ECONOMIC REPORT
FOURTH QUARTER 2017


CENTRAL BANK OF NIGERIA


C e n t r a l B a n k o f N i g e r i a
Page ii
Economic Report Fourth Quarter

The Central Bank of Nigeria Quarterly Economic Report is designed for the dissemination
of financial and economic information on the Nigerian economy on current basis. The
Report analyses developments in the financial, fiscal, real and external sectors of the
economy, as well as international economic issues of interest. The Report is directed at
a wide spectrum of readers including economists and financial analysts in government
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C e n t r a l B a n k o f N i g e r i a
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Economic Report Fourth Quarter

Contents


C e n t r a l B a n k o f N i g e r i a
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Economic Report Fourth Quarter


Text Tables

Appendix Tables


C e n t r a l B a n k o f N i g e r i a
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Economic Report Fourth Quarter

Figures


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Economic Report Fourth Quarter

C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

1.0 Summary1
Despite the non-expansionary monetary policy stance of the CBN,
growth in the major monetary aggregates, on quarter-on-quarter
basis, trended upward in the fourth quarter of 2017. Broad money
supply (M2) rose by 9.3 per cent above the level at end-September
2017, on account of, mainly, the increase in foreign assets (net) of
the banking system. Similarly, narrow money supply (M1) rose by 9.7
per cent, on quarter-on-quarter basis, due to the increase in both its
currency and demand deposit components. Over the level at endDecember 2016, broad money supply (M2) grew by 1.7 per cent,
while narrow money supply (M1), fell by 2.1 per cent.
Developments in banks’ deposit and lending rates were mixed in the
review quarter. With the exception of the 7-day and 1-month
maturity deposit rates, which rose to 4.55 per cent and 9.12 per cent,
respectively, at end-December 2017, all other deposit rates of
various maturity fell below the levels in the preceding quarter. The
average savings rate remain unchanged at 4.08 per cent, while the
average term deposit rate fell by 0.05 percentage point to 8.82 per
cent. The average prime lending rate rose by 0.04 percentage point
to close at 17.78 per cent, while the maximum lending rate fell by
0.07 percentage point to close at 31.11 per cent in the review
quarter. Consequently, the spread between the weighted average
term deposit and maximum lending rates narrowed to 22.29
percentage points from 22.31 percentage points in the preceding
quarter. Similarly, the margin between the average savings and the
maximum lending rates narrowed by 0.3 percentage point to 26.56
percentage points. The weighted average inter-bank call rate rose
to 24.02 per cent from 18.45 per cent in the preceeding quarter.
The total value of money market assets outstanding at the end of
the fourth quarter of 2017 stood at N12,122.02 billion, showing an
increase of 0.8 per cent, in contrast to 3.0 per cent decline at endSeptember 2017. The development reflected, mainly, the increase in
Federal Governmnet of Nigeria (FGN) Bonds outstanding in the
review quarter. Transactions on the Nigerian Stock Exchange (NSE)
indicated mixed developments.
Federally-collected revenue, at N2,040.59 billion in the fourth quarter
of 2017, was 24.0 and 11.9 per cent lower than the quarterly budget
estimate and the receipts in the preceding quarter, respectively. The
development was due to the shortfall in both oil and non-oil revenue
in the review quarter. Federal Government estimated retained

1 Data on monetary aggregates, government spending and foreign
exchange flows are provisional and subject to changes


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Economic Report Fourth Quarter

revenue and total expenditure were N731.61 billion and N979.05
billion, respectively, resulting in an estimated deficit of N247.44 billion
in the fourth quarter of 2017.
Agricultural activities in the fourth quarter of 2017 were dominated
by harvesting of crops, including tubers and grains, as well as preplanting operations for dry season planting. In the livestock subsector, farmers engaged in the fattening of cattle and stocking of
broilers in preparation for the festive period. The end-period inflation,
on year-on-year and 12-month moving average bases for the fourth
quarter of 2017 were 15.37 per cent and 15.50 per cent, respectively.
World crude oil demand and supply were estimated at 97.77 mbd
and 97.28 mbd, respectively, in the fourth quarter of 2017. Nigeria’s
crude oil production, including condensates and natural gas liquids,
was estimated at an average of 1.80 million barrels per day (mbd)
or 165.60 million barrels (mb) for the fourth quarter of 2017. The
average price of Nigeria’s reference crude, the Bonny Light (370
API), was US$62.48 per barrel, compared with US$52.92 per barrel in
the preceding quarter.
Foreign exchange inflow and outflow through the CBN amounted to
US$14.71 billion and US$8.38 billion, respectively, resulting in a net
inflow of US$6.33 billion. Foreign exchange sales by the CBN to the
authorised dealers amounted to US$5.08 billion, compared with
US$6.49 billion in the preceding quarter. The average exchange rate
of the naira vis-à-vis the US dollar at the investor and exporter
window appreciated by 0.5 per cent to N360.47/US$, while the rate
at the inter-bank segment depreciated marginally by 0.1 per cent to
N305.96/US$ at end-December 2017. The external reserves increased
by 18.7 per cent to US$39.35 billion at end–December 2017.
Major international meetings of importance to the domestic
economy in the review quarter included: the fourth meeting of the
Presidential Task Force on the ECOWAS Monetary Cooperation
Programme (EMCP) held on October 24, 2017, in Niamey, Republic
of Niger; the 2nd Experts Committee meeting on the Scheme –
Quoting and Trading in WAMZ National Currencies held at the MPlaza Hotel, Accra, Ghana, from November 27 – December 1, 2017;
the 2017 Annual Meetings of the Board of Governors of the World
Bank Group (WBG) and the International Monetary Fund (IMF) and
the
Inter-Governmental
Group
of
Twenty-Four
(G-24)
on
International
Monetary
Affairs
and
Developments
held
in
Washington D. C., USA from October 9 – 15, 2017.


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Economic Report Fourth Quarter

2.0 Financial Sector Developments
On quarter-on-quarter basis, broad money supply (M2), grew by 9.3
per cent above the level at end-September 2017, reflecting, wholly,
the rise in net foreign asset of the banking system. Similarly, narrow
money supply (M1) rose by 9.7 per cent relative to the level in the
preceding quarter. Developments in banks’ deposit and lending
rates were mixed in the review quarter. The value of money market
assets outstanding rose in the review quarter. Activities on the
Nigerian Stock Exchange (NSE) showed mixed developments in the
review quarter.
2.1 Monetary and Credit Developments
Despite the non-expansionary monetary policy stance of the
CBN in the fourth quarter of 2017, growth in the major
monetary aggregates trended upward. Net foreign assets
and other asset (net) of the banking system rose by 47.4 per
cent and 10.6 per cent above the levels in the preceding
quarter, respectively, while aggregate credit to the domestic
economy fell by 4.2 per cent, relative to the levels in the
preceding quarter. Consequently, on quarter-on-quarter basis,
broad money supply (M2), rose by 9.3 per cent to N24,001.41
billion, in contrast to the 0.1 per cent decline at endSeptember 2017. Over the level at end-December 2016, M2
grew by 1.7 per cent due, wholly, to the 61.9 per cent growth
in net foreign asset of the banking system, in contrast to the
6.9 per cent decline at the end of the preceding quarter.
On quarter-on-quarter basis, narrow money supply (M1), grew
by 9.7 per cent to N11,036.35 billion at end-December 2017, in
contrast to the 1.2 per cent decline at the end of the
preceding quarter. The increase in M1,
relative to the
preceeding quarter, reflected the 24.2 per cent and 7.2 per
cent rise in currency outside banks and demand deposits of
the banking system, respectively. Over the level at endDecember 2016, narrow money supply (M1), fell by 2.1 per
cent, compared with the decline of 10.7 per cent at endSeptember 2017. The development reflected the 2.1 per cent
apiece fall in its currency and demand deposit components.
Quasi-money, at N12,965.06 billion, rose by 9.0 per cent on
quarter-on-quarter basis, compared with 0.8 per cent and 1.1
per cent growth in the preceding quarter and the
corresponding period of 2016, respectively. The development
Key monetary
aggregates rose in
Q4 of 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

relative to the preceeding quarter was due to the increase in
foreign currency deposits in banks. Over the level at endDecember 2016, quasi money rose by 5.2 per cent, in contrast
to the decline of 3.5 per cent at the end of the preceding
quarter (Fig. 1, Table 1).
Figure 1: Growth Rate of Narrow Money (M1) and Broad Money (M2)2

