2004 from NBS (former FOS),
showed that the incidence of poverty declined to 54.4 per cent in 2003/2004.
*** indicates not available
Selected Macroeconomic and Social Indicators (Cont...)

CENTRAL BANK OF NIGERIA
REPORT FOR THE FIRST HALF OF 2013

1.0
Introduction
The thrust of monetary policy in the first half of 2013 remained the
maintenance of monetary and price stability, using liquidity management
measures. The Bank continued with appropriate measures to maintain
financial system stability while promoting the efficiency of the payments
system. An eclectic approach that encompasses a combination of interest
rate and monetary aggregate was retained as the framework for monetary
management, complemented by the use of the Monetary Policy Rate (MPR)
as the anchor for short-term interest rates. The Bank sustained the various tight
monetary policy measures adopted in the second half of 2012 to achieve
the objectives of monetary policy consistent with the real gross domestic
product (GDP) growth target of 6.50 per cent for 2013. The retention of the
policy stance was to contain the inflationary pressures from the expansionary
2013 Federal Government budget of N4.9 trillion, which represented an
increase of 5.0 per cent over the 2012 budget. In addition, the economy‟s
appetite for imports, coupled with the liquidity surfeit in the banking system
exerted pressure on the exchange rate, warranting a sustained tight
monetary policy stance to safeguard the value of the Naira. The major
instrument for monetary management remained open market operations
(OMO) complemented by discount window operations, cash reserve ratio
(CRR) and liquidity ratio (LR). The use of CBN Bills/government securities and
foreign exchange market interventions continued to be relevant in liquidity
management.
The major monetary policy benchmarks for 2013 and the provisional
outcome as at the end of the first half are shown below:

Table 1
Monetary Policy Benchmarks and Outcomes
(Growth in % except otherwise stated)
Key
Variables

Bench
mark
Outcome
Bench
mark
Outcome
Bench
mark
Outcome
Bench
mark
Outcome
Bench
mark
Outcome
Broad Money
Growth (M2)

Narrow
Money
Growth (M1)


Base Money
(Reserve)
Growth

Aggregate
credit to the
domestic
economy
Growth (Net)

Credit to
Government
Growth (Net)


Credit to the
private
sector
Growth

Inflation rate

Real GDP
Growth

*Monetary aggregates annualized as at June, 2013; **2nd Quarter growth rate; ***June 2013
inflation rate.

2.0 Operations of the Central Bank of Nigeria
2.1
Liquidity Management
The Bank sustained its tight monetary policy stance aimed at achieving the
mandate of monetary and price stability. Thus, the Bank deployed various
liquidity management instruments to contain the effects of the high liquidity
from fiscal injections on the banking system and the general price level.
These included the retention of: MPR at 12.00 per cent with a symmetric
corridor of +/- 200 basis points; CRR at 12.00 per cent; LR at 30.00 per cent;
and the mid-point of the exchange rate at N155/US$ with a band of +/-3.0
per cent. These resulted in sluggish growth in reserve money and other
monetary aggregates in the first half of 2013. Reserve (base) money, which
stood at N3,532.05 billion at end-December 2012, decreased by 8.4 per cent
to N3,236.15 billion at end-June 2013. This was, however, N299.94 billion or

10.22 per cent above the second quarter indicative benchmark of N2,936.22
billion.
The main tool of liquidity management in the review period remained open
market operations (OMO) complemented by reserve requirements, standing
facilities, discount window operations, and the issuance of CBN bills. The Bank
also intervened in the foreign exchange market under the wholesale Dutch
Auction System (wDAS) through spot auctions; and the inter-bank segment to
complement the domestic money market instruments.
2.2
Monetary Policy Committee (MPC) Decisions
The Monetary Policy Committee (MPC) held three (3) regular meetings in the
first half of 2013. A summary of the key decisions of the Committee during the
period is presented below:
Date of Meeting
Type of Meeting
Decisions
January 21, 2013
Regular

Retained MPR at 12.0 per cent with interest rate
corridor of +/- 200 basis points

Retained CRR at 12.0 per cent

Retained minimum Liquidity Ratio at 30.0 per cent

Retained the mid-point of exchange rate at N155/US$
with a band of +/-3.0 per cent.
March 18 – 19, 2013
Regular

Retained MPR at 12.0 per cent with interest rate
corridor of +/- 200 basis points

Retained CRR at 12.0 per cent

Retained minimum Liquidity Ratio of 30.0 per cent

Retained the mid-point of exchange rate at N155/US$
with a band of +/-3.0 per cent.
May 20 – 21, 2013
Regular

Retained MPR at 12.0 per cent with interest rate
corridor of +/- 200 basis points

Retained CRR at 12.0 per cent

Retained minimum Liquidity Ratio of 30.0 per cent

Retained the mid-point of exchange rate at N155/US$
with a band of +/-3.0 per cent.

2.3
Developments in the Payments System
In furtherance of the development of the National Payments System, the
Bank implemented the following during the review period:
Commenced nationwide launch of the Cheque Truncation system from
June 1, 2013 to enhance the efficiency of cheque clearing and
settlement, especially in the reduction of clearing cycle from T + 2 to T+1,
and float in the system;
Extended the N150,000.0 limit on encashment of 3rd party cheques
nationwide from June 1, 2013 to minimise fraud and other risks associated
with paper-based instruments;
Granted commercial licence to two (2) additional mobile money
operators, which brought the number to twenty-two (22);
Licensed one (1) Third Party Processor (TPP) company; and
Developed the format of Evidence for Electronic Transactions for
gazetting as subsidiary legislation.
In line with the Bank for International Settlements‟ (BIS) “Principles for Financial
Market Infrastructure”, the Bank commenced a review of the payments
system infrastructure, namely: Real Time Gross Settlement (RTGS) System,
Automated Clearing House (ACH), Cheques, Cards, Instant Payment, Mobile
Money and Scriptless Securities Settlement System (SSSS).
Furthermore, the Bank completed the installation of the new RTGS software
and carried out the Users‟ Acceptance Tests (UATs) in preparation for the
system to go live during the 3rd quarter of 2013. The successful
implementation of the new RTGS System was expected to mitigate liquidity
and credit risk, and increase the efficiency of treasury operations of banks
and discount houses.

2.3.1 Retail Payments System
2.3.1.1 Cheque
The volume and value of cheques cleared rose by 11.1 and 19.1 per cent to
21,096,075 and N11,492.5 billion in the first half of 2013 over the levels of
18,988,822 and N9,653.5 billion in the second half of 2012, respectively. The
increase was attributed to the improvement on the use of cheques for
payments, especially with the extension of the N150,000.0 limit on
encashment of 3rd party cheques nationwide.
Figure 1
Volume of Cheques Cleared
(Million)


Figure 2
Value of Cheques Cleared
(Naira Billion)


First Half 2012
Second Half 2012
First Half 2013
Million

First Half 2012
Second Half 2012
First Half 2013
N'Billion

2.3.1.2
Electronic Payments
The value of electronic payments rose by 25.6 per cent to N1,416.1 billion in
the first half of 2013 over the level in the second half of 2012, while the
volume declined by 27.2 per cent to 146,961,511 from 201,793,172 in the
preceding period.
A breakdown of the e-payment channels for the review period indicated
that ATM remained the most patronised, accounting for 93.0 per cent,
followed by mobile payments and PoS terminal, with 4.1 and 2.1 per cent,
respectively. The web (internet) was the least patronised, accounting for 0.8
per cent of the total. In terms of value, ATM accounted for 90.8 per cent; PoS,
4.0 per cent; the web (Internet), 1.5 per cent; and mobile payments
accounted for 3.7 per cent.
Figure 3
Classification of Electronic Payments by Volume
First Half 2013 (Per cent)


ATM
93.0%
PoS
2.1%
Internet
0.8%
Mobile
4.1%

Figure 4
Classification of Electronic Payments by Value
First Half 2013 (Per cent)


Figure 5
Volume of Electronic Payments
(Million)


ATM
90.8%
PoS
4.0%
Internet
1.5%
Mobile

First Half 2012
Second Half 2012
First Half 2013
Million

Figure 6
Value of Electronic Payments
(N’Billion)

2.3.1.2.1 ATM Transactions
The number of ATMs deployed stood at 11,702 in the first half of 2013,
representing a 9.1 per cent increase over the figure of 10,727 in the second
half of 2012. However, ATM transactions decreased in volume by 30.6 per
cent to 136,663,013 in the first half of 2013, from 196,995,507 in the second half
of 2012, while the value rose by 22.9 per cent to N1,286.3 billion above the
level in the preceding period.

Figure 7
Volume of ATM Transactions
(Million)


First Half 2012
Second Half 2012
First Half 2013
N' Billion

First Half 2012
Second Half 2012
First Half 2013
Million

Figure 8
Value of ATM Transactions
(N’ Billion)

2.3.1.2.2 Web Transactions
The volume of web transactions in the first half of 2013 was 1,108,485
indicating a decline of 5.9 per cent, compared with 1,178,300 in the second
half of 2012. However, the value rose by 13.1 per cent to N20.7 billion from
N18.3 billion in the preceding period. The fall in volume was due to users‟
preference for other payment channels.
Figure 9
Volume of Web Transactions
(Million)


First Half 2012
Second Half 2012
First Half 2013
N' Billion

First Half 2012
Second Half 2012
First Half 2013
Million

Figure 10
Value of Web Transactions
(N’Billion)

2.3.1.2.3 Point of Sale (POS) Transactions
The volume of Point-of-Sale (PoS) transactions increased by 64.4 per cent to
3,207,788 in the first half of 2013, compared with 1,951,252 in the second half
of 2012. Similarly, the value rose by 53.0 per cent to N57.2 billion from N37.4
billion in the preceding period. The increase in volume and value was due to
sustained public awareness and acceptance of PoS usage.
Figure 11
Volume of POS Transactions
(Million)


First Half 2012
Second Half 2012
First Half 2013
N'Billion

First Half 2012
Second Half 2012
First Half 2013
Million

Figure 12
Value of POS Transactions
(N’Billion)

2.3.1.2.4 Mobile Payments
The volume of mobile payments increased by 258.6 per cent to 5,982,225 in
the first half of 2013 over the level in the second half of 2012. Also, the value
rose by 103.1 per cent to N51.8 billion over the level in the preceding period.
The development was due to the licensing of additional eight (8) mobile
money operators in the second half of 2012, which became operational in
the first half of 2013.
Figure 13
Volume of Mobile Transactions
(Million)


First Half 2012
Second Half 2012
First Half 2013
N'Billion

First Half 2012
Second Half 2012
First Half 2013
Million

Figure 14
Value of Mobile Transactions
(N’ Billion)


2.3.2 Wholesale Payments System

2.3.2.1 Real Time Gross Settlement (RTGS) System
The volume and value of inter-bank transfers through the RTGS System (CBN
Inter-bank Funds Transfer System - CIFTS) decreased to 197,220 and N55,005.3
billion in the first half of 2013 from 213,825 and N57,286.0 billion in the second
half of 2012, indicating a decline of 7.8 and 4.0 per cent, respectively. The
development was attributed to the use of the Nigeria Inter-Bank Settlement
System (NIBSS) Instant Payment channel.

Figure 15
Volume of RTGS Transactions


First Half 2012
Second Half 2012
First Half 2013
N'Billion

First Half 2012
Second Half 2012
First Half 2013

Figure 16
Value of RTGS Transactions
(N’Billion)


2.3.2.2 NIBSS Instant Payment (NIP)
The volume and value of the NIBSS Instant Payment transactions rose to
5,924,602 and N4,178.8 billion in the first half of 2013 from 3,293,216 and
N2,873.0 billion in the second half of 2012, indicating an increase of 80.0 and
45.4 per cent, respectively. The rise in the use of the channel was attributed
to the growing awareness of the scheme as well as users‟ preference for its
quick transfer capacity.
Figure 17
Volume of NIP Transactions
(Million)


First Half 2012
Second Half 2012
First Half 2013
N'Billion

First Half 2012
Second Half 2012
First Half 2013
Million

Figure 18
Value of NIP Transactions
(N’Billion)


2.3.2.3 NIBSS Electronic Fund Transfer (NEFT)
The volume and value of NIBSS Electronic Fund Transfer decreased to
13,918,838.0 and N6,738.1 billion in the first half of 2013 from 15,143,752.0 and
N6,815.0 billion in the second half of 2012, reflecting a decline of 8.1 and 1.1
per cent, respectively. The decline was attributed to users‟ preference for
NIP, which is an instant payment platform.

Figure 19
Volume of NEFT Transactions
(Million)


First Half 2012
Second Half 2012
First Half 2013
N'Billion

First Half 2012
Second Half 2012
First Half 2013
Million

Figure 20
Value of NEFT Transactions
(N’Billion)


2.3.3 CURRENCY OPERATIONS
2.3.3.1 The Issue of Legal Tender
To meet the currency needs of the economy in 2013, the Bank projected an
indent of 2,501.72 million pieces of banknotes of various denominations. This
was 10.7 per cent lower than the 2,801.14 million for 2012. Of the total indent,
1,861.72 million pieces or 74.4 per cent was ordered to be printed by the
Nigeria Security and Minting (NSPM) Plc. The balance of 640 million pieces
were to be printed abroad. In the first half of 2013, NSPM Plc delivered 149.2
million pieces or 8.0 per cent, compared with 1,001.2 million pieces or 35.7
per cent delivered in the corresponding half of 2012.
The Bank sustained the clean notes policy in the first half of 2013 through the
sorting of banknotes into clean and unfit notes, the withdrawal of unfit/soiled
banknotes, and the re-issuance of the clean and fit banknotes into
circulation. A total of 100,068 boxes valued at N767,475.0 million were
processed and 93,919 boxes valued at N737,193.4 million audited. This
showed that the number of boxes processed and audited increased by 87.3
and 83.3 per cent, respectively over their levels in the corresponding half of
2012. Furthermore 125,913 boxes of unfit notes valued at N329.29 billion

First Half 2012
Second Half 2012
First Half 2013
N'Billion

consisting of various denominations were withdrawn and destroyed in the first
half of 2013, compared with 250,933 boxes valued at N241.21billion in the first
half
of
2012.
The
Bank
commenced
preparations
towards
the
implementation of the pilot run of the Nigerian Cash Holding Scheme in
Asaba, Katsina, Lokoja and Umuahia. The aim of the project is to reduce the
cost of cash management, improve on demand planning and supply
forecasting, enhance efficiency in processing and distribution on shared
services through an integrated cash management platform.
2.3.3.2 Currency in Circulation (CIC)
The currency-in-circulation (CIC) as at end-June 2013 stood at N1,425.5
billion, representing an increase of 4.5 per cent over the level at end-June
2012. The growth in CIC reflected the dominance of cash in the economy
and an increase in economic activities.
Table 2
Structure of the CIC
Volume
Value
Volume
Value
Volume
Value
Volume
Value
Volume
Value
(million)
(N billion)
(million)
(N billion)
(million)
(N billion)
(million)
(N billion)
(million)
(N billion)
N2

N 1

50k

25k


10k

1k

Sub Total

Notes
N1000

N500

N200

N100


N50

N20

N10

N5

Sub-Total

Total

Jun-13
Jun-12

Coins

Table :Currency Structure, 2009 - June 2013

Source: CBN

2.4 Financial Sector Surveillance
2.4.1 Banking Supervision
The CBN sustained its supervisory and surveillance activities on the banking
system in the first half of 2013. In that regard, the Bank adopted various
approaches: regular review of banks‟ periodic returns; spot checks; onsite
and offsite monitoring; and special investigations, among others, to ensure a
safe, stable and sound financial system.
The Bank conducted seven (7) joint and two (2) solo on-site examination of
foreign subsidiaries of Nigerian banks as part of its oversight of their cross
border activities. The examinations served the dual purpose of enabling the
CBN maintain an oversight of risks to which DMBs were exposed and build
capacity and knowledge-sharing among supervisors. At end-June 2013, the
reports of the joint examinations were yet to be issued by the host regulators.
In order to strengthen capacity and information sharing among regional
supervisors, the Bank hosted officials of the National Bank of Rwanda on a
one-week study visit from March 11 – 15, 2013. The purpose of the tour was to
share from CBN‟s experience on risk-based supervision, Basel II/III framework
and its implementation as well as Nigeria‟s approach to macro-prudential
regulation and financial stability. In addition, the CBN commenced the
process of establishing MoUs with the Central Bank of Sudan, the Swiss
Financial Market Authority and the Bank of Tanzania. The Bank hosted the
11th meeting of the College of Supervisors of the West African Monetary Zone
(CSWAMZ) from January14 - 16, 2013.
As part of the overall framework governing compliance with the principles of
Islamic commercial jurisprudence, which form the bedrock of the operation
of non-interest financial institutions (NIFIs), a guideline was developed to
provide for the setting up of the Financial Regulation Advisory Council of
Experts (FRACE) in the CBN. The framework, globally referred to as the Shariah
Governance Framework, also provides for the establishment of advisory
committees of experts, internal compliance and review units at individual

institution‟s level. To this end, the Bank inaugurated a 7-member Financial
Regulation Advisory Council of Experts during the review period to ensure
that products and services offered by NIFIs complied with the principles
underpinning the operation of these institutions. Some of the specific duties of
the Council include:
Provision of expert opinion and assistance on matters referred to it by the
CBN and other regulatory bodies in the Nigeria‟s financial sector,
including the NDIC, SEC, NAICOM and PENCOM;
Endorsement and validation of applications for new products and
services from operators to ensure compliance with the provisions of the
Islamic commercial jurisprudence;
Provision of support to the CBN on queries that might arise on Shariah
compliance with financial products, instruments and institutions; and
Resolution of differences among the various Advisory Committees of
Experts (ACEs) and between members of the same ACE.
In line with the regulation on the scope of new banking activities, at endJune 2013, ten (10) banks had fully complied with the provision of divestment
from all prohibited equity investments. Six (6) banks had obtained their
respective commercial banking licence, while four (4) other applications
were being processed for management approval. Two (2) of the three (3)
banks that had earlier obtained approval for a holding company structure
had fully complied, while one was yet to comply. In addition, the two (2)
merchant banks and one (1) regional bank that were licensed in November
2012 commenced operations.
The Bank recorded remarkable improvement in the management of credit
information on customers through its Credit Risk Management System
(CRMS). The database at end-June 2013 had 90,546 registered borrowers,
compared with 86,438 and 84,090 at end-December 2012 and the
corresponding period of 2012, respectively. The number of borrowers with

outstanding facilities rose by 3.3 per cent to 30,843 at end-June 2013, from
29,848 at end-December 2012. The total value of outstanding credit stood at
N5,406.0 billion at end-June 2013, indicating an increase of 24.5 per cent over
the level of N4,342.0 billion at end-December 2012. A review of the CRMS
database revealed errors and irregular update of customers‟ credit
information. Consequently, the CBN strengthened the monitoring of banks‟
compliance with the CRMS guidelines during the review period.
The three (3) existing private credit bureaux continued to provide
complementary support for the CRMS as they witnessed increased demand
for status enquiries from both financial institutions and non-financial business
partners. The number of registered borrowers with the bureaux increased by
10.5 per cent to 21.0 million at end-June 2013, compared with19.0 million at
end-December 2012.
2.4.2 Target Examination
During the review period, a joint CBN/NDIC target examination was carried
out on all the DMBs as at December 31, 2012 to ascertain the quality of
banks‟ risk assets and adequacy of loan loss provisioning required for the
approval of their 2012 annual accounts. The DMBs level of implementation of
the recommendations made in the September 30, 2012 RBS Examination
Reports was also reviewed. In addition, the four (4) discount houses and three
(3) private credit bureaux were examined during the review period. For the
three (3) of the discount houses, the examination indicated that the direction
of risk was stable and their capital improved to “acceptable” rating since the
previous examination while one (1) was expected to inject additional capital
for its continued operation.
Material lapses observed in the course of the exercise and remedial advice
were communicated to the Management of the affected institutions.

2.4.3 Routine/Special Foreign Exchange Examinations
The Bank conducted a review of foreign exchange activities of twenty (20)
DMBs for 2013 to ascertain the level of compliance with extant foreign
exchange laws and regulations. The exercise revealed major infractions such
as failure to issue certificates of capital importation to beneficiaries within the
stipulated 24 hours of receipt of the funds, use of wDAS funds to finance unauthorised foreign exchange transactions, incomplete documentation for
visible and invisible import trade transactions, rendition of false returns to
regulators and non-compliance with net open position limits. The Bank
imposed appropriate penalties on those institutions found to have been in
breach of the extant regulations.
2.4.4 Banking Sector Soundness
The health of banks in the system further improved in the first half of 2013. All
the banks, with the exception of one, met the regulatory minimum capital
adequacy ratio (CAR) of 10.0 per cent in the first half of 2013. The affected
bank had commenced a private placement of new shares aimed at raising
N20.0 billion fresh capital and an additional capital injection of N20.0 billion
from a core investor. Overall, the average CAR in the industry was 19.1 per
cent, compared with 8.0 and 17.7 per cent minimum international standard
and the level at the end of the corresponding period of 2012, respectively.
The industry liquidity ratio stood at 67.8 per cent, compared with 62.7 per
cent at end-June 2012. All banks met the minimum regulatory liquidity ratio
(LR) of 30.0 per cent at end-June 2013. The industry ratio of non-performing
loans (NPLs)to total loans at end-June 2013 stood at 3.7 per cent, compared
with 4.3 per cent at end-June 2012. This was within the maximum threshold of
5.0 per cent set by the CBN. The reduction in the NPL ratio was attributed to
the intervention of AMCON in the industry and improved risk management
practices by DMBs.

2.4.5 Compliance with the Code of Corporate Governance for Banks in
Nigeria
The Bank commenced the review of the code of corporate governance
issued in April 2006 to address the challenges observed in its implementation
such as ambiguity and/or conflict with the provisions of the Companies and
Allied Matters Act 1990 (CAMA). As part of the effort to further strengthen the
Code and risk management practices, guidelines were issued to banks and
other financial institutions to engender effective governance mechanisms for
whistle-blowing in the industry.
2.4.6 Financial Literacy and Consumer Protection
The Bank‟s Financial Literacy Framework (FLF) was approved in the first half of
2013.
The
Framework
articulates
the
strategic
direction
for
the
implementation of the Bank‟s financial literacy initiatives/programmes
towards the attainment of financial inclusion in Nigeria. It adopts a multistakeholder implementation plan over a short, medium and long-term. The
CBN used the occasion of the commemoration of the annual Global Child
and Youth Finance week from March 15 – 21, 2013 to commence the
implementation of the financial literacy initiatives. Accordingly, several
programmes were organised in Nigeria in collaboration with deposit money
banks
(DMBs),
non-governmental
organisations
(NGO),
schools
and
international development partners.

The CBN received 759 complaints from the banking public against the DMBs
in respect of excess charges, conversion of deposit, unauthorized
deductions, among others. Out of this, 88 petitions were resolved, while the
remaining were at various stages of resolution. Total claims from customers
against the DMBs at end-June 2013 in relation to the complaints amounted
to N5.73 billion and $1.05 million, while total refunds by the DMBs stood at
N1.45 billion and $829.22, respectively.

2.4.7 Fraud and Forgery
The number and value of reported cases of fraud and forgery in the banking
industry increased in the review period. There were 2,478 reported cases of
fraud and forgery valued at N22.4 billion. This was higher than the 2,300
recorded cases, valued at N7.1 billion in the corresponding period of 2012. Of
this amount, the actual loss incurred by the banks was N3.8 billion,
representing 17.1 per cent of the total fraud amount, compared with N2.5
billion in the corresponding period of 2012. The frauds were carried out
through diverse means, including fraudulent withdrawals from customers‟
accounts, suppression and conversion of customers‟ deposits, theft, illegal
funds transfer, cheque defalcations, and fraudulent ATM withdrawals,
among others. To mitigate the increased operational risk as a result of these
frauds, several measures were recommended to improve the DMBs risk
management control function. These measures included the implementation
of stricter internal control, improved technology audit to routinely check
employees‟ activities and a more thorough approach to hiring employees for
highly sensitive areas of operation.
2.4.8 Examination of Other Financial Institutions
On-site examination was conducted on 385 microfinance banks (MFBs)
during the first half of 2013. The exercise included routine examination of 262
healthy MFBs and spot checks on 123 distressed MFBs. The examination
revealed a mixed outcome as several MFBs recorded improvement in
performance, while others suffered deterioration.
In an effort to improve the operational efficiency of the BDCs, the Bank
carried out spot checks on 60 institutions in the review period. The exercise
indicated some improvements in the operation of the BDCs, compared with
their observed status in 2012. However, certain infractions persisted, including
the sale of foreign exchange to customers in excess of the approved
quarterly limits; failure to endorse customers‟ international passports with the
amount of foreign exchange purchased; the admission of same international
passport for sales of foreign exchange to two or more persons; and absence

of/insufficient documentation to support foreign exchange transactions.
Accordingly, appropriate sanctions were meted to the erring institutions.
2.5 Foreign Exchange Management
The wDAS was retained as the mechanism for managing foreign exchange
by the Bank under which the exchange rate band of N155/US$ ± 3% was
maintained in the first half of 2013. The naira/US dollar exchange rate in all
segments of the market remained stable, owing to the huge inflow from
autonomous sources and interventions by the Bank.
2.5.1. Spot Segment of the Market
A total of forty-seven (47) trading auctions were held at the spot segment of
the market as against forty-nine (49) auctions in the corresponding period of
2012. Aggregate demand for foreign exchange increased by 20.5 per cent
to US$13.01 billion in the period under review from US$10.80 billion in the
second half of 2012, while it dropped by 13.2 per cent when compared with
the level in the corresponding period of 2012. A disaggregation of total
demand showed that wDAS amounted to US$10.75 billion (82.6%) and BDC,
US$2.26 billion (17.4%). On the supply side, the total foreign exchange sold
rose by 42.9 per cent to US$15.44 billion in the first half of 2013 over the figure
in the second half of 2012, but fell by 7.5 per cent when compared with the
corresponding period of 2012. Of the total, supply to wDAS was US$10.71
billion (69.4%); BDC, US$2.26 billion (14.6%); interbank, US$2.46 billion (15.9%);
and swap transactions, US$0.004 billion (0.1%). The excess foreign exchange
supply over demand since March 2013 was due to the increased intervention
by the Bank at the interbank segment of the market.

Figure 21
Demand, Supply and Net Demand of Foreign Exchange Spot Market
(US$ Million)

2.5.2 Forwards Segment of the Market
There was no transaction at the wDAS-Forwards segment during the period
under review due to the relative stability in the exchange rate, which
reduced the attractiveness of forward contracts. However, in the
corresponding period of 2012, total sales amounted to US$0.68 billion.
2.5.3. Wholesale Dutch Auction (wDAS) Exchange Rate Movements
The focus of the exchange rate policy during the review period was to
maintain exchange rate stability. This was substantially supported by
interventions at the official window by the Bank and high inflow of foreign
exchange to the interbank segment through autonomous sources. The
exchange rate of the naira vis-à-vis the US dollar was stable within the band
of N155/US$ ± 3% in the first half of 2013.
2.5.3.1. Spot Exchange Rates
The exchange rate of the naira to the US dollar appreciated marginally in all
the three segments of the foreign exchange market and averaged N157.30,
N158.18 and N159.66 per US dollar at the wDAS, interbank and BDC
segments, respectively, in the first half of 2013. This showed an appreciation
of 0.03, 0.12 and 0.52 per cent at the wDAS, interbank and BDC segments

Foreign Exchange Demand
Foreign Exchange Supply
Net Foreign Exchange Demand

respectively, relative to the levels in the first half of 2012. Compared with the
second half of 2012, the rates appreciated by 0.22, 0.71 and 0.98 per cent at
the wDAS, interbank and BDC segments, respectively. Consequently, the
premium between the wDAS and BDC rates narrowed from 2.3 per cent in
the first half of 2012 to 2.0 and 1.5 per cent at end-December 2012 and endJune 2013, respectively. The premium between the interbank and wDAS rates
which narrowed from 1.0 per cent in the first half of 2012 to 0.6 per cent in
the second half of 2012, remained unchanged at end-June 2013.

Figure 22
Exchange rate Movements
(Naira per US$)


Figure 23
Bureau-de-Change Premium
(Naira per US$)


Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
June-13
Naira per US$
Interbank
BDC
WDAS

Per cent

The end-period rate of the naira per US dollar appreciated by 0.01 and 1.5
per cent to N157.31/US$ and N162.00/US$ at the wDAS and BDC segments,
respectively, but depreciated by 3.9 per cent at the interbank segment,
relative to the level at end-December 2012. Compared with the levels at
end-June 2012, the end-period wDAS and BDC rates appreciated by 0.6 and
1.9 per cent, respectively, but depreciated at the interbank segment by 1.8
per cent.
2.5.4. Foreign Exchange Flows
Foreign exchange inflow through the economy grew by 30.4 and 14.1 per
cent to US$72.44 billion over its respective levels in the first and second halves
of 2012. A trend analysis showed inflow rose from US$12.15 billion in January,
peaked at US$13.26 billion in May but fell to US$12.59 billion in June 2013. Of
the total, inflow through the CBN accounted for 27.3 per cent, while
autonomous sources accounted for 72.7 per cent. Total inflow through
autonomous sources rose by 57.9 and 35.6 per cent from the respective
levels in the first and second halves of 2012 to US$52.69 billion in the first half
of 2013. Disaggregation of inflow through autonomous sources showed that
invisibles accounted for US$50.62 billion; non-oil exports, US$1.92 billion; and
external account, US$0.15 billion. A breakdown of invisibles revealed that
over-the-counter (OTC) and ordinary domiciliary accounts were US$34.15
billion and US$16.47 billion, respectively.
Total foreign exchange outflow through the economy fell by 5.7 per cent to
US$19.06 billion from the level in the first half of 2012, but rose by 13.3 per cent
above the level in the second half of 2012. The decline in outflow was due to
the reduction in wDAS utilization by 7.5 per cent to US$15.44 billion. A trend
analysis showed that outflow steadily increased from US$1.54 billion in
January to US$3.23 billion in May and peaked at US$5.90 billion in June 2013.
This was due to the repatriation of dividends of matured foreign portfolio
investments and low sales of foreign exchange by the oil companies at the
interbank segment. Consequently, the net inflow through the economy stood

at US$53.38 billion, compared with US$35.34 billion in the corresponding
period of 2012.
The inflow through the CBN declined by 10.9 and 19.8 per cent to US$19.75
billion from the levels in the first and second halves of 2012, respectively. The
development was attributed to the reduction in crude oil export earnings
occasioned by the disruptions in crude production and non-oil receipts in the
period under review. Receipts from crude oil sales fell by 10.9 and 10.8 per
cent to US$18.97 billion from the levels in the first and second halves of 2012,
respectively. The non-oil component declined by 11.1 per cent to US$0.78
billion due to the reduction in interest earned on investments and other
official receipts by 66.0 and 7.3 per cent from their levels in the first half of
2012, respectively.
Foreign exchange outflow through the Bank fell by 2.6 per cent to US$18.86
billion from the level in the corresponding period of 2012, but rose by 18.6 per
cent above the level in the second half of 2012. The development was
attributed to wDAS utilization, which declined by 7.5 per cent to US$15.44
billion relative to the level in the first half of 2012, but increased by 42.2 per
cent over the level in the second half of 2012. A disaggregation of wDAS
utilization showed that sales to wDAS amounted to US$10.71 billion (56.8%);
interbank, US$2.46 billion (13.1%); BDC, US$2.26 billion (12.0%); and swap
transactions, US$0.004 billion (0.02%).

Figure 24
Foreign Exchange Disbursements through the CBN
First Half 2013

Outflow through other official payments grew by 34.7 per cent to US$2.93
billion over the level in the first half of 2012 but fell by 36.4 per cent when
compared with the level in the second half of 2012. Of this, payments to
international organisations and embassies was US$0.31 billion; parastatals
and estacode, US$0.60 billion; JVC calls, US$1.93 billion; and miscellaneous
items, US$0.04 billion. National priority projects, drawings on letters of credit
(L/Cs), and external debt service, all tapered by 34.2, 30.0, and 1.4 per cent
to US$0.03 billion, US$0.20 billion, and US$0.15 billion, respectively. The
balance of US$0.10 billion was transferred to the National Sovereign
Investment Authority during the period under review.
Total foreign exchange transactions through the Bank resulted in a net inflow
of US$0.89 billion in the period under review, compared with US$2.82 billion
and US$8.71 billion recorded in the first and second halves of 2012,
respectively.


Swap
0.02%
Drawings on L/Cs
1.08%
External Debt
Services
0.8%
Interbank sales
13.1%
Other Official
Payments
15.5%
National Priority
Projects
0.2%
BDC Sales
12.0%
wDAS Sales
56.8%
NSIA Transfer
0.5%

Figure 25
Foreign Exchange Transactions through the CBN

2.5.5. Sectoral Utilization of Foreign Exchange
The sectoral utilization of foreign exchange in the first half of 2013 increased
by 20.6 and 34.2 per cent to US$26.73 billion, over the levels in the first and
second halves of 2012, respectively. A disaggregation showed that of the
total, visible (imports) trade declined by 10.3 per cent to US$14.26 billion from
the level in the corresponding period of 2012. It, however, recorded an
increase of 10.7 per cent when compared with the level in the second half of
2012. Under this category, foreign exchange utilization for oil imports,
industrial sector and food products declined by 12.2, 0.7 and 9.7 per cent to
US$4.40 billion, US$3.99 billion and US$2.70 billion, respectively, from their
levels in the corresponding period of 2012. The amount of foreign exchange
for the importation of manufactured products, transport and minerals subsectors also fell, by 14.9, 25.7 and 34.9 per cent to US$2.10 billion, US$0.75
billion and US$0.16 billion, respectively. Foreign exchange payments under
the agricultural sector, however, grew by 6.2 per cent to US$0.15 billion over
the level in the corresponding period of 2012.
Aggregate utilization of foreign exchange under invisibles (services)
transactions increased by 99.0 and 77.3 per cent to US$12.47 billion when
compared with the figures in the corresponding period and second half of
2012, respectively. The development was driven largely by foreign exchange


1st Half 2012
2nd Half 2012
1st Half 2013
US$ billion
Inflow
Outflow
Netflow

utilized under financial services which increased substantially by 123.5 and
111.1 per cent to US$10.80 billion from the levels in the corresponding period
of 2012 and the second half of 2012, respectively. Under the sub-sector,
banking and other financial services, utilized US$10.65 billion, driven mainly by
asset management and money transmission services. Out-payments for
business, transport, communications, education, health and other services
grew by 4.5, 27.9, 47.2, 15.7, 9.5 and 36.0 per cent to US$0.59 billion, US$0.55
billion, US$0.26 billion, US$0.10, US$0.001 billion, and US$0.12 billion
respectively. In the review period, however, payments for construction and
engineering; tourism and travel related services; and distribution fell by 66.6,
38.7 and 24.3 per cent from their respective levels in the corresponding
period of 2012. There was no out-payment recorded under environmental
services in the period under review as against US$0.09 million in the second
half of 2012.

Figure 26
Sectoral Utilization of Foreign Exchange (Visibles)
First Half 2013


Industrial
28.0%
Food Products
19.0%
Manufactures
14.7%
Transport
5.1%
Agriculture
1.1%
Minerals
1.2%
Oil
30.9%

Figure 27
Sectoral Utilization of Foreign Exchange (Invisibles)
First Half 2013

2.5.6. Foreign Exchange receipts by Top Hundred Exporters
Analysis of export receipts by the top 100 exporters in the country in the first
half of 2013 showed that Olam Nigeria Limited retained first position as in the
preceding period with proceeds valued at US$272.65 million from the export
of sesame seeds and cocoa beans to Europe, Asia and the United States of
America. Mamuda Industries Nigeria Limited came second with exports
valued at US$76.18 million through the sale of leather to Italy and Hong Kong.
Bolawole Enterprises Nigeria Limited and Unique Leather Finishing Limited,
ranked third and fourth largest exporters, with proceeds of US$68.33 million
and US$62.71 million realized from cotton and cocoa beans export to
Germany and the Netherlands, respectively. British American Tobacco
Nigeria Limited and Almajaro ranked in the fifth and sixth positions with
earnings of US$48.48 million and US$48.08 million from exports of finished
leather to Italy and crumbed rubber to the Netherlands, respectively.


Business
4.7%
Communication
2.1%
Financial
86.7%
Education
0.8%
Transport
4.4%
Others
1.3%

2.5.7 Nominal Effective Exchange Rate (NEER) and Real Effective Exchange
Rate (REER) Indices
The 13-country Nominal Effective Exchange rate (NEER) index fell by 2.58
percentage points in the first half of the year to 96.41. This is attributable to
the higher number of Euro countries in the 13-country index, for which the
euro had remained relatively stable against the US dollar and appreciated
against the naira, the NEER thus indicated a slight loss in value of the naira.
The Real Effective Exchange Rate (REER) index fell by 3.51 percentage points
in the period under review. This followed a higher CPI level in Nigeria
compared with that of its major trading partners, reflecting a loss of external
competitiveness of the naira.

Figure 28
Nominal (NEER) and Real Effective Exchange Rate (REER) Indices
(November 2009=100)


Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Nominal Effective Exchange Rate
Real Effective Exchange Rate

Table 3
Nominal and the Real Effective Exchange Rate indices
(November 2009=100)

2012 Nominal Effective
Exchange Rate
Real Effective
Exchange Rate
Jan
101.69
84.38
Feb
101.41
84.40
Mar
100.29
82.84
Apr
99.66
82.66
May
97.78
80.53
Jun
98.00
79.85
Jul
97.96
79.62
Aug
97.90
79.45
Sep
98.60
79.57
Oct
98.16
78.70
Nov
97.80
77.85
Dec
98.05
77.41
2013 Nominal Effective
Exchange Rate
Real Effective
Exchange Rate
Jan
98.99
77.82
Feb
98.83
77.69
Mar
98.23
77.00
Apr
98.59
76.91
May
97.23
75.53
Jun
96.41
74.67

2.6
Development Finance Operations

2.6.1 Agricultural Credit Guarantee Scheme Fund (ACGSF)
The volume and value of guaranteed loans under the ACGSF increased by
42.1 and 47.7 per cent to 22,610 and N3.59 billion over the levels in the
corresponding period of 2012. Of the total volume of loans guaranteed by
purpose, food crops accounted for 17,573 (77.72 per cent); livestock, 3,776
(16.7 per cent); fisheries, 497 (2.2 per cent); cash crops, 196 (0.87 per cent);
others, 410 (1.81 per cent); and mixed farming, 158 (0.70 per cent).
From the inception of the Scheme in 1978 to end-June 2013, the cumulative
number of loans guaranteed was 825,874 valued at N65.6 billion. A total of
341 claims valued at N46.2 million was settled during the review period,
bringing the total claims settled from inception to 14,230 valued at N447.5
million.

Figure 29
Sectoral Distribution of ACGSF Loans (By Purpose)
First Half 2013

2.6.2 Interest Drawback Programme (IDP)
The number and value of IDP claims settled in the first half of 2013 fell by 23.5
and 19.1 per cent, to 20,907 and N201.1 million from their levels of 27,357 and
N248.6 million, respectively in the corresponding period of 2012. This brought
the number and value of IDP claims settled from inception to 195,907 and
N1.48 billion.
2.6.3 The Trust Fund Model (TFM)
During the first half of 2013, no new Memorandum of Understanding (MoU)
was signed by the Bank under the TFM. From inception in 2002 to date, 56
MoUs had been signed by stakeholders consisting of state governments,
multinational
agencies,
local
governments
(LGs),
non-governmental
organisations (NGOs) and individuals with a pledged sum of N5.5 billion.
2.6.4 Entrepreneurship Development Centres (EDCs)
In the first half of 2013, three(3) Entrepreneurship Development Centres
(EDCs) located in Onitsha (South-East), Lagos (South-West) and Kano (NorthWest), were approved for winding-up in line with the April 2013 exit date for
phase 1.
Food Crop
77.72%
Mixed Crops
0.70%
Livestock
16.70%
Fisheries
2.20%
Cash Crops
0.87%
Others
1.81%

An analysis of their performance showed that the EDCs in Kano, Lagos and
Onitsha trained 12,694, 18,167 and 10,967 entrepreneurs, respectively, out of
the 25,000 target for each. Of the entrepreneurs trained, 1,743 accessed
loans from banks for start-ups and expansion of their businesses.
2.6.5 N200 Billion Commercial Agriculture Credit Scheme (CACS)
In the review period, the sum of N16.3 billion was released to eight (8) DMBs
for on-lending to nineteen (19) projects under the CACS. An analysis of the
number of projects financed showed that processing accounted for 52.6 per
cent, while production and marketing accounted for 36.9 and 10.5 per cent,
respectively.
Table 4
Analysis of CACS Financed Projects by Value Chain
(First Half 2013)
Category

Number of
Projects
Per cent
Value
{N’ billion }
Per cent
Production

36.84
3.034
19.0
Processing

52.63
12.171
75.0
Marketing

10.53
1.050
6.0
Total

100.0
16.255
100.0

Analysis by value indicated that processing accounted for N12.17 billion (75.0
per cent), production N3. 03 billion (19.0 per cent) and marketing N1.05 (6.0
per cent).
As at end-June 2013 N199.37 had been disbursed to 273 projects. At the
same period, N8.72 billion was repaid by banks in respect of sixteen (16)
projects.

Figure 30
Analysis of CACS Financed Projects by Value Chain
First Half 2013


2.6.6 N200 Billion Restructuring and Refinancing Facility (RRF)
In the first half of 2013, no fund was released to the Bank of Industry (BOI) for
disbursement, compared with N5.0 billion released to one (1) project, in the
corresponding period of 2012. Thus, the cumulative amount released from
inception to date remained N235 billion for 535 projects, while repayments
under the SME RRF were valued at N8.8 billion in the first half of 2013.
2.6.7 N200 Billion SME Credit Guarantee Scheme (SMECGS)
Under the Scheme, eight (8) applications valued at N279.2 million were
guaranteed during the first half of 2013, compared with one application
valued at N100.0 million in the corresponding period of 2012. The total
number of projects guaranteed from inception to date was 52 valued at
N2.2 billion.
2.6.8 N300 Billion Power and Airline Intervention Fund (PAIF) Initiative
During the first half of 2013, N39.6 billion was released to the BOI for five (5)
projects, consisting of N26.0 billion for one (1) airline project and N13.61 billion
for four (4) power projects. This indicated a decline of 66.0 per cent in
number (15 projects) and 26.1 per cent in value (N31.4 billion) from the levels
Production
19%
Processing
75%
Marketing
6%

in the corresponding period of 2012. The number and value of projects
funded from inception stood at 41 and N221.0 billion, respectively.
2.6.9 Nigeria Incentive-Based Risk Sharing System for Agricultural Lending

(NIRSAL)
During the period under review, the Nigeria Incentive-Based Risk Sharing
System for Agricultural Lending (NIRSAL) programme received a boost in its
activities with the engagement of 27 state governments on various value
chains to transform the agricultural sector. The programme also attracted
funding
and
technical
support
from
multilateral
organizations
and
stakeholders in the agricultural value chain. In this regard, the German
International Cooperation (GIZ) gave a grant of N176.0 million for four (4)
selected commodities namely, tomato, rice, cocoa and cotton in twelve
(12) states. Also, the GIZ under the Farmer Business School Programme,
trained 5,000 cotton outgrowers by the West African Cotton Company
Limited in Funtua, Katsina State. In addition, NIRSAL signed an MoU with the
United States Agency for International Development (USAID) and the Federal
Ministry of Agriculture and Rural Development on technical partnership to
facilitate access to a US$100 million USAID fund, earmarked to guarantee
counterparties for agricultural lending.
Figure 31
NIRSAL Credit Risk Guarantees (CRG) Issued
January – June, 2013


Crop
Production
11.5%
Input
Distribution
5.9%
Agro Processing
82.5%

Besides, twenty-three (23) Credit Risk Guarantees (CRGs) valued at N6.7
billion were issued to 23 counterparties during the first half of 2013. The
number of projects across the focus areas stood at input distribution (1), agro
processing (11), and crop production (11).
2.6.10 Financial Inclusion
The Bank sustained its efforts at achieving the broad objective of raising
financial inclusion to 80.0 per cent by 2020. Activities undertaken included
the developments of the Financial Literacy Framework to enable people
acquire basic skills on finance-related issues. In addition, sensitization of
students in five (5) Universities (Gombe State University, Leeds University,
Ibadan, University of Nigeria, Nsukka, University of Maiduguri and Adekunle
Ajasin University) was undertaken on the Child and Youth Finance Initiative.
2.7 CBN Assets and Liabilities
Provisional data indicates that the total assets of the CBN as at end-June
2013 grew by 1.8 per cent relative to end-December 2012 and 11.5 per cent
relative to the level at the end of the corresponding period of 2012. The
growth in Assets over end-December 2012 was due to the substantial
increase (215.1 per cent) in other assets and the 3.3 per cent growth in
convertible currency. The growth over end-June 2012 was due to the growth
of 27.1, 25.3, 17.4, 4.2 and 3.0 per cent in convertible currency, total external
reserves, fixed assets, other assets and other securities, respectively. The
corresponding increase in liabilities relative to end of December 2012 was
due largely to growth in other reserves, total capitalization, “others” deposits
with the CBN and other liabilities.
ECONOMIC REPORT
3.0
Global Economic Developments
Global output growth remained subdued, with varying speeds of recovery
across countries and regions. New downside risks capable of dampening
global growth prospects were observed in emerging markets such as Brazil
and Russia. In the advanced economies, the IMF reported that steps towards

reducing fiscal deficits had constrained growth and recommended a
gradual and extended approach to fiscal consolidation. The reduced fiscal
space in emerging markets and developing economies implied the
attendant risk of lower-than-expected output.
The major industrialised economies showed signs of recovery with the US and
Japan recording modest growth rates in the first half of 2013. The Euro-Area
continually grappled with sovereign debt issues and economic stagnation
from the impact of austerity measures. High and persistent unemployment
prevailed in advanced countries, at an average of about 8.0 per cent,
reaching as high as 25.0 per cent in some countries.
Emerging market economies faced risks of an extended economic
slowdown and probable capital flow reversals. Activities in the developing
economies showed various forms of cyclicality and vulnerabilities on account
of the unimpressive export performance which resulted from the sluggish
growth in the advanced economies. Sub-Saharan Africa remained resilient
but with slowdown in growth as some of the largest economies within the
region, including Nigeria and South Africa struggled with domestic issues. This
was in addition to the weak performance of commodity exporting countries
owing to the falling international commodity prices.
The Middle East and North Africa (MENA) region was mired by the socioeconomic and political turmoil that started in 2011. The Syrian crisis persisted,
while a fresh uprising was recorded in Egypt. The decline in oil production,
prolonged fluctuation in oil prices, weak global growth and high public
spending posed significant challenges to countries in the region. These,
expectedly, led to a downward revision of the region‟s growth projection to
about 3.1 per cent, from the previous figure of 3.6 per cent.
3.1
Global Commodity Prices
Commodity prices remained low in the review period due largely to weak
demand and uncertainty in the global outlook, even though prices had
earlier been boosted by improved demand from the US and supply

disruptions in the Middle East. The IMF‟s commodity price volatility index
declined due to the improved global financial conditions on the back of
policy actions to lower risks. Indications from futures prices suggested that
commodity prices would decline in the near term. In particular, huge
discoveries of about 50 billion barrels of shale oil deposits in the US, with
prospects of more in Canada were likely to further drive down demand and
international oil prices.
3.2
Global Inflation
Inflation around the world was stable, even though the problem of
unemployment persisted. This was more pronounced in advanced
economies, which was consistent with the current economic slack and the
subdued response of inflation to cyclical conditions. Some emerging market
economies like Brazil had to contend with intermittent inflationary pressures
while Japan, an advanced economy, reflated its economy through recent
stimulus measures, bringing back inflation figures to the positive territory. The
IMF suggested that on-going global monetary expansions were unlikely to
have significant inflationary consequences, as long as inflation expectations
remained anchored.
3.3
International Financial Markets
Uncertainty among market participants heightened fears of another turmoil
in the global financial markets though tail risks were earlier mitigated largely
by a combination of deeper policy commitments by monetary authorities
around the world. Recent concerns about the tapering-off of massive
quantitative easing measures by the US Federal Reserve led to global
financial market volatility and decline in asset prices. A major challenge had
been that significant adverse effects could be created when the unwinding
of the unprecedented monetary stimulus measures commences. This
created initial huge capital flow reversal from emerging and developing
economies, with consequent decline in asset prices and currency
depreciation.

Around the globe, investor sentiments remained cautious, although there
was strong scope for improved performance of stock markets, buoyed by
the modest economic recoveries in the US and China, as well as low equity
valuation. The continued search for higher yields given the low interest rate
regime in advanced countries, coupled with the perception of receding
macro-economic risks, supported investor activity globally. Global bond and
money markets in the first half of 2013 were continually driven by the policy
decisions of monetary authorities, in their efforts to curtail inflation and
stimulate economic growth. Various bond-buying programmes of advanced
economies‟ central banks increased yields in the money and bonds markets.
In Europe, Outright Monetary Transactions (OMT) and Funding for Lending
programme of the European Central Bank (ECB) and the Bank of England
(BOE), respectively, were notable measures adopted to ensure stable and
appropriate liquidity in the banking system. Bonds of some emerging markets
continued to rally, with spreads over U.S. treasury bills reaching record lows.
Emerging markets, however, remained vulnerable to investor sentiments.
Concerns about a global currency war, particularly among advanced
countries and emerging market economies, became pronounced in the first
half of 2013. There were early signs of this development in 2012 following
complaints that emerging market currencies were being manipulated to
gain international trade advantages, through currency controls and various
expansionary monetary policies. Specifically, Japan‟s ambitious economic
stimulus drive was singled out as a covert currency-depreciation exercise. The
meeting of the Group of Twenty (G20) nations in Russia, however, dismissed
such insinuations.
Monetary authorities around the world largely maintained their policy rates
in the review period. Central banks in developed economies kept their rates
close to the zero bound, while exploring other avenues to improve market
liquidity conditions. Emerging market economies like Brazil and Indonesia
increased their policy rates from 7.25 and 5.75 to 8.0 and 6.0 per cent,
respectively, due to inflationary concerns during the period. The tendency

globally had been towards unchanged rates, although there were also rate
decreases in some countries. In Africa, Nigeria and South Africa maintained
their policy rates at 12.0 and 5.0 per cent, respectively, to sustain the relative
stability so far achieved, while Ghana raised her policy rate from 15.0 to 16.0
per cent to address inflationary concerns. Kenya lowered her policy rate
from 11.0 to 8.5 per cent to address liquidity shortage and growth
challenges.
Figure 32
Performance of the Naira against Major Currencies


Figure 33
Performance of the Naira against Regional Currencies


USD
GBP
EUR
JPY


N/CFA
N/WAUA
WAUA
CFA

The nominal exchange rate of the naira relative to other major international
currencies indicated that the naira appreciated against the pound sterling
and Japanese yen by 0.2 and 20.2 per cent, respectively, but depreciated
against the Euro by 0.9 per cent relative to their respective levels at endDecember 2012. At the regional level, the naira appreciated against WAUA
by 0.6 per cent but depreciated against CFA Francs by 0.3 per cent for the
same period.
3.4
World Economic Outlook for the Rest of 2013
The IMF in its July 2013 Update to the World Economic Outlook noted that
prospects for the global economy remain subdued, although world output in
2013 was expected to expand at the same rate as in 2012. Latest IMF
projections put global growth in 2013 at about 3.0 per cent. The US and
Japan were expected to grow by 2.0 per cent at year-end, while the euro
area was expected to remain in a recession. Emerging market and
developing economies are projected to record an average growth rate of
5.0 per cent in 2013. China was expected to grow at 7.75 per cent. In terms
of stock market performance, emerging market equities were projected to
out-perform those of developed markets, with prospects of higher returns
premised on an expanding middle class and consumer demand, among
others.

4.0 DEVELOPMENTS IN THE DOMESTIC ECONOMY
4.1 Monetary and Credit Developments
The CBN‟s monetary policy remained restrictive in the first half of 2013 with
the aim of containing potential inflationary pressures that might emanate
from the expansionary fiscal operations of the government. Consequently,
the growth of broad money supply was sluggish and stood below the
indicative benchmark for fiscal 2013. Narrow money supply fell due to the
decline in both currency and demand deposit components.
Aggregate credit to the domestic economy grew marginally as a result of
the slow growth in claims on both the private sector and the net claims on

the Federal Government. Similarly, consumer credit slowed in tandem with
the growth in credit to the private sector.
4.1.1 Reserve Money
At the end of the review period, staff estimates indicated that reserve money
(RM) fell below its level at end-December 2012, but was higher than the
indicative benchmark for fiscal 2013. Relative to the level at end-December
2012, RM fell by 12.6 per cent to N3,236.15 billion at end-June 2013,
compared with the decline of 9.8 per cent at the end of the corresponding
period of 2012. At that level, RM was higher than the indicative benchmark
for the second quarter of 2013. The development reflected the decline of
12.6 per cent apiece in currency-in-circulation and commercial banks‟
reserves at CBN. The corresponding decline in the sources of reserve money
was attributed to the 20.9 per cent fall in net foreign assets.

Table 5
Sources and Uses of Reserve Money
Jun 10
Dec 10
Jun 11
Dec '11
Jun 12
Dec 12
Jun-13
1,535,112.3

1,845,714.5

2,065,056.3

2,784,065.4

2,511,975.3

3,704,483.6

3,236,152.8

Foreing assets (net)
5,401,021.1

5,372,285.8

4,922,626.6

5,823,794.3

6,025,336.8

7,393,557.7

7,413,741.9

Foreign Assets
5,764,789.3

5,411,324.6

5,004,384.4

5,829,819.7

6,025,436.9

7,395,331.5

7,953,988.6

Long-term Foreign Liabilities
0.0

0.0

0.0

-

-

311.5

311.5

Short-term foreign Liabilities
363,768.2

39,038.8

81,757.7

6,025.5

100.0

1,462.2

539,935.1

Net credit to Government
(3,272,806.1)

(2,884,013.4)

(2,733,579.8)

(3,514,447.1)

(3,723,009.9)

(3,574,376.4)

(3,374,788.6)

Claims on Government
316,656.9

664,763.6

798,851.0

680,601.7

738,017.8

733,354.5

447,332.5

Fed. Government Deposits
3,589,463.0

3,548,777.1

3,532,430.8

4,195,048.7

4,461,027.8

4,307,730.9

3,822,121.1

Net credit to Private Sector
(46,939.0)

(26,521.8)

229,755.4

3,963,550.1

4,045,673.7

3,661,512.3

4,223,673.3

Claims on private sector
396,545.3

632,171.0

726,392.5

4,569,146.0

4,652,650.4

4,708,311.8

4,703,307.2

Private sector deposits
443,484.3

658,692.9

496,637.1

605,595.9

606,976.7

1,046,799.6

479,633.9

Net claims on DMBS
752,246.3

765,453.2

748,162.9

793,049.0

1,110,570.2

(1,583,300.3)

(3,370,967.8)

Claims on DMBS
752,246.3

765,453.2

748,162.9

793,049.0

1,110,570.2

1,052,556.0

915,469.7

CBN Securities
2,635,856.3

4,286,437.5

Other Assets Net
(1,298,410.0)

(1,381,489.2)

(1,101,908.8)

(4,281,880.9)

(4,946,595.5)

(2,192,909.7)

(1,655,506.0)

Other Assets
1,115,677.7

1,293,980.2

3,469,322.3

4,878,098.4

6,031,460.4

6,790,896.4

7,183,509.7

Other liabilities
2,414,087.6

2,675,469.4

4,571,231.1

9,159,979.2

10,978,055.9

8,983,806.1

8,839,015.6

RESERVE MONEY
1,535,112.3

1,845,714.5

2,065,056.3

2,784,065.4

2,511,975.3

3,704,483.6

3,236,152.9

Currency in Circulation
1,063,633.0

1,378,134.4

1,353,982.6

1,566,046.4

1,363,730.7

1,631,717.2

1,425,507.8

Banks' Deposit with CBN
471,479.3

467,580.1

711,073.7

1,218,019.0

1,148,244.6

2,072,766.4

1,810,645.1

Current Account Bals
382,033.4

375,017.1

711,073.7

446,282.8

305,837.8

733,035.8

354,772.2

Required Reserves
89,446.0

92,563.0

-

771,736.2

842,406.8

1,339,730.5

1,455,872.9

Figure 34 (a)
Reserve Money and its Components
(Naira Billion)


Figure 34 (b)
Sources of Reserve Money
(Naira Billion)

4.1.2 Broad Money (M2)
Broad money supply (M2) grew by 0.7 per cent at the end of the first half of
2013 relative to the level at end-December 2012. When annualized, M2 grew
by 1.4 per cent, compared with the growth of 2.7 per cent at the end of the
corresponding half of 2012. The growth in money supply reflected, wholly, the
4.7 per cent increase in domestic credit (net), which more than offset the
effect of the decline in net foreign assets of the banking system.


Jun-10
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
N'billion
Reserve Money
CIC
Bank Reserves

Jun 10
Dec 10
Jun 11
Dec 11
Jun 12
Dec 12
Jun 13
N'billion
RM
NDA
NFA

4.1.3 Narrow Money (M1)
Narrow money, M1, fell by 6.5 per cent to N6, 939.6 billion, compared with the
decline of 2.5 per cent at the end of the corresponding half of 2012. The
development was due to the respective decline of 13.3 and 5.0 per cent in
the currency and demand deposit components.
4.1.4 Quasi Money (QM)
Quasi-money grew by 7.3 per cent to N8,653.6 billion at the end of the review
period, compared with 5.4 per cent growth recorded in the first half of 2012.
The growth in QM was attributed to the growth in all the components of QM,
particularly the strong growth of 9.4 per cent in foreign currency deposits
(FCD) with commercial banks. The strong growth in FCD during the period
may be indicative of possible currency substitution taking in the economy
FCD as a ratio of QM rose from 30.0 per cent in June 2012 to 33.8 per cent in
December 2012 and further to 34.5 per cent at the end of June 2013. As a
ratio of broad money (M2), FCD stood at 19.1 per cent at end-June 2013,
compared with 15.3 and 17.6 per cent at end-June and end-December
2012, respectively.
Figure 35
Growth in Money Supply
(Per cent)


Jun. 10
Dec. 10
Jun. 11
Dec. 11
Jun. 12
Dec. 12
Jun. 13
N' billion
M1 (Money Supply)
M2 (Broad Money)

4.1.5 Currency-in-Circulation and Deposits at the CBN
Relative to the level at end-December 2012, currency in circulation fell by
12.6 per cent to N1,425.5 billion at the end of the first half of 2013. When
compared with the level at the end of the corresponding period of 2012, it
fell by 4.5 per cent. Further analysis showed that currency outside bank
(COB) fell by 13.3 per cent, compared with the decline of 12.6 per cent at
the end of the corresponding half of 2012. Thus, COB to M2 ratio (COB/ M2)
stood at 7.2 per cent, down from 8.1 per cent at the end of the
corresponding period of 2012. The lower COB/M2 ratio reflected increased
confidence in the use of non-cash means of payment in the economy. Total
deposit at the CBN fell by 11.7 per cent to N5,632.8 billion at the end of the
first half of 2013, in contrast to the growth of 3.6 per cent at the end of the first
half of 2012. The development reflected the respective decline of 12.6 and
11.3 per cent in commercial bank and Federal Government deposits with the
CBN.
4.1.6. Drivers of Growth in Monetary Aggregates
4.1.6.1. Net Foreign Assets (NFA)
Foreign assets (net) of the banking system declined slightly at the end of the
review period. Relative to the level at end-December 2012, NFA fell by 0.3
per cent to N9,016.99 billion, in contrast to the growth of 5.4 per cent at the
end of the corresponding half of 2012. The development owed wholly to the
decline of 2.8 per cent in net foreign assets of the deposit money banks. As a
percentage of M2, NFA constituted 57.8 per cent, compared with 55.8 per
cent at the end of the corresponding period of 2012.
4.1.6.2 Net Domestic Assets (NDA)
At the end of first half of 2013, net domestic asset (comprised of net domestic
credit (NDC) and other assets (net) of the banking system) grew by 2.1 per
cent to N6,576.3 billion, in contrast to the decline of 3.3 per cent a year
earlier. The development was attributed to the respective growth of 7.4 and
4.7 per cent in other assets (net) and domestic credit (net) of the banking
system.

4.1.6.2.1 Net Domestic Credit (NDC)
Net domestic credit (NDC), grew by 4.7 per cent to N13,294.5 billion at the
end of the first half of 2013, in contrast to the decline of 0.9 per cent at the
end of the corresponding period of 2012. The development reflected the
increase in claims on both the private sector and net claims on the Federal
Government.
4.1.6.2.1.1 Credit to the Government (Cg)
Net claims on government rose by 2.3 per cent at the end of the first half of
2013, compared with 128.2 per cent at the end of the first half of 2012. The
increase in net claims on government reflected, wholly, the rise in investment
in government securities held by the banking system, particularly treasury
bills, which grew by 16.7 per cent.
4.1.6.2.1.2 Credit to the Private Sector (Cp)
Claims on the private sector increased by 3.6 per cent at the end of the first
half of 2013, compared with the growth of 3.7 per cent at the end of the
corresponding half of 2012. The development reflected the 3.8 per cent
increase in claims on the core private sector, compared with the 3.3 per cent
growth at the end of the first half of 2012. The contribution of claims on the
private sector to the change in total monetary assets stood at 3.5 per cent,
compared with the 3.9 per cent recorded at the end of the corresponding
half of last year.

Table 6
Growth in Monetary Aggregates
(Per cent)


June ‘11
Dec ‘11 June ‘12 Dec ‘12 June ‘13
Net Foreign Asset (NFA)

Net Domestic Credit

Credit to Government (Cg)

Credit to Private Sector(Cp)

Quasi Money

M 1

M 2


4.1.6.2.2 Other Assets (Net) of the Banking System
Other Assets Net (OAN) fell by 7.4 per cent at the end of the first half of 2013,
compared with 1.1 per cent at the end of the first half of 2012. The
contribution of other assets (net) to total monetary assets was negative 3.0
percentage points to the growth of total monetary assets, compared with 0.6
percentage point at the end of the corresponding period of 2012.
Figure 36
Distribution of Net Domestic Credit
(Naira Billion)

Jun-10
Jun 11
June 12
June 13
N Billion
Claims on Federal Government (Net)
Claims on Private Sector

4.1.7 Sectoral Distribution of Credit
The total credit to the priority sectors of the economy, comprising agriculture,
solid minerals, exports and manufacturing, was N3,266.2 billion at the end of
the first half of 2013, accounting for 37.2 per cent of the total, compared with
37.1 per cent in the corresponding half of 2012. The less priority sectors (real
estate, public utilities, transport and communications, finance and insurance,
and government) accounted for 40.2 per cent of total claims on the private
sector, while the unclassified sectors accounted for the balance.
Table 7
Credit to the Core Private Sector:
(Percentage Share)

Share in Outstanding (per cent)


Jun 11
Dec 11
Jun 12

Dec 12

Jun 13
1. Priority Sectors

Agriculture

Solid Minerals

Exports

Manufacturing

2. Less Preferred Sectors

Real Estate

Public Utilities

Transport and Communications

Finance & Insurance

Government

Import & Dom. Trade (General Comm.)