Source: CBN
Aggregate credit (net) to the economy, which stood at
N25,863.28 billion, declined by 4.2 per cent at the end of the
review quarter, compared with the decline of 0.9 per cent at
end-September 2017. The development relative to the
preceding quarter, reflected wholly the 28.0 per cent decline
in net claims on the Federal Government, which more than
offset the 1.2 per cent rise in claims on the private sector. Over
the level at end-December 2016, aggregate credit (net) fell
by 3.7 per cent, due to the 26.7 per cent fall in net claims on
the Federal Government.
Banking system‟s net claims on the Federal Government, at
the end of the fourth quarter of 2017 stood at N3,574.03 billion.
This indicated 28.0 per cent decline in the review quarter,
compared with the decline of 5.5 per cent at the end of

2 QM1 and QM2 represent quarter-on-quarter changes, while CM1 and CM2 represent
cumulative changes (year-to-date).

-15
-10
-5

-15
-10
-5

Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Quarterly (%)
Cumulative (%)
QM1 (RHS)
QM2 (RHS)
CM1 (LHS)
CM2 (LHS)
Banking system’s
credit to the Federal
Government fell in the
review


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

second quarter of 2017, but was in contrast to the 38.7 per
cent growth in the corresponding period of 2016. The
development relative to the preceding quarter was due,
mainly, to the 33.2 per cent fall in treasury bills held by banks.
Over the level at end-December 2016, claims on the Federal
Government fell by 26.7 per cent, reflecting a decline in
government securities held by the CBN and banks.
Banking system‟s credit to the private sector grew moderately
by 1.2 per cent, on quarter-on-quarter basis, to N22,289.25
billion, compared with 0.2 per cent growth at end-September
2017. The development relative to the preceding quarter was
attributed to the 0.1 and 18.9 per cent increase in claims on
the core private sector and claims on the state and local
governments. Over the level at end-December 2016, banking
system‟s credit to the private sector grew by 1.4 per cent,
compared with the 0.2 per cent growth at end-September
2017 (Fig. 2, Table 1).
Figure 2: Growth Rate of Aggregate Domestic Credit to the Economy3

Source: CBN
On quarter-on-quarter basis, foreign asset (net) of the banking
system grew by 47.4 per cent to N14,813.28 billion at endDecember 2017, compared with the growth of 18.7 per cent
in the preceding quarter. The development was due to the
46.2 per cent and 114.2 per cent increase in foreign asset
holdings of the CBN and banks, respectively, arising from

3 QCP, QCG and QAC represent quarter-on-quarter changes in credit to private sector, credit to
government (net) and aggregate credit (net) to the domestic economy, respectively, while CCP, CCG


-40
-20

Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Quarterly (%)
Cumulative (%)
QCP (RHS)
QCG (RHS)
QAC (RHS)
CCP (LHS)
CCG (LHS)
CAC (LHS)
Foreign assets (net) of
the banking system
increased at the end
of the review quarter.


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Economic Report Fourth Quarter

renewed investor confidence in the economy. Over the level
at end-December 2016, net foreign assets of the banking
system increased by 61.9 per cent in the fourth quarter of
2017, compared with growth of 9.9 per cent at the end of the
third quarter of 2017. The growth was due to the increase in
the foreign assets holdings of the CBN and banks.
Other assets (net) of the banking system, on quarter-onquarter basis, fell by 10.6 per cent to negative N16,675.15
billion at end-December 2017, compared with the fall of 9.9
per cent at end-September 2017. The development was due
to the decline in unclassified assets of the CBN and banks.
Over the level at end-December 2016, other assets (net) of
the banking system fell by 34.3 per cent, compared with the
decline of 21.5 per cent at the end of the preceding quarter.
Table 1: Growth in Monetary and Credit Aggregates (Per cent) Over
Preceding Quarter
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Domestic Credit (Net)

Claims on Federal Government (Net)

Claims on Private Sector

Claims on Other Private Sector

Foreign Assets (Net)

Other Assets (Net)

Broad Money Supply (M2)

Quasi-Money

Narrow Money Supply (M1)

Memorandum Items:
Reserve Money (RM)

Source: CBN
2.2
Currency-in-circulation (CIC) and Deposits at CBN

At N2,157.22 billion, currency-in-circulation rose by 21.1 per
cent, above the level in the third quarter of 2017. The
development reflected the growth in currency outside banks.

Total deposits at the CBN amounted to N13,172.50 billion,
indicating 7.5 per cent increase over the level at the end of
the third quarter of 2017. The development was as a result of
the rise in the deposits of banks, Federal Government and the
“Others” in the review quarter. Of the total deposits at the
CBN, the shares of the Federal Government, Banks and
„‟Others‟‟ were N6,018.10 billion (45.7 per cent), N4,320.37
billion (32.8 per cent) and N2,834.02 billion (21.5 per cent),
respectively.


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Economic Report Fourth Quarter

Growth in banks‟ reserves at the CBN and currency-incirculation accounted for the 16.5 per cent rise in Reserve
Money (RM) to N6,477.6 billion at end-December 2017,
compared with the level at end-September 2017.
2.3
Money Market Developments
Despite the mixed trends in the liquidity condition of the
domestic money market, there was relative stabllity in the
financial
market
during
the
fourth
quarter
of
2017.
Notwithstanding
the
non-expansionary
monetary
policy
stance of the Bank, liquidity was boosted by fiscal injections
and maturing CBN bills. Withdrawals as a result of the CBN
foreign exchange interventions and Open Market Operations
(OMO), helped to stabilise the market. Accordingly, money
market rates moved in tandem with the trend of liquidity in the
financial market during the review period.
Total value of money market assets outstanding at the end of
the fourth quarter of 2017 was N12,122.02 billion, showing an
increase of 0.8 per cent, in contrast to the decline of 3.0 per
cent at the end of the preceding quarter. The development
was attributed to the 3.6 per cent increase in FGN Bonds
outstanding in the review quarter.
2.3.1
Interest Rate Developments
Developments in banks‟ deposit and lending rates were mixed
in the fourth quarter of 2017. With the exception of the 7-day
and 1-month deposit rates, which rose by 0.23 and 0.18
percentage point, to 4.55 per cent and 9.12 per cent,
respectively, all other deposits rates of various maturities fell
from a range of 7.39 -11.40 per cent at end-September 2017
to a range of 7.34 -11.23 per cent in the review quarter. The
average savings rate remain unchanged at 4.08 per cent,
same as in the preceding quarter, while the average term
deposit rate fell by 0.05 percentage point to 8.82 per cent at
end-December 2017.
The average prime lending rate rose by 0.04 percentage point
to close at 17.78 per cent at end-December 2017. The
average maximum lending rate, however, fell by 0.07
percentage point to 31.11 per cent in the review quarter.
Consequently, the spread between the weighted average
The financial market
was relatively stable
during the review
period .
Reserve money (RM)
rose at the end of the
fourth quarter of 2017.
Banks’ deposit and
lending rates showed
mixed developments in
the fourth quarter of
2017.


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Economic Report Fourth Quarter

term deposit and maximum lending rates narrowed by 0.02
percentage point to 22.29 percentage points at the end of
the fourth quarter of 2017. Similarly, the margin between the
average savings and the maximum lending rates narrowed to
25.56 percentage points from 26.86 percentage points in the
preceding quarter. With inflation at 15.37 per cent at endDecember 2017, all deposit rates were negative in real terms,
while lending rates were positive in real terms.
At the inter-bank funds segment, the weighted average interbank call rate, which stood at 18.45 per cent at endSeptember 2017, rose by 5.57 percentage points to 24.02 per
cent in the fourth quarter of 2017. The development reflected
the relative liquidity squeeze in the banking system in the
review quarter. The Nigeria inter-bank offered rate (NIBOR) for
the 30-day tenor fell from 21.16 per cent in the preceding
quarter to 19.53 per cent in the review quarter. Similarly, the
weighted average rate at the Open-Buy-Back (OBB) segment
fell by 1.55 percentage points to 23.51 per cent (Fig. 3, Table
2).
Figure 3: Selected DMBs Interest Rates (Average)

Source: CBN


Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Percent per Annum
Percent per Annum
Prime
Interbank
Maximum
Average Term Deposits (RHS)
Inter-bank call
rate rose in Q4


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Economic Report Fourth Quarter

Table 2: Selected Interest Rates (Percent, Averages)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Average Term Deposits

Prime Lending

Interbank

Maximum Lending

Source: CBN
2.3.2
Commercial Paper (CP)
Commercial Paper (CP) outstanding held by banks fell by 9.5
per cent to N0.52 billion at the end of the fourth quarter of
2017, in contrast to the 29.5 per cent increase at endSeptember 2017. The development was due to the fall in
investment in CP by the merchant banks in the review quarter.
Thus, CP constituted 0.004 per cent of the total value of
money market assets outstanding, compared with 0.005 per
cent at the end of the preceding quarter.
2.3.3
Bankers’ Acceptances (BAs)
Bankers‟ Acceptances (BAs), which stood at N26.81 billion at
end-December 2017, was 1.4 per cent below the level in the
preceding quarter. The development reflected the decline in
investment in BAs by the banks during the review quarter.
Consequently, BAs accounted for 0.21 per cent of the total
value of money market assets outstanding at the end of the
fourth quarter of 2017, compared with 0.22 per cent in the
preceding quarter.