3. Unclassified

Total (1+2+3)

Figure 37
Sectoral Distribution of DMBs Credit
(per cent)

Jun 11
Dec 11
Jun 12
Dec 12
Jun 13
Per cent
Priority Sectors
Less Preferred Sectors
Unclassified

4.1.8 Maturity Structure of DMBs’ Outstanding Loans and Advances, and
Deposit Liabilities
Short-term maturities continued to dominate the credit market in the first half
of 2013. Outstanding credits maturing within one year accounted for 57.1 per
cent, compared with 57.4 per cent at the end of the second half of 2012. The
proportion of the medium-term (≥1yr and < 3yrs) and long-term (3yrs and
above) maturities stood at 19.7 and 23.2 per cent, compared with 17.9 and
24.7 per cent, respectively, at the end of the second half of 2012. Similarly,
deposits below one year constituted 96.9 per cent of the total, of which 75.9
per cent had maturities of less than 30 days. Long-term deposits constituted
only 3.1 per cent, slightly higher than the 2.6 per cent recorded at the end of
the second half of 2012. The near-absence of long-term deposits continued
to constrain the ability of banks to create long-tenored risk assets crucial for
economic development.
Figure 38
Maturity Structure of Deposit Money Banks (DMBs) Loans and Advances

Jun 11
Dec 11
Jun 12
Dec 12
Jun 13
Per cent
Short term
Medium term
Long term

Figure 39
Maturity Structure of DMBs Deposits


Table 8
Maturity Structure of DMBs Assets and Liabilities
Assets (Loans and Advances)
Jun 11
Dec 11
Jun 12
Dec 12
Jun 13
Tenor


0-30 days

31-90 days

91-181 days

181-365 days

Short term

Medium Term (Above 1yr and below
3yrs)

Long-Term (3 Years and Above)

Liabilities


0-30 days

31-90 days

91-181 days

181-365 days

Short term

Medium Term (Above 1yr and below
3yrs)

Long-Term (3 Years and Above)


0.5

1.5

2.5


H12011
H22011
H12012
H22012
H12013
Per cent
Per cent
Short-term
(Hls)
Mediumterm (rhs)
Long-term
(rhs)

Figure 40
Distribution of Private Sector Credit as at End-June 2013
(per cent)

4.1.9 Market Structure of the Banking Industry
The structure of the banking industry remained oligopolistic in the first half of
2013. Available data showed that the average market share of assets and
deposits of the five largest banks (concentration ratio, CR5) stood at 50.0 and
52.7 per cent, respectively, compared with 50.5 and 52.5 per cent at the end
of the first half of 2012. The market share of the largest bank, with respect to
assets and deposits, stood at 13.6 and 15.2 per cent, respectively, at the end
of the review period, compared with 14.0 and 14.9 per cent at the end of the
corresponding half of 2012. However, the banking system remained
competitive in both deposits and assets as revealed by the respective
Herfindahl-Hirschman Index (HHI) of 790.66 and 741.43 for total deposits and
total assets on a scale of 1000, compared with 770.4 and 741.5, respectively,
in the corresponding period of 2012.


Credit to core
private sector
96%
Credit to Stae
and Local
Government
4%

Figure 41
Market Concentration Ratios of DMBs (Assets/Liabilities)

Hy1 10
HY2 10
HY1 11
HY2 11
HY1 12
HY2 12
HY1 13
HHI
CR
CR( Assets)
CR(Deposits)
HHI (Deposits) rhs
HHI (Assets)rhs

4.1.10 Consumer Credit
The growth of consumer loans was modest at end-June 2013. At N628.59
billion, consumer loans grew by 0.7 per cent at the end of the review period,
compared with the growth of 10.2 per cent at the end of the corresponding
period of 2012. At that level, consumer loans constituted 4.2 per cent of the
total credit to the core private sector, compared with 4.1 per cent at the end
of the corresponding half of 2012.
Figure 42
Consumer Credit of DMBs
(Naira Billion)


June 11
Dec 11
June 12
Dec 12
June 13
Growth (%)
N Billion
Consumer Credit
GR(%) over end December (rhs)
Ratio of credit to core privte sector(rhs)

4.1.11 Deposit Money Banks’ Cost of Funds
The cost of funds for DMBs, measured by the weighted effective average
cost of funds (WEACF) increased marginally in the first half of 2013. At 12.0 per
cent, the WEACF of DMBs rose by 0.5 percentage point over its level at the
end of the second half of 2012. It, however, fell by 3.2 percentage points
from its level in the corresponding period of 2012. The computed average
cost of funds excluding overheads stood at 5.9 per cent.
In terms of contribution to WEACF, interest expense contributed 40.3 per
cent, while overheads and insurance premium contributed 54.3 and 5.3 per
cent, respectively. Interest expense and overheads were, therefore, the main
drivers of DMBs‟ cost of funds in the first half of 2013.
Table 9
Weighted Effective Average Cost of DMBs Funds (WEACF) and Composition of
DMBs Funds
HY1 10 HY2 10 HY1 11 HY2 11 HY1 12
HY2 12
HY1 13
Effective average cost
of funds including
overheads

Effective average cost
of funds less overheads


Composition (Per cent)
HY1 10 HY2 10 HY1 11 HY2 11 HY1 12 HY2 12
HY1 13
Interest expense (2) as
percentage of EACF

Deposit insurance
premium (3) as
percentage of EACF

Overhead cost (4) as
percentage of EACF

Total


Figure 43
Trends in Weighted Effective Average Cost of DMBs Funds

4.1.12 Money Market Developments
The financial market indicators were relatively stable in the first half of 2013.
The Bank maintained price and monetary stability, despite the challenge of
liquidity surfeit experienced in the system. The sources of liquidity inflow
included: redemption of CBN bills, redemption of the Sovereign Debt Notes
(SDN), monthly fiscal inflows and maturing FGN Bonds. The Bank in its bid to
manage liquidity, continued to rely on the Open Market Operations (OMO),
complemented by interventions in the foreign exchange market. Overall, the
policy measures delivered relative stability in the financial market as inflation
rate stood at 8.4 per cent at the end of the first half of 2013, compared with
12.9 per cent at the end of the corresponding half year. Money market rates
and yields on fixed income securities moved in tandem with the level of
liquidity in the system.
The Monetary Policy Committee (MPC), at its bi-monthly meetings, which
were held three times in the first half of 2013, retained the Monetary Policy
Rate (MPR) at 12.00 per cent with the symmetric corridor for lending and
deposit rates at ± 200 basis points. The CRR, LR and Net Open Position (NOP)
were also retained at 12.0, 30.0 and 1.0 per cent, respectively.


1st half 2011
2nd half 2011
1st half 2012
2nd half 2012
1st half 2013
Per cent
EACOF ( with over heads)
EACOF (without over heads)

4.1.12.1 Money Market Assets Outstanding
Provisional data indicated that money market assets outstanding at the end
of the first half of 2013 stood at N6,547.2 billion, showing an increase of 5.4
and 12.4 per cent above the levels at the end of the second half of 2012 and
the corresponding half year, respectively. The development reflected mainly,
the increase of N318.5 billion (8.6 per cent) and N398.7 billion (19.1 per cent)
in FGN Bonds and NTBs outstanding, respectively.
Figure 44
Money Market Assets Outstanding
(End-June 2013, per cent)

A breakdown of the money market assets outstanding at the end of the first
half of 2013 showed that 61.6 per cent was held in FGN Bonds, while, 37.9, 0.3
and 0.2 per cent, were in NTBs, Bankers Acceptances and Commercial
Paper, respectively.
4.1.12.2 Primary Market
At the Nigerian Treasury Bills auction, N380.7 billion worth of 91-day bills was
offered and sold with bid rates ranging from 7.5 to 14.0 per cent, and stop
rates ranging from 9.2 to 11.5 per cent. For the 182- and 364-day auctions,
N539.0 billion and N1,165.3 billion worth of bills were offered and sold at the
rates ranging from 9.4 to 12.8 per cent and 9.5 to 13.2 per cent, respectively.
Allotment to non-competitive bidders in the review period was N861.3 billion,
representing 41.3 per cent of the total amount allotted. Total subscription
during the auction stood at N4,268.7 billion, compared with N4,466.6 billion in
NTB
37.9%
FGN Bond
61.6%
Commercial Paper
0.2%
Bankers
Acceptances
0.3%

the corresponding half year. The huge subscription in the review period was
attributed to the growing demand for government securities in view of the
positive real yields and the fact that the naira had been relatively stable,
thereby attracting foreign portfolio investors as well as local investors.

Table 10
Bid-Cover Ratios of selected Securities
TENOR (DAY)
91-day
182-day
364-day
OFFER AMOUNT (Nbn)
380.7

1165.33
TOTAL SUBSCRIPTION (Nbn)
593.43
1197.38
2477.91
ALLOTMENT (Nbn)
380.7

1165.33
BID COVER RATIO
1.56
2.22
2.13
BID RANGE
9.20-11.62
9.45-12.75
9.54-12.99

The bid-cover ratios for the tenors were 1.6, 2.2 and 2.1 for the 91 -, 182-, and
364-day, respectively. The low bid-to-cover ratios resulted from the sustained
penchant for government securities, thus, pushing down the rates. The sum of
N1,799.7 billion was repaid in the first half of 2013, translating to a net
withdrawal of N285.3 billion through that segment of the money market. Thus,
total NTBs outstanding at the end of the first half of 2013 stood at N2,483.3
billion, showing an increase of 19.1 per cent over the N2,084.6 billion at the
end of the first half of 2012.

Figure 45
Treasury Bills Outstanding
(Naira Billion)

2nd Half 2010 1st Half 2011 2nd Half 2011 1st Half 2012 1st Half 2013
N' Billion

During the review period, the CBN in collaboration with the Debt
Management Office, issued FGN Bonds of 3-, 5-, 7- and 10-year tenors. The 5-,
7-, 10- and 20-year tenors were reopened and auctioned during the review
period. The term-to-maturity of the bonds ranged from 1 year 10 months to 17
years 6 months. Total FGN Bonds offered was N584.8 billion, while public
subscription and sale stood at N1,124.94 billion and N520.61 billion,
respectively. The high demand for the securities was attributed to the high
level of liquidity in the banking system, the preference of investors for risk-free
long-term instruments and the attractive coupon yield on the bonds. A total
of N672.06 billion FGN Bonds matured and was repaid, culminating in a net
injection of N151.45 billion through this segment. Of the total bonds
outstanding, DMBs and DHs held N1,979.3 billion (46.0 per cent), while brokers
and the non-bank public held N2,053.61 billion (54.0 per cent).

Figure 46
Distribution of FGN Bonds by Tenor
(End-June 2013, per cent)
Banks
46.03%
Discount
Houses
0.01%
Others
53.96%

Thus, the total value of bonds outstanding at the end of the first half of 2013
stood at N4,032.9 billion, compared with N3,714.6 billion at the end of the first
half of 2012, representing an increase of N318.3 billion or 8.6 per cent.
4.1.12.3 Open Market Operations (OMO)
In line with the Bank‟s contractionary monetary policy stance occasioned by
the need to contain inflation and maintain price stability, open market
operations were used for liquidity management. Investors were attracted to
this segment of the market as securities offered had attractive yields, and
were risk-free.
4.1.12.4 OMO Auctions
OMO auctions were conducted throughout the first half of the year to mopup excess liquidity in the banking system and deepen the secondary market.
The maturities used to mop up excess liquidity at the Open Market Operation
(OMO), ranged from 13 to 289 days. Overall, there were 64 auctions, while
121 maturities were traded. Total CBN bills sold were N7,099.5 billion, including
two special auctions valued at N544.98 billion at a fixed rate of 12.75 and
12.35 per cent, respectively, while total subscription amounted to N11,532.8
billion. The bid rates ranged from 9.5 to 14.5 per cent. The increased level of
activities during the first half of 2013 was attributed to the injection of liquidity
into the system through the repayment of matured CBN bills; statutory

revenue allocation; SURE-P and NNPC outstanding indebtedness to state and
local governments. The patronage of the special auction was due to the
attractive yield. However, these special bills were neither tradable nor eligible
as collateral for assessing the CBN standing lending facility.
In the corresponding period of 2012, the amount sold was N1,717.4 billion,
while total subscription was N5,051.9 billion. CBN bills valued at N5,448.9 billion
matured and were repaid in the review period, translating to a net
withdrawal of N1,650.5 billion in the first half of 2013. The sum of N360.4 billion
was incurred as the cost of liquidity management during the review period,
compared with N163.7 billion in the corresponding period of 2012.
4.1.12.5 The Two-Way Quote Trading in NTBs
As in the corresponding half year, there were no NTBs traded on the two-way
quote trading platform in the review period.
4.1.12.6 Repurchase Transactions
There was no request for repurchase transactions in the review period. This
was because authorized dealers preferred to access the overnight standing
lending facility window to bridge liquidity shortfalls, coupled with the
subsisting policy that restricted banks access to the repo window, standing
lending facility (SLF) and the wDAS window at the same time.
4.1.12.7 Central Bank of Nigeria (CBN) Standing Facilities
Request for the Bank‟s Standing Facilities during the review period reflected
the swings in market liquidity conditions. Market players accessed the
window for Standing Lending Facility (SLF) at periods of liquidity shortages,
especially when NNPC withdrew funds from the DMBs in preparation for the
Federation Account Allocation Committee meetings. The DMBs also
accessed the SLF in order to meet their end-of-day liquidity needs. Activities
at the SDF window were driven by major inflows, mostly through fiscal
operations of the government. The rates for SDF and SLF remained at 10.00
and 14.00 per cent, respectively, throughout the review period, while the
MPR remained at 12.0 per cent. Average daily requests for SDF exceeded

the average daily request for SLF, owing to the prevailing liquidity surfeit in the
system.
4.1.12.7.1 Standing Lending Facility (SLF)
The total value of the SLF granted in the first half of 2013 was N5,341.5 billion
with a daily average of N43.6 billion, while the interest earned amounted to
N2.87 billion. In the corresponding period of 2012, the total SLF demanded
and the interest earned stood at N10,768.8 billion and N5.7 billion,
respectively.
4.1.12.7.2 Standing Deposit Facility (SDF)
The cumulative deposits under the SDF in the first half of 2013 was N18,016.4
billion with a daily average of N142.3 billion and total interest payment
amounting to N7.2 billion. In the corresponding period of 2012, the
cumulative SDF was N3,772.9 billion with interest payment of N1.4 billion. The
significant increase in the SDF was attributed to the repayment of matured
FGN Bonds and NTBs.
4.1.12.8 Inter-Bank Funds Market
The value of Inter-bank OBB transactions rose by 56.0 per cent to N18.98
trillion in the first half of 2013 from N12.19 trillion in the corresponding period of
2012. The increase was attributed to the availability of securities and
renewed confidence in the banking system.
4.1.13 Interest Rate Developments
Money market rates were relatively stable in the first half of 2013. Short-term
rates in all the segments of the market were lower than their levels in the
corresponding period of 2012. Average daily interbank and OBB rates
ranged between 10.2 to 15.8 per cent and 10.2 to 14.9 per cent, respectively.
Weighted average inter-bank rate in the first half of 2013 stood at 11.6 per
cent, down from 14.3 in the corresponding half of 2012. Similarly, the OBB
average rate declined to 11.3 from 13.9 per cent in the corresponding period
of 2012.

Table 11
Money Market Rates
(Per cent)
WEIGHTED AVERAGE
Month
MPR
Call
Rate
OBB
NIBOR 7days
NIBOR 30days
Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Average 2013
First Half

Average 2012
First Half


The weighted average of the Nigeria Inter-bank Offered Rate (NIBOR) for the
7- and 30-day tenors were 12.0 and 12.4 per cent, respectively, compared
with 14.8 and 15.3 per cent in the corresponding half of 2012.

Figure 47
Money Market Rates
(per cent)

Jun'11
Jun'12
Jan'13
Feb'13
Mar'13
Apr'13
May'13
Jun'13
Per cent
MPR
Call Rate
OBB

4.1.13.1 Money Market Rates
4.1.13.1.1 Deposit Rates
The average deposit rate rose in the first half of 2013. At 6.88 per cent, the
average term deposit rate was higher than the level in the corresponding
half of 2012 by 0.07 percentage point. Rates on all other deposits of various
maturities rose from a range of 4.13 – 8.06 per cent in the first half of 2012 to a
range of 4.90 – 8.20 per cent at the end of the first half of 2013. The
developments in the money market interest rates were influenced by the
tight monetary policy stance of the Bank. With the year-on-year inflation rate
at 8.4 per cent in June 2013, all deposit rates were negative in real terms.
4.1.13.1.2 Lending Rates
In the first half of 2013, the weighted average maximum lending rate rose by
0.9 percentage point to 24.2 per cent, while the prime lending rate fell by 0.5
percentage point to 16.5 per cent. Consequently, the spread between the
average term deposit and maximum lending rates widened by 0.9
percentage point to 17.3 per cent.
Table 12
DMBs Deposits and Lending Rates
(Per cent)
Month
Savings
Average
Term
Deposit
Prime
Lending
Maximum
Lending
Real
Deposit
Rate
Real
Lending
Rate
(Maximum)
Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Average 2013 H1

Average 2012 H1


4.1.14 Yield on Fixed Income Securities
Analysis of the yield on fixed income securities showed that yields were
generally lower in the first half of 2013 than in the corresponding period of
2012. The yields were lower and also more volatile at the shorter end of the
curve. The yield curve remained normal with the spread (the difference
between the longest and shortest maturities) at 1.0 percentage point, in
contrast to negative 1.8 percentage points in the corresponding period of
the preceding year. The development during the review period was
attributed to the overall market stability. It might also have signalled investors‟
optimism about the medium-to-long-term expectations of economic
activities.
Figure 48
Government Bonds Average Yield Curve
(per cent)


4.1.15 Recent Developments in the Money Market
Major developments in the money market in the first half of 2013 included:
the release of several guidelines to banks and the public, namely: Revised
Guide to Bank Charges; the Competency Framework for the Nigerian Banking
Industry; and the Financial Literacy Framework in Nigeria.
4.1.16 Institutional Savings
Aggregate institutional savings at the end of the first half of 2013 stood at
N9,085.6 billion, indicating an increase of 2.5 and 20.4 per cent over the
levels at end-December and the corresponding period of 2012, respectively.
The DMBs remained the dominant savings institution, accounting for 95.2 per
cent of the total at the end of the first half of 2013, compared with 90.9 and

6m
2yr
3.5yr
5yr
6.5yr
8yr
9.5yr
11yr
12.5yr
14yr
15.5yr
17yr
18.5yr
20yr
H1-13. Avg par yield
H1-12. Avg par yield

91.2 per cent at end-December 2012 and the corresponding period of 2012,
respectively. Other institutions, namely the primary mortgage banks (PMBs),
life insurance funds, pension funds, the Nigerian Social Insurance Trust Fund
(NSITF), and microfinance banks (MFBs) accounted for the balance of 4.8 per
cent. The ratio of financial savings to first half 2013 GDP (at current basic
prices) was 44.6 per cent, compared with 38.1 per cent in the corresponding
period of 2012.
4.1.17 Other Financial Institutions
4.1.17.1 Development Finance Institutions
Provisional data indicated that total assets of the five (5) development
finance institutions (DFIs), namely: Bank of Industry (BOI), Federal Mortgage
Bank of Nigeria (FMBN), Nigerian Export Import Bank (NEXIM), Bank of
Agriculture (BOA) and The Infrastructure Bank (TIB) declined by 2.7 per cent to
N434.9 billion at end-June 2013, from N446.9 billion at end-December 2012. A
disaggregation of the asset base indicated that BOI, FMBN, NEXIM, BOA and
TIB accounted for 51.8, 23.4, 11.0, 8.9 and 4.9 per cent, respectively, of the
total assets. Similarly, aggregate loans and advances declined by 3.6 per
cent to N218.8 billion. The paid-up share capital, shareholders‟ funds and
deposits of the institutions, however, increased by 13.5, 102.4 and 11.6 per
cent to N80.0 billion, N25.7 billion and N122.8 billion, respectively, at the end of
the first half of 2013.
4.1.17.2 Microfinance Banks (MFBs)
Total assets/liabilities of the microfinance banks (MFBs) stood at N278.9 billion
at the end of the first half of 2013, representing an increase of 25.2 per cent
over the level at end-December 2012. Similarly, the paid-up share capital
and loans/advances increased by 14.0 and 46.1 per cent over their endDecember 2012 levels to N69.2 billion and N141.7 billion, respectively.
Aggregate reserves also increased to N5.8 billion at the end of the review
period, in contrast to negative N7.4 billion at end-December 2012, reflecting
improvements in operational performance. Investible funds available to the
sub-sector during the review period amounted to N84.6 billion. The funds

were sourced mainly from the increase in other liabilities (N42.2 billion),
aggregate reserves (N13.2 billion), paid-up capital (N8.5 billion), and were
utilized mainly to increase loans/advances (N44.7 billion), and reduce
deposit liabilities (N10.0 billion).
4.1.17.3 Discount Houses
Total assets and liabilities of the four (4) discount houses (DHs) declined by 0.2
and 4.7 per cent to N344.2 billion at the end of the first half of 2013,
compared with N344.7 billion and N361.0 billion at end-December and the
corresponding half of 2012, respectively. Aggregate funds sourced
amounted to N43.0 billion, compared with N46.2 billion. These were sourced
mainly from “Money-at-call” (N13.9 billion), claims on others (N12.3 billion)
and reduction in cash and balances with banks (N8.3 billion). The funds were
utilized largely, to increase claims on banks (N23.3 billion), purchase of
Federal Government securities (N13.1 billion) and increase in capital/reserves
(N3.9 billion). Discount houses‟ investment in Federal Government securities,
of less than 91-day maturity, amounted to N148.4 billion in the review half
year, representing 52.5 per cent of their total assets. This was 7.5 percentage
points below the prescribed minimum level of 60.0 per cent for fiscal year
2013.
4.1.17.4 Finance Companies (FCs)
Total assets and liabilities of finance companies (FCs) increased by 4.9 per
cent to N82.1 billion at the end of the first half of 2013, from N78.3 billion at
end-December 2012. Similarly, total borrowings increased by 3.2 per cent to
N49.1 billion, from N47.6 billion as at December 31, 2012. The paid-up capital
and loans/advances also increased, by 2.9 and 16.4 per cent to N14.2 billion
and N27.7 billion, respectively, at the end of the review period. Investible
funds available to the sub-sector during the review period amounted to N7.8
billion. The funds were sourced mainly from a reduction in fixed assets (N1.6
billion), other assets (N1.5 billion), and increase in long-term liabilities (N1.5
billion), borrowings (N1.5 billion), aggregate reserves (N0.8 billion) and paid-

up capital (N0.5 billion). The funds were utilized largely to increase
loans/advances (N3.9 billion) and investments (N3.4 billion).
4.1.17.5 Primary Mortgage Banks (PMBs)
Total assets and liabilities of Primary Mortgage Banks (PMBs) increased by 6.2
per cent to N369.6 billion at end-June 2013, compared with N348.1 billion at
end-December 2012. The paid-up capital and loans/advances also
increased by 10.7 and 6.9 per cent to N69.6 billion and N129.3 billion,
compared with N62.9 billion and N120.9 billion, respectively, at endDecember 2012. Aggregate reserves and deposits, however, decreased by
26.5 and 3.7 per cent to N8.6 billion and N164.8 billion, respectively,
compared with N11.7 billion and N171.1 billion at end-December 2012.
Investible funds available to PMBs during the review period amounted to
N46.0 billion. The funds were sourced largely from increase in other liabilities
(N16.7 billion), reduction in investments (N14.3 billion), increase in long-term
loans (N8.2 billion) and paid-up share capital (N6.8 billion). They were used
mainly to increase other assets (N22.8 billion), loans/advances (N8.4 billion)
and reduce deposit liabilities (N6.3 billion).
4.1.17.6 Bureaux-De-Change (BDCs)
There were 2,782 BDCs in operation in the first half of 2013. A major
development was the revocation of the operating licences of 236 BDCs on
January 14, 2013. Most of the affected BDCs were involved in cash sales to
those who had no intention of using the money outside the shores of the
country as required.
4.1.17.7 Asset Management Corporation of Nigeria (AMCON)
The Asset Management Corporation of Nigeria (AMCON) continued to
discharge its function as a multipurpose resolution vehicle empowered to
purchase toxic assets from banks and inject needed funds through the
issuance of appropriate securities. At the end of the first half of 2013, the
Corporation had a total bond liability of N5,410.0 billion (face value), the first
tranche of which would fall due on December 31, 2013.

During the first half of the year, the Corporation commenced the process of
divestment from Enterprise Bank Ltd, Keystone Bank Ltd and Mainstreet Bank
Ltd with the placement of a public notice in the dailies; and the
engagement of a financial adviser to oversee the process of divestment from
Enterprise Bank Ltd. Furthermore, a Resolution Cost Trust Fund Deed, which
would replace the existing MoU on the Banking Sector Resolution Cost Sinking
Fund was drawn up for execution by the CBN and DMBs during the review
period. A key provision of the Deed was the increase in the annual
contribution of the DMBs from 30 basis points of their total assets (per audited
annual financial statements of the previous year) to 50 basis points of total
assets and 33.33 per cent of off-balance sheet items. In addition, the
Corporation proposed amendment to its enabling Act to the National
Assembly, to include the Sinking Fund contribution and its management in
the Act.
4.1.17.8 Mortgage Refinancing Company
The Mortgage Refinance Company of Nigeria was granted an approval in
principle in June 2013 as a private-sector led second-tier non-deposit taking
financial institution. The Company was established to intermediate between
primary mortgage originators and the capital market to provide long-term
funds to refinance their mortgage loan portfolios. It would also address the
inherent mismatch between operators‟ short-term liabilities and the long-term
nature of mortgage assets. The shareholders of the company comprise
primary mortgage banks, commercial banks, the Nigeria Sovereign Wealth
Fund and the Ministry of Finance Incorporated (MOFI).
4.1.18 Capital Market Developments
4.1.18.1 Institutional Developments
During the first half of 2013, reforms in the Nigerian Stock Exchange (NSE)
continued with the aim of enhancing investors‟ confidence. Consequently,
the Exchange, in April 2013, launched the Alternative Securities Market
(ASeM) as a specialized platform to accommodate small and mid-sized
companies with high growth potential seeking to access the capital market.

Specifically, the platform sought to address the major challenges of
emerging businesses in Nigeria, particularly the difficulty of accessing long-
term capital due to high cost of funds, as a result of perceived high risk and
informal nature of operations, controls and management of resources. Some
key initiatives under this platform included: review of the listing requirements
thereby making listing on ASeM readily easier and affordable to a wide
range of viable emerging businesses; introduction of Designated Advisers
(DAs) Programme to support companies listed on ASeM in compliance with
post-listing obligations and maintenance of listing status; and introduction of
alternative capital raising instruments, other than pure vanilla equity for ASeM
companies to achieve optimal capital structure. Companies in this category
could access the market through Initial Public Offering (IPO), which may
include an offer for sale element or By Way of Introduction. Overall, ASeM
was expected to provide a platform for facilitating long-term sustainability of
the small and medium scale businesses in Nigeria.
As part of its key initiatives to drive optimization, the NSE introduced the
Industrial and ASeM Indices into its daily official list. While the industrial index
would measure the performance of the top 10 performing stocks in the
industrial sub-sector of the equities market, the ASeM Index would track
performance and price movements of companies listed on the ASeM
platform.
To further improve the effectiveness of market operations, the Council of the
NSE, on June 28, 2013 conducted a biannual review of the NSE 30, NSE 50
and five other Sectoral Indices, namely the NSE Banking, NSE Consumer
Goods, NSE Oil & Gas, NSE Industrial and NSE Insurance. The review was in line
with the powers of the Council to modify the stocks that make up the indices
in the event of any mergers, takeovers, suspension or resumption of trading or
any other company structure changes during the period before the effective
date of the annual review.
In February 2013, the NSE signed a Memorandum of Understanding (MoU)
with Thomson Reuters, the world‟s leading source of intelligent information for

businesses and professionals. Under the MoU, Thompson Reuters would
provide investor relations services to listed companies on the exchange. With
that initiative, considered as part of NSE‟s Value-Added Services (X-Value)
bouquet, global best-practice investor relation solutions from Thomson
Reuters would be available to the NSE‟s listed companies.
4.1.18.2 The Nigerian Stock Exchange (NSE)
Activities on the floor of the NSE were bullish in the first half of 2013. The
aggregate volume and value of securities traded rose by 26.5 and 86.5 per
cent to close at 58.3 billion shares and N591.68 billion, in 764,560 deals,
compared with 46.1 billion shares and N317.33 billion, in 444,951 deals
recorded in the corresponding period of 2012, respectively. The All-Share
Index (ASI) and aggregate market capitalization rose by 28.8 and 27.3 per
cent to close at 36,164.31 and N15.78 trillion, respectively, compared with
28,078.81 and N12.40 trillion at end-December 2012.
4.1.18.3 New Issues Segment
The Exchange recorded eleven (11) and fifteen (15) new and supplementary
listings, respectively, in the first half of 2013. The new issues comprised five (5)
Private Placements, four (4) rights issue and one (1) each of Initial Public
Offering and Supra-National Bond. A total of N82.3 billion was raised from all
the new listings. In addition, fifteen (15) companies were granted approval to
conduct supplementary listing.
4.1.18.4 The Secondary Market
The transactions on the secondary segment of the Nigerian stock market
indicated improved performance in the first half of 2013. Aggregate volume
and value of securities traded rose by 26.5 and 86.5 per cent to close at 58.3
billion shares and N591.68 billion, in 764,560 deals, respectively, compared
with 46.1 billion shares valued at N317.33 billion, in 444,951 deals recorded in
the corresponding period of 2012. The equities sub-sector sustained its
dominance in the secondary segment of the market as it accounted for 99.9
per cent of aggregate trade volume, while the debt market accounted for
the balance. Sectoral analysis of developments in the market indicated that

the financial services sector (driven largely by activities in the banking subsector) remained the most active on the Exchange with a traded volume of
42.5 billion shares, valued at N327.7 billion in 446,996 deals at the end of the
first half of 2013.
Cumulative transactions on the over-the-counter (OTC) bond segment of the
market, indicated a turnover of 4.74 billion units worth N5.59 trillion in 27,895
deals in the first half of 2013, compared with a turnover of 3.53 billion units
valued at N3.1 trillion in 23,279 deals in the corresponding period of 2012.
Figure 49
Volumes and Value of Transactions at the NSE

4.1.18.5 All-Share Index and Aggregate Market Capitalisation
The All-Share Index (ASI) increased significantly relative to the level at endDecember 2012. The NSE ASI rose by 28.8 per cent to 36,164.31 at the end of
the first half of 2013, compared with 28,078.81 at end-December 2012. When
compared with the level at the end of the first half of 2012, it rose by 67.4 per
cent. Aggregate market capitalization of all the listed securities closed at
N15.78 trillion, indicating an increase of 27.3 per cent over the level in the
corresponding period of 2012. While listed equities accounted for N11.43
trillion (72.4 per cent) of the aggregate market capitalization, the debt
component accounted for the balance of N4.35 trillion (27.6 per cent). The
top twenty (20) most capitalized companies on the Exchange accounted for
85.4 per cent (N9.8 trillion) of the total equity capitalization. Of the top twenty

First half 2010
First half 2011
First half 2012
First half 2013
Value in Naira (billion)
Volume in Numer (Billion)
Volume of traded securities (LHS)
Value of securities (RHS)

(20) most capitalized companies, 8 banks, representing 40.0 per cent,
accounted for N2.5 trillion (21.9 per cent) of the total equity market
capitalization. As a percentage of estimated nominal GDP, aggregate
market capitalization stood at 145.13 per cent, compared with 64.8 per cent
recorded at the end of the first half of 2012.
Figure 50
Market Capitalisation and NSE Value Index


4.2
FISCAL OPERATIONS
4.2.1 Federation Account Operations
Provisional data indicated that total federally-collected revenue (gross)
stood at N4,797.05 billion or 22.9 per cent of GDP in the first half of 2013. This
was below both the proportionate budget estimate and the actual revenue
in the corresponding period of 2012 by 15.4 and 14.0 per cent, respectively.
The decrease in federally-collected revenue relative to the budget
benchmark was due to the decline in both oil and non-oil revenue. Further
analysis indicated that oil-revenue was 76.1 per cent of the total and non-oil
revenue accounted for the balance. At N3,648.04 billion or 17.4 per cent of
GDP, gross oil-revenue fell below the proportionate budget estimate and the
level in the corresponding period of 2012 by 5.7 and 16.3 per cent,
respectively. The decline in oil revenue relative to the budget benchmark
was due to the huge drop in receipts from crude oil and gas exports during


1st Half

1st Half

1st Half

1st Half

1st Half

1st Half

1st Half

Naira Trillion
Index
NSE Index
Market apitalisation

the period under review. Similarly, at N1,149.01 billion or 5.5 per cent of GDP,
non-oil revenue was lower than the proportionate budget estimate and the
revenue in the corresponding period of 2012 by 36.3 and 5.8 per cent,
respectively. The substantial fall in non-oil revenue relative to the budget
estimate was largely due to the decline in receipts from corporate tax, VAT,
customs and excise duties, and the Federal Government (FG) independent
revenue.
Figure 51
Structure of Gross Federation Revenue
(Half Year, Naira Billion)

Of the total federally-collected revenue (gross), the sum of N2,886.98 billion
or 60.2 per cent was transferred to the Federation Account, N70.20 billion or
1.4 per cent to the Federal Government (FG) independent revenue, N364.01
billion or 7.6 per cent to VAT Pool Account, and N151.06 billion or 3.2 per cent
to other transfers (including Education Tax Fund, Customs Special Levies and
National Information Technology Development Fund). Deductions from oil
revenue, including the Joint Venture Cash Calls, Excess Crude Account,
Excess PPT/Royalty Accounts and „others‟ amounted to N1,281.47 billion or
26.7 per cent, while the balance of N43.33 billion or 0.9 per cent was
transferred as cost of collection to the Federal Inland Revenue Service (FIRS)
and the Nigerian Customs Service (NCS).