2.3.4 Open Market Operations
The Bank intervened through direct Open Market Operations
(OMO) auctions conducted during the review quarter. The
tenors-to-maturity of the instruments ranged from 72- to 365day period. Total amount offered was N4,997.36 billion, while
total subscription and allotment were N3,532.99 billion and
N3,399.69 billion, respectively. The bid rates ranged from
12.9000 to 17.9500 per cent, while the stop rates ranged from
12.9000 to 17.9300 per cent. Repayment of matured CBN bills
was N3,042.17 billion, translating to a net withdrawal of
N357.52 billion.


banks’ holdings of
BAs decreased in Q4
of 2017.


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Economic Report Fourth Quarter

2.3.5
Primary Market
At the Government securities market, NTBs and long-term
(FGN Bonds) debt instruments were issued at the primary
market on behalf of the Debt Management Office (DMO).
NTBs of 91- 182- and 364-day tenors, amounting to N602.11
billion, N1,161.60 billion and N602.11 billion were offered,
subscribed to and allotted, respectively, in the fourth quarter
of 2017. Auctions were held as scheduled in October and
November, while full refunds were made for investmnets due
in December as directed by the DMO.
2.3.6
Bonds Market
Tranches of the 5- and 10-year FGN Bonds were offered for
sale in the fourth quarter of 2017. The term to maturity of the
bonds ranged from 3 years 7 months to 9 years 5 months. Total
amount offered, subscribed to and allotted were N300.00
billion, N551.78 billion and N265.35 billion, respectively.
Allotment on non-competitive basis amounted to N29.79
billion for the 10-year bond, while there was no maturity in the
review quarter. The bid rate on all tenors ranged from 12.5000
to 16.2500 per cent, while the marginal rates for all the tenors
ranged from 13.1900 to 15.0000 per cent. The bid-to-cover
ratio was 2.08, while the auction was oversubscribed by 95.48
per cent.
2.3.7
CBN Standing Facilities
The banks continued to access the CBN‟s Standing Facilities
window to square up their positions either by borrowing from
the standing lending facility (SLF) window or depositing excess
reserves at the standing deposit facility (SDF) window of the
CBN at the end of each business day. Activities at the CBN
standing facility window showed more patronage at the SLF
window. Applicable rates for the SLF and SDF remained at
16.00 per cent and 9.00 per cent, respectively.
Total request for Standing Lending Facility (SLF) (including the
Intra-day lending facilities (ILF) converted to overnight repo)
amounted to N11,733.72 billion, made up of N7,266.11 billion
direct SLF and N4,467.61 billion ILF converted to overnight
repo. Daily average for the 59 transaction days (October 1 –
December 27, 2017) was N198.88 billion, with daily request
ranging from N67.35 billion to N383.53 billion. Total interest
earned was N8.04 billion. SLF was at its peak on October 10,
Subscription for FGN
Bonds of various
maturities were
reopened in the Q4 of
2017.


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Economic Report Fourth Quarter

2017 due to consistent mop up activity through OMO.
Total standing deposit facility (SDF) granted during the review
quarter was N2,494.06 billion with a daily average of N45.00
billion, compared with N1,536.76 billion in the preceding
quarter. Daily transaction ranged from N0.35 billion to N137.85
billion. Interest payment on SDF in the review quarter was
N0.89 billion, compared with N0.52 billion, at end-September
2017.
2.4
Deposit Money Banks’ Activities
The total assets and liabilities of the commercial banks stood
at N34,593.88 billion at end-December 2017, representing 3.9
per cent increase over the level at end-September 2017. The
funds were sourced, mainly, from reduction of claims on the
Federal Government and mobilisation of demand, time,
savings and foreign currency deposits. The funds were used to
increase claims on the central bank and the private sector,
acquire foreign assets, increase accretion to reserves and
reduce unclassified liabilities.
At N20,414.45 billion, banks‟ credit to the domestic economy,
fell by 5.5 per cent, below the level at end-September 2017.
The development reflected, the decline in claims on the
Federal Government and the private sector in the review
quarter.
Total specified liquid assets of the banks stood at N10,093.68
billion, representing 54.8 per cent of the total current liabilities.
At that level, the liquidity ratio rose by 4.9 percentage points
above the level at the end of the preceding quarter and was
24.8 percentage points above the stipulated minimum ratio of
30.0 per cent. The loans-to-deposit ratio, at 72.84 per cent,
was 6.77 percentage points and 7.16 percentage points
below the level at the end of the preceding quarter and the
prescribed maximum of 80.0 per cent.
2.5
Capital Market Developments
2.5.1
Secondary Market
The positive rally recorded in the capital market from the
beginning of 2017 continued in the fourth quarter as investors
remained optimistic owing to improved foreign exchange
demand-supply conditions, increased general output and
Liquidity ratio was above
the prescribed minimum,
while the Loan-to-deposit
ratio was below the
prescribed maximum in
Q4 of 2017


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Economic Report Fourth Quarter

declining inflationary pressure. Though developments on the
Nigeria
Stock
Exchange
were
mixed,
rising
investors‟
confidence supported the positive rebound. Consequently,
on month-on-month basis, the aggregate volume of traded
securities rose by 41.2 per cent to 28.7 billion, while the value
of traded securities fell by 5.8 per cent to N339.4 billion in
177,691 deals, compared with 20.4 billion shares worth N360.4
billion in 251,921 deals in the third quarter of 2017.
In the Financial Services Industry, 13.3 billion shares worth
N106.4 billion were traded in 102,712 deals. This accounted for
46.0 per cent and 31.0 per cent of the total equity turnover
volume and value, respectively, compared with 16.3 billion
shares, worth N167.6 billion, traded in 141,865 deals, in the
preceding quarter.
Figure 4: Volume and Value of Traded Securities

Source: NSE
Table 3: Traded Securities on the Nigerian Stock Exchange (NSE)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Volume (Billion)
18.4
34.9


Value (N Billion)

Source: NSE

Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Value (N billion)
Volume (Billion)
Volume of traded securities (LHS)
Value of securities (RHS)


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Economic Report Fourth Quarter

2.5.2
New Issues Market/Supplementary Listings
There were one (1) new and seven (7) supplementary equity listings in
the review period.
Table 4: New and Supplementary Listing on the Nigerian Stock Exchange
S/N Company
Additional Shares (Units)
Reasons
Listing
1 Standard Allinace Insurance Plc
917.86 Million Ordinary Shares
Merger
Supplementary
2 Trans Natinowide Express Plc (Tranex)
270.03 Million Ordinary Shares
Rights Issue
Supplementary
3 Unilever Nigeria Plc
1.96 Billion Ordinary Shares
Rights Issue
Supplementary
4 Lafarge Africs Plc
85.26 Million Ordinary Shares
Scheme of Arrangement for CSupplementary
5 Global Spectrum Energy Services Plc
800.0 Million Ordinary Shares
New Listing
New
6 Union Bank of Nigeria Plc
51.30 Million Ordinary Shares
Long-Term Transformation IncentSupplementary
7 Stanbic IBTC Holdings Plc
49.47 Million Ordinary Shares
Scrip Dividend Scheme
Supplementary
8 International Brewries Plc
5.30 Billion Ordinary Shares
Scheme of Merger
Supplementary
Source: NSE

2.5.3
Market Capitalisation
Following the sustained rebound in the capital market, both
the debt and equity segments of the market consistently
gained value in the fourth quarter of 2017. Consequently, the
aggregate market capitalisation for all listed securities
(Equities and Debts) rose by 16.8 per cent from N19.6 trillion at
end-September 2017 to N22.9 trillion at end-December 2017.
Market capitalisation for the equity segment rose by 11.4 per
cent to N13.7 trillion and constituted 59.4 per cent of the
aggregate market capitalisation, compared with N12.2 trillion
and 62.3 per cent at end-September 2017. The market
capitalisation of debt and Exchange Traded Fund (ETF)
securities grew by 25.8 per cent over the level in the
preceding quarter to N9.3 billion at end-December 2017.
2.5.4 NSE All-Share Index
Performance of quoted stocks on the Exchange remained
buoyed by improved investors‟ confidence and relatively
favourable macroeconomic conditions, including declining
inflation as well as gradual recovery in economic activities.
Hence, relative to the level at the beginning of the review
quarter, the All-Share Index rose by 7.9 per cent to close at
38,243.19 at the end of the fourth quarter of 2017.
Similarly,
the
NSE-Premium
index,
which
tracks
the
performance of large firms listed on the premium board, rose


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

by 10.4 per cent to 2,564.13 at the end of the fourth quarter of
2017. Overall, with the exception of the NSE-AseM, NSEIndustrial Goods and NSE-Insurance indices, which fell by 6.0
per cent, 0.4 per cent and 0.3 per cent, respectively, to
1,087.32, 1,975.59 and 139.37 at end-December 2017, all other
sectoral indices rose above the levels in the third quarter of
2017. The NSE-Oil and Gas, NSE-Lotus Islamic, NSE-Pension, NSEBanking and NSE-Consumer Goods rose by 17.8 per cent, 14.9
per cent, 12.9 per cent, 8.0 per cent and 5.90 per cent,
respectively, to 330.69, 2,560.39, 1,379.74, 475.44 and 976.1, at
end-December 2017.
Figure 5: Market Capitalisation and All-Share Index

Source: NSE
Table 5: Market Capitalization and All Share Index (NSE)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Market Capitalization (N trillion)

All-Share Index (Equities)
26,871.24

27,385.69

29,597.79

28,335.40

26,874.62

25,516.34

33,117.48

35,439.98

38,243.19

Source: NSE


Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Index
N billion
Market Capitalization (LHS)
All-Share Index (RHS)


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

3.0
Fiscal Operations
Federally collected revenue in the fourth quarter of 2017 fell below
the provisional quarterly budget estimate and the receipts in the
third quarter of 2017 by 24.0 and 11.9 per cent, respectively. Federal
Government estimated retained revenue for the review quarter was
N731.61 billion, while total estimated expenditure was N979.05 billion,
resulting in an estimated deficit of N247.44 billion.

3.1
Federation Account Operations
Federally-collected revenue in the fourth quarter of 2017, at
N2,040.59 billion, was lower than the proportionate quarterly
budget estimate of N2,684.28 billion by 24.0 per cent. It was
also below the receipts in the preceding quarter by 11.9 per
cent. The decline in federally-collected revenue (gross)
relative to the quarterly budget estimate was attributed to the
shortfall in receipts from both oil and non-oil revenue during
the review quarter (Fig. 6, Table 6).
Figure 6: Components of Gross Federally Collected Revenue


Table 6: Gross Federation Account Revenue (N Billion)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Federally-collected revenue (Gross)
1,547.96

1,276.38

1,118.56

1,882.26

1,338.31

1,446.14

1,546.72

2,315.84

2,040.59

Oil Revenue
830.81

666.13

537.19

817.48

673.10

817.48

795.55

1,270.62

1,226.04

Non-Oil Revenue
717.15

610.25

581.37

1,064.78

665.21

628.66

751.17

1,045.22

814.55

Source:Federal Ministry of Finance

Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Oil Revenue Gross
Non-Oil Revenue
Gross federally -
collected revenue
fell by 11.9 per
cent
below
the
level in the third
quarter of 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Gross oil receipt at N1,226.04 billion or 60.1 per cent of the
total revenue, was lower than both the proportionate
quarterly budget estimate and the receipts in the preceeding
quarter by 9.1 per cent and 3.5 per cent, respectively. The
decline in oil revenue relative to the proportionate quarterly
budget estimate was attributed to the fall in receipts from
crude oil/gas exports. This was due to the drop in crude oil
production, arising from leakages and shut-ins/shut-downs at
some NNPC terminals (Fig. 7, Table 7).

Figure 7: Gross Oil Revenue and Its Components

Table 7: Components of Gross Oil Revenue (N Billion)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Oil Revenue Gross
830.81

666.13

537.19

817.48

673.10

817.48

795.55

1,270.62

1,226.04

Crude oil/Gas Sales 212.86

82.43

112.54

115.95

78.63

101.33

111.84

771.18

236.69

PPT/Royalties
388.66

314.04

212.78

392.38

273.13

325.38

320.49

489.41

666.10

Others
229.28

269.66

211.86

309.15

321.34

390.78

363.22

10.03

323.24


Source: Federal Ministry of Finance
At N814.55 billion or 39.9 per cent of the total, non-oil revenue
(gross) fell below the proportionate quarterly budget estimate
of N1,335.41 billion by 39.0 per cent. It was also below the level
in the preceding quarter by 22.1 per cent. The lower non-oil
revenue relative to the proportionate quarterly budget
estimate was due to the shortfall in most of its components
except
Customs
Special
Levies
(Federation
Account
component) during the review period (Fig. 8, Table 8).
-


Q4-14
Q1-15
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
N billion
Others
PPT/Royalties
Crude oil/Gas Sales


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Figure 8: Gross Non-Oil Revenue and its Components

Table 8: Components of Gross Non-Oil Revenue (N Billion)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Non-Oil Revenue
717.15

610.25

581.37

1,064.78

665.21

628.66

751.17

1,045.22

814.55

Value-Added Tax (VAT)
177.78

196.57

194.61

210.35

209.47

222.00

243.31

248.89

253.46

Companies Income Tax & Other Taxes
279.13

176.26

171.71

453.74

186.73

158.95

206.38

543.40

297.56

Customs & Excise Duties
141.67

135.51

106.54

150.15

156.62

144.17

150.67

164.15

169.05

Others/1
118.57

101.91

108.51

250.54

112.40

103.54

150.81

88.78

94.48

1/Includes FGN Independent Revenue, Education Tax, NITDF & Customs Federation/Non-Federation Account Levies
(Port, Sugar, ETLS, Steel, CISS & Cement Levies)
Source: Federal Ministry of finance

A net sum of N1,326.16 billion was retained in the Federation
account after statutory deductions and transfers. Of this
amount, the Federal Government received N637.73 billion,
State and Local governments received N323.47 billion and
N249.38 billion, respectively, while the balance of N115.58
billion was allocated to the 13.0% Derivation Fund for
distribution among the oil-producing states. In addition, the
Federal, State and Local Governments received N36.50 billion,
N121.66 billion and N85.16 billion, respectively, from the VAT
Pool Account.
Table 9 : Summary of Federally-Collected Revenue Deductions and Transfers (Naira Billion)
Q4 2016
Q3 2017
Quarterly
Budget
Q4 2017
Total Deductions 1/
386.13

523.70

128.07

376.63

Oil Rev enue Deductions
358.57

474.76

76.25

337.00

Non-Oil Rev enue Deductions
27.57

48.94

51.82

39.63

Total Transfers
313.48

327.72

699.74

337.80

Federal Gov t. Ind. Rev enue
23.09

35.76

201.89

32.64

VAT Pool Account
201.09

238.93

432.00

243.32

Others 2/
89.31

53.02

65.85

61.84

1/ Refer to Table 1 for breakdown of deductions
2/Includes Federation and Non-Federation Special Levies, Education Tax & NITDEF
Source: Office of the Accountant General of the Federation (OAGF) and Federal Ministry of Finance
-

1,000
1,200
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
N billion
Others
Customs & Excise Duties
Companies Income Tax & Other Taxes
Value-Added Tax (VAT)
The sum of N1,326.16
billion
of
the
gross
federally
collected
revenue was distributed
among the three tiers of
government
and
the
13.0% Derivation Fund
for oil producing states.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

In addition, the sum of N50.81 billion was distributed as
Exchange Gain as follows: Federal Government, N24.24 billion;
state governments, N12.98 billion; local governments, N9.48
billion; and 13% Derivation Fund, N4.8 billion. Similarly, the sum
of N0.94 billion was drawn-down from the Non-oil Excess
Account and distributed as follows: Federal Government,
N0.50 billion; state governments, N0.25 billion; and local
governments, N0.19 billion.
Thus, the total statutory and VAT revenue allocation to the
three tiers of government in the fourth quarter of 2017
amounted
to
N1,621.22
billion,
compared
with
the
proportionate quarterly budget estimate of N2,350.72 billion.
3.2
The Fiscal Operations of the Three Tiers of
Government
3.2.1
The Federal Government