Oil Revenue
Non-Oil Revenue

Figure 52
Breakdown of Federally-Collected Revenue
(First Half 2013, per cent)

4.2.1.1
Federation Account Distribution
The sum of N2,886.98 billion was distributed to the three tiers of government
from the Federation Account in the first half of 2013. This represented a
shortfall of 21.8 per cent from the proportionate budget estimate, but was
10.0 per cent above the amount distributed in the corresponding period of
2012. The Federal Government received N1,358.79 billion, while states and
local governments got N689.20 billion and N531.34 billion, respectively. The
balance of N307.65 billion was transferred to the 13% Derivation Fund for
distribution among the oil producing states.
Furthermore, the sums of N213.30 billion, N45.70 billion and N457.12 billion
were distributed in respect of the Subsidy Re-Investment and Empowerment
Programme (SURE-P), NNPC Refunds to the sub-national governments and
revenue augmentation, respectively, bringing the total distribution of
federation revenue among the three tiers of government, including the 13%
Derivation Fund to N3,603.10 billion. Thus, the Federal Government received
N1,666.05 billion (including Special Funds); state governments, N867.50 billion;
local government, N668.80 billion; while the sum of N400.75 billion was
allocated to the 13% Derivation Fund.

Federation
Account
60.2%
FGN IR
1.4%
VAT
7.6%
Other Transfer
3.2%
Oil Deductions
26.7%
Cost of
Collection
0.9%

4.2.1.2 VAT Pool Account
The sum of N364.01 billion accrued to the VAT Pool Account in the first half of
2013, representing a decrease of 19.8 per cent relative to the proportionate
budget estimate. The distribution among the three tiers of government
revealed that the share of the Federal Government was N54.60 billion; 36
state governments and the FCT, N182.00 billion; and the 774 local
governments, N127.40 billion.
4.2.2 Federal Government Finances

4.2.2.1 Federal Government Retained Revenue
At N1,834.77 billion or 8.8 per cent of GDP, the estimated Federal
Government‟s retained revenue was lower than both the proportionate
budget estimate and the level in the corresponding period of 2012 by 25.2
and 3.5 per cent, respectively. The decline in retained revenue was
attributed largely to the drop in the FGN Independent Revenue and share
from the Federation Account. Analysis of the retained revenue revealed that
the allocation from the Federation Account was N1,358.79 billion; VAT Pool
Account, N54.60 billion; Federal Government Independent Revenue, N70.20
billion; share of excess crude account (including budget augmentation and
SURE-P), N307.26 billion; while „others‟ accounted for N43.92 billion.

Figure 53
Composition of Federal Government Retained Revenue
(First Half 2013, per cent)

Federation
Account
74.1%
FGN IR
3.8%
VAT
3.0%
Share of
Excess Crude
16.7%
Others
2.4%

4.2.2.2 Total Expenditure of the Federal Government
Aggregate expenditure of the Federal Government was estimated at
N2,229.03 billion or 10.7 per cent of GDP in the first half of 2013. This was 19.2
per cent lower than the proportionate budget estimate, but higher than the
total expenditure in the corresponding period of 2012 by 2.2 per cent. The
decline in total expenditure reflected the delay in capital releases and
transfers during the period. Of the total amount disbursed, recurrent and
capital outlays accounted for 68.3 and 24.3 per cent, respectively, while
transfers accounted for the balance of 7.4 per cent.
Figure 54
Composition of Federal Government Expenditure
(First Half 2013, per cent)


The classification of the recurrent expenditure on economic basis indicated
that the sum of N1,095.01 billion or 5.2 per cent of GDP was spent on goods
and services, N315.52 billion or 1.5 per cent of GDP on interest payments
while N111.26 billion or 0.5 per cent of GDP was appropriated transfers. On
functional basis, the recurrent outlay on social and community services rose
by 33.0 per cent to N345.25 billion or 1.7 per cent of GDP when compared
with the level in the corresponding period of 2012. Furthermore, the
expenditure on economic services declined by 31.7 per cent to N89.15 billion
or 0.4 per cent of GDP from N130.46 billion or 0.7 per cent of GDP in the firsthalf of 2012.
The classification of the Federal Government capital expenditure on
functional basis revealed that aggregate capital releases for economic
Recurrent
68.3%
Capital
24.3%
Transfers
7.4%

services rose by 76.9 per cent above the level in the first half of 2012 to
N173.10 billion or 0.8 per cent of GDP. It also accounted for 32.0 per cent of
capital releases. The capital outlay on social and community services rose by
36.7 per cent above the level in the corresponding period of 2012 to N54.17
billion or 0.3 per cent of GDP and accounted for 10.0 per cent of capital
releases. The outlay on administration accounted for 21.6 per cent of the
total, and increased by 3.0 per cent to N117.06 billion or 0.6 per cent of GDP
over its level in the first half of 2012. Overall, the estimated capital release of
N541.35 billion represented 66.8 per cent of the proportionate budget
estimate for the first-half of 2013.
Consequently, the Federal Government fiscal operations in the first half of
2013 resulted in an overall deficit of N394.25 billion (1.9 per cent of GDP) as
against the budget benchmark of N443.53 billion and the deficit of N278.55
billion in the corresponding period of 2012. The deficit was financed from
domestic sources including FGN Bonds, N460.00 billion; privatization
proceeds, N11.00 billion; FGN share from Stabilisation Fund Accounts, N131.59
billion; signature bonus, N6.03 billion; and other funds, N214.36 billion.
Figure 55
Federal Government Fiscal Balance
(Naira Billion)


4.2.3 State Government Finances
Statutory revenue allocation (gross) to state governments from the
Federation Account in the first half of 2013 amounted to N689.20 billion and
represented an increase of 9.9 per cent above the level in the corresponding
period of 2012. However, the sum of N67.61 billion was deducted from the
gross share, as state governments‟ commitment in respect of various
contractual obligations, namely contribution to external debt service,
payments for fertilizer, State Agricultural Project, National Fadama Project
and the National Agricultural Technology Support Programme. This resulted in
a net statutory allocation of N621.59 billion. In addition, the sum of N421.13
billion was allocated to the 13% Derivation Fund for the oil-producing states.
Thus, the net statutory allocation to states (including 13% Derivation Fund)
amounted to N1,042.71 billion, representing an increase of 14.5 per cent
above the level in the corresponding period of 2012.
The share of state governments from the VAT Pool Account, revenue
augmentation, SURE-P and refunds by NNPC amounted to N182.00 billion,
N142.71 billion, N49.58 billion and N22.45 billion, respectively. The amounts for
VAT, augmentation and SURE-P allocations, represented an increase of 7.5,
32.9 and 199.9 per cent, respectively, over their levels in the corresponding
period of 2012, while that for NNPC refunds remained unchanged. In terms of
percentage contribution to total gross allocation, the share from the
Federation Account (including augmentation, NNPC refund and SURE-P
allocation) was 87.9 per cent, while VAT contributed the balance of 12.1 per
cent.

Figure 56
Composition of Total Allocations to State Governments
(First Half 2013, per cent)

Consequently, total net allocation to state governments in the first half of
2013 amounted to N1,439.46 billion, representing an increase of 14.7 per cent
above the level in the first half of 2012.
4.2.4 Local Government Finances
Aggregate statutory allocation to the 774 local governments from the
Federation Account (including revenue augmentation, SURE-P and refunds
by NNPC) and VAT Pool Account was N796.2 billion in the first half of 2013.
This was higher than the total receipts in the corresponding period of 2012 by
8.1 per cent. The development was attributed to the increase in allocation
from the Federation Account and VAT. The breakdown indicated that
allocations from the Federation Account was N531.34 billion (66.7%); revenue
augmentation, N81.92 billion (10.3%); NNPC Refunds, N17.31 billion (2.2%);
SURE-P, N38.23 billion (4.8%) and VAT Pool Account, N127.40 billion (16.0%).


Federation Acct
45.7%
VAT
12.1%
Augmentation
9.5%
NNPC Refund
1.5%
SURE-P
3.3%
13% Derivation
27.9%

Figure 57
Composition of Total Allocations to Local Governments
(First Half 2013, per cent)

4.2.5
Public Debt
4.2.5.1
Consolidated Government Debt
The stock of Federal Government consolidated debt at end-June 2013 was
estimated at N7,939.33 billion or 37.9 per cent of GDP. This represented an
increase of 5.0 per cent over the level at end-December 2012. A breakdown
showed that the domestic debt was N6,850.75 billion or 86.3 per cent, while
the external debt amounted to US$6.92 billion (N1,088.58 billion) or 13.7 per
cent of the total.


Federation Acct
66.7%
VAT
16.0%
Augmentation
10.3%
NNPC Refund
2.2%
SURE-P
4.8%

Figure 58
Composition of Federal Government Consolidated Debt
(First Half 2013, per cent)

4.2.5.2
Domestic Debt
The Federal Government‟s outstanding securitized domestic debt stock was
estimated at N6,850.75 billion or 32.7 per cent of GDP at end-June 2013,
representing an increase of 4.8 per cent over the level at end-December
2012. The increase was due to the issuance of additional treasury bills. The
banking system remained the dominant holder of the total outstanding
domestic debt instruments with N4,927.08 billion or 71.9 per cent, the nonbank public held N1,607.00 billion or 23.5 per cent, while the Sinking Fund
accounted for the balance of N316.67 billion or 4.6 per cent.
4.2.5.3
External Debt
The Federal Government‟s outstanding external debt stock at end-June 2013
was US$6.92 billion or 5.2 per cent of GDP. This represented a 6.0 per cent
increase from the level at end-December 2012. Further analysis indicated
that 80.0 per cent of the total external debt stock was owed to multilateral
creditors, while the balance of 20.0 per cent was from non-Paris Club
bilateral and commercial debt.


External
13.7%
Domestic
86.3%

Figure 59
Breakdown of External Debt Stock
(First Half 2013, US$ million)

4.2.5.4
Total Debt Service Payments
The total debt service of the Federal Government at end-June 2013 stood at
N446.83 billion or 2.1 per cent of GDP. This represented an increase of 19.8
per cent relative to the level in the corresponding period of 2012. The
breakdown showed that the domestic debt service was N423.22 billion or
94.7 per cent, while the external debt service amounted to US$0.15 billion
(N23.61 billion) or 5.3 per cent of the total.
Figure 60
Breakdown of External Debt Service Payments
(First Half 2013, US$ million)


First Half 2012
First Half 2013

Multilateral
Others

First Half 2012
First Half 2013

Multilateral
Others

At N423.22 billion, domestic debt service was 21.3 per cent above the level in
the corresponding period of 2012. The breakdown showed that FGN Bonds
accounted for 55.3 per cent, while treasury bills and treasury bonds
accounted for 40.2 and 4.4 per cent, respectively. External debt service
declined by 1.4 per cent from the level at end-June 2012. A breakdown of
the external debt service showed that 47.3 per cent was paid to multilateral
institutions, while „other creditors‟ received the balance of 52.7 per cent.
4.3
REAL SECTOR DEVELOPMENTS
Provisional data from the National Bureau of Statistics (NBS) indicated that
the gross domestic product (GDP), at 1990 constant basic prices, rose by 6.6
per cent in the first half of 2013, compared with 6.4 per cent in the first half of
2012. The non-oil sector, which rose by 7.9 per cent, largely accounted for
the growth. In the oil sector, however, growth fell by 0.6 per cent. The
negative performance of the oil sector was due largely to the decline in
crude production resulting from theft and intermittent closure of oil
installations. Agriculture and industry grew by 4.2 and 1.0 per cent,
respectively. Building and construction, wholesale and retail trade, and
services increased by 15.5, 8.4, and 12.2 per cent, respectively. Services
recorded a relative contribution of 2.6 per cent to the GDP growth, while
wholesale and retail trade, agriculture, and building and construction
contributed 1.3, 1.8 and 0.3 per cent, respectively.

Figure 61
GDP Growth Rate
(per cent)


1st Half 2012
2nd Half 2012
1st Half 2013
Total GDP
Non-Oil GDP
Oil-GDP

4.3.1 Agriculture
4.3.1.1 Agricultural Policies and Institutional Support
Efforts by government to provide the enabling environment through
favourable policies and incentives for a private sector-led agricultural
transformation were sustained during the first half of 2013. Under the Growth
Enhancement Support (GES) scheme, designed to give farmers timely access
to agricultural inputs, government fully liberalized and transferred the
distribution of foundation seeds and fertilizers to the private sector. This
attracted significant investments from global seed and fertilizer companies. In
addition, government commenced the process of establishment of sixty (60)
private sector-driven agricultural equipment hiring enterprises (AEHE) in
priority sites across the country to be equipped with 300 units of tractors and
1,590 planting, harvesting and post-harvesting agricultural equipment. The
project was to be financed through public-private-partnership. Farmers
would receive their mechanization support in form of electronic vouchers on
their mobile phones, which would be used to pay for mechanized services at
registered agricultural equipment hiring centres. To ensure that the initiative
was effectively implemented, the registration of farmers into the national
farmers‟ database was sustained. Thus far, 10 million farmers had been
registered, out of the estimated 14 million farmers targeted for 2013.
On the Rice Transformation Action Plan, government introduced the
„Double-up Paddy Production Programme‟. The target of the programme
was to significantly increase output of paddy rice to meet rising demand.
Massive support was provided to 268,000 farmers through the injection of
N77.0 billion for the cultivation of dry season irrigated rice across ten states,
namely; Kebbi, Sokoto, Zamfara, Katsina, Kano, Jigawa, Bauchi, Gombe,
Niger and Kogi. In addition, Dominion Rice and Integrated Farms Ltd invested
US$40.0 million in a 30,000 hectares commercial rice farm project in Taraba
State. The rice milling component of the project would account for about
15.0 per cent of total milled rice in the country.

To support the use of cassava flour substitution in bread making, the
government established the Cassava Bread Development Fund. The fund,
which would be financed through tariff on wheat flour, was meant to support
research and development efforts on cassava bread. It would also finance
training and acquisition of new equipment by Master Bakers, social
marketing, especially through school feeding programmes as well as improve
production of cassava flour by small and medium scale processors. In
addition, government initiated the training of 385 Master Bakers across the
country after which they were provided with starter packs to enable them
begin production of cassava bread. During the first half of 2013, two ailing
large scale cassava processing plants (Thai Farms and DATCO) were
revamped in addition to the audit and upgrade of 152 SMEs processors for
the production of cassava flour.
4.3.1.2 Agricultural Production and Prices
Output of the agricultural sector increased during the first half of 2013. The
provisional index of agricultural production was 261.2 (1990=100), indicating
an increase of 4.2 per cent compared with 4.1 per cent in the first half of
2012. The underlying reasons for the growth in agricultural production during
the review period were favourable weather conditions and the continued
implementation of the Agricultural Transformation Action Plan (ATAP) of the
Federal Government. The implementation of the policy on import substitution
accelerated the production of local staples and other crops. Also, the
scrapping of the supply of seeds and fertilizer by contractors which made
companies sell directly to farmers contributed to the growth. Meanwhile, all
the sub-sectors of agriculture witnessed growth during the review period.
Further analysis of developments in the sub-sectors showed that output of
crops and staples rose by 4.1 and 4.7 per cent, respectively compared with
3.8 and 4.1 per cent in the corresponding period of 2012. The modest growth
in the period was attributed largely to the Double-up Paddy Production
Programme which added one million tonnes of irrigated rice to domestic
production. In addition, the programme supported the cultivation of 264,000

hectares of land in the review period; and created about 460,000 jobs.
Growth in „other crops‟ sub-sector remained unchanged at 4.0 per cent. The
output of livestock, fisheries, and forestry grew by 4.5, 5.2, and 5.0 per cent,
compared with 6.1, 6.0 and 5.9 per cent in the first half of 2012, respectively.
The dollar-based all-commodities price index of Nigeria‟s major agricultural
export commodities at the London market declined during the first half of
2013. From 312.9 (1990=100), it declined by 5.5 per cent below the level in the
corresponding period of 2012. Five of the six commodities monitored
recorded price decrease of 2.3, 13.6, 26.1, 34.9 and 62.7 per cent, for cocoa,
copra, coffee, palm oil and cotton, respectively. The price decrease of
cocoa reflected the surge in supply through the porous borders in the Ivory
Coast. For the other commodities, the strengthening of the United States
dollar against other major currencies accounted for the decline. However,
soya bean recorded a price increase of 8.3 per cent, compared with a
decline of 1.6 per cent in the corresponding period of 2012. The price
increase was due to the disruption in supply arising from bad weather
conditions experienced in key producing countries.
4.3.2 Industry
4.3.2.1 Industrial Policy and Institutional Support
Government sustained the implementation of the Power Roadmap in the first
half of 2013. Pursuant to this, N72.7 billion was disbursed to the Federal Ministry
of Power. Of this, N45.0 billion was paid to workers of Power Holding
Company of Nigeria (PHCN) as part settlement of the labour commitment
under the power privatization programme and money released under the
Multi-Year Tariff Order (MYTO). Recruitment and training of the planned 500
engineers to run the 10 new power plants commenced in the review period.
To broaden the nation's energy mix and give greater prominence to coal
and solar, feasibility studies of eight coal blocks (five coal blocks in Enugu axis
and one each in Benue, Kogi and Gombe) were initiated. The focus was on
clean coal technology which was expected to generate between 3,000MW

and 4,000MW. In addition, Government reached an agreement with Bharat
Heavy Electricals of India to site a solar power facility in Bida, Niger State to
boost power generation. Furthermore, Government entered into an
agreement with Cameroon to upgrade the Lagdo Hydro Dam. The dam
currently generates 84 megawatts of electricity, 30 of which was consumed
internally. Under the agreement, the balance would be exported to Nigeria.
To further enhance the development of Micro, Small and Medium Enterprises
(MSMEs) in Nigeria, Government signed an MoU on technical cooperation
with Indonesia to boost investment in the country‟s textile industry, especially
for the production of batik fabric. Under the MoU, Industrial Development
Centres (IDCs) would be developed, while industrial parks would be
upgraded to cluster parks.
Government instituted a 12-member committee to propose a new tariff
regime aimed at increasing local manufacturers‟ capacity and boost
investment in the industrial sector. The terms of reference of the Committee
were to propose strategies and measures that would increase the capacity
utilisation and contribution of the industrial sector to the GDP; propose tariffs
for every sector under the purview of the Federal Ministry of Trade and
Investment; identify major gaps between subsisting tariff regime and the
Common External Tariff regime; and proffer solutions to curb smuggling. The
proposed tariff order would be targeted to reposition the manufacturing
sector and increase its contribution to GDP from the current 4.0 per cent to
10.0 per cent over the next four years.
4.3.2.2 Industrial Production
Provisional data indicated a marginal improvement in activities in the
industrial sector in the first half of 2013. At 136.8 (1990=100), index of industrial
production increased by 0.4 per cent compared with the performance in the
corresponding period of 2012. The marginal improvement was attributed to
the manufacturing sub-sector. However, performance in the mining and

electricity sub-sectors detoriorated by 0.4 and 0.1 per cent, respectively,
compared with the first half of 2012.

Figure 62
Industrial Production Index
(Half Year, 1990=100)

4.3.2.3 Manufacturing
At 107.34 (1990=100), provisional data showed an increase in the index of
manufacturing production by 1.2 per cent in first half of 2013, above the level
in the corresponding period of 2012. Similarly, capacity utilization during the
period rose by 1.0 percentage point compared with 58.4 per cent over the
same period. This could be attributed to improvements in the manufacturing
subsectors. These improvements are as a result of government initiatives such
as the cotton and textile loans which has contributed to the increase in
industrial capacity utilisation of the textile, apparel and footwear industry, as
well as the federal Government‟s policy on backward integration, which has
increased the capacity in the cement industry.


First Half 2011
First Half 2012
First Half 2013
Manufacturing
Mining
Electricity
Industry

Figure 63
Average Manufacturing Capacity Utilisation
(Half Year, Per cent)

4.3.3 Crude Oil
4.3.3.1 Crude Oil Production and Demand
Aggregate crude oil production, including natural gas liquids (NGLs) and
condensates by the Organization of Petroleum Exporting Countries (OPEC)
was estimated at 36.2 million barrels per day (mbd) in the first half of 2013.
This represented a decrease of 1.8 and 2.6 per cent from the levels in the
preceding and corresponding halves of 2012, respectively. Algeria, Iraq and
Libya accounted for the decline in OPEC supply during the period. NonOPEC supply was estimated at 53.78 mbd, indicating a 1.4 per cent increase
over the corresponding half of 2012. Total world supply was, therefore,
estimated at 89.93 mbd, showing a decrease of 0.1 per cent from the level in
the first half of 2012.
World crude oil demand was estimated at 88.9 mbd in the first half of 2013,
compared with 88.0 mbd in the corresponding half of 2012, representing an
increase of 1.1 per cent, but a decrease of 0.8 per cent compared with the
previous half of 2012. Of this, demand from the Organization for Economic
Co-operation and Development (OECD) countries was estimated at 45.6
mbd, while that of non-OECD was 43.3 mbd. The increase in world crude oil
demand during the comparable period was due to improved economic
activities in the non-OECD region

Half Year 2011
Half Year 2012
Half Year 2013

At an average daily production of 1.99 mbd or 360.19 million barrels (mb),
Nigeria‟s crude oil output declined by 4.8 per cent below the level of 2.09
mbd or 378.29 mb in the first half of 2012. Massive crude oil theft and
incessant vandalism of oil installations in the Niger Delta region with the
attendant shut-ins impacted negatively on crude oil output. Aggregate
export of crude oil for the period under review was estimated at 278.7 mb or
1.5 mbd, compared with 296.8 mb or 1.6 mbd in the corresponding half of
2012.
Figure 64
Crude Oil Production and Exports


4.3.3.2 Crude Oil Prices
The average spot price of Nigeria‟s reference crude, the Bonny Light (37o API)
decreased by 4.1 per cent below its level in the first half of 2012 to US$110.29
per barrel. The average prices of the UK Brent, Forcados and West Texas
Intermediate also fell, by 4.6, 4.4 and 2.7 per cent, to US$108.50 per barrel,
US$111.68 per barrel and US$92.52 per barrel, respectively, in the review
period. The production of shale oil in the US and the subsequent cut in oil
imports, contributed substantially to the downturn in crude oil prices. The
economic turmoil in the Euro-zone and record level of US crude oil inventory
also contributed to dampening crude oil prices. The average price of the
OPEC basket of twelve crude streams was US$105.09 per barrel, compared
with US$112.52 per barrel in the same period of 2012.

0.5

1.5

2.5
First Half 2012
Second Half 2012
First Half 2013
Million barrels per day
Output
Exports
Domestic Consumption

Figure 65
Average Spot Prices of Selected Crudes Traded in the International Oil Market

Source: Reuters

4.3.4 Gas
The Federal Government introduced an emergency supply initiative to curb
the persistent shortage of gas supply to the power plants. The Oredo Gas
Plant was completed and commissioned, while facilities at Escravos were
upgraded. These projects resulted in the production of additional 290 million
cubic feet per day (mmcf/d) of gas. With the initiative still on-going,
additional production of 150 mmcf/d of gas was expected by end-2013.
Total associated gas produced in the first half of 2013 was estimated at
935,006.66 billion standard cubic feet (bscf), indicating a decrease of 21.3
per cent below the level in the corresponding period of 2012. The
development arose from the decline in crude oil production in the period.
Total volume of gas utilized and flared during the period was estimated at
751,829.4 bscf and 183,177.3 bscf, indicating a decrease of 23.1 and 13.3 per
cent below their respective levels in the first half of 2012.


1st half 2012
2nd half 2012
1st half 2013
US Dollar per barrel
U.K. BRENT
WEST TEXAS INTERMEDIATE
BONNY LIGHT
FORCADOS
OPEC BASKET

Figure 66
Gas Production and Utilisation

4.3.5 Petroleum Products
The estimated quantity of petroleum products distributed by the major and
independent marketing companies in the review period was 2,721.6 million
litres. These included 2,014.9 million litres of Premium Motor Spirit (PMS), 251.3
million litres Dual Purpose Kerosene (DPK), 287.8 million litres of Automotive
Gas Oil (AGO) and148.5 million litres of Low Pour Fuel Oil (LPFO).
Figure 67
Distribution of Petroleum Products
First Half of 2013


1st HALF 2012
2nd HALF 2012
1st HALF 2013
Million Cubic Meters
Gas Produced
Gas Utilised
Gas Flared
PMS
74.0%
DPK
9.2%
AGO
10.6% LPFO
5.5%
Others
0.7%

4.3.6 Solid Minerals
Provisional data from the Ministry of Mines and Steel Development showed
that solid minerals production in the first half of 2013 increased by 27.7 per
cent from the level in the corresponding period of 2012 to 22.37 million
tonnes. The development was accounted for by the increase in production
of some principal minerals such as granite aggregates, limestone, laterite,
shale, baryte and marble aggregates.
4.3.7 Electricity Generation
Estimated average electricity generation in the first half of 2013 declined by
2.9 per cent, compared with 3,060 MW/h during first half 2012. The decline
was attributed to the series of system collapse and shortages in gas supply to
thermal plants.
4.3.8 Electricity Consumption
At 2,567.6 MW/h, average estimated electricity consumed declined by 4.2
per cent, compared with the level in the same period of 2012. The decline
was attributed to losses occasioned by inefficiency in transmission.
4.3.9 Industrial Financing
4.3.9.1 NEXIM
The total disbursement the Nigeria Export Import Bank (NEXIM) to various
beneficiaries in the period under review was N3.89 billion. This amount was
11.2 per cent lower than the level of disbursement in the comparable period
of 2012. Of the total disbursement, the Services and Manufacturing subsectors received 54.96 per cent and 22.75 per cent, respectively, while
Agriculture and Solid Minerals sub-sectors received 18.44 per cent and 3.86
per cent, respectively.

Figure 68
Sectoral Disbursement of NEXIM Loans, First Half 2013


Source: NEXIM Bank

4.3.10 Telecommunications
The telecommunications sub-sector continued to grow in the first half of 2013.
Data made available by the National Communications Commission (NCC)
indicated that the total number of active lines increased to 114.4 million at
end-April 2013 from 102.3 million at end-June 2012, representing an increase
of 16.6 per cent. The development was attributed largely to activities in the
mobile telephony sub-sector which recorded a 16.8 per cent increase in the
number of active lines from 101.9 million at end-June 2012 to 119.0 million at
end-Junel 2013. Teledensity rose from 73.1 per 100 inhabitants at end-June
2012 to 85.3 per 100 inhabitants at end-June 2013, exceeding the
International Telecommunication Union (ITU) minimum standard of 1:100.
Growth
in
the
telecommunications
sector
was
attributed
to
the
implementation of flat call rates to all networks by telecom operators as
directed by the NCC, and increased competition, especially the introduction
of the Mobile Number Portability (MNP) scheme, as well as many product
and service innovations.


Agric and Agro
Allied
18.4%
Manufacturing
22.8%
Solid Minerals
3.9%
Services
54.9%

Figure 69
Total Active Lines and Teledensity

The MNP allows mobile telephone users the liberty to retain their mobile
telephone numbers when they move from one mobile network operator to
another after a minimum period of 90 days from the initial porting. The
scheme was introduced as a tool to enhance competition among the
mobile network operators with a view to improving quality of service.
4.3.11 Consumer Prices
The all-item composite Consumer Price Index (CPI) was 146.6 (November
2009 = 100), at end-June 2013, compared with 135.3 and 141.1 at end-June
and end-December 2012, respectively. The all-item less Farm Produce CPI
stood at 145.5 at end-June 2013, compared with 138.0 at end-June 2012 and
141.8 at end-December 2012. Food CPI stood at 147.5 at end-June 2013,
compared with 134.5 and 141.2 at end-June and end-December 2012,
respectively.