Provisional Federal Government retained revenue for the
fourth quarter of 2017 was estimated at N731.61 billion. This
was below the proportionate quarterly budget estimate and
the receipts in the preceding quarter by 45.8 per cent and 7.2
per cent, respectively. Of the total revenue, Federation
Account accounted for 87.2 per cent, while VAT, Federal
Government Independent Revenue and Exchange Gain
accounted for 5.0, 4.5 and 3.3 per cent, respectively (Fig. 9).
Figure 9: Federal Government Retained Revenue


Federation
Account
87.2%
VAT Pool
Account
5.0%
FGN
Independent
Revenue
4.5%
Exchange Gain
3.3%
At N731.61 billion, the
estimated FGN retained
revenue was lower than
the
proportionate
quarterly


budget
estimate by 45.8 per
cent.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

The estimated Federal Government expenditure for the fourth
quarter of 2017 was N979.05 billion. This was below the
proportionate quarterly budget estimate of N1,937.98 billion
by 49.5 per cent and the level in the preceding quarter by
30.4 per cent. A breakdown of the total expenditure showed
that the recurrent component accounted for 81.7 per cent,
while capital and statutory transfers accounted for 9.6 and 8.7
per cent, repectively. A further breakdown of the recurrent
expenditure
showed
that
the
non-debt
component
accounted for 44.4 per cent, while debt service payments
was 55.6 per cent.
Figure 10: Federal Government Expenditure

Source: Fiscal Liquidity Assessment Committee (FLAC) & the Office of the Accountant General of the Federation

The fiscal operations of the Federal Government, therefore,
resulted in an estimated deficit of N247.44 billion, compared
with the proportionate quarterly budget deficit of N589.19
billion.
Table 10: Federal Government Fiscal Operations (N Billion)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Retained Revenue
802.63

587.92

722.37

1,008.80

870.23

554.63

688.69

788.56

731.61

Expenditure
1,538.46

1,140.24

1,381.51

1,309.78

1,551.05

1,337.59

1,178.02

1,407.22

979.05

Current Surplus(+)/Deficit(-)
(136.57)

(365.84)

(213.76)

(199.71)

(196.03)

(748.05)

(379.24)

(539.30)

(67.88)

Primary Surplus(+)/Deficit(-)
(522.58)

(187.51)

(414.43)

247.00

(412.31)

(158.82)

(185.74)

(5.46)

197.00

Overall Balance: Surplus(+)/Deficit(-)
(735.83)

(552.32)

(659.14)

(300.98)

(680.82)

(782.96)

(489.33)

(618.66)

(247.44)

Source: Fiscal Liquidity Assessment Committee (FLAC) & the Office of the Accountant General of the Federation


Recurrent,
81.7%
Statutory
Transfers,
8.7%
Capital ,
9.6 %
Fiscal
operations
of the FG resulted
in an estimated
deficit of N401.76
billion in Q3 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

3.2.2
Statutory Allocations to State Governments

Total allocation to state governments from the Federation
Account, including the 13.0% Derivation Fund and the VAT
Pool Account, was N578.05 billion in the review quarter. This
was lower than the proportionate quarterly budget estimate
by 31.9 per cent. A breakdown showed that the receipts from
the Federation Account was N456.39 billion (79.0%), while the
share from VAT pool account stood at N121.66 billion (21.0%).
The receipts from both the Federation and VAT Pool Accounts
were 27.8 per cent and 43.7 per cent below the respective
proportionate budget estimates.
3.2.3
Statutory Allocations to Local Government Councils
Total allocations to local governments from the Federation
and VAT Pool Accounts in the fourth quarter of 2017 stood at
N344.21 billion. This was below the proportionate quarterly
budget estimate by 32.9 per cent. Of the total amount,
allocation from the Federation Account was N259.05 billion
(75.3%), while the VAT Pool Account stood at N85.16 billion
(24.7%).


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

4.0
Domestic Economic Conditions
Dry season and associated dust intensified in most part of the
country in the review quarter, though there was little rainfall in some
parts of the FCT and the Southern region. Agricultural activities were
dominated by harvest of tubbers and grains, while farmers in the
livestock sub-sector engaged in the fattening of cattles and stocking
of broilers in preparation for the festive period. The end-period
inflation, on year-on-year and 12-month moving average bases for
the fourth quarter of 2017 were 15.37 per cent and 15.50 per cent,
respectively
4.1
Agricultural Sector
Analysis of the standardised precipitation index (SPI) indicated
that dry season and the associated dust intensified in most
parts of the country in the fourth quarter of 2017. There was,
however, little rainfall in some parts of the Federal Capital
Territory (FCT) Abuja and the Southern region. Generally, the
predominant agricultural activities during the review quarter
were harvesting of tubbers and grains. Farmers in the South
concentrated on the harvest of rice, cassava and other
tubbers, while harvesting of grains, potatoes, vegetables and
pre-planting activities dominated in the North. In the livestock
sub-sector, farmers engaged in the fattening of cattle and
stocking of broilers in preparation for the festive season.
4.2
Agricultural Credit Guarantee Scheme
A total of N1,487.0 million was guaranteed to 10,259 farmers
under the Agricultural Credit Guarantee Scheme (ACGS) in
the fourth quarter of 2017. This represented 11.4 per cent
increase above the level in the third quarter of 2017, but was
36.0 per cent lower than the level in the corresponding period
of 2016. Sub-sectoral analysis showed that food crops
obtained the largest share of N991.9 million (66.7 per cent)
guaranteed to 7,254 beneficiaries, followed by livestock subsector which got N167.5 million (11.3 per cent) guaranteed to
661 beneficiaries, while cash crop sub-sector got N123.7
million (8.3 per cent) guaranteed to 725 beneficiaries. The
fisheries sub-sector received N82.7 million (5.5 per cent)
guaranteed to 299 beneficiaries, mixed crops sub-sector had
N76.9 million (5.2 per cent) guaranteed to 967 beneficiaries
while a total of N44.4 million (3.0 per cent) was guaranteed to
353 beneficiaries in the „Others‟ sub-sectors.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Analysis by state showed that 31 states and the Federal
Capital Territory benefited from the Scheme in the review
period. The highest and lowest sums of N213.4 million (14.4 per
cent) and N1.1 million (0.7 per cent) were guaranteed to
Jigawa and Zamfara States, respectively.
4.3 Commercial Agricultural Credit Scheme (CACS)
At end-December 2017, total amount released by the CBN
under the Commercial Agriculture Credit Scheme (CACS)
from inception to the participating banks for disbursement
stood at N551.18 billion for 547 projects. The projects included
sixty-five (65) state government projects under CACS and
eight (8) Paddy Aggragate Sheme (PAS) (Table 11).


Source: CBN


Table 11: Disbursement of Credit Under the Commercial Agriculture Credit Scheme (CACS)
S/N
Participating Banks
Amt Disbursed (N billion)
Number of Projects/State Governments

Access Bank Plc
36.66

Citibank Plc
3.00

Diamond Baqnk Plc
4.85

ECOBANK
6.38

FCMB Plc.
12.43

Fidelity Bank Plc
25.18

First Bank of Nigeria Plc
55.77

GTBank Plc
37.70

Heritage Bank Plc
6.82

Keystone Bank
14.05

Jaiz Bank Plc
0.00

Skye Bank Plc
13.77

Stanbic IBTC Bank
27.66

Sterling Bank Plc
68.67

Union Bank Nigeria PLC
28.24

United Bank for Africa (UBA) Plc
67.06

Unity Bank Plc
24.33

Wema Bank
2.12

Zenith Bank
114.65

Suntrust Bank Ltd
1.85

TOTAL
551.18

C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

4.4
Industrial Production
Activities
in
the
industrial
sector
showed
significnat
improvement over the level in the third quarter of 2017. The
development was attributed to sustained supply of foreign
exchange and stability in the naira exchnage rate which
facilitated the importation of critical raw materials as well as
intermediate goods for domestic production. As a result, there
were new orders, output growth and increased export
business.
Thus, at 104.9 (2010=100) in the review quarter, the estimated
index of industrial production increased by 0.9 per cent over
the level in the preceding quarter. The increase was attributed
to improvement in the activities of the electricity and
manufacturing sub-sectors during the review qaurter.
The estimated index of manufacturing production in the fourth
quarter of 2017, at 178.0 (2010=100), showed 0.6 per cent
increase above the level in the preceding quarter. The
capacity utilisation was estimated at 54.5 per cent showing a
0.5 percentage point increase over the level in the preceding
quarter. The improvement was due to continued expansion in
new orders, increased new export business and moderated
input prices (Fig.11).
Figure11: Manufacturing Capacity Utilization Rate

Source: Staff Estimate

Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Percent
Industrial activities
rose in the review
quarter due to
increased activities in
all sub-sectors.
Industrial capacity
utilisation stood at
54.5 percentage points
in the review quarter.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

The index of mining production in the fourth quarter of 2017 at
74.6 (1990=100), fell by 0.9 per cent below the level in the
preceding quarter, but rose by 8.8 per cent over the level in
the corresponding period of 2016. The development reflected
the decline in crude oil and gas production in the review
quarter.
Estimated average electricity generation in the fourth quarter
of 2017 rose by 3.2 per cent to 4000 MW/h, over the level
attained in the preceding quarter. The increase was
attributed, mainly, to improved gas supply to thermal stations.
At 3,475 MW/h, average estimated electricity consumed rose
by 21.8 per cent, above the level in the preceding quarter.
The increase was attributed to the improvement in generation
and transmission (Figure 12, Table 11).
Figure 12: Index of Industrial Production (2010=100) 4

Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Index
Mining
All Sectors
Manufacturing

Source: Staff Estimate

Table 12: Index of Industrial Production and Myanufacturing Capacity Utilisation Rate

Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
All Sectors (1990=100)

Manufacturing


Mining
94.5


74.6
Capacity Utilisation (%)

Source: Saff Estimate

4 Index measurement (2010=100) from first quarter 2015
Average electricity
generation and
consumption rose
during the review
quarter.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

4.5
Petroleum Sector
Nigeria‟s crude oil production, including condensates and
natural gas liquids, averaged 1.80 mbd or 165.60 million barrels
(mb) in the review quarter. This represented a decline of 0.03
mbd or 1.8 per cent, compared with 1.83 mbd or 168.36 mb
recorded in the preceeding quarter. The development was
due to shut-ins/shut-down in some of the production facilities.
Crude oil export stood at 1.35 mbd or 124.20 mb, representing
2.4 per cent decline compared with 1.38 mbd or 126.96 mb in
the preceding quarter. The development was due, mainly, to
continued commitment by OPEC and Non-OPEC countries to
avoid flooding the global market, despite the exemption of
Nigeria from the production cap agreement. Allocation of
crude oil for domestic consumption was maintained at 0.45
mbd or 41.40 million barrels in the review quarter.
The average spot price of Nigeria‟s reference crude oil, the
Bonny Light (37° API) rose from US$52.92 per barrel in the third
quarter of 2017 to US$62.48 per barrel in the review quarter.
This represented an increase of 18.1 per cent. The increase
was attributed to the production-cut agreement, demand
growth from China and increased refining activity in the
United States. The UK Brent, at US$61.69/b, the WTI at US$55.47,
and the Forcados at US$62.60/b exhibited similar trends as the
Bonny Light.
The average price of OPEC basket of fifteen selected crude
streams was US$59.35/b in the fourth quarter of 2017. This
represented increase of 18.8 per cent and 24.9 per cent
relative to the average of US$49.97/b and US$47.52/b in the
preceding quarter and the corresponding quarter of 2016,
respectively (Figure 13, Table 13).
Crude oil and natural
gas production fell in the
fourth quarter of 2017.
Crude oil export
fell in Q4 2017.
Average crude oil
prices, including
Nigeria’s Bonny Light
(37o API) rose in the
international crude oil
market in Q3 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Figure13: Trends in Crude Oil Prices

Source: Reuters

Table 13: Average Crude Oil Prices in the International Oil Market
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Bonny Light

OPEC Basket


Source: Reuters

4.6
Consumer Prices5
The all-items composite Consumer Price Index (CPI), at endDecember 2017, was 246.4 (November 2009=100), indicating
2.15 per cent and 15.37 per cent increase above the levels in
the preceding quarter and the corresponding quarter of 2016,
respectively. The development was attributed to price
increase in both the food and non-food categories. It was,
also the eleventh consecutive decline in year-on-year
headline inflation since January 2017.
The urban all-items CPI at the end of the fourth quarter of 2017
was 249.3 (November 2009=100), indicating 2.3 per cent and
15.8 per cent increase, above the levels in the preceding

5 New CPI with November 2009 = 100 as base and new weight based on the 2003/2004 Nigeria
Living Standard Survey (NLSS) was released by the National Bureau of Statistics (NBS) ON 18TH
October 2010.

Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
US$ per barrel
Bonny Light
OPEC Basket
The general price level
increased in Q4 2017
over the level in the
preceding quarter.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

quarter and the corresponding period of 2016, respectively.
Similarly, the rural all-items CPI, at 244.1 (November 2009=100),
represented increase of 2.0 per cent and 15.0 per cent,
respectively, compared with the levels in the preceding
quarter and the corresponding period of 2016 (Figure 14,
Table 14).
The composite food index (with a weight of 50.7 per cent in
the CPI basket) was 261.0, representing 2.3 per cent and 19.4
per cent, increase over 255.1 and 218.6 at the end of the
preceding quarter and the corresponding period of 2016,
respectively. The rise in the index was driven, largely, by the
increase in the prices of potatoes, yams and other tubers, milk
cheese and eggs, bread and cereals, coffee tea and cocoa,
fish, oil and fats.
Figure 14: Consumer Price Index

Source: NBS

Table 14: Consumer Price Index (November 2009=100)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Composite
180.2
189.9
201.7


Urban

Rural


Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Index
Composite
Urban
Rural


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Despite the upward pressure on domestic prices due to
increased transport cost arising from scarcity of petroleum
products in the last month of the review quarter, inflationary
pressure maintained its downward trend in the fourth quarter
of 2017. Sustained intervention by the CBN in the foreign
exchange market continued to ensure exchange rate stability
and
moderate
pass
through
to
domestic
prices.
Consequently, headline inflation declined further to 15.37 per
cent below the 15.98 per cent and 18.55 per cent in the
preceding quarter and the corresponding period of 2016,
respectively. The pace of inflation was driven by rise in prices
of potatoes, yam and other tubers, coffee tea and cocoa,
fuel and lubricants for personal transport equipment and solid
fuels, among others.
On a twelve-month moving average basis, inflation fell to 16.5
per cent in the fourth quarter of 2017, from 17.2 per cent and
15.7 per cent in the preceding quarter and the corresponding
period of 2016, respectively (Figure 15, Table 15).
Figure 15: Inflation Rate

Source: NBS
Table 15: Headline Inflation Rate (%)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
12-Month Moving Average

Year-on-Year

Source: NBS

Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Percent
12-Month Average
Year-on-Year
The headline
inflation (y-o-y)
stood at 15.98 per
cent in Q3 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

5.0
External Sector Developments6
Foreign exchange inflow through the CBN in the fourth quarter of
2017 rose by 22.7 per cent, while outflow fell by 10.3 per cent,
relative to the levels in the preceding quarter. Total non-oil export
receipts rose by 20.7 per cent, over the level in the third quarter of
2017. The average exchange rate at the invetsors and exporter’s
window, and the inter-bank segment of the foreign exchange
market were N360.47/US$ and N305.961/US$, respectively, in the
review quarter. At US$39.35 billion, the gross external reserves rose by
18.7 per cent, above the level at end-September 2017.
5.1
Foreign Exchange Flows
Foreign exchange inflow into the economy increased in the
fourth quarter of 2017, as a result of the rise in international
spot price of Nigeria‟s reference crude oil, the Bonny Light to
an average of US$62.48 per barrel in the fourth quarter of
2017. The rise in crude oil price was attributed to the decline in
United States shale oil output, increased global demand for
refined petroleum and extension of the Organisation of
Petroleum Exporting Countries (OPEC) production-cut deal to
the end of 2018. In addition, an overall balance of payments
surplus of 2.2 per cent of the gross domestic product (GDP)
was recorded in the review quarter. Consequently, foreign
exchange inflow through the CBN stood at US$14.71 billion,
showing an increase of 22.7 per cent and 118.7 per cent over
the levels in the preceding quarter and the corresponding
period of 2016, respectively. The increase reflected the rise in
receipts from oil and improvement in non-oil proceeds.
Aggregate outflow through the CBN, fell to US$8.38 billion,
from US$9.34 billion in the preceding quarter, but was an
increase
above
the
US$4.65
billion
recorded
in
the
corresponding period of 2016. The decline in outflow relative
to the preceding quarter reflected the fall in inter-bank
utilisation, 3rd party MDAs transfer, drawings on letters of
credits, external debt service and foreign exchange special
payment in the review period. Overall, a a net inflow of
US$6.33 billion was recorded through the Bank, compared
with US$2.64 billion and US$2.08 billion in the preceding