Jun. '10
Dec. '10
June. '11
Dec. '11
June '12
Dec. '12
June '13
Teledensity ( per 100
Inhabitants)
No. of Active Lines (Millions)
Fixed
Mobile
Teledensity

Figure 70
Consumer Price Indices
(November 2009 = 100)


4.3.11.1 Headline Inflation
The year-on-year headline inflation oscillated within the targeted single digit
in the first half of 2013. It closed at 8.4 per cent at end-June 2013, compared
with 12.9 and 12.0 per cent at end-June and end-December 2012,
respectively. Similarly, the 12-month moving average inflation rate stood at
10.4 per cent at end-June 2013 from 11.3 and 12.2 per cent at end-June and
end-December 2012, respectively. All the items in the consumption basket
contributed to the decline in headline inflation.
4.3.11.2 Core Inflation
The year-on-year core inflation (all-item less farm produce) fell steadily during
the review period to 5.5 per cent at end-June 2013, compared with 15.2 and
13.7 per cent, respectively, at end-June and end-December 2012. Core
inflation on the 12-month moving average basis also fell, to 10.7 per cent at
end-June 2013, compared with 12.7 per cent at end-June 2012 and 13.9 per
cent at end-December 2012.
The decrease in core inflation was attributed largely to re-basing effect as
the core sub-index showed relative decline, notwithstanding the price
increases observed in the actual and imputed rental prices; clothing
materials and accessories; and liquid and solid fuel classes.

1st Half 2011
2nd Half 2011
1st Half 2012
2nd Half 2012
1st Half 2013
CPI
Composite
Core
Food

4.3.11.3 Food Inflation
The year-on-year food inflation comprising farm produce and processed
food fluctuated but closed at 9.6 per cent at end-June 2013, compared with
12.0 per cent at end-June and 10.2 per cent at end-December 2012,
respectively. The 12-month moving average food inflation stood at 10.4 per
cent at end-June 2013, compared with 10.6 and 11.3 per cent at end-June
and end-December 2012, respectively. The decrease in food inflation was
attributed largely to good harvest and the impact of the Agricultural
Transformation Agenda of the Federal Government.

Figure 71
Inflation Rate
(Year-on-Year, Per cent)


1st Half

2nd Half

1st Half

2nd Half

1st Half

2nd Half

1st Half

2nd Half

1st Half

Headline
Food
Core

4.3.11.4 Urban and Rural Consumer Price Indices and Inflation Rates
The all-item Urban CPI stood at 145.5 at end-June 2013, compared with 134.1
at end-June and 140.8 at end-December 2012. As a result, year-on-year
urban inflation rate stood at 8.4 per cent at end-June 2013, compared with
15.0 and 14.5 per cent at end-June and end-December 2012, respectively.
Similarly, the all-item Rural CPI rose to 147.9 at end-June 2013, from 136.5 and
142.1 at end-June and end-December 2012, respectively. The development

resulted in a year-on-year rural inflation rate of 8.3 per cent at end-June 2013,
compared with 11.4 per cent at end-June and 10.2 per cent at endDecember 2012. Urban headline inflation was marginally higher than the rural
headline inflation in the period under review.
Urban core inflation rate stood at 5.3 per cent at end-June 2013, indicating a
significant decrease when compared with 16.5 and 14.6 per cent at endJune and end-December 2012, respectively. Urban food inflation rate also
fell, from 11.4 per cent at end-June 2012 and 10.5 per cent at end-December
2012, to 9.5 per cent at end-June 2013.
Rural core inflation rate was 5.6 per cent at the end of June 2013, a decrease
of 8.6 and 7.4 percentage points, when compared with the levels at endJune and end-December 2012, respectively. Rural food inflation rate stood at
9.7 per cent at end June 2013 compared with 12.7 and 10.2 per cent at endJune and end-December 2012, respectively.

Figure 72
Urban and Rural Consumer Price Indices
(Half year, November 2009 = 100)


1st Half 2011
2nd Half 2011
1st Half 2012
2nd Half 2012
1st Half 2013
Urban Consumer Price Index
Rural Consumer Price Index

4.3.12 Health
The Federal Government spent the sum of N2.5 billion on polio eradication in
the first half of 2013. The effort yielded positive results as only 25 cases of the
disease were recorded nationwide in the period under review, while thirty
(30) states had achieved 20.0 per cent reduction in the number of unimmunized children (as at April 2013), compared with the corresponding
period in 2012. Nigeria and the Global Fund to Fight AIDS, Tuberculosis and
Malaria, signed two (2) grant agreements valued at US$225.0 million as part
of a 2-phase support to boost malaria prevention and treatment in the
country. The Federal Government distributed 36 million, Long-Lasting
Insecticidal Nets (LLIN) across the country to curtail the menace of the
spread of malaria.
4.3.13 Aviation Services
The implementation of the first phase of the aviation component of the
Transformation Agenda continued in the first half of 2013. Three (3) of the
remaining ten (10) airport terminals that were yet to be completed under the
remodeling programme namely; Abuja, Kano and Benin were completed
and commissioned.
4.3.13.1 Domestic and International Operations
Major improvements were recorded in the operation of both the domestic
and international routes in the first half of 2013 following massive upgrade of
airports nationwide which facilitated the smooth operation of flights. Foreign
carriers, attracted by Nigeria‟s large population and economic potential also
brought in more capacity.
4.3.14 Maritime Services
Efforts of the Federal Government to re-engineer seaports in Nigeria through
massive infrastructure development and maintenance dredging continued
during the first half of 2013, resulting in increased gross tonnage of coastal
vessels and cargo traffic at sea seaports. Available statistics revealed that
the gross tonnage of coastal vessels recorded was 2,237,822 tonnes

representing 23.0 per cent increase compared to its level in the
corresponding period of 2012.
A marginal improvement was recorded in the containerized cargo
throughput handled in the first half of 2013 at 6,222,754 metric tonnes
compared with 6,008,926 metric tonnes in the corresponding period of 2012,
representing a 3.6 per cent growth. The quantity of refined petroleum
handled grew by 4.6 per cent at 9,835,719 metric tonnes compared with
9,406,268 metric tonnes recorded in the first half of the preceding year.
4.3.15 Railway Services
Efforts to reposition the Nigerian Railway Corporation (NRC) continued in the
first half of 2013 in line with the 25-Year Railway Strategic Vision of the Federal
Government. The period witnessed the commencement of full train services
from Lagos to Kano as well as rehabilitation of railway lines across the
country, including the Port Harcourt to Maiduguri line.
The NRC resumed cargo operations after 10 years with the first haulage of
goods from Ogun State to Niger State.
4.4. EXTERNAL SECTOR DEVELOPMENTS
The external sector remained viable in the first half of 2013 with an estimated
overall balance of payments surplus of N184.40 billion (0.9 per cent of GDP),
compared with N438.90 billion (2.3 per cent of GDP) in the first half of 2012.
This was attributed to the robust current account and increased inflow of
foreign capital. The estimated current account surplus increased to N1,844.84
billion (8.9 per cent of GDP) owing largely to the sustained high crude oil
prices at the international market, lower import bills and repatriation of
investment income as well as sustained inflow of remittances. The price of
Nigeria‟s reference crude (Bonny Light 370 API) averaged US$110.29, while
import bills fell by 19.9 per cent. The estimated capital and financial account
recorded a net liability of N195.48 billion (1.0 per cent of GDP) in the first half
of 2013, compared with a net asset of N231.16 billion (1.2 per cent of GDP)

recorded in the first half of 2012. The level of external debt stock rose to
US$6.92 billion but remained sustainable, while the stock of external reserves
at US$44.96 billion at end-June 2013 recorded an accretion of US$1.18 billion
over the stock at end-December 2012, and could finance 10.8 months of
current imports commitment. The foreign exchange market remained stable
as the market premium was within the international threshold of 5.0 per cent.
Notwithstanding the favourable performance of the external sector, it
remained highly susceptible to external shocks due to the continued
exposure to huge inflow of short-term capital and non-diversification of the
economy.
4.4.1 Current Account
4.4.1.1 Trade
Estimated total trade (value of exports and imports) for the first half of 2013
declined by 14.8 per cent to N10,731.69 billion (52.7 per cent of GDP)
compared with the corresponding period of 2012. Despite the sustained high
crude oil prices in the global market, aggregate exports declined by 11.6 per
cent to N6,828.93 billion (35.6 per cent of GDP), due mainly to the decline in
crude oil production from an average of 2.10 million bpd recorded in the first
half of 2012 to an average of 1.98 million bpd in the review period. The oil
sector continued its dominance, accounting for 95.9 per cent of the total
exports, while non-oil exports accounted for the remaining 4.1 per cent.

Figure 73
Exports, Imports and Trade Balance
(Naira Billion)


10000
1st Half 2012
2nd Half 2012
1st Half 2013
Exports
Imports
Trade Balance

A breakdown of the non-oil exports by product showed that agricultural
produce, semi-manufactured goods, manufactured goods, “others” and
solid minerals accounted for 51.1, 31.5, 14.0, 3.0 and 0.4 per cent,
respectively.
Figure 74
Non-Oil Exports by Products
(First Half 2013, per cent)

Aggregate imports fell by 19.9 per cent to N3,902.76 billion and represented
19.2 per cent of GDP. The decline was across both oil and non-oil imports
and was attributed to the weak domestic demand for foreign produced
goods and the national trade policy that emphasized increased patronage
of domestically produced goods. The share of non-oil imports constituted
66.9 per cent of total imports while oil sector imports accounted for 33.1 per
cent. Sectoral breakdown of non-oil imports for the first half of 2013 revealed
that finished goods (food and manufactured products) accounted for 64.6
per cent, industrial sector, 28.0 per cent; transport sector, 5.2 per cent; while
other sectors accounted for 2.2 per cent of the total.


Agricultural
Produce
51.1%
SemiManufactured
31.5%
Manufactured
14.0%
Minerals
0.4%
Others
3.0%

Figure 75
Non-Oil Imports by Sectors
(First Half 2013, per cent)


4.4.1.2 Services
The deficit in the services account (net) narrowed by 10.3 per cent from N1,
687.80 billion in the first half of 2012 to N1,574.36 billion in the review period.
The position, equivalent to 7.4 per cent of GDP was driven largely by the outpayments in respect of transportation (N669.24 billion), travels (N398.62
billion), other business services (N284.36 billion) and government services
(N142.07 billion).

Figure 76

Share of Services Out-Payments
(First Half 2013, per cent)

Finished goods
64.6%
Industrial
28.0%
Transport
5.2%
Others
2.2%
Transport
40.3%
Travel
24.0%
Other Bussiness
17.1%
Government
8.6%
Others
10.1%

4.4.1.3
Income
The deficit in the income account (net) narrowed significantly by 31.1 per
cent from the level recorded in the corresponding period of 2012 and
represented 6.1 per cent of GDP. The development reflected lower
repatriation of dividends and distributed branch profits by foreign investors.
4.4.1.4
Current Transfers
The surplus in the current transfers (net) increased marginally by 0.6 per cent
when compared with the corresponding period of 2012. Inward transfers
reflecting personal home remittances by non-resident Nigerians increased by
2.0 per cent from US$9.82 billion in the corresponding period of 2012 to
US$10.02 billion in the review period. General government transfers (net),
which included expenses on foreign embassies, payments to international
organizations and remittances of foreigners resident in the country declined
by 16.01 per cent, compared with the level in the first half of 2012.
Figure 77
Private Home Remittances
(US$ billion)


4.4.2 Capital and Financial Account
The estimated capital and financial account was a net liability of N195.48
billion or 1.0 per cent of GDP, compared with of N231.16 billion or 1.2 per
cent of GDP recorded in the corresponding period of 2012. Total assets,
which represented outflow of foreign capital from Nigeria was N2, 202.57


First Half 2012
Second Half 2012
First Half 2013

billion, compared with N1,147.74 billion in the corresponding period of 2012.
The increase was driven largely by other investment which rose from N497.00
billion in the first half of 2012 to N1,348.04 billion in the review period. Total
liabilities increased from N1,378.90 billion in the first half of 2012 to N2, 398.05
billion in the review period and was influenced largely by the surge in
portfolio investments, which increased by 106.8 per cent to N2, 082.51 billion.
4.4.2.1 Foreign Direct Investment
Estimated data on foreign direct investment (FDI) inflow, which comprised
equity capital, re-invested earnings and other capital inflow increased by 7.5
per cent from N401.10 billion in the first half of 2012 to N431.23 billion in the first
half of 2013. FDI inflow constituted 18.0 per cent of total inflow and
represented 2.1 per cent of GDP, signifying the continued confidence in the
economy by foreign investors.
4.4.2.2 Portfolio Investment
Estimated portfolio investment inflow increased significantly by 106.8 per cent
to N2,082.51 billion from N1,006.97 billion in the corresponding period of 2012.
The development was due to the renewed foreign participation in the
domestic financial markets, following the removal of the one year cap on
foreign investment in domestic financial assets, higher returns and stable
macroeconomic environment. Although outflow of portfolio investment
increased when compared with the level in the corresponding period of
2012, the net portfolio investment rose significantly from N855.35 billion in the
first half of 2012 to N1,491.89 billion (7.3 per cent of GDP) in the review period.

Figure 78
Net FDI and Portfolio Investment Flows
(Per cent of GDP)

4.4.3 Capital Importation by Sector and Capital Outflows
Available data from DMBs indicated that new capital imported into the
economy amounted to US$14.38 billion in the first half of 2013. Sectoral
analysis showed that the inflow was mainly into the capital market (shares)
with a share of 78.6 per cent of total, while financing, servicing and banking
accounted for 8.1, 3.5, and 3.6 per cent, respectively. “Other” sectors
accounted for the remaining 6.2 per cent. Conversely, capital outflow
amounted to US$2.76 billion, of which remittances of dividends by foreign
investors stood at US$1.56 billion and accounted for 56.6 per cent of the total.
Capital transfers at US$1.02 billion accounted for 37.0 per cent, while
“Others” accounted for the remaining 6.4 per cent.
Figure 79
Capital Importation by Sector
(First Half of 2013)


1st Half 2012
2nd Half 2012
1st Half 2013
FDI % of GDP
PI % of GDP
Shares
78.6%
Financing
8.1%
Servicing
3.5%
Banking
3.6%
Others
6.2%

Figure 80
Capital Outflows and Outward Transfers
(First Half 2013)

4.4.4 Reserve Assets and Months of Import Commitments
The stock of external reserves at end-June 2013 stood at US$44.96 billion,
compared with US$35.41 billion and US$43.83 billion in the corresponding
period and end-December 2012, respectively. Accretion to external reserves
was due largely to increased crude oil export receipts, related revenue and
royalties.
A breakdown of the external reserves showed that the Federal Government
portion was US$1.30 billion (2.9%); federation portion, US$6.98 billion (15.5%);
and the CBN holdings, US$36.68 billion (81.6%). The decline in the federation
portion was due to the reduced excess crude oil account savings, while the
increase in the FGN reserves reflected the JVC cash calls inflow. The external
reserves could support 10.8 months of imports cover, compared with 11.8
months and 6.8 months in the corresponding period and second half of 2012,
respectively.
At end-June 2013, there were eight (8) external reserves managers, including
the World Bank Treasury. The performance of the World Bank‟s portfolio was
measured against the Merrill Lynch 1-3 year US Treasury Index, while that of
the Industrial and Commercial Bank of China Asia Investment Management
(ICBCAIM) portfolio was against the Citigroup Dim Sum off-shore (CNY). The
remaining six (6) external reserves managers were measured against the
Dividends 56.6%
Capital tranfers 37%
Others 6.4%

Bank of America Merrill Lynch Global G7 Government 1-3 year Index, ex-Italy
100% hedged to the US dollar. The net asset value of the external reserves
managers‟ portfolio at end-June 2013 stood at US$10.08 billion.
Figure 81
Stock of External Reserves and Months of Import Commitments
(US$ Billion)

The CBN external reserves portfolio was classified into discretionary and nondiscretionary components with the discretionary component made up of
three (3) tranches, namely; liquidity, investment and stable tranches. The
liquidity
tranche
comprised
current
account
balances,
repurchase
agreements, treasury bills and stock of cash holding required for the day-today liquidity needs of the Bank. The balance on the liquidity tranche at endJune 2012 was US$3.06 billion. The investment tranche which served as a
buffer for the liquidity tranche included fixed term deposits with foreign
deposit counterparties and foreign branches/subsidiaries of Nigerian banks.
At end-June 2013, an equivalent of US$ 19.27 billion was held in the tranche.
The Stable tranche with a net asset value (NAV) of US$10.58 billion at endJune 2013 comprised internal bond portfolio and funds outsourced to
external asset managers. The internal bond portfolio mainly comprised the US
treasury bonds, agency notes, and supranational securities.
The non-discretionary component of the Bank‟s external reserves holdings,
which included the special drawing rights (SDRs) with the International


1st Half 2012
2nd Half 2012
1st Half 2013
External Reserves
Months of Import Cover

Monetary Fund (IMF) and LC collateral funds amounted to US$2.52 billion
and US$1.26 billion, respectively, in the review period.
4.4.5 External Assets of Financial Institutions
Provisional data on the total external assets of the banking system (the CBN
and DMBs) in the first half of 2013 stood at N9,940.10 billion, compared with
N7,889.03 billion and N9,402.97 billion in the first and second halves of 2012,
respectively. Of the total, CBN‟s holdings grew by 7.5 per cent to N7,953.99
billion and accounted for 80.0 per cent, compared with 76.4 and 78.6 per
cent in the first and second halves of 2012, respectively. DMBs‟ holdings of
foreign assets, however, fell by 1.1 per cent to N1,986.11 billion and
accounted for 20.0 per cent, compared with 23.6 and 21.4 per cent, at endJune and end-December 2012.

Figure 82
Nigeria’s Total External Assets
(First Half 2013, per cent of Total)


CBN
80.0%
DMBs
20.0%

5.0
INTERNATIONAL ECONOMIC RELATIONS
5.1
Regional Institutions
5.1.1 African Development Bank (AfDB) Annual Meetings
The Annual Meetings of the Board of Governors of the African Development
Bank (AfDB) Group was held in Marrakech, Morocco from May 27 to June 1,
2013. The theme of the Meetings was “Africa‟s Structural Transformation”,
and focused on development issues facing the continent such as financing
gap, leadership, youth unemployment, inclusive growth, climate change
and social business development.
The Meetings noted that over the three decades, 1980-2009, capital flight
from Africa, most of which was illegal, amounted to US$1.4 trillion. Such
capital flight was traced to corruption, economic crimes and corporate
deals, among others, and called for provisions on assets repatriation.
The AfDB Board launched a new Ten-Year Strategy spanning 2013-2022 to
address Africa‟s development challenges. The strategy focused on five key
areas, namely infrastructure financing; regional economic integration;
private sector development; governance and accountability; and skills and
technology development. An Africa 50 Fund was also launched to scale up
infrastructure financing for transformational bankable projects, by mobilizing
Africa's domestic resources. It also formally signed a US$100.0 million
unfunded Risk Participation Agreement (RPA) with Commerzbank AG. Under
the agreement, the two banks will share the default risk on a portfolio of
eligible trade transactions originated by African issuing banks.
At the Africa Group 1 Constituency meeting on May 28, 2013 , the two new
Alternative Executive Directors were presented, namely Dr. O. J. Nnanna
from Nigeria and Ms. Chileshe Mpundu Kapwepwe from Zambia. The Group
agreed:
To the establishment and endorsement of a Rules Review Committee
(RRC) which comprised Panel Deputies;

To retain the process of selection of Alternative Directors based on
merit and political endorsement by countries.
5.1.2 Association of African Central Banks (AACB)
The 37th Meeting of the Bureau of the Association of African Central Banks
(AACB) was held on February 27, 2013 in Dakar, Senegal. The Bureau
considered reports and recommendations on the Joint AUC-AACB Task Force
as well as the AACB Technical Committee and:
Agreed that the Joint AUC-AACB Study Group should update the main
report and strategy document with detailed analysis of the costs and
benefits of economic and monetary Union;
Adopted the recommendation for the creation of an African Monetary
Institute (AMI) as an organ of the African Union;
Agreed that the AUC would retain two (2) experts in Abuja, while the
AACB experts could be resident in their home countries;
Considered the year 2012 (provisional) progress report on the African
Monetary Cooperation Programme (AMCP) and prospects for year
2013.
Urged the AUC to conduct a study to form the basis for a review of the
convergence criteria;
Considered the status and governance structure of the Community of
African Banking Supervisors (CABS) and agreed that it should have a
flexible structure as an organ under the AACB. It also adopted the
recommendation that CABS should table its reports to the Financial
Stability Board; and
Urged the Secretariat to take note of the suggestion that other central
banks and the AACB should buy-in into the African Mobile Payment
Initiative (AMPI) and encourage currency convertibility in the
continent.
The 2013 Association of African Central Bank (AACB) Continental Seminar
was held in Maseru, Lesotho, from May 6 - 8, 2013 with the theme “The Role of

Central Banks in Promoting Sustainable Economic Growth in Africa”. The
main recommendations were that:
African central banks should identify the missing links among the
objectives of price, financial and macroeconomic stability, and
sustained economic growth;
The mandate of central banks should be extended to include
promoting economic growth and development;
Strong and efficient regulation of the financial system should be
pursued while ensuring that it does not inhibit financial innovation;
Central banks should continue to promote financial inclusion, and
development of financial markets; and
Central banks should collaborate with the government and the private
sector to ensure effective transmission mechanism.
5.1.3 West African Monetary Zone (WAMZ)
The 2012 statutory end-of-year meetings of the West African Monetary Zone
(WAMZ), the West African Monetary Agency (WAMA) and the West African
Institute for Financial and Economic Management (WAIFEM) were held in
Abuja, Nigeria during January 11 – 18, 2013. The meetings recommended,
among others, that member states should:
Continue to implement prudent macroeconomic policies to achieve
and sustain price stability, and execute sectoral and structural policies
to promote food production and dampen inflationary pressures;
Intensify rehabilitation and building of infrastructure to remove supplyside bottlenecks and improve output growth and employment;
Adhere to fiscal consolidation, by prioritizing expenditure and
enhancing
domestic
revenue
mobilization
to
facilitate
the
achievement of the WAMZ quantitative and qualitative convergence
criteria;
Review existing legal framework on fiscal responsibility in line with the
Model Act to ensure strong fiscal management;

Deepen the implementation of reform policies that seek to reduce
domestic borrowing and rising interest payments as well as adopt debt
restructuring strategies that would transform maturity profile of the debt
from short-term to medium and long-term;
Provide monthly data to enable WAMI regularly update the analysis of
macroeconomic developments and convergence;
Liberalize their capital accounts beginning with intra-regional capital
account while urging member states with small open economies to be
cautious of the inherent risk;
Approved the appointment of Dr. Abwaku Englama of the Central
Bank of Nigeria as the substantive Director-General of WAMI, effective
February 1, 2013.
5.1.4 West African Institute for Financial and Economic Management
(WAIFEM)
The meeting of the Board of Governors of the West African Institute for
Financial and Economic Management (WAIFEM) was held on January 17,
2013 in Banjul, The Gambia. The Board approved:
That WAIFEM should replicate the CBN model for the evaluation of the
Institute‟s course participants at the end of each programme ;
A Visiting Scholars and Attachment Programmes for the Institute.
The engagement of a consultant to prepare a five-year (2013-2018)
Strategic Plan for the sustainability of the Institute; and
The Training Programme for Fiscal Year 2013.
5.1.5 Economic Community of West African States (ECOWAS)
The 43rd Meeting of the Committee of Governors of Central Banks of
ECOWAS Member States was held in Abuja, Nigeria on January 17, 2013. It
was attended by member central banks, Ministries of Finance and Economic
Planning, ECOWAS Commission, UEMOA Commission, West African Bankers‟
Association (WABA), African Development Bank (AfDB), ECOWAS Bank for
Investment and Development (EBID), West African Monetary Institute (WAMI),

AFRISTAT and West African Institute for Financial and Economic Management
(WAIFEM). The meeting:
Adopted the Macroeconomic Convergence Report for the first half of
2012, which urged member states to amongst others, explore
modalities for enhancing tax revenue mobilization while rationalising
the cost of governance;
Noted the report on exchange rate developments of ECOWAS
currencies since November 2012, and called on WAMA to provide
technical advice to central banks experiencing excessive exchange
rate fluctuations;
Endorsed the recommendation for the setting up of a crisis resolution
mechanism for ECOWAS based on the experience of the Euro Zone
debt crisis; and
Adopted the Work Programme for 2013.

The 5th Meeting of the Inter-Institutional Sub-Committee on the ECOWAS
Single Currency Programme was held in Abuja, Nigeria, during January 21 –
23, 2013. The meeting reviewed on-going implementation roadmap by
individual regional institutions, since the 4th meeting of December 8 - 9, 2011
in Dakar. The main recommendations were:
To strengthen the synergy among regional institutions, expedite their
road map activities, and prioritize activities assigned to WAMA to
ensure that Sub-Committee members are involved in the roadmap
implementation;
To build the capacity of the Directorate of Research and Statistics to
fast-track the implementation of statistics harmonization;
WAMI to ensure connectivity of the new payments system being
developed for some ECOWAS member states with the existing
payments system in the zone (UEMOA, Ghana, Nigeria);
WAMI to commence sensitization activities on integration projects in
collaboration with other regional agencies and central banks.

Active participation of the Finance Ministries of member states to
facilitate implementation of the single currency roadmap.
The West African Monetary Agency (WAMA), in collaboration with the
Central Bank of West African States (BCEAO), organized a “Regional
Workshop on Harmonization of Regulations Governing Current and Capital
Account Transactions in ECOWAS” during May 13 – 15, 2013. The goal of the
workshop was to develop a common regional framework to facilitate the
liberalization of current and capital accounts in the region. The workshop
recommended:
Member countries should gradually lift restrictions on foreign exchange
controls and foreign direct investment; liberalize their foreign exchange
markets; and accede to Article VIII of the IMF Statutes;
Member
countries
should
ensure
compliance
with
the
macroeconomic convergence criteria by implementing sound
macroeconomic policies;
Countries should strengthen their financial sector supervisory framework
and harmonize the regulatory and supervisory frameworks of financial
institutions;
Develop capital market infrastructure and accelerate the process of
financial market integration in ECOWAS;
Remove tariff and non-tariff barriers to effective enforcement of the
ECOWAS protocol on free movement of persons and goods;
Set up the process for the adoption of an ECOWAS Liberalization
Scheme on Services;
Conduct a study to determine an appropriate exchange rate regime
for the region;
Fast-track the harmonization process of accounting and financial
reporting frameworks for banks and non-bank financial institutions;
Speed up the adoption, ratification and implementation of the
regional code on investment;

Establish effective systems for monitoring capital flows, and short-term
debt in foreign currency to limit excessive risk-taking by financial
market operators; and
Strengthen capacity for fighting money laundering and terrorism
financing.
The WAMA, in collaboration with the Central Bank of The Gambia, organized
a three-day “Regional Workshop on Harmonization of Monetary Policy
Frameworks in ECOWAS” in Banjul, The Gambia, during June 27 – 29, 2013.
The workshop had representations from all central banks in ECOWAS except
Cape Verde, regional institutions and the IMF. The workshop recommended
that:
Inflation targeting (IT) Lite should be adopted as the common
monetary policy framework for the region;
At each country level, two committees should be established namely:
the
Monetary
Policy
Committee,
and
the
Financial
Stability
Committee;
Central banks should institutionalise efficient forecasting framework to
enhance the efficiency and operationalization of the proposed
framework;
Deployment
of
other
data
gathering
approaches,
especially
Composite Index of Economic Activity (CIEA) as high frequency data
were noted to be a challenge;
Efforts should be made to enhance the payment system, deepen the
financial system and enhance interest rate transmission channel;
A transition framework should be developed, taking into account each
country‟s peculiarity to facilitate the migration towards IT;
Experience sharing among central banks in the Region should be
encouraged;
The process of harmonization of statistics in ECOWAS should be
pursued with vigour, especially the consumer price index;
A committee of central banks‟ experts should be set up for the
preparation of the legal monetary policy framework; and,

Strengthen coordination of fiscal, monetary and macro-prudential
policies.
5.1.6 ECOWAS, WAMI and WAMA Joint Multilateral Surveillance Mission
The ECOWAS, WAMA, and WAMI Joint Multilateral Surveillance Mission to
Nigeria was conducted during April 2 – 9, 2013. The purpose of the Mission
was to assess performance of the country in 2012, with respect to the
macroeconomic convergence criteria, as well as policy harmonisation and
institutional framework for the establishment of economic and monetary
union in the ECOWAS region.

The assessment indicated that the country satisfied three out of the four
primary convergence criteria, same as in 2011. The criteria were: fiscal
deficit/GDP, central bank financing of fiscal deficit, and gross external
reserves (in months of imports cover). On the secondary criteria, the country
met only three out of six, namely: salary mass/tax revenue, change in arrears,
and WAMZ Exchange Rate Mechanism (ERM).

The analysis of Nigeria‟s medium-term projections indicated that all the four
WAMZ primary macroeconomic convergence criteria would be met in the
medium-term, 2013 to 2015.

5.2 Multilateral Economic and Financial Institutions
5.2.1 World Economic Forum Annual Meeting
The World Economic Forum Annual Meeting was held during January 23 – 27,
2013 in Davos-Klosters, Switzerland. The theme for 2013 was “Resilient
Dynamism”. Over 250 sessions were held on issues relating to the global
economy, global energy, technology, leadership, natural resources, and
sustainable growth, amongst others.

Speakers observed that the worst of the financial crisis was over, while others
warned against complacency and over-optimism. The IMF Managing
Director, urged caution and described global recovery as fragile. Some
delegates cited the disagreements in the US over its debt as a key risk to the

global economy in 2013, while others noted that businesses were much more
confident about economic prospects and hoped it would translate into
increased investments.
5.2.2 The World Bank/IMF Spring Meetings
The 2013 Spring Meetings of the Board of Governors of the World Bank Group
and the International Monetary Fund (IMF) were held in Washington D.C.,
USA during April 15 – 22, 2013. The Ministers of the Inter-governmental Group
of 24, the International Monetary and Finance Committee (IMFC) and the
Development Committee held their respective meetings.
The G-24 Ministers:
Noted that though policy actions in advanced economies (AEs) and
emerging markets and developing countries (EMDCs) had reduced
short-term risks, there were still concerns about the fragility and pace of
the recovery because of the protracted difficulties and uncertainties in
many AEs, including the euro area and the United States;
Urged more action to reduce uncertainties, restore confidence and
strengthen growth.
Called on AEs to take into account the negative spillover effects on
EMDCs of prolonged unconventional monetary policies, particularly on
inflation, commodity prices, and the volatility of capital flows ;
Urged the IMF and the World Bank Group to be more active in pursuing
greater coherence in global economic policy-making; and
Reiterated their view that any quota realignment to reflect the growing
weight of dynamic EMDCs in the world economy should not be at the
expense of other EMDCs, and renewed their longstanding call for a
third chair for Sub-Saharan Africa.

The IMFC:
Noted that a moderate and steady private sector-led recovery was
taking place in the United States, while Japan had stepped up efforts
to combat deflation. Growth in the euro area was yet to materialize;

Urged continued progress in improving public finances in most
advanced economies. It recommended that in the event that country
circumstances allowed, fiscal policies should avoid pro-cyclicality, but
should focus on structural balances, and allow automatic stabilizers to
operate fully to support growth;
Noted that accommodative monetary policy was relevant to bolster
growth but needed to be accompanied by credible medium-term
fiscal consolidation plans and stronger progress on financial sector and
structural reforms;
Advised that eventual exit from monetary expansion should be
carefully managed and clearly communicated; and
Noted that with activity picking up in EMDCs, policies should be
recalibrated
to
rebuild
buffers
and
guard
against
financial
vulnerabilities.
The Development Committee:
Noted that sustained economic growth in developing countries had
resulted in the achievement of the first Millennium Development Goal
(MDG), to halve extreme poverty, well ahead of the 2015 scheduled
date;
Remained strongly committed to the MDGs and called on the World
Bank Group (WBG) to scale up its efforts to support countries in
reaching the MDG targets and to participate actively in setting an
ambitious post-2015 agenda; and
Noted that the International Development Association (IDA) was of
critical importance to the WBG‟s mission and welcomed IDA17‟s
overarching theme of maximizing development impact, by further
leveraging synergies with the International Finance Corporation (IFC)
and the Multilateral Investment Guarantee Agency (MIGA) as well as
its focus on inclusive growth, gender equality, and climate resilience,
including disaster risk management.

The Committee of Ten (C10)
The Committee of Ten (C10) Finance Ministers and Central Bank Governors
met on April 18, 2013 in Washington D.C., USA. The meeting had the
following countries and institutions in attendance: Algeria, Botswana,
Cameroon, Egypt, Kenya, Nigeria, South Africa, Tanzania, Central Bank of
West African States (BCEAO), Central Bank of Central African States (BEAC),
Economic Commission for Africa (ECA), and the African Development Bank
(AfDB). The objective was to review matters arising from the G20 work plan
with a view to agreeing on the way forward. The Committee:
Urged African countries to start rebuilding the fiscal, monetary and
social policy buffers that were consumed during the 2008/2009 global
financial and economic crises, to reduce their vulnerability to external
shocks, falling ODA, decline in export demand from the euro area, and
persistent fiscal uncertainty in the US;
Urged African countries to build the necessary institutional and
technological capacity and mobilize the necessary investment for
diversification;
Called for robust replenishment of the African Development Fund,
consistent with Africa‟s needs;
Emphasized the need to scale-up intra-African trade and South-South
cooperation, and called on African countries to take appropriate
measures to reverse the current meagre intra-African trade of 11.0 per
cent compared to 61.0 per cent in the Asia Pacific;

Urged the G20 countries to fulfill their funding commitments to
approved projects, and immediate implementation of the 2011
Cannes Leaders‟ Declaration on reducing the average cost of
transferring remittances to developing countries, especially those to
Africa; and
Urged Africa to focus on improving project preparation facilities;
building capacity to improve legal and institutional frameworks;
encouraging public-private partnerships on infrastructure financing

and transformative regional infrastructure projects; as well as
supporting innovations in project financing instruments and modalities.

6.0
OUTLOOK FOR THE SECOND HALF OF 2013
The moderate inflationary pressure that was witnessed in the first half of 2013
is expected to prevail throughout the second half of the year. This is
predicated
on
the
expectation
of
bumper
agricultural
harvest,
notwithstanding the disruptions to agricultural activities in some parts of the
country on account of flood in the later part of the first half of the year.
Nevertheless, the viability of the external sector for the rest of the year
remained uncertain due to the slow global recovery, declining crude oil
production and exports. The discovery of the shale oil in the US is likely to
adversely affect the demand for Nigeria‟s crude oil. Consequently, the
expectation of huge foreign exchange inflows in the second half of 2013
may be constrained and, thereby, jeopardise the relative stability in the
foreign exchange market. Though, the relatively high international price of
crude oil which is substantially above the 2013 budget benchmark price of
US$79 per barrel is likely to be sustained, the incessant pipelines vandalism,
leakage and oil theft remains a threat to crude oil production, exports and
earnings. If these threats remain unabated, it may impose serious strains on
the federation revenue with adverse implications for the fiscal management
at all levels of government. Furthermore, as is customary of fiscal operations
in recent years, capital budget implementation is expected to intensify in the
second half of the year, thereby exacerbating excess liquidity conditions in
the financial system with attendant pressures on domestic prices. Against this
background therefore, the monetary authority is expected to remain
proactive and steadfast with its tight monetary policy stance to address any
imminent liquidity upsurge.

Table 13
Open Market Operations (OMO) Sessions
Total
Amount
Average
Average Yield
Bids
Sold
Tenor (Days)
(%)
(N' Million)
(N' Million)

January
68,540.0
20,290.0

2.00
February
0.0
0.0

0.00
March
71,000.0
42,000.0

2.60
April
128,150.0
95,150.0

4.30
May
77,100.0
39,250.0

4.00
June
126,850.0
57,800.0

5.10
Total
471,640.0
254,490.0
Average
94,328.0
50,898.0

3.60
July
0.0
0.0

0.00
August
0.0
0.0

0.00
September
0.0
0.0

0.00
October
0.0
0.0

0.00
November
0.0
0.0

0.00
December
0.0
0.0

0.00
Total
0.0
0.0
Average
0.0
0.0

0.00

January
0.0
0.0

0.00
February
0.0
0.0

0.00
March
0.0
0.0

0.00
April
275,500.0
120,000.0

2.41
May
116,942.0
40,000.0

2.45
June
0.0
0.0

0.00
Total
392,442.0
160,000.0
Average
196,221.0
80,000.0

2.43
July
0.0
0.0

0.00
August
0.0
0.0

0.00
September
70,250.0
24,000.0

5.10
October
2,000.0
2,000.0

8.60
November
47,250.0
29,500.0

10.00
December
99,181.0
53,250.0

7.40
Total
218,681.0
108,750.0
Average


January
255939.22
140539.22

9.30
February
0.0
0.0

0.00
March
123421.18
69918.18

6.78
April
142516.59
23387.18

9.27
May
119335.12
48607.55

9.61
June
80,450.0
25,470.0

9.08
Total
721,662.1
307,922.1
Average
120,277.0
51,320.4

8.81
July
227418.5
97815.5

8.55
August
590156.17
351676.17

8.91
September
327028.16
170997.21

10.90
October
652222.53
465381.71

16.25
November
811607.1
343676.63

16.58
December
731097.91
428815.76

18.03
Total
3,339,530.4
1,858,363.0
Average
556,588.4
309,727.2

13.20

January
799,840.00
246,660.00

16.36
February
1,124,220.00
297,000.00

15.89
March
1,150,240.00
491,600.00

15.27
April
973,640.00
304,180.00

14.57
May
956,240.00
363,130.00

13.99
June
48,220.00
14,110.00

14.50
Total
5,052,400.00
1,716,680.00
Average
842,066.67
286,113.33

15.10
July
17,320.00
50.00

14.10
August
137,790.00
4,500.00

14.00
September
714,000.00
318,420.00

14.25
October
1,330,810.00
882,800.00

14.03
November
1,525,360.00
939,540.00

13.77
December
952,950.00
650,270.00

13.40
Total
4,678,230.00
2,795,580.00
Average
779,705.00
465,930.00

13.92

January
2,958,462.46
1,756,659.93

13.24
February
2,211,812.20
1,351,595.21

11.04
March
1,584,240.93
1,275,244.57

11.28
April
1,753,562.24
1,312,802.77

12.82
May
1,263,423.93
996,444.86

13.02
June
198,005.50
81,950.63

13.90
Total
9,969,507.3
6,774,698.0
Average
1,661,584.5
1,129,116.3

12.55
Source: Central Bank of Nigeria
Period

Table 14
Treasury Bills: Issues and Subscriptions
(Naira Million)
Deposit Money
Banks
Non-Bank
Public

June

December

Annual Total

Annual Average
116,035.00
73,031.67
43,000.83

June

December

Annual Total

Annual Average
166,996.08
114,888.19
50,067.47

June

December

Annual Total
3,046,262.94
1,999,006.25
1,047,256.69
Annual Average
253,855.24
166,583.85
87,271.39

June

December

Annual Total

Annual Average


January

February

March

April

May

June

Half Year Total

Half Year Average

Period
Issues
Central
Bank
Allotment to Subscriber

Table 15
Monetary and Credit Developments
(N’ Million)
Item
Jun 2009
Dec 2009
Jun 2010
Dec 2010
Jun 2011
Dec 2011
Jun 2012 /3
Dec 2012
Jun 2013
(1) Domestic Credit (Net)
5,406,926.52
7,917,041.43

8,612,939.99

8,708,545.45

8,889,638.55

13,686,730.20

13,567,429.11

12,698,205.05

13,294,508.43

(a) Claims on Federal Government (Net)
-3,150,018.13
(2,302,294.68)

(1,489,877.51)

(1,121,798.63)

(1,068,311.33)

(496,861.62)

(1,133,629.28)

(2,453,557.09)

(2,397,522.51)

By Central Bank
-4,348,811.29
(3,731,603.83)

(3,272,806.06)

(2,884,013.44)

(2,733,579.77)

(3,514,447.09)

(3,723,009.95)

(3,574,376.40)

(3,374,788.59)

By Commecial Banks
1,198,793.15
1,429,309.15

1,782,928.55

1,762,214.81

1,665,268.44

3,017,585.48

2,584,468.21

1,120,543.34

937,527.48

By Merchant Banks
-

39,738.60

By Non Interest Banks
-

-

-

-

-

4,912.46

275.98

-

(b) Claims on Private Sector
8,556,944.65
10,219,336.11

10,102,817.50

9,830,344.08

9,957,949.88

14,183,591.82

14,701,058.40

15,151,762.15

15,692,030.93

By Central Bank
336,124.95
551,459.43

396,545.27

632,171.02

726,392.50

4,569,146.02

4,652,650.38

4,708,311.82

4,703,307.19

By Commercial Banks
8,220,819.70
9,667,876.68

9,706,272.23

9,198,173.06

9,231,557.39

9,614,445.80

10,048,406.52

10,440,956.33

10,949,139.46

By Merchant Banks
-

32,218.12

By Non Interest Banks
-

-

1.50

2,493.99

7,366.15

(i) Claims on State and Local Govts
251,661.16
310,324.27

319,167.11

369,809.82

420,237.95

513,218.66

586,273.65

665,879.27

661,034.92

By Central Bank
0.00
-

-

-

-

-

-

-

-

By Commercial Banks
251,661.16
310,324.27

319,167.11

369,809.82

420,237.95

513,218.66

586,273.65

665,879.27

660,341.02

By Merchant Banks
-

693.90

By Non Interest Banks
-

-

-

(ii) Claims on Non-Financial Public Ent's


-

By Central Bank


-

By Commercial Banks
-

-

By Merchant Banks
-

-

By Non Interest Banks
-

-

(iii) Claims on Other Private Sector
8,305,283.49
9,895,762.48

9,783,650.39

9,460,534.26

9,537,711.94

13,670,373.16

14,114,784.74

14,485,882.87

15,030,996.02

By Central Bank
336,124.95
538,210.07

396,545.27

632,171.02

726,392.50

4,569,146.02

4,652,650.38

4,708,311.82

4,703,307.19

By Commercial Banks
7,969,158.53
9,357,552.41

9,387,105.12

8,828,363.23

8,811,319.44

9,101,227.14

9,462,132.86

9,775,077.06

10,288,798.44

By Merchant Banks
-

31,524.22

By Non Interest Banks
1.50

2,493.99

7,366.15

(2) Foreign Assets (Net)
7,643,607.13
7,593,321.82

6,484,759.01

6,506,618.59

6,453,690.26

7,138,672.78

7,522,255.04

9,043,678.68

9,016,988.54

By Central Bank
6,642,638.99
6,522,239.52

5,401,021.13

5,372,285.81

4,922,626.64

5,823,794.26

6,025,336.84

7,393,557.68

7,413,741.92

By Commecial Banks
1,000,968.14
1,071,082.30

1,083,737.87

1,134,332.78

1,531,063.63

1,314,878.51

1,496,918.19

1,647,936.45

1,599,504.06

By Merchant Banks
-

1,936.05

By Non Interest Banks
-

2,184.56

1,806.50

(3) Other Assets (Net)
-3,973,507.12
(4,729,736.10)

(4,252,200.90)

(3,689,633.70)

(3,171,232.11)

(7,521,908.48)

(7,606,624.73)

(6,258,036.21)

(6,718,241.38)

Total Monetary Assets
9,077,026.53
10,780,627.14

10,845,498.10

11,525,530.34

12,172,096.71

13,303,494.50

13,483,059.41

15,483,847.53

15,593,255.58

Quasi-Money /1
4,592,410.80
5,763,511.22

5,927,508.17

5,954,260.45

6,534,832.17

6,531,913.01

6,883,664.88

8,062,901.35

8,653,623.30

Money Supply
4,484,615.73
5,017,115.93

4,917,989.92

5,571,269.89

5,637,264.54

6,771,581.49

6,599,394.54

7,420,946.18

6,939,632.30

Currency Outside Banks
746,463.82
927,236.44

795,412.07

1,082,295.07

1,016,449.92

1,245,135.35

1,088,325.98

1,301,160.63

1,127,804.88

Demand Deposits /2
3,738,151.91
4,089,879.48

4,122,577.85

4,488,974.82

4,620,814.62

5,526,446.14

5,511,068.56

6,119,785.55

5,811,827.42

Total Monetary Liabilities
9,077,026.53
10,780,627.14

10,845,498.10

11,525,530.34

12,172,096.71

13,303,494.50

13,483,059.41

15,483,847.53

15,593,255.59

GROWTH RATE OVER THE PRECEDING
DECEMBER (In Percentages)
Credit to the Domestic Economy (Net)

Credit to the Private Sector

Claims on Federal Government (Net)

By Central Bank

Claims on State and Local Governments

Claims on Non-Financial Public Enterprises
Claims on Other Private Sector

Foreign Assets (Net)

Quasi-Money

Money Supply (M1)

Broad Money (M2)

Other Assets (Net)

Source: Central Bank of Nigeria
/1 Quasi-Money consists of Time, Savings and Foreign Currency Deposits of Deposit Money Banks excluding takings from Discount Houses.
/2 Demand Deposits consist of state and local government as well as parastatals deposits at the CBN on the one hand and state and local government and private sector deposits
as well as demand deposits of non-financial public enterprises at the Deposit Money Banks.
/3 Revised

Table 16
Value of Money Market Assets
(Naira Million)

June
Dec
June
Dec
June
Dec
June
Dec
June
Treasury Bills

Treasury Certificates

Development Stocks

Certificates of Deposits

Commercial Papers

Bankers' Acceptances

FGN Bonds

Total

Treasury Bills

Treasury Certificates

Eligible Development Stocks

Certificates of Deposits
0.00
#DIV/0!

#DIV/0!
-32.35
Commercial Papers

Bankers' Acceptances

FGN Bonds

Percentage Change of Total

Source: Central Bank of Nigeria
1/ Provisional
Percentage Change Over Preceding December

Instrument

Table 17
Selected Interest Rates
(End-Period Rate)

Jun
Dec
Jun
Dec
Jun
Dec
Jun
Dec
Jun
End-Period Rates
Monetary Policy Rate

Treasury Bills Issue Rate

Inter-bank Call Rate

Open Buy Back (OBB)

NIBOR 7-days

NIBOR 30-days

Deposit Money Banks (DMBs)
(Weighted Average Rates)
Savings Deposit Rate

Time Deposit Rate (3 months)

Prime Lending Rate

Maximum Lending Rate

Sources: Financial Market Dealers Association (FMDA) and Central Bank of Nigeria

Table 18
Federation Account Operations
(N’ Billion)

2012 1/
2013 2/

1st Half
1st Half
1st Half
1st Half
1st Half
1st Half Budget
Total Revenue (Gross)


Oil Revenue (Gross)
1,538.86

2,445.42

3,828.05

4,357.61

3,648.04

3,867.07

Crude oil / Gas Exports
539.97

834.31

1,007.66

959.01

842.94

2,121.95

PPT and Royalties etc.
512.22

813.25

1,698.91

2,160.16

2,003.29

1,520.63

Domestic Crude Oil / Gas Sales
484.55

793.74

1,119.63

1,190.62

785.17

221.27

Other Oil Revenue
2.12

4.13

1.86

47.82

16.64

3.22

Less:
Deductions
425.75

1,141.34

2,136.53

2,214.56

1,281.47

1,076.73


Oil Revenue (Net)
1,113.11

1,304.08

1,691.53

2,143.05

2,366.57

2,790.34

Non-oil Revenue
687.33

830.45

930.91

1,219.61

1,149.01

1,802.81

Corporate Tax
203.62

261.50

243.26

281.82

341.37

496.02

Customs & Excise Duties
126.81

140.70

210.57

226.97

207.20

396.47

Value-Added Tax (VAT)
222.21

282.38

307.11

352.75

379.18

472.64

Independent Revenue of Fed. Govt.
54.28

65.21

92.93

226.70

70.20

227.89

Education Tax
37.57

31.57

14.57

48.71

51.80

62.71

Customs Special Levies (Federation Account)
38.67

44.92

61.82

79.10

95.46

60.71

National Information Technology Development Fund (NITDF)
4.18
4.17

0.64

3.57

3.80

5.01
Customs Special Levies (Non-Federation Account)


Less:
Cost of Collection
25.92

31.60

36.27

41.27

43.33

81.51

Non-Oil Revenue (Net)
661.41

798.85

894.64

1,178.34

1,105.69

1,721.31
Estmiated Balances in Special Accounts for the previous year


Federally-collected revenue (Net)
1,774.52

2,102.93

2,586.16

3,321.39

3,472.26

4,515.71

Federation Account Allocation:
1,774.53

2,102.93

2,586.16

3,321.39

3,472.26

4,515.71

Transfer to Federal Govt. Ind. Revenue
54.28

65.21

92.93

226.70

70.20

227.89

Transfer to VAT Pool Account
213.32

271.08

294.82

338.64

364.01

453.73

Other Tranfers 3/
80.42

80.66

77.03

131.37

151.06

143.13

Distributable Amount
Amount Distributed
1,426.51

1,685.98

2,121.38

2,624.68

2,886.98

3,690.96

Federal Government
675.26

795.99

1,001.70

1,235.91

1,358.79

1,753.17

State Government
342.50

403.74

508.08

626.87

689.20

889.23

Local Government
264.05

311.26

391.70

483.29

531.34

685.56

13% Derivation
144.70

174.99

219.90

278.60

307.65

363.00

Vat Pool Account
213.29

271.08

294.82

338.64

364.01

453.73

FG
32.00

40.66

44.22

50.79

54.60

68.06

SG
106.66

135.54

147.41

169.32

182.00

226.87

LG
74.63

94.88

103.19

118.52

127.40

158.81

Special Funds (FGN)
52.01

61.60

77.80

96.55

107.49

139.11

Federal Capital Territory
12.44

14.74

18.61

23.10

25.71

33.28

Ecology
12.44

14.74

18.61

23.10

25.71

33.28

Statutory Stabilization
6.22

7.37

9.31

11.55

12.86

16.64

Natural Resources
20.91

24.76

31.27

38.81

43.20

55.91

FCT VAT
2.13

2.71

2.95

3.39

3.64

4.54

Overall Balance

Deductions
425.75

1,141.34

2,136.53

2,214.56
1,281.47
1,076.73
JVC Cash calls
363.50

488.82

499.35

562.65
571.43
429.29
Excess Crude Proceeds
49.90

391.64

548.29

428.45
0.00
0.00
Excess PPT & Royalty
12.35

27.24

819.83

886.33
674.07
0.00
Domestic Subsidy

Others
0.00
0.00
-

260.00
35.96
161.87
Distribution from Excess Crude
219.76

442.82


Federal Government
58.65

202.95


State Government
93.16

102.94


Local Government
39.39

79.36


13% Derivation
28.57

57.57


Provisional Dist & Actual Budget (Diff)
119.09

39.87

162.90

0.00
0.00
0.00
Federal Government
54.58

18.27

74.66

0.00
0.00
0.00
State Government
27.68

9.27

37.87

0.00
0.00
0.00
Local Government
21.34

7.15

29.20

0.00
0.00
0.00
13% Derivation
15.48

5.18

21.18

0.00
0.00
0.00
Exchange Rate Gain

Federal Government

State Government

Local Government

13% Derivation

SURE-P 6/

Federal Government

State Government

Local Government

13% Derivation

NNPC Refund

Federal Government

State Government

Local Government

13% Derivation

Federation Revenue Augmentation
300.65

414.22

145.95

462.02

457.12

0.00
Federal Government
137.79

189.84

66.89

211.75

209.51

0.00
State Government
69.89

96.29

33.93

107.40

106.26

0.00
Local Government
53.88

74.24

26.16

82.80

81.92

0.00
13% Derivation
39.08

53.85

18.97

60.06

59.43

0.00
Total Excluding VAT
2,066.02

2,582.88

2,430.23

3,327.32

3,603.10

3,922.92

Federal Government
926.28

1,207.06

1,143.25

1,537.00

1,666.05

1,875.36

State Government
533.23

612.23

579.87

802.04

867.50

951.21

Local Government
378.66

472.01

447.06

618.34

668.80

733.34

13% Derivation
227.84

291.59

260.05

369.94

400.75

363.00

Total Statutory Revenue and VAT Distribution 3/
2,279.30

2,853.97

2,725.06

3,665.96

3,967.11

4,376.65

Federal Government
958.28

1,247.72

1,187.48

1,587.80

1,720.65

1,943.42

State Government
639.89

747.78

727.29

971.36

1,049.50

1,178.08

Local Government
453.30

566.89

550.25

736.86

796.21

892.15

13% Derivation
227.84

291.59

260.05

369.94

400.75

363.00

Source: Office of the Accountant-General of the Federation (OAGF)
1/ Revised
2/Provisional
3/ Includes Education Tax, Customs Levies and NITDF
Memorandum Items

Table 19
Summary of Federal Government Finances
(N’ Billion)

2009 First Half
2010 First Half
2011 First Half
2012 First Half
2013 2/ First
Half
2013 First Half
Budget
Total Federal Government Retained Revenue

Share of Federation Account (Gross)
675.26
795.99

1,001.70

1,235.91

1,358.79

1,753.17

Share of VAT Pool Account
32.00
40.66

44.22

50.79

54.60

68.06

Federal Government Independent Revenue
54.28
65.20

92.93

128.56

70.20

227.89

Share of Excess Crude Account

Revenue Augmentation

SURE-P

Others 3/

Total Expenditure

Recurrent Expenditure

Goods and Services

Personnel Cost
452.12
540.21

832.42
869.78

777.17

858.53

Pension
87.16
97.73

54.76
76.92

66.44

71.62

Overhead Cost
283.63
424.40

348.01

162.98
251.40
385.06
Interest Payments

Foreign

Domestic 4/

Transfers

FCT & Others (Special Funds)

Transfer to Financing

Capital Expenditure & Net Lending 5/

Domestic Financed Budgets

Budgetary

SURE-P

Transfers

NDDC

NJC
58.50
45.50
47.50

39.17
33.50
33.50
UBE
19.65
22.16
23.04

31.80
38.99
38.14
Refund of Signature Bonuses/Others
7.92
8.17
9.52

297.10
93.41
91.68
Balance Of Revenue And Expenditure
Primary Surplus (+)/Deficit (-)
(203.94)

(257.36)

(425.09)

30.32

(78.74)

697.94

Current Surplus(+)/Deficit(-)
249.43

93.02

(238.51)

348.77

312.99

(147.65)

Overall Surplus(+)/Deficit(-)
(324.26)

(427.93)

(650.23)

(278.55)

(394.25)

(443.53)

Financing:

Foreign(Net)
0.00
75.03
73.33

0.00
0.00
0.00
Domestic(Net)

Banking System

CBN

DMBs

Non Bank Public

Privatization Proceeds

FGN Share from Stabilization Fund Account

Signature Bonus

Excess Crude

Other Funds
324.26
(13.97)

5.91
71.05
(214.36)

37.50
Source: Office of the Accountant-General of the Federation (OAGF)
1/ Revised
2/ Provisional
3/ Includes FG's share of Federation Revenue Augmentation and Share of Difference between Provisonal and Approved Budget.
4/ Include Ways and Means Advances
5/ Includes net deductions for loans on lent to State,local governments and Federal parastatals/companies.

Table 20
Functional Classification of Federal Government Capital Expenditure
(Naira Billion)
First Half 2009
First Half 2010
First Half 2011
First Half 2012
First Half 2013 **
ADMINISTRATION
116.16

114.16

119.27

113.61

117.06

General Administration
70.56

69.12

75.05

68.16

63.80

National Assembly
4.15

3.10

3.15

3.23

-

Defence
18.59

18.09

15.99

16.45

23.33

Internal Security
22.86

23.85

25.09

25.77

29.93

ECONOMIC SERVICES
286.32

249.50

118.89

97.82

173.10

Agriculture & Natural Resources
46.66

35.67

19.30

20.79

37.36

Manuf., Mining & Quarrying
11.39

10.35

7.81

5.72

4.91

Transport & Communications
32.05

41.99

28.21

29.21

30.81

Housing
-

-

-

-

6.67

Roads & Construction
130.83

72.01

36.08

36.38

48.07

National Priority Projects
-

-

-

-

-

JVC Calls/NNPC Priority Projects
-

-

-

-

-

PTF
-

-

-

-

-

Counterpart Funding
-

-

-

-

-

NDDC
-

22.58

-

-

18.63

Others
65.39

66.91

27.50

5.72

26.65

SOCIAL & COMMUNITY SERVICES
72.14

62.98

54.85

39.62

54.17

Education
29.09

20.76

17.90

19.57

21.86

Health
18.18

17.15

14.97

15.68

23.27

Others
24.87

25.06

21.98

4.37

9.05

TRANSFERS 3/
0.17

18.47

10.60

8.19

197.02

Financial Obligations
-

-

-

-

-

Capital Repayments
-

-

-

-

-

Domestic
-

-

-

-

-

Foreign
-

-

-

-

-

External Obligations
-

-

-

-

-

Contingencies
-

-

-

-

-

Capital Supplementation
0.17

18.47

10.60

8.19

174.01

Net Lending to States/L.G.s/Parast.
-

-

-

-

-

Grants to States
-

-

-

-

-

Others
-

-

-

-

23.01

TOTAL
474.79

445.11

303.62

259.25

541.35

** Estimates
Sources: Federal Ministry of Finance and Central Bank of Nigeria
1/ Provisional
2/ Excludes statutory transfers to NDDC, NJC and UBE

Table 21
Functional Classification of Federal Government Recurrent Expenditure 1/
(Naira Billion)
2009 First Half 2/
2010 First Half 2/
2011 First Half
2012 First Half
2013 First Half **
ADMINISTRATION
457.75

568.00

698.01

725.16

594.16

General Administration
223.64

257.79

281.14

285.15

209.35

National Assembly
61.40

69.54

97.02

102.38

75.00

Defence
66.23

98.80

109.47

114.20

134.07

Internal Security
106.47

141.86

210.38

223.42

175.74

ECONOMIC SERVICES
88.58

155.62

195.35

130.46

89.15

Agriculture
19.16

13.37

15.99

16.55

16.71

Roads & Construction
10.06

17.89

20.57

18.86

14.52

Transport & Communications
32.70

35.96

43.33

40.73

8.88

Others
26.66

88.41

115.46

54.33

49.04

SOCIAL & COMMUNITY SERVICES
189.43

240.99

287.08

259.56

345.25

Education
102.47

107.17

130.42

132.38

188.73

Health
62.01

48.76

57.63

62.82

94.81

Others
24.95

85.07

99.02

64.36

61.72

TRANSFERS 4/
281.55

332.61

366.19

493.25

493.22

Public Debt Charges (Int)
120.32

170.56

225.15

314.46

315.52

Domestic
100.60

150.95

204.25

288.59

285.93

Foreign
19.72

19.62

20.90

25.87

29.59

Pensions & Gratuities
87.16

97.73

54.76

79.12

66.44

FCT & Others
74.06

64.31

86.28

99.67

111.26

Contingencies (Others)
-

-

-

-

-

External Obligations
-

-

-

-

-

Extra-Budgetary Expenditure
-

-

-

-

-

Deferred Custom Duties
-

-

-

-

-

Unspecified Expenditure
-

-

-

-

-

Others 4/
-

-

-

-

-

TOTAL
1,017.30

1,297.22

1,546.61

1,608.43

1,521.78

Sources: Federal Ministry of Finance, Office of Accountant General of the Federation and Central Bank of Nigeria
1/ Provisional
2/ Revised
2/ Excludes statutory transfers to NDDC, NJC and UBE
** Estimates

Table 22


Summary of Statutory & VAT Revenue Allocation to State Governments
(Naira Billion)
Gross
Stat.
Alloc. Deductions
13%
Derivatio
n
Total Net
Stat.
Alloc.
Augment
ation
Excess
Crude 2/
VAT
Total
Alloc.
Gross
Stat.
Alloc. Deductions
13%
Derivatio
n
Total Net
Stat.
Alloc.
Augment
ation
Exchange
Gain
Excess
Crude 2/
VAT
Total Gross
Allocation
Total Net
Alloc.
Gross
Stat.
Alloc. Deductions
13%
Derivatio
n
Total Net
Stat.
Alloc.
Augment
ation
Exchange
Gain
Excess
Crude 2/
VAT
Total
Gross
Alloc.
Total Net
Alloc.
Gross
Stat.
Alloc. Deductions
13%
Derivatio
n
Total Net
Stat.
Alloc.
Augment
ation
Exchange
Gain
Excess
Crude 2/
NNPC
Refund
SURE-P
VAT
Total Gross
Alloc.
Total Net
Alloc.
Gross
Stat.
Alloc. Deductions
13%
Derivatio
n
Total Net
Stat.
Alloc.
Augment
ation
Exchange
Gain
Excess
Crude 2/
NNPC
Refund
SURE-P
VAT
Total
Gross
Alloc.
Total Net
Alloc.

Abia
8.26

0.09

1.91

10.07

3.21

0.39

2.22

15.98

9.73

0.53

2.75

11.95

3.17

0.30

3.28

2.79

22.02

21.49

12.25

0.24

2.29

14.29

2.14

3.01

19.67

19.43

15.11

0.30

2.30

17.11

2.59

0.27

0.42

0.55

0.40

3.48

25.12

24.82

16.61

0.46

4.56

20.71

3.44

0.55

1.20

3.76

30.11

29.65

Adamawa
9.22

1.69

-

7.53

2.63

1.37

2.27

15.49

10.86

1.01

-

9.86

2.59

0.25

2.65

2.92

19.28

18.27

13.67

0.72

-

12.96

1.93

3.17

18.77

18.06

16.87

1.97

-

14.90

2.89

0.31

0.47

0.62

0.44

3.63

25.22

23.25

18.54

0.05

-

18.49

3.84

0.62

1.33

3.91

28.24

28.19

Akwa Ibom
9.32

0.79

36.60

45.13

18.02

18.51

2.45

84.91

10.99

1.26

49.09

58.82

17.73

1.71

18.84

3.53

101.88

100.62

13.83

(0.87)

55.39

70.09

11.08

4.08

84.38

85.25

17.06

6.17

99.61

110.50

2.92

0.31

0.47

0.61

0.45

4.44

125.88

119.70

18.76

4.93

113.61

127.44

3.88

0.61

1.35

4.74

142.94

138.02

Anambra
9.31

0.34

-

8.96

2.65

1.39

2.59

15.94

10.97

0.32

-

10.65

2.62

0.25

2.68

3.24

19.76

19.44

13.81

0.30

-

13.51

1.95

3.53

19.29

18.99

17.04

0.10

-

16.93

2.92

0.31

0.47

0.62

0.45

4.04

25.84

25.74

18.73

0.23

-

18.50

3.88

0.62

1.35

4.34

28.91

28.68

Bauchi
10.80

3.84

-

6.96

3.08

1.61

2.65

18.13

12.73

0.87

-

11.86

3.04

0.29

3.11

3.33

22.49

21.62

16.02

1.39

-

14.63

2.26

3.62

21.90

20.51

19.76

2.45

-

17.31

3.39

0.36

0.55

0.69

0.52

4.13

29.40

26.94

21.73

1.44

-

20.28

4.50

0.69

1.56

4.47

32.95

31.51

Bayelsa
7.39

0.93

19.86

26.32

8.38

6.27

1.94

43.84

8.72

5.83

20.27

23.15

8.32

0.80

8.80

2.51

49.41

43.58

10.97

12.48

42.77

41.26

9.12

2.78

65.64

53.16

13.52

14.53

69.26

68.26

2.32

0.24

0.38

0.48

0.36

3.29

89.85

75.32

14.88

11.43

85.71

89.15

3.08

0.48

1.07

3.76

108.97

97.54

Benue
9.95

0.42

-

9.53

2.84

1.48

2.55

16.82

11.73

0.77

-

10.96

2.80

0.27

2.87

3.18

20.84

20.07

14.76

2.18

-

12.58

2.09

3.47

20.32

18.14

18.21

2.31

-

15.90

3.12

0.33

0.51

0.66

0.48

4.08

27.40

25.09

20.03

2.12

-

17.90

4.15

0.66

1.44

4.27

30.55

28.42

Borno
10.98

0.71

-

10.27

3.13

1.64

2.49

18.23

12.94

0.11

-

12.83

3.09

0.30

3.16

3.23

22.72

22.61

16.29

0.07

-

16.21

2.30

3.50

22.09

22.02

20.10

1.37

-

18.73

3.44

0.36

0.56

0.70

0.53

4.05

29.75

28.39

22.10

0.20

-

21.89

4.58

0.70

1.59

4.25

33.22

33.01

Cross River
8.65

2.56

1.62

7.70

2.44

2.45

2.24

17.40

10.20

2.29

-

7.91

2.43

0.23

2.49

2.83

18.18

15.89

12.83

0.40

2.27

14.71

2.20

3.05

20.35

19.96

15.83

1.60

2.86

17.10

2.71

0.29

0.44

0.58

0.42

3.54

26.67

25.07

17.41

0.92

0.32

16.81

3.60

0.58

1.25

3.85

27.01

26.09

Delta
9.32

0.65

26.91

35.57

16.11

5.77

2.66

60.75

10.98

2.24

42.74

51.49

15.77

1.52

16.74

3.80

91.56

89.32

13.82

2.03

44.56

56.35

10.79

4.09

73.26

71.23

17.05

9.51

80.23

87.77

2.92

0.31

0.47

0.62

0.45

4.99

107.05

97.54

18.75

7.81

86.80

97.74

3.88

0.62

1.35

4.72

116.12

108.30

Ebonyi
7.64

0.21

-

7.43

2.18

1.14

2.12

13.08

9.01

0.22

-

8.78

2.15

0.21

2.20

2.63

16.20

15.97

11.33

3.50

-

7.84

1.60

2.90

15.83

12.34

13.98

3.65

-

10.34

1.92

0.25

0.39

0.52

0.37

3.34

20.77

17.13

15.37

2.93

-

12.45

3.18

0.52

1.11

3.54

23.73

20.80

Edo
8.70

0.46

1.35

9.60

3.48

0.68

2.36

16.57

10.25

0.96

3.15

12.45

3.42

0.33

3.54

3.22

23.91

22.96

12.90

0.96

3.88

15.82

2.65

3.38

22.81

21.85

15.92

3.98

6.90

18.84

3.20

0.29

0.44

0.61

0.42

4.01

31.79

27.81

17.50

3.49

8.77

22.78

3.62

0.61

1.26

4.14

35.90

32.41

Ekiti
7.71

0.71

-

7.00

2.20

1.15

2.21

13.26

9.08

0.18

-

8.90

2.17

0.21

2.22

2.65

16.33

16.15

11.43

0.14

-

11.29

1.62

2.89

15.94

15.79

14.11

2.94

-

11.17

2.42

0.26

0.39

0.52

0.37

3.35

21.41

18.47

15.51

2.22

-

13.29

3.21

0.52

1.12

3.62

23.97

21.75

Enugu
8.70

0.18

-

8.51

2.48

0.65

2.43

14.25

10.25

0.47

-

9.78

2.44

0.24

2.50

2.95

18.39

17.91

12.90

0.17

-

12.73

1.82

3.23

17.95

17.78

15.91

0.62

-

15.30

2.73

0.29

0.44

0.57

0.42

3.72

24.08

23.47

17.50

0.08

-

17.42

3.62

0.57

1.26

3.98

26.93

26.85

Gombe
8.17

0.62

-

7.56

2.33

1.22

2.11

13.83

9.64

0.66

-

8.97

2.30

0.22

2.35

2.68

17.18

16.52

12.13

0.42

-

11.70

1.71

2.90

16.74

16.31

14.96

3.14

-

11.82

2.30

0.27

0.42

0.53

0.39

3.35

22.22

19.07

16.45

2.43

-

14.01

3.41

0.53

1.18

3.58

25.14

22.71

Imo
9.28

2.31

2.26

9.24

3.48

2.16

2.45

19.64

10.94

2.76

2.69

10.87

3.44

0.33

3.56

3.11

24.07

21.31

13.77

3.12

2.51

13.16

2.36

3.42

22.06

18.95

16.99

2.75

4.04

18.28

3.17

0.31

0.47

0.61

0.45

3.93

29.97

27.22

18.68

2.22

4.58

21.04

3.87

0.61

1.34

4.27

33.34

31.13

Jigawa
10.20

1.56

-

8.64

2.90

1.52

2.60

17.22

12.02

0.82

-

11.20

2.87

0.28

2.94

3.28

21.38

20.56

15.13

0.15

-

14.98

2.14

3.63

20.90

20.75

18.66

1.04

-

17.63

3.20

0.34

0.52

0.67

0.49

4.10

27.98

26.95

20.52

0.36

-

20.16

4.25

0.67

1.48

4.47

31.39

31.03

Kaduna
11.62

1.06

-

10.56

3.31

1.73

3.02

19.68

13.70

0.87

-

12.83

3.27

0.31

3.35

3.86

24.49

23.62

17.24

1.81

-

15.43

2.44

4.20

23.87

22.07

21.27

1.82

-

19.45

3.64

0.39

0.59

0.75

0.56

4.97

32.18

30.36

23.38

1.94

-

21.45

4.84

0.75

1.68

5.17

35.83

33.89

Kano
14.56

1.31

-

13.25

4.15

2.17

4.25

25.13

17.17

0.52

-

16.65

4.09

0.39

4.20

5.32

31.18

30.66

21.61

0.44

-

21.17

3.05

5.62

30.28

29.84

26.66

1.95

-

24.71

4.57

0.48

0.74

0.92

0.70

6.47

40.54

38.59

29.31

0.58

-

28.73

6.07

0.92

2.11

6.92

45.33

44.75

Katsina
11.08

0.34

-

10.74

3.16

1.65

2.97

18.86

13.06

0.77

-

12.29

3.11

0.30

3.19

3.72

23.38

22.62

16.43

0.67

-

15.76

2.32

4.03

22.78

22.11

20.27

0.22

-

20.05

3.47

0.37

0.56

0.72

0.53

4.63

30.56

30.34

22.29

0.53

-

21.76

4.62

0.72

1.60

4.92

34.15

33.61

Kebbi
9.26

2.41

-

6.85

2.64

1.38

2.33

15.62

10.92

1.58

-

9.34

2.60

0.25

2.67

2.94

19.39

17.80

13.74

0.24

-

13.51

1.94

3.21

18.89

18.66

16.96

2.02

-

14.93

2.91

0.31

0.47

0.60

0.45

3.73

25.41

23.39

18.64

0.21

-

18.43

3.86

0.60

1.34

3.98

28.42

28.21

Kogi
9.24

1.51

-

7.74

2.63

1.38

2.32

15.57

10.89

0.77

-

10.13

2.60

0.25

2.66

3.14

19.54

18.78

13.71

0.91

-

12.80

1.94

3.30

18.95

18.04

16.92

1.21

-

15.71

2.90

0.31

0.47

0.60

0.45

3.82

25.46

24.25

18.60

0.09

-

18.51

3.85

0.60

1.34

3.97

28.35

28.26

Kwara
8.42

0.53

-

7.89

2.40

1.26

2.16

14.24

9.93

0.19

-

9.74

2.37

0.23

2.43

2.71

17.66

17.48

12.49

0.10

-

12.39

1.77

2.93

17.19

17.09

15.41

0.09

-

15.32

2.64

0.28

0.43

0.55

0.41

3.35

23.07

22.98

16.95

0.09

-

16.85

3.51

0.55

1.22

3.58

25.80

25.71

Lagos
13.16

4.30

-

8.85

3.75

1.96

19.25

38.12

15.51

3.75

-

11.76

3.70

0.36

3.79

23.74

47.09

43.34

19.52

3.63

-

15.89

2.76

26.34

48.62

44.99

24.08

3.77

-

20.31

4.13

0.44

0.67

0.87

0.63

30.01

60.82

57.06

26.47

8.93

-

17.54

5.48

0.87

1.90

32.69

67.41

58.48

Nasarawa
7.89

0.55

-

7.34

2.25

1.18

1.99

13.30

9.30

0.63

-

8.67

2.22

0.21

2.27

2.50

16.50

15.87

11.71

1.48

-

10.22

1.65

2.69

16.05

14.56

14.44

2.17

-

12.27

2.47

0.26

0.40

0.52

0.38

3.07

21.55

19.38

15.88

1.79

-

14.09

3.29

0.52

1.14

3.34

24.17

22.38

Niger
10.78

1.73

-

9.05

3.07

1.61

2.45

17.91

12.70

1.57

-

11.14

3.03

0.29

3.10

3.15

22.28

20.71

15.99

2.17

-

13.82

2.26

3.39

21.63

19.46

19.73

2.99

-

16.74

3.38

0.36

0.55

0.70

0.52

3.91

29.13

26.15

21.69

1.88

-

19.81

4.49

0.70

1.56

4.19

32.62

30.74

Ogun
9.01

0.33

-

8.68

2.57

1.34

2.47

15.39

10.62

0.21

-

10.41

2.53

0.24

2.59

3.08

19.07

18.86

13.36

0.26

-

13.10

1.89

3.39

18.64

18.39

16.49

0.13

-

16.36

2.82

0.30

0.46

0.59

0.43

3.95

25.04

24.91

18.12

0.11

-

18.01

3.75

0.59

1.30

4.20

27.96

27.85

Ondo
8.64

0.37

8.27

16.53

5.52

5.31

2.45

30.19

10.18

0.42

9.83

19.59

5.45

0.52

5.72

3.05

34.76

34.34

12.81

0.78

7.52

19.55

3.25

3.27

26.85

26.06

15.81

3.32

13.50

25.99

2.71

0.29

0.44

0.58

0.42

3.88

37.62

34.30

17.38

2.71

16.20

30.87

3.60

0.58

1.25

4.03

43.03

40.32

Osun
8.54

0.41

-

8.13

2.43

0.71

2.36

14.05

10.07

0.48

-

9.59

2.40

0.23

2.46

3.00

18.17

17.69

12.67

0.26

-

12.41

1.79

3.25

17.71

17.45

15.64

0.36

-

15.28

2.68

0.28

0.43

0.56

0.41

3.73

23.74

23.38

17.19

2.69

-

14.50

3.56

0.56

1.24

4.01

26.56

23.88

Oyo
10.76

1.05

-

9.72

3.07

1.61

3.14

18.57

12.69

1.46

-

11.23

3.03

0.29

3.10

3.84

22.95

21.49

15.97

1.09

-

14.88

2.26

4.17

22.39

21.30

19.70

0.64

-

19.05

3.38

0.36

0.55

0.70

0.52

4.60

29.80

29.16

21.66

0.38

-

21.28

4.48

0.70

1.56

4.97

33.38

32.99

Plateau
9.04

2.52

-

6.52

2.58

1.35

2.29

15.25

10.65

1.00

-

9.65

2.54

0.24

2.60

2.94

18.99

17.98

13.41

0.60

-

12.80

1.89

3.18

18.49

17.88

16.54

0.40

2.20

18.34

2.83

0.30

0.46

0.60

0.44

3.71

27.08

26.68

18.19

0.48

6.60

24.31

3.77

0.60

1.31

4.08

34.54

34.06

Rivers
10.10

0.16

45.93

55.87

16.61

29.08

3.88

105.61

11.91

0.62

44.47

55.76

16.52

1.59

17.54

5.42

97.45

96.83

14.99

2.16

55.98

68.81

12.03

5.46

88.47

86.30

18.49

1.58

88.99

105.89

3.17

0.33

0.51

0.66

0.49

5.74

118.38

116.79

20.33

0.80

88.90

108.43

4.21

0.66

1.46

7.01

122.58

121.78

Sokoto
9.61

1.37

-

8.24

2.74

1.43

2.61

16.39

11.33

0.15

-

11.18

2.70

0.26

2.77

3.05

20.11

19.96

14.25

0.14

-

14.12

2.01

3.41

19.68

19.54

17.59

1.03

-

16.56

3.01

0.32

0.49

0.63

0.46

3.88

26.39

25.36

19.34

0.26

5.02

24.09

4.00

0.63

1.39

4.19

34.57

34.31

Taraba
9.10

2.15

-

6.96

2.59

1.36

2.07

15.12

10.73

0.07

-

10.66

2.56

0.25

2.62

2.63

18.78

18.71

13.50

0.05

-

13.45

1.91

2.86

18.27

18.22

16.66

0.03

-

16.63

2.85

0.30

0.46

0.59

0.44

3.33

24.64

24.61

18.31

0.29

-

18.03

3.79

0.59

1.32

3.54

27.55

27.26

Yobe
9.03

0.51

-

8.52

2.57

1.35

2.05

15.00

10.65

0.22

-

10.43

2.54

0.24

2.60

2.66

18.69

18.47

13.40

0.23

-

13.17

1.89

2.95

18.24

18.01

16.53

0.57

-

15.96

2.83

0.30

0.46

0.58

0.44

3.37

24.51

23.94

18.18

0.11

-

18.07

3.76

0.58

1.31

3.57

27.40

27.29

Zamfara
9.06

0.89

-

8.17

2.58

1.35

2.28

15.27

10.68

0.72

-

9.96

2.55

0.25

2.61

2.90

18.98

18.26

13.44

0.93

-

12.51

1.90

3.12

18.46

17.53

16.58

3.59

-

12.99

2.84

0.30

0.46

0.60

0.44

3.70

24.91

21.32

18.23

0.37

-

17.86

3.78

0.60

1.31

4.01

27.92

27.55

Disputed Deriv.
-

-

-

-

-

-

-

-

-

-

-

-

0.05

0.05

-

0.05

0.05

-

0.02

0.05

0.04

-

-

0.05

0.04

Rivers/Akwa Disputed Fund
-

-

-

-

-

2.73

2.73

1.24

3.97

3.97

-

-

0.01

0.01

-

0.01

0.01

-

-

0.01

0.01

-

-

0.01

0.01

TOTAL
342.50

41.58

144.70

445.63

152.14

108.62

106.66

854.62

403.74

37.29

174.99

541.43

150.14

14.45

156.22

135.54

1,035.08

997.79

508.08

45.35

219.90

682.63

111.95

-

-

147.41

987.33

941.99

626.86

86.33

369.95

910.48

107.40

11.35

17.44

22.45

16.53

169.32

1,341.30

1,254.97

689.20

67.61

421.13

1,042.71

142.71

-

-

22.45

49.58

182.00

1,507.07

1,439.46

Source: Federation Account Allocation, Federal Ministry of Finance
1/ Provisional
2/ Includes the share of Oil-producing states from the excess crude
First Half 2013
First Half 2012
S/N
STATES
First Half 2009
First Half 2010
First Half 2011

Table 23
Allocation to Local Governments from the Federation and VAT Pools Accounts
(Naira Billion)
S/N
State
Fed. Acct
Excess
Crude
Budget
Augment
ation
Exchange
Gain
VAT
Total
Fed. Acct
Excess
Crude 1/
Budget
Augmentati
on
Exchange
Gain
VAT
Total
Fed. Acct
Excess
Crude
Budget
Augment
ation
Exchange
Gain
VAT
Total
Fed.
Acct.
Excess
Crude
Budget
Augment
ation
Exchange
Gain
NNPC
Refunds
SURE-P
VAT
Total
Fed.
Acct.
Excess
Crude
Budget
Augment
ation
Exchange
Gain
NNPC
Refunds
SURE-P
VAT
Total
1 Abia
5.85

0.82

1.57

-

1.3
9.6
6.75

1.65

1.55

0.15

1.7
9.6
8.17

-

1.15

-


1.7
0.18

0.36

0.27

2.1
15.0
11.08

-

1.71

-

0.36

0.80

2.2
16.2
2 Adamawa
6.74

1.06

2.02

-

1.6
11.4
8.09

2.13

1.99

0.19

2.0
11.4
10.51

-

1.49

-


2.2
0.23

0.48

0.34

2.5
19.1
14.26

-

2.20

-

0.48

1.03

2.7
20.6
3 Akwa-Ibom
9.34

1.39

2.66

-

2.2
15.6
11.02

2.81

2.63

0.25

3.0
15.6
13.86

-

1.96

-


2.9
0.31

0.58

0.45

3.7
25.6
18.80

-

2.90

-

0.58

1.35

4.0
27.6
4 Anambra
7.02

1.05

2.00

-

1.8
11.8
8.28

2.11

1.97

0.19

2.2
11.8
10.42

-

1.47

-


2.2
0.23

0.50

0.34

2.8
19.2
14.13

-

2.18

-

0.50

1.02

3.0
20.8
5 Bauchi
8.12

1.21

2.31

-

1.8
13.4
9.58

2.44

2.28

0.22

2.2
13.4
12.05

-

1.70

-


2.5
0.27

0.49

0.39

2.8
21.7
16.35

-

2.52

-

0.49

1.18

3.0
23.5
6 Bayelsa
2.99

0.45

0.85

-

0.7
5.0
3.52

0.90

0.84

0.08

0.9
5.0
4.43

-

0.63

-


0.9
0.10

0.19

0.14

1.2
8.2
6.01

-

0.93

-

0.19

0.43

1.4
9.0
7 Benue
8.26

1.23

2.35

-

1.8
13.7
9.74

2.48

2.32

0.22

2.3
13.7
12.25

-

1.73

-


2.6
0.27

0.55

0.40

2.9
22.3
16.62

-

2.56

-

0.55

1.20

3.1
24.0
8 Borno
9.49

1.42
2.70

-

2.0
15.6
11.19

2.85

2.67

0.26

2.6
15.6
14.08

-

1.99

-


3.0
0.31

0.61

0.46

3.2
25.4
19.10

-

2.95

-

0.61

1.37

3.4
27.4
9 Cross-River
5.90

0.88

1.68

-

1.4
9.8
6.95

1.77

1.66

0.16

1.7
9.8
8.75

-

1.24

-


1.9
0.20

0.40

0.28

2.2
16.0
11.87

-

1.83

-

0.40

0.85

2.4
17.3
10 Delta
7.80

1.16

2.22

-

2.0
13.2
9.19

2.34

2.19

0.21

2.8
13.2
11.57

-

1.63

-


2.4
0.26

0.53

0.38

3.6
21.9
15.69

-

2.42

-

0.53

1.13

3.5
23.3
11 Ebonyi
4.20

0.63

1.20

-

1.1
7.1
4.95

1.26

1.18

0.11

1.3
7.1
6.24

-

0.88

-


1.3
0.14

0.28

0.20

1.7
11.5
8.46

-

1.30

-

0.28

0.61

1.8
12.4
12 Edo
5.90

0.88

1.68

-

1.5
9.9
6.96

1.77

1.66

0.16

2.0
9.9
8.76

-

1.24

-


1.9
0.20

0.43

0.28

2.5
16.3
11.88

-

1.83

-

0.43

0.85

2.6
17.6
13 Ekiti
4.80

0.72

1.37

-

1.3
8.2
5.66

1.44

1.35

0.13

1.5
8.2
7.13

-

1.01

-


1.5
0.16

0.32

0.23

1.9
13.2
9.67

-

1.49

-

0.32

0.70

2.1
14.2
14 Enugu
5.69

0.85

1.62

-

1.5
9.6
6.71

1.71

1.60

0.15

1.8
9.6
8.44

-

1.19

-


1.8
0.19

0.37

0.27

2.2
15.5
11.45

-

1.77

-

0.37

0.82

2.4
16.8
15 Gombe
4.15

0.62

1.18

-

1.0
6.9
4.90

1.25

1.17

0.11

1.2
6.9
6.16

-

0.87

-


1.3
0.14

0.26

0.20

1.5
11.2
8.36

-

1.29

-

0.26

0.60

1.6
12.1
16 Imo
8.24

1.23

2.35

-

2.0
13.8
9.71

2.48

2.32

0.22

2.5
13.8
12.22

-

1.73

-


2.6
0.27

0.52

0.40

3.1
22.4
16.58

-

2.56

-

0.52

1.19

3.4
24.3
17 Jigawa
8.65

1.29

2.46

-

2.1
14.5
10.19

2.60

2.43

0.23

2.6
14.5
12.82

-

1.81

-


2.7
0.29

0.56

0.42

3.3
23.5
17.40

-

2.68

-

0.56

1.25

3.5
25.4
18 Kaduna
9.27

1.38

2.64

-

2.2
15.5
10.93

2.79

2.61

0.25

2.8
15.5
13.76

-

1.94

-


2.9
0.31

0.61

0.45

3.5
25.2
18.66

-

2.88

-

0.61

1.34

3.7
27.2
19 Kano
15.22

2.27

4.34

-

4.0
25.8
17.94

4.57

4.28

0.41

5.0
25.8
22.57

-

3.19

-


4.8
0.50

0.97

0.73

6.1
41.7
30.62

-

4.72

-

0.97

2.20

6.6
45.1
20 Katsina
11.13

1.66

3.17

-

2.7
18.6
13.12

3.34

3.13

0.30

3.3
18.6
16.50

-

2.33

-


3.5
0.37

0.73

0.54

4.2
30.2
22.39

-

3.45

-

0.73

1.61

4.4
32.6
21 Kebbi
6.91

1.03

1.97

-

1.6
11.5
8.15

2.08

1.94

0.19

2.0
11.5
10.25

-

1.45

-


2.2
0.23

0.45

0.33

2.5
18.7
13.91

-

2.14

-

0.45

1.00

2.7
20.2
22 Kogi
7.16

1.07

2.04

-

1.6
11.9
8.44

2.15

2.01

0.19

2.1
11.9
10.63

-

1.50

-


2.2
0.24

0.45

0.35

2.6
19.3
14.41

-

2.22

-

0.45

1.04

2.7
20.8
23 Kwara
5.50

0.82

1.57

-

1.2
9.1
6.48

1.65

1.55

0.15

1.5
9.1
8.16

-

1.15

-


1.7
0.18

0.37

0.27

1.9
14.8
11.07

-

1.71

-

0.37

0.80

2.0
16.0
24 Lagos
9.24

1.38

2.63

-

12.0
25.3
10.90

2.78

2.60

0.25

14.2
25.3
13.71

-

1.94

-


2.9
0.31

0.65

0.45

17.8
39.5
18.60

-

2.87

-

0.65

1.34

19.3
42.7
25 Nassarawa
4.40

0.66

1.25

-

1.0
7.3
5.19

1.32

1.24

0.12

1.2
7.3
6.53

-

0.92

-


1.4
0.15

0.29

0.21

1.5
11.8
8.86

-

1.37

-

0.29

0.64

1.6
12.8
26 Niger
8.92

1.33

2.54

-

1.9
14.7
10.52

2.68

2.51

0.24

2.4
14.7
13.23

-

1.87

-


2.8
0.30

0.58

0.43

3.0
23.9
17.95

-

2.77

-

0.58

1.29

3.2
25.8
27 Ogun
6.60

0.98

1.88

-

1.6
11.1
7.78

1.98

1.86

0.18

2.0
11.1
9.79

-

1.38

-


2.1
0.22

0.44

0.32

2.6
18.1
13.28

-

2.05

-

0.44

0.96

2.8
19.5
28 Ondo
6.09

0.91

1.74

-

1.5
10.3
7.18

1.83

1.71

0.16

1.9
10.3
9.04

-

1.28

-


1.9
0.20

0.40

0.29

2.4
16.7
12.26

-

1.89

-

0.40

0.88

2.5
17.9
29 Osun
8.30

1.24

2.37

-

2.0
14.0
9.79

2.50

2.33

0.22

2.6
14.0
12.32

-

1.74

-


2.6
0.28

0.58

0.40

3.2
22.7
16.71

-

2.58

-

0.58

1.20

3.5
24.6
30 Oyo
10.62

1.58

3.03

-

2.7
17.9
12.52

3.19

2.99

0.29

3.3
17.9
15.75

-

2.23

-


3.3
0.35

0.70

0.51

4.1
28.9
21.37

-

3.29

-

0.70

1.54

4.4
31.3
31 Plateau
6.08

0.91

1.73

-

1.4
10.1
7.16

1.83

1.71

0.16

1.8
10.1
9.02

-

1.27

-


1.9
0.20

0.39

0.29

2.2
16.4
12.23

-

1.89

-

0.39

0.88

2.4
17.8
32 Rivers
7.96

1.19

2.27

-

2.7
14.1
9.38

2.39

2.24

0.22

3.6
14.1
11.81

-

1.67

-


2.5
0.26

0.51

0.38

3.9
22.6
16.02

-

2.47

-

0.51

1.15

4.7
24.8
33 Sokoto
7.63

1.14

2.17

-

1.9
12.8
8.99

2.29

2.14

0.21

2.2
12.8
11.32

-

1.60

-


2.4
0.25

0.50

0.37

2.8
20.7
15.35

-

2.37

-

0.50

1.10

3.0
22.3
34 Taraba
6.07

0.91

1.73

-

1.2
9.9
7.16

1.83

1.71

0.16

1.5
9.9
9.01

-

1.27

-


1.9
0.20

0.39

0.29

1.9
16.1
12.22

-

1.88

-

0.39

0.88

2.0
17.4
35 Yobe
5.89

0.88

1.68

-

1.2
9.7
6.94

1.77

1.66

0.16

1.6
9.7
8.74

-

1.23

-


1.8
0.20

0.39

0.28

2.0
15.8
11.85

-

1.83

-

0.39

0.85

2.1
17.0
36 Zamfara
5.53

0.82

1.57

-

1.2
9.2
6.52

1.66

1.55

0.15

1.6
9.2
8.20

-

1.16

-


1.7
0.18

0.34

0.27

2.0
14.9
11.13

-

1.72

-

0.34

0.80

2.2
16.1
37 FCT Abuja
2.35

0.35

0.67

-

2.4
5.7
2.77

0.71

0.66

0.06

3.9
5.7
3.49

-

0.49

-


0.7
0.08

0.14

0.11

5.1
10.6
4.73

-

0.73

-

0.14

0.34

5.6
11.6
TOTAL


79.4

74.2

7.1
94.9

453.3

391.7

-

55.4

-

103.2

550.2

483.3

13.4
82.8


736.9

531.34

-

81.90

-

17.31
38.23
127.40

796.20

Source: Federation Account Allocation, Federal Ministry of Finance
1/ Revised
2/ Provisional
VAT: Value Added Tax
LGA: Local Governments Areas
First Half 2009
First Half 2010
First Half 2011
First Half 2013 2/
First Half 2012

Table 24
Domestic Debt of the Federal Government
(Naira Billion)
First Half 2009
First Half 2010
First Half 2011
First Half 2012 End-December 2012 First Half 2013 1/ 2/
1. Composition of Debt
i Treasury Bills
641.93

901.02

1,561.42

2,084.59

2,122.93

2,483.29

ii Treasury Bonds
392.07

392.07

372.90

353.73

334.56

334.56

iii Development Stocks
0.52

0.22

-

0.00
0.00
0.00
iv FGN Bonds
1,778.27

2,408.43

3,276.11

3,714.55
4,080.05
4,032.90
v Promissory Note
-

63.03

-

0.00
0.00
0.00
Total
2,812.79

3,764.76

5,210.44

6,152.87

6,537.54

6,850.75

2. Holders
i Banking System
1,984.14

2,662.82

3,881.31

4,425.17

4,701.82

4,927.08

a. Central Bank
286.95

440.37

595.12

683.44

726.16

760.96

b. Deposit Money Banks
1,697.19

2,222.45

3,286.18

3,741.73

3,975.65

4,166.13

ii Non-Bank Public
699.69

931.38

1,081.53

1,443.30

1,533.53

1,607.00

iii Sinking Fund
128.96

170.57

247.59

284.41

302.19

316.67

Total Debt Outstanding
2,812.79

3,764.76

5,210.44

6,152.87

6,537.54

6,850.75

1/ Provisional
2/ Figures for Holders are Estimates
Source: Debt Management Office


Table 25
Domestic Debt Service Payments of the Federal Government By Instruments
(Naira Billion)
1st Half 2009
1st Half 2010
1st Half 2011
1st Half 2012
1st Half 2013 1/
i Treasury Bills
16.05

14.23

73.38

173.60

170.34

ii Treasury Bonds
29.45

18.75

18.75

18.75

18.75

iv Development Stocks
0.03

0.33

0.23

-

-

v FGN Bonds
158.48

111.87

136.24

156.55

234.13

Total
204.01

145.18

228.61

348.90

423.22

Source: Debt Management Office
Note: Debt Service excludes sinking fund charges
1/ 2009 to 2012 Figures are Revised

Table 26
External Debt Outstanding
(US$ Million)
Holders
First Half 2009
First Half 2010
First Half 2011
First Half 2012
End-December

First Half 2013
1. Multilateral
3,219.65

3,860.68

4,563.39

4,950.66

5,267.42

5,538.70

2. Paris Club
-

-

-

-

-

-

3. London Club
-

-

-

-

-

-

4. Promissory Notes
-

-

-

-

-

-

5. Others 2/
499.59

409.03

834.65

1,085.00

1,259.66

1,381.40

Total Debt Outstanding
3,719.24

4,269.71

5,398.04

6,035.66

6,527.08

6,920.10

Source: Debt Management Office (DMO)
1/ Provisional
2/ Includes Non-Paris Bilateral and Commercial debts and Euro bond


Table 27
External Debt Service Payments
(US$ Billion)
First Half 2009
First Half 2010
First Half 2011
First Half 2012 1/
First Half 2013 2/
London Club
-

-

-

-

-

Paris Club
-

-

-

-

-

Multilateral
55.08

133.88

95.51

63.81

70.91

(i) I. B. R.D.
45.93

46.92

27.82

-

-

(ii) E. I. B.
0.20

1.59

-

-

-

(iii) A.D.B. & Others
8.95

85.37

67.69

63.81

70.91

Promissory Notes
-

-

-

-

-

Others 3/
36.10

43.72

80.96

88.35

79.17

Total
91.18

177.60

176.47

152.16

150.08

Source: Debt Management Office
1/ Includes Non-Paris Bilateral and Non-Paris Commercial Debts

Table 28
Consolidated Debt Outstanding
(Naira Billion)
Holders
First Half 2009
First Half 2010
First Half 2011
First Half 2012
End-December 2012
First Half 2013 1/
External Debt
551.26

640.41

827.56

950.26

1,026.89

1,088.58

Domestic Debt
2,812.79

3,764.76

5,210.44

6,152.87

6,537.54

6,850.75

Total Consolidated Debt
3,364.05

4,405.18

6,038.00

7,103.13

7,564.43

7,939.33

Source: Debt Management Office (DMO)
1/ Provisional

Table 29
Gross Domestic Product at 1990 Constant Basic Prices
(Naira Billion unless otherwise stated)
First Half 2011 1/
First Half 2012 2/
First Half 2013 2/
1. Agriculture
138.17

144.09

150.13

38.48
37.73
36.86
(a) Crop Production
120.05

124.93

130.06

33.43
32.71
31.93
(b) Livestock
10.63

11.23

11.73

2.96
2.94
2.88
(c) Forestry
2.11

2.24

2.35

0.59
0.59
0.58
(d) Fishing
5.38

5.70

5.98

1.50
1.49
1.47
2. Industry
67.85

67.76

68.42

18.89
17.74
16.80
(a) Crude Petroleum
57.37

56.48

56.13

15.97
14.79
13.78
(b) Mining & Quarrying
1.20

1.34

1.50

0.33
0.35
0.37
(c) Manufacturing
9.28

9.94

10.78

2.58
2.60
2.65
3. Building & Construction
8.76

9.91

11.44

2.44
2.59
2.81
4. Wholesale & Retail Trade
70.78

76.81

83.26

19.71
20.11
20.44
5. Services
73.54

83.39

94.07

20.48
21.83
23.09
(a) Transport
10.44

11.08

11.76

2.91
2.90
2.89
(b) Communication
21.15

27.83

34.88

5.89
7.29
8.56
(c) Utilities
10.22

10.56

11.04

2.85
2.77
2.71
(d) Hotel & Restaurant
2.12

2.38

2.70

0.59
0.62
0.66
(e) Finance & Insurance
14.74

15.37

16.05

4.10
4.03
3.94
(f) Real Estate & Business Services
7.52

8.26

9.10

2.09
2.16
2.23
(h) Producers of Govt. Services
3.66

3.87

4.08

1.02
1.01
1.00
(I) Comm., Social & Pers. Services
3.68

4.04

4.46

1.02
1.06
1.10
TOTAL (GDP)
359.10

381.95

407.32

100.00
100.00
100.00
NON-OIL (GDP)
301.73

325.47

351.18

84.03
85.21
86.22
TOTAL GDP GROWTH RATE (%)
7.24
6.36

6.64

OIL GDP GROWTH RATE (%)
0.50
(1.55)

(0.61)

NON-OIL GDP GROWTH RATE (%)
8.63
7.87

7.90

Of which: Agriculture (%)
5.53
4.28

4.19

Industry (%)
1.53
(0.13)

0.98

Building & Construction (%)
12.65
13.03

15.52

Wholesale & Retail Trade (%)
10.67
8.52

8.39

Services (%)
12.51
13.39

12.81

Source: National Bureau of Statistics
1/ Revised
2/ Provisional
Activity Sector
First Half 2011 1/
First Half 2012 2/
First Half 2013 2/
Share of Total GDP (Per Cent)

Table 30
Gross Domestic Product at Current Basic Prices
(Naira Billion unless otherwise stated)
First Half 2011 1/
First Half 2012 2/
First Half 2013 2/
1. Agriculture
4,942.84

5,456.96

6,078.31

27.46
28.75
29.84
(a) Crop Production
4,324.38

4,763.05

5,287.77

24.03
25.09
25.96
(b) Livestock
357.40

402.06

458.17

1.99
2.12
2.25
(c) Forestry
66.58

74.62

83.41

0.37
0.39
0.41
(d) Fishing
194.47

217.24

248.96

1.08
1.14
1.22
2. Industry
8,141.93

7,864.98

7,754.34

45.24
41.43
38.07
(a) Crude Petroleum
7,910.94

7,605.83

7,465.55

43.95
40.07
36.65
(b) Mining & Quarrying
24.31

26.51

30.21

0.14
0.14
0.15
(c) Manufacturing
206.68

232.64

258.58

1.15
1.23
1.27
3. Building & Construction
236.30

274.37

318.09

1.31
1.45
1.56
4. Wholesale & Retail Trade
2,804.21

3,237.47

3,755.71

15.58
17.05
18.44
5. Services
1,873.54

2,149.31

2,461.12

10.41
11.32
12.08
(a) Transport
267.90

310.20

342.98

1.49
1.63
1.68
(b) Communication
154.81

174.99

198.98

0.86
0.92
0.98
(c) Utilities
39.25

43.71

50.43

0.22
0.23
0.25
(d) Hotel & Restaurant
62.12

71.37

82.37

0.35
0.38
0.40
(e) Finance & Insurance
297.86

328.01

374.49

1.65
1.73
1.84
(f) Real Estate & Business Services
702.73

819.62

946.68

3.90
4.32
4.65
(h) Producers of Govt. Services
164.26

183.22

208.52

0.91
0.97
1.02
(I) Comm., Social & Pers. Services
184.61

218.18

256.66

1.03
1.15
1.26
TOTAL (GDP)
17,998.83

18,983.09

20,367.57

100.00
100.00
100.00
NON-OIL (GDP)
10,087.88

11,377.26

12,902.02

56.05
59.93
63.35
TOTAL GDP GROWTH RATE (%)
16.35

5.47

7.29

OIL GDP GROWTH RATE (%)
16.86

(3.86)

(1.84)

NON-OIL GDP GROWTH RATE (%)
15.95

12.78

13.40

Of which: Agriculture (%)
14.20

10.40

11.39

Industry (%)
16.79

(3.40)

(1.41)

Building & Construction (%)
18.62

16.11

15.93

Wholesale & Retail Trade (%)
19.87

15.45

16.01

Services (%)
14.86

14.72

14.51

Source: National Bureau of Statistics
1/ Revised
2/ Provisional
Activity Sector
First Half 2011 1/
First Half 2012 2/
First Half 2013 2/
Share of Total GDP (Per Cent)

Table 31
Selected Real Sector Indicators
(Per cent, except otherwise indicated)

2012/1
2013/2
First Half
First Half
First Half
First Half
First Half
Agricultural Production Index (1990 = 100)
Aggregate

Crops

Staples

Other Crops

Livestock

Fishery

Forestry

Indices of Average World Prices of Nigeria's Major Agricultural
Export Commodities (1990 = 100) (Dollar Based)
All Commodities

Cocoa

Coffee

Cotton

Palm Oil

Copra

Soya Bean

GROWTH RATE OVER THE PRECEEDING PERIOD (%)
Agricultural Production Index (1990 = 100)
Aggregate

Crops

Staples

Other Crops

Livestock

Fishery

Forestry

Indices of Average World Prices of Nigeria's Major Agricultural
Export Commodities (1990 = 100) (Dollar Based)
All Commodities

Cocoa

Coffee

Cotton

Palm Oil

Copra

Soya Bean

Industrial Production Index (1990 = 100)
Industrial Production Index

Manufacturing Production Index

Mining Production Index

Electricity Production Index

Capacity Utilization Rate (%)

Inflation Rate (12-Month Moving Average)

Inflation Rate (Year-on-Year)

Food Inflation Rate (Year-on-Year)

Non-Food Inflation Rate (Year-on-Year)

1/Revised
2/Provisional
Item

Table 31 cont’d
Selected Real Sector Indicators
(Per cent, except otherwise indicated)
2013 2/
First Half
Second Half
First Half
Second Half
First Half
(1)
(2)
(3)
(1) & (3)
(2) & (3)
(1) & (3)
(2) & (3)
World Crude Oil Production
million barrels per day (mbd)
OPEC

Crudes

NGLs and condensates

Total non-OPEC

Total World Supply

Demand
OECD

Non-OECD

Total World Demand

Nigeria
Output

Exports

Domestic Consumption

Average Spot Price of Selected Crude Oil
at the International Oil Market (US$)
UK Brent

Arab Light
West Texas Intermediate (WTI)

Bonny Light

Forcados

OPEC Basket

Gas Activities
(MMm
3)
Gas Produced

Gas sold to Industries
Gas sold for LNG
Gas used as Fuel
Gas Reinjected
Gas Lift
Gas Converted to NGLs
Total Gas Utilised

Gas Utilised as % of Gas Produced

Gas Flared

Gas Flared as % Gas Produced

Sources: OPEC, NNPC, Reuters & CBN Estimates
1/ Revised
2/ Provisional
Item
2011 1/
Absolute Change
Between
Percentage
Change Between
2012 1/

Table 32
Composite Consumer Price Index
(November 2009=100)
Monthly
Index
Inflation
y-o-y(%)
12-Month
Average
Index
Inflation
12-Month
Average(%)
Monthly
Index
Inflation
y-o-y(%)
Inflation
12-Month
Average(%)
Monthly
Index
Inflation
y-o-y(%)
Inflation
12-Month
Average(%)

January

February

March

April

May

June

July

August

September

October

November


December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

Source: National Bureau of Statistics (NBS)
All Item (Headline)
All Items less Farm Produce (Core)
Food
Year
&
Month

Table 33
Urban and Rural Consumer Price Index
(November 2009=100)
All Items
(Headline)
Monthly Index
Headline
Inflation
y-o-y(%)
All Items less Farm
Produce (Core)
Monthly Index
Core
Inflation
y-o-y(%)
Food
Monthly
Index
Food
Inflation
y-o-y(%)
All Items
(Headline)
Monthly Index
Headline
Inflation
y-o-y(%)
All Items less Farm
Produce (Core)
Monthly Index
Core
Inflation
y-o-y(%)
Food
Monthly
Index
Food
Inflation
y-o-y(%)

January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

Source: National Bureau of Statistics (NBS)
Year
&
Month
Rural
Urban

Table 34
Balance of Payments Analytic Presentation
(US$ Million)
1st Half 2012 /2
2nd Half 2012 /2
1st Half 2013/1
CURRENT ACCOUNT
6,588.82

13,839.54

11,823.62

Goods
18,217.70

24,257.15

18,753.81

Exports (fob)
49,387.22

46,644.41

43,766.83

Oil and Gas
47,789.41

45,194.22

41,970.76

Non-oil
1,597.80

1,450.19

1,796.07

Imports (fob)
(31,169.51)

(22,387.26)

(25,013.02)

Oil
(11,064.40)

(8,117.84)

(8,279.50)

Non-oil
(20,105.11)

(14,269.42)

(16,733.52)

Unrecorded(TPAdj)
-

-

-

Services(net)
(10,792.20)

(10,921.52)

(9,705.59)

Credit
1,210.16

1,209.61

942.66

Transportation
720.14

685.52

460.02

Travel
281.83

277.19

275.66

Insurance Services
1.02

0.76

2.13

Communication Services
23.33

27.60

24.24

Construction Services
-

-

-

Financial Services
4.01

7.34

10.53

Computer & information Services
-

-

-

Royalties and License Fees
-

-

-

Government Services
153.51

182.16

140.24

Personal, cultural & recreational services
-

-

-

Other Bussiness Services
26.32

29.05

29.85

Debit
(12,002.36)

(12,131.13)

(10,648.25)

Transportation
(5,162.01)

(4,614.26)

(4,289.19)

Travel
(3,630.18)

(2,560.88)

(2,554.80)

Insurance Services
(412.68)

(322.32)

(323.76)

Communication Services
(178.51)

(234.67)

(262.71)

Construction Services
(35.44)

(76.54)

(11.83)

Financial Services
(168.38)

(265.63)

(293.30)

Computer & information Services
(90.79)

(86.49)

(36.91)

Royalties and License Fees
(126.42)

(126.42)

(126.42)

Government Services
(635.90)

(905.52)

(910.53)

Personal, cultural & recreational services
(26.72)

(47.35)

(16.34)

Other Bussiness Services
(1,535.34)

(2,891.05)

(1,822.48)

Income(net)
(11,470.90)

(10,849.50)

(7,921.34)

Credit
471.29

493.01

503.97

Investment Income
379.25

403.10

405.08

Compensation of employees
92.05

89.91

98.89

Debit
(11,942.19)

(11,342.51)

(8,425.31)

Investment Income
(11,935.87)

(11,334.03)

(8,414.16)

Compensation of employees
(6.32)

(8.47)

(11.15)

Current transfers(net)
10,634.22

11,353.40

10,696.73

Credit
10,801.92

11,671.81

10,935.87

General Government
973.76

961.96

902.91

Other Sectors
9,828.16

10,709.85

10,032.96

Workers Remittance
9,822.39

10,705.53

10,020.89

Debit
(167.70)

(318.41)

(239.14)

General Government
-

(163.47)

(85.03)

Other Sectors
(167.70)

(154.94)

(154.11)

Workers Remittance
(12.49)

(11.73)

(13.80)

CAPITAL AND FINANCIAL ACCOUNT
1,462.54

(13,939.00)

1,252.95

Capital account(net)
-

-

-

Credit
-

-

-

Capital Transfers(Debt Forgiveness)
-

-

-

Debit
-

-

-

Capital Transfers
-

-

-

Financial account(net)
1,462.54

(13,939.00)

1,252.95

Assets
(7,356.00)

(30,263.20)

(14,116.26)

Direct investment (Abroad)
(386.61)

(1,155.95)

(509.57)

Portfolio investment
(970.79)

(1,115.42)

(3,785.35)

Other investment
(3,196.19)

(19,606.24)

(8,639.64)

Change in Reserve
(2,802.41)

(8,385.59)

(1,181.70)

Liabilities
8,818.54

16,324.19

15,369.20

Direct Invesment in reporting economy
2,563.29

4,564.09

2,763.80

Portfolio Investment
6,437.28

10,763.21

13,346.86

Other investment liabilities
(182.04)

996.90

(741.46)

NET ERRORS AND OMISSIONS
(8,051.36)

99.46

(13,076.56)

Memorandum Items:
1st Half 2012 /2
2nd Half 2012 /2
1st Half 2013/1
Current Account Balance as % of G.D.P
5.39

10.28

8.89

Capital and Financial Account Balance as % of G.D.P
1.20

(10.36)

1.01

Overall Balance as % of G.D.P
2.29

6.23

0.89

External Reserves - Stock (US $ million)
35,412.50

43,830.42

44,957.00

Number of Months of Imports Equivalent
6.82

11.75

10.78

External Debt Stock (US$ million)
6,035.66

6,527.07

6,920.10

Debt Service Due as % of Exports of Goods Non Factor Services
-

-

-

Effective Central Exchange Rate (N/$)
156.37

156.09

156.03

Average Exchange Rate (N/$)
157.65

157.35

156.67

End-Period Exchange Rate (N/$)
157.50

157.33

156.03

Source: Central Bank of Nigeria
1/ Provisional
2/ Revised

Table 35
Balance of Payments Analytic Presentation
(N’ Million)
1st Half 2012 /2
2nd Half 2012 /2
1st Half 2013/1
CURRENT ACCOUNT
1,031,096.51

2,160,381.74

1,844,840.51

Goods
2,849,594.24

3,786,417.08

2,926,163.37

Exports (fob)
7,723,682.63

7,280,684.12

6,828,928.16

Oil and Gas
7,473,840.14

7,054,333.35

6,548,687.38

Non-oil
249,842.49

226,350.77

280,240.78

Imports (fob)
(4,874,088.40)

(3,494,267.04)

(3,902,764.78)

Oil
(1,730,231.34)

(1,267,056.43)

(1,291,842.76)

Non-oil
(3,143,857.06)

(2,227,210.61)

(2,610,922.02)

Unrecorded(TPAdj)
-

-

-

Services(net)
(1,687,802.35)

(1,704,633.74)

(1,514,359.40)

Credit
189,280.37

188,813.74

147,083.60

Transportation
112,621.90

107,007.14

71,776.22

Travel
44,071.59

43,265.61

43,011.62

Insurance Services
159.27

118.94

332.44

Communication Services
3,647.50

4,307.96

3,782.16

Construction Services
-

-

-

Financial Services
625.59

1,145.09

1,642.28

Computer & information Services
-

-

-

Royalties and License Fees
-

-

-

Government Services
24,039.85

28,435.46

21,881.28

Personal, cultural & recreational services
-

-

-

Other Bussiness Services
4,114.67

4,533.55

4,657.61

Debit
(1,877,082.73)

(1,893,447.48)

(1,661,443.01)

Transportation
(807,234.83)

(720,216.75)

(669,241.91)

Travel
(567,712.24)

(399,727.78)

(398,623.34)

Insurance Services
(64,535.20)

(50,310.21)

(50,516.49)

Communication Services
(27,920.52)

(36,629.87)

(40,990.98)

Construction Services
(5,542.03)

(11,947.78)

(1,845.17)

Financial Services
(26,319.87)

(41,461.59)

(45,763.12)

Computer & information Services
(14,200.56)

(13,501.80)

(5,758.31)

Royalties and License Fees
(19,768.56)

(19,732.59)

(19,725.27)

Government Services
(99,448.17)

(141,342.45)

(142,069.62)

Personal, cultural & recreational services
(4,171.57)

(7,392.57)

(2,549.40)

Other Bussiness Services
(240,229.18)

(451,184.08)

(284,359.40)

Income(net)
(1,793,569.15)

(1,693,497.63)

(1,235,970.18)

Credit
73,695.06

76,954.88

78,634.68

Investment Income
59,303.32

62,920.90

63,204.53

Compensation of employees
14,391.74

14,033.97

15,430.15

Debit
(1,867,264.21)

(1,770,452.51)

(1,314,604.86)

Investment Income
(1,866,274.00)

(1,769,129.88)

(1,312,865.14)

Compensation of employees
(990.21)

(1,322.63)

(1,739.72)

Current transfers(net)
1,662,873.77

1,772,096.02

1,669,006.72

Credit
1,689,096.95

1,821,796.25

1,706,319.36

General Government
152,247.50

150,151.35

140,879.99

Other Sectors
1,536,849.45

1,671,644.90

1,565,439.37

Workers Remittance
1,535,946.94

1,670,970.89

1,563,555.56

Debit
(26,223.18)

(49,700.23)

(37,312.64)

General Government
-

(25,515.91)

(13,267.44)

Other Sectors
(26,223.18)

(24,184.32)

(24,045.20)

Workers Remittance
(1,953.43)

(1,830.60)

(2,153.21)

CAPITAL AND FINANCIAL ACCOUNT
231,158.16

(2,175,798.72)

195,479.15

Capital account(net)
-

-

-

Credit
-

-

-

Capital Transfers(Debt Forgiveness)
-

-

-

Debit
-

-

-

Capital Transfers
-

-

-

Financial account(net)
231,158.16

(2,175,798.72)

195,479.15

Assets
(1,147,739.66)

(4,723,735.95)

(2,202,571.62)

Direct investment (Abroad)
(60,216.14)

(180,420.29)

(79,508.54)

Portfolio investment
(151,622.87)

(174,089.16)

(590,621.06)

Other investment
(496,997.83)

(3,060,239.43)

(1,348,040.21)

Change in Reserve
(438,902.82)

(1,308,987.07)

(184,401.81)

Liabilities
1,378,897.82

2,547,937.23

2,398,050.78

Direct Invesment in reporting economy
401,102.81

712,315.72

431,233.68

Portfolio Investment
1,006,971.47

1,679,979.98

2,082,507.45

Other investment liabilities
(29,176.45)

155,641.53

(115,690.35)

NET ERRORS AND OMISSIONS
(1,262,254.67)

15,416.98

(2,040,319.67)

Memorandum Items:
1st Half 2012 /2
2nd Half 2012 /2
1st Half 2013/1
Current Account Balance as % of G.D.P
5.39

10.28

8.89

Capital and Financial Account Balance as % of G.D.P
1.20

(10.36)

1.01

Overall Balance as % of G.D.P
2.29

6.23

0.89

External Reserves - Stock (US $ million)
35,412.50

43,830.42

44,957.00

Number of Months of Imports Equivalent
6.82

11.75

10.78

External Debt Stock (US$ million)
6,035.66

6,527.07

6,920.10

Debt Service Due as % of Exports of Goods Non Factor Services
-

-

-

Effective Central Exchange Rate (N/$)
156.37

156.09

156.03

Average Exchange Rate (N/$)
157.65

157.35

156.67

End-Period Exchange Rate (N/$)
157.50

157.33

156.03

Source: Central Bank of Nigeria
1/ Provisional
2/ Revised

Table 36
Foreign Exchange Flows Through the Economy
(US$ Million)
1st Half
1st Half
1st Half
1st Half
1st Half
CATEGORY

2012 /2
2013 /3
INFLOW
30,812.91
39,297.43

50,257.07

55,548.08

72,436.27

A. Through the Central Bank
11,084.16
12,982.08

19,574.33

22,170.74

19,747.39

1. Oil
7,482.62
12,159.31

18,140.18
21,298.36

18,971.59

2.Non-oil
3,601.54
822.77

1,434.14

872.37

775.80

(i) Drawings on Loans/Grants
0.00
-

-

-

-

(ii) RDAS/WDAS Purchases
2,381.03
9.30

-

-

20.00

(iii) Swaps
0.00
-

-

-

-

(iv) Interest on Reserves & Investments
192.95
375.98

112.56

89.19

30.32

(v) Interest Repatriated from overseas
-

-

0.72

0.29

(v) Refund on World Bank/IBRD/IMF Loans/SDR Allocation
0.00
0.0
-

-

(vi) Other official Receipts


725.19

B. Through Autonomous Sources
19,728.75
26,315.35

30,682.74

33,377.34

52,688.89

1. Non-oil exports
652.34
977.56

1,355.60

2,007.62

1,920.67

2. Capital Inflow
15.31
30.06

9.83

110.57

151.82

3. Invisibles
19,061.10
25,307.73

29,317.31

31,259.15

50,616.40

OUTFLOW
20,809.60
17,594.67

21,402.28

20,204.63

19,058.02

A. Through the Central Bank
20,390.76
17,027.91

20,530.52

19,355.49

18,856.13

1. WDAS/RDAS Utilisation
17,722.01
14,146.35

17,002.27

16,687.61

15,440.47

(i) WDAS/RDAS Sales
12,861.03
11,715.11

14,638.04

10,414.10

10,711.04

(ii) WDAS Forward
-

536.51

679.99

-

(iii) BDC Sales
2,250.34
2431.24
1,827.72

3,455.82

2,263.61

(iv) Inter-bank Sales
2,610.64
-

-

1,612.70

2,461.50

(v) Swaps
0.00
-

-

525.00

4.33

(vi) Invisibles IFEM
0.00
-

-

-

-

2. Drawings on L/C
568.96
406.83

902.43

291.63

204.13

3. External Debt Service
183.29
178.71

176.46

152.16

150.09

(i) Principal
133.71
137.42

127.63

118.26

94.35

(ii) Interest
15.58
2.80

8.49

5.38

5.25

(iii) Others 1/
34.00
38.49

40.34

28.52

50.49

4. Professional fees/Commission
-

-

0.06

-

5. Contributions, Grants & Equities Invests. (AFC Equity Participation)
-

-

-

-

6. National Priority Projects (Niger-Delta Payments)
0.00
0.00
35.85

50.64

33.33

7. Other Official Payments
1,916.50
2,296.01

2,413.51

2,173.38

2,927.56

(i) Int'l Organisations & Embassies /4
313.29
280.45

244.32

126.47

308.97

(ii) Estacode
-

-

42.85

57.62

(iii) Parastatals
345.27
195.80

592.42

350.58

587.05

(iv) NNPC/JV Cash Calls
1,233.94
1,789.14

1,475.16

1,628.69

1,932.07

(v) Miscellaneous(CBN Uses)
24.00
30.62

101.61

24.79

41.85

8. Bank Charges
-

-

-

0.55

9. Nigerian Sovereign Investment Authority (NSIA) Transfer
100.00

-

B. Through Autonomous Sources
418.84
566.76

871.76

849.14

201.88

1. Imports
403.35
498.00

847.53

837.48

180.68

2. Invisibles
15.49
1.61
24.24

11.66

21.21

-

NETFLOW THROUGH THE CBN
(9,306.60)

(4,045.82)

(956.19)

2,815.25

891.26

NETFLOW
10,003.31
21,702.77

28,854.79

35,343.45

53,378.26

Source: Central Bank of Nigeria
1/ Includes penalty and service charges
2/ Revised
3/ Provisional
4/ Includes IMF (SDR charges)

Table 37
Nigeria’s Gross External Reserves
(US$ Million)
Month

January
50,108.65

42,075.67

33,131.83

34,136.57

45,824.44

February
48,113.06

41,410.10

33,246.07

33,857.37

47,295.85

March
47,081.96

40,667.03

33,221.80

35,197.44

47,884.12

April
45,914.47

40,322.01

32,835.33

36,660.89

47,903.09

May
44,836.40

38,815.79

32,100.81

36,839.53

47,702.88

June
43,462.74

37,468.44

31,890.91

35,412.50

44,957.00

July
43,351.39

37,155.19

32,521.71

36,285.32

August
41,754.31

36,769.65

32,914.97

39,509.81

September
43,343.33

34,589.01

31,740.23

40,640.40

October
43,054.77

33,597.02

32,594.69

42,167.41

November
43,024.68

33,059.30

32,125.22

42,568.26

December
42,382.49

32,339.25

32,639.78

43,830.42

Source: Central Bank of Nigeria

Table 38
Nigeria Foreign Exchange Cross Rates
Naira per Unit of Foreign Currency (Monthly Average)

Pounds
Euro
CFAFr
US$ (DAS/WDAS)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (DAS/WDAS)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (DAS/WDAS)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (DAS/WDAS)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (DAS/WDAS)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Source: Central Bank of Nigeria

Table 39
Monthly Average Exchange Rate Movements
(N/US$ 1.00)

WDAS
Interbank
BDC
Jan
149.78
150.33
153.55
Feb
150.22
150.97
152.08
Mar
149.83
150.08
151.85
Apr
149.89
150.38
152.00
May
150.31
151.49
153.26
Jun
150.19
151.28
153.87
1st Half
150.04
150.75
152.77
End-Period
149.99
150.00
153.50
Jul
150.10
150.27
152.41
Aug
150.27
150.70
152.23
Sep
151.03
152.62
153.85
Oct
151.25
151.78
153.98
Nov
150.22
150.55
153.13
Dec
150.48
152.63
154.57
2nd Half
150.56
151.42
153.36
End-Period
150.66
152.00
156.00

WDAS
Interbank
BDC
Jan
151.55
152.47
156.13
Feb
151.94
152.86
155.11
Mar
152.51
155.21
157.09
Apr
153.97
154.60
157.05
May
154.80
156.17
158.05
Jun
154.50
155.65
158.32
1st Half
153.21
154.49
156.95
End-Period
153.31
152.52
159.00
Jul
151.86
152.41
163.71
Aug
152.72
153.79
163.10
Sep
155.26
156.70
158.23
Oct
153.26
159.82
161.25
Nov
155.77
158.83
160.35
Dec
158.21
162.17
163.30
2nd Half
154.51
157.29
161.66
End-Period
158.27
159.70
165.00

WDAS
Interbank
BDC
Jan
158.39
161.31
164.62
Feb
157.87
158.59
160.85
Mar
157.59
157.72
159.41
Apr
157.33
157.44
159.37
May
157.28
158.46
159.67
Jun
157.44
162.33
163.43
1st Half
157.65
159.31
161.22
End-Period
157.50
162.85
164.00
Jul
157.43
161.33
163.32
Aug
157.38
158.97
162.24
Sep
157.34
157.78
159.80
Oct
157.32
157.24
159.00
Nov
157.31
157.58
159.32
Dec
157.32
157.33
159.26
2nd Half
157.35
158.37
160.49
End-Period
157.33
157.25
159.00

WDAS
Interbank
BDC
Jan
157.30
156.96
159.12
Feb
157.30
157.52
158.70
Mar
157.31
158.38
159.80
Apr
157.31
158.20
159.81
May
157.30
158.02
159.57
Jun
157.31
160.02
160.98
1st Half
157.30
158.18
159.66
End-Period
157.31
162.60
162.00
Source: Central Bank of Nigeria

Table 40
Demand and Supply of Foreign Exchange
(US$ Million)
Year/Month
WDAS
BDC
WDAS -
WDASInterbank
WDAS - Forward
Total
Supply**
WDAS
BDC
WDAS -
WDASInterbank
WDAS - Forward
Demand
Demand
Forward
Demand
Forward
Sales
Sales
Swaps
(Disbursement
on Maturity)
Demand
Demand
Forward
Demand
Forward
Sales
Sales
Swaps
(Disbursement
on Maturity)
January


February


March


365.00

0.00
2,276.29
1,801.54

365.00


April


381.04

0.00
2,537.26
2,154.47

381.04


May


487.62

0.00
2,506.81
2,318.70

487.62


June


427.23

0.00
3,088.56
2,650.00

427.23


First Half

July


August


September


October


November


December

Second Half

Source: Central Bank of Nigeria
Total supply* includes WDAS sales (spot and forward), BDC and Interbank sales as well as Swaps.
Total supply** includes WDAS spot sales, WDAS forward disbursement at maturity, BDC and Interbank sales as well as Swaps.
WDAS
Sales
BDC
Sales
Total
Supply
Total
Demand
WDAS
Sales
BDC
Sales

Total
Supply**
Total
Supply*

Total
Demand

Table 41
Sectoral Utilization of Foreign Exchange
(US Dollar)
(1)
(2)
(3)
(1) & (3)
(2) & (3)
(1) & (3)
(2) & (3)
A. Imports

Industrial Sector

Food Products

Manufactured
Products

Transport Sector

Agricultural Sector

Minerals

Oil Sector

B. Invisibles

Business Services

Communication
Services

Construction and
Engineering

Distribution
Services

Educational
Services

Environmental
Services

#DIV/0!
-100.00
Financial Services

Health Related
and Social Services

Tourism and
Travel Related
Services

Recreational,
Cultural and
Sporting Services

Transport Services

Other Services not
Included Elsewhere

TOTAL (A+B)

Source: Central Bank of Nigeria
1/ Revised
2/ Provisional
Percentage Change
SECTORS
1st Half 2013/2
Absolute Change
1st Half 2011/1
2nd Half 2011/2
1st Half 2012/1
2nd Half 2012

Table 42
Total External Assets of Financial Institutions
(Naira Million)
First Half 2012 1/
First Half 2013 2/
1. Monetary Authorities
6,025,436.87
7,953,988.55
Foreign Assets
6,025,436.87
7,953,988.55
Gold
19.01
19.01
IMF Tranche
22.62
22.62
Foreign Currencies
159,494.64
34,313.06
Demand Deposits at Foreign Banks
5,470,726.81
7,529,866.78
of which: Domicilliary Accounts
487,525.82
543,116.61
Treasury Bills of Foreign Governments
1.05
1.05
SDR Holdings
395,172.73
389,766.03
2. Semi Official Institutions
-

-

i) BOI
-

-

ii) Others
-

-

3. Deposit Money Banks
1,863,594.13
1,986,111.81
Total Assets
7,889,030.99
9,940,100.36
Total Assets (US$' Million)
50,089.28
63,188.98
Exchange Rate (End-period)
157.50
157.31
Source: Central Bank of Nigeria
1/ Revised
2/ Provisional