6 Data on foreign exchange flows through the CBN and the Economy are provisional and subject
to change
Foreign exchange inflow
through the CBN rose by
22.7 per cent, while
outflow fell by 10.3 per
cent, and resulted in a
net inflow of US$6.33
billion in Q4 of 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

quarter and the corresponding period of 2016, respectively
(Figure 16, Table 16).
Figure 16: Foreign Exchange Flows Through the CBN


Source: CBN
Table 16: Foreign Exchange Flows Through the CBN (US$ million)
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Inflow
3,942.89

5,875.18

5,613.01

6,726.01

6,597.73

8,404.37

11,984.05

14,708.45

Outflow
4,487.05

6,023.10

7,912.02

4,649.85

3,646.89

7,725.49

9,343.06

8,381.20

Netflow
(544.16)

(147.92)

(2,299.01)

2,076.16

2,950.84

678.88

2,640.99

6,327.25


Source: CBN

Aggregate foreign exchange inflow into the economy
amounted to US$30.45 billion indicating an increase of 14.5
per cent and 86.9 per cent above the levels in the preceding
quarter and the corresponding quarter of 2016, respectively.
The development was as a result of the 22.7 per cent and 7.7
per cent increase in inflow through the Bank and autonomous
sources, respectively. Oil sector receipts, which accounted for
10.6 per cent of the total, was US$3.23 billion, compared with
US$3.17 billion and US$1.97 billion in the third quarter of 2017
and the corresponding period of 2016, respectively.
Non-oil public sector inflow, at US$11.48 billion (37.7 per cent
of the total), rose by 30.3 per cent and 141.2 per cent, above
the levels at the end of the third quarter of 2017 and the
corresponding period of 2016, respectively. Autonomous
inflow, at US$15.74 billion, rose by 7.7 per cent and 64.6 per
cent, above the levels in the preceding quarter and the
-4,000
-2,000


Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
US$ million
Inflow
Outflow
Netflow
Autonomous inflow
into the economy rose
by 7.7 per cent in Q4
2017 .


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

corresponding period of 2016, respectively. Inflow from
autonomous sources accounted for 51.7 per cent of the total.
At US$9.19 billion, aggregate foreign exchange outflow from
the economy fell by 9.6 per cent below the level in the
preceding quarter, but represented 69.9 per cent increase
over the level in the corresponding period of 2016. The
development, relative to the preceding quarter, was driven
by 10.3 per cent and 2.0 per cent decline in outflow through
the CBN and autonomous sources, respectively. Thus, foreign
exchange flows through the economy resulted in a net inflow
of US$21.26 billion in the review quarter, compared with
US$16.42 billion and US$10.88 billion in the third quarter of 2017
and the corresponding period of 2016, respectively.
5.2
Non-Oil Export Earnings by Exporters
Total non-oil export earnings recieved through the banks rose
by 20.7 per cent above the level in the third quarter of 2017 to
US$614.50 million in the review quarter. The development was
due, mainly, to the 43.2, 18.0 and 6.1 per cent increase in
foreign exchange receipts from agricultural, industrial and
minerals sub-secrors. A breakdown by sectors showed that
proceeds from agricultural products, minerals, industrial sector,
manufactured products and food products were US$312.6
million, US$103.5 million, US$98.9 million, US$88.5 million and
US$10.9 million, respectively. The transport sector recorded
US$28,010.37 in earnings during the review period.
The percentage shares of agricultural products, minerals,
industrial sector, manufactured products and food products in
the total non-oil export proceeds were 50.9, 16.9, 16.1, 14.4
and 1.7 per cent, respectively.
5.3
Sectoral Utilisation of Foreign Exchange

Provisional data showed that sectoral foreign exchange
utilisation was US$7.45 billion in the fourth quarter of 2017,
indicating 5.5 per cent increase above the level in the
preceding quarter. The development reflected the 7.1 per
cent and 5.5 per cent rise in disbursement/utilisation for
invisible and visible imports, respectively. The invisible sector
accounted for the bulk (47.7 per cent) of total foreign
exchange disbursed in the fourth quarter of 2017, followed by
the industrial sector (27.0 per cent). The contributions of other
.
The invisible sector
accounted for the
bulk of the total
foreign exchange
disbursed during Q4
2017.
Total non-oil export
earnings by exporters
rose during the fourth
quarter of 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

sectors in a descending order were minerals and oil sector
(9.1 per cent), manufactured products (7.6 per cent), food
products (6.0 per cent), transport sector (1.4 per cent) and
agricultural products (1.2 per cent) (Fig.17).
Figure17: Sectoral Utilisation of Foreign Exchange

Source: CBN

5.4
Foreign Exchange Market Developments
A total of US$5.08 billion was sold by the CBN to authorised
dealers in the fourth quarter of 2017. This represented 21.6 per
cent decline below the level in the third quarter of 2017, but
was 75.3 per cent above the level in the corresponding period
of 2016. The development relative to the preceding quarter
reflected the decline in swaps transactions, sales to BDCs and
foreign exchange forwards disbursed atmaturity. Of the total,
foreign exchange forwards disbursed at maturity amounted to
US$2.80 billion or 55.1 per cent. BDC sales and swap
transactions were US$1.19 billion (23.4 per cent) and US$0.19
billion (3.8 per cent), respectively. Inter-bank sales, however,
rose by 30.5 per cent to US$0.9 billion or 17.7 per cent of the
total (Figure 18, Table 17).


Percent of Total
Q2-17
Q3-17
Q4-17
Supply for foreign
exchange by
authorized dealers fell
in Q4 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Figure 18: Supply of Foreign Exchange


Source: CBN

Table 17: Demand for and Supply of Foreign Exchange (US$ billion)
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Forex Sales at rDAS/Interbank

Supply of Swaps

Supply of Forex to BDC

Forward

Total Forex Supply(BDC and rDAS)


Source: CBN

Increased patronage at the Investors and Exporters window
continued to sustain relative stability and led to 0.5 per cent
appreciation in the average exchange rate to N360.47/US$,
compared with the level in the preceeding quarter. Similarly,
following consistent interventions at the BDC segement, the
average exchange rate was N362.49/US$, representing 0.8
per cent and 22.8 per cent appreciation relative to the levels
in the preceding quarter and the corresponding period of
2016, respectively. At the inter-bank segment, the average
exchange rate was N305.96/US$, indicating respective
depreciation of 0.1 per cent and 0.2 per cent, relative to the
levels in the third quarter of 2017 and the corresponding
period of 2016. The development reflected increased
demand at the inter-bank segment of the market.


Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
US$ billion
Forex Sales at rDAS/Interbank
Supply of Swaps
Supply of Forex to BDC
Total Forex Supply
The average naira
exchange rate vis-à-vis
the US dollar was
N305.96/US$ at the
inter-bank segment in
Q4 2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Consequently, the premium between the average inter-bank
and BDC rates narrowed by 1.0 percentage point from 19.5 in
the preceeding quarter to 18.5 per cent in the review quarter.
Similarly, the spread between the average Investors and
Exporters window and the BDC rates narrowed to 0.6 per cent
from 0.9 per cent in the preceding quarter (Figure 19, Table
18).
Figure 19: Average Exchange Rate Movements

Source: CBN

Table 18: Exchange Rate Movements and Exchange Rate Premium
Average Exchange Rate (N/US$)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Investors and Exporters Window
N/A
N/A
N/A
N/A
N/A
N/A
376.81
362.15
360.47
BDC

Interbank

Premium (%)
rDAS/Interbank
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
BDC/Interbank


Source: CBN

Q4-15
Q1-16
Q2-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
N/US $
Average rate at Investors and Exporters Window
Average BDC
Average Interbank


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Figure 20: Exchange Rate Premium

Source: CBN
5.5
Gross Official External Reserves
Gross external reserves at the end of the fourth quarter of 2017
was US$39.35 billion. This indicated an increase of 18.7 per
cent above the level in the third quarter of 2017. The external
reserves position would cover 10.2 months of import of goods
and services or 14.4 months of import of goods only based on
the estimated value of import for the fourth quarter of 2017. A
breakdown of the official external reserves by ownership
showed that CBN reserves stood at US$30.16 billion (76.7 per
cent), Federation reserves, US$2.45 billion (6.2 per cent) and
the Federal Government reserves, US$6.74 billion (17.1 per
cent) (Figure 21, Table 19).

Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Per cent
Interbank/BDC
Interbank/BDC
Gross external
reserves rose during
the fourth quarter of
2017.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Figure 21: Gross Official External Reserves


Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
US$ million

Table 19: Gross Official External Reserves (US$ million)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
External Reserves
28,284.8

27,336.4

26,505.4

23,806.5

26,986.2

29,994.4

30,341.0

33,159.7

39,347.5


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

6.0 Global Economic Conditions
6.1 Global Output
Global growth was estimated at 3.6 per cent in 2017, compared
with 3.2 per cent in 2016. This was due to general pickup in
investment, trade and industrial production, complemented by
strengthening business and consumer confidence. Increased
private consumption in the euro zone, coupled with strong
commodity price recovery in emerging and developing countires
contributed to strong domestic demand and sustained economic
activities. Growth in advanced countries was estimated at 2.2 per
cent, compared with 1.7 per cent in 2016. United States economy
was projected to expand by 2.2 per cent, while growth in the euro
area was estimated at 2.1 per cent in 2017.

In the emerging markets and developing economies, growth was
estimated at 4.6 per cent, compared with 4.3 per cent in 2016.
Gradual rise in commodity prices, increased domestic demand
and reduction in barrriers to exports provided the momentum for
recovery. Among the key emerging market economies, growth in
China was estimated at 6.8 per cent, while growth in India was
projected to slow to 6.7 per cent in 2017.

In Sub-sahara Africa, growth was projected to pick up to 2.6 per
cent in 2017, from 1.4 per cent in 2016. Rebound in economic
activity received boost from modest recovery in commodity
prices, growing external demand and improved weather
condition.

6.2 Global Inflation
Rising energy prices continued to exert inflationary pressure,
leading to increased prices in most advanced economies. In
the US and UK, average inflation rose to 2.0 per cent and 3.0
per cent, respectively, in the fourth quarter of 2017. Inflation
in the euroarea remained stable at 1.4 per cent in the review
quarter and was below the European Central Bank‟s target of
2.0 per cent.
In the major emerging markets, there was slight increase in
inflation due to higher energy prices, though inflation declined
in some developing economies in Sub-sahara Africa. Average
inflation in China and Brazil rose to 1.8 per cent and 2.7 per


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

cent in the fourth quarter of 2017, respectively, above 1.6 per
cent and 2.5 per cent in 2016. Inflation in some large
economies in Sub-sahara Africa, however, remained at
double digit due to effects of currency depreciation in the
immediate past.
6.3 Global Commodity Demand and Prices
Global crude oil supply in the review quarter was estimated at
97.28 mbd, representing an increase of 0.8 per cent above
the level in the preceding quarter. Similarly, global crude oil
demand was estimated at 97.77 mbd, indicating a 0.3 per
cent increase above the level in the preceding quarter.
The average price of OPEC Reference Basket (ORB) of 15
selected crude streams was US$59.35 in the fourth quarter of
2017 and represented 18.8 per cent increase over the level in
the preceding quarter. The development was attributed to
sustained compliance with the crude oil supply-cut by OPEC
and Non-OPEC members, demand growth from China and
high drawdown of crude inventory by the US due to increased
refining ativity.
6.4
International Financial Markets
Developments in the international stock markets were
generally mixed in the review period. In North America, the
United States S&P 500 and the Canadian S&P/TSX Composite
indices rose by 6.1 per cent and 3.7 per cent, respectively,
while the Mexican Bolsa index fell by 2.0 per cent, relative to
the levels in the third quarter of 2017. Similarly, in Europe, the
FTSE 100, DAX and MICEX indices rose by 4.3 per cent, 0.7 per
cent and 1.6 per cent, respectively, while the CAC 40
declined by 0.3 per cent, on quarter-on-quarter basis.
In South America, the Argentine Merval and Colombian
COLCAP indices rose by 15.3 and 1.8 per cent, respectively,
while the Brazilian Bovespa index declined significantly by 89.7
per cent. In Asia, Japan‟s Nikkei 225 and India‟s BSE Sensex
indices increased by 11.8 per cent and 8.9 per cent,
respectively, while China‟s Shanghai Stock Exchange-A index
decreased by 1.2 per cent.
In Africa, the Nigerian NSE All-Share, South African JSE AllShare, Egyptian EGX CASE 30 and Ghanaian GSE ASI indices


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

rose by 7.9 per cent, 7.1 per cent, 7.5 per cent and 10.9 per
cent, respectively, while the Kenyan Nairobi NSE 20 index fell
by 1.1 per cent, relative to the levels in the third quarter of

Despite the improvement in international commodity prices,
high inflation in many emerging economies and anticipation
of further hike in interest rate by the US precipitated capital
flow reversal from emerging and developing economies in the
fourth quarter of 2017. Consequently, most currencies in North
and South America as well as Africa depreciated against the
US dollar in the review quarter. A summary of developments in
the foreign exchange market in the review quarter are as
follows:

Africa:
The
Nigerian
naira
and
Kenyan
shilling
depreciated by 0.08 per cent apiece, on quarter-onquarter basis. Similarly, the Egyptian pound and
Ghanaian cedi depreciated by 0.93 per cent and 2.11
per cent, respectively, relative to the levels in the
preceding quarter. The South African rand, however,
appreciated by 9.50 per cent against the U.S dollar due
to increased agricultural activities and supportive external
environment.

North America: The Canadian dollar and Mexican
peso depreciated by 0.79 per cent and 7.14 per cent,
against the US dollar. This was as a result of rising US shortterm yield which negatively affected the Canadian
dollar, while expected rate increase by the Federal
Reserve exerted pressure on the Mexican Peso.

South America: The Brazilian real, Argentine peso and
Colombian peso depreciated by 4.4 per cent, 7.0 per
cent and 1.6 per cent, respectively, against the US dollar.
The Brazilian real depreciated due to rising uncertainty
following the delay to approve the long-expected reforms
to the pensions system.

Europe: The British pound and euro appreciated by 0.85
per cent and 1.61 per cent, respectively, against the US
dollar. This was due to improvement in Eurozone-bond
investment flows and progress in the Brexit negotiations.

Asia: The Japanese yen depreciated by 0.16 per cent
against the dollar. Chinese yuan and Indian rupee,


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

however, appreciated by 2.3 per cent and 2.2 per cent,
respectively, against the U.S. dollar. Rebound of Indian
rupee was due to improved GDP growth in the review
quarter.
6.5 Other International Economic Developments
and Meetings
Other major international economic developments and
meetings of importance to the domestic economy during the
fourth quarter of 2017 included: the fourth meeting of the
Presidential
Task
Force
on
the
ECOWAS
Monetary
Cooperation Programme (EMCP) held in Niamey, Republic of
Niger on October 24, 2017. The meeting was preceded by the
Technical Committee and Ministerial meetings which held
from 22 - 23 October 2017. The purpose of the meeting was to
examine the status of implementation of the ECOWAS single
currency programme and make concrete proposals to
accelerate the programme. The meeting recommended the
following:

Regular meetings of the Presidential Task force;

Need to improve the quality and frequency of statistics
production;

Improvement of the mechanism of multilateral surveillance
by strengthening the technical and financial capacities of
the NCCs / CNPEs in the Member States; and

Provision of adequate financing for the roadmap activities.
The meeting also reviewed the status of implementation of the
roadmap
activities
for
the
ECOWAS
Single
Currency
Programme, highlighted challenges in the roadmap and
made proposals to fast-track the process.
Furthermore, the 2nd Experts Committee meeting on the
Scheme on Quoting and Trading in WAMZ National Currencies
was held at the M-Plaza Hotel, Accra, Ghana, from November
27 – December 1, 2017. The objective of the meeting was to
evaluate the progress made so far on the project with a view
to providing the next phase of work for presentation to the
Convergence Council in January 2018. Following identification
of key issues as preconditions for successful implementation of
the Scheme, the following major observations were made,
among others:


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

All the draft documents considered at the meeting were
developed based on the East African decentralised model
with bilateral Agreements;

Cost consideration is paramount in implementing the
project, given the economic conditions of Member States
and the current state of donor fatigue;

ECOWAS was considering the implementation of Regional
RTGS System, Regional Switch and Regional Clearing
House using a different model; and

It is implied that the Framework for quoting and trading in
WAMZ currencies included physical cash transactions. This
might have implications for money laundering.
Finally, the 2017 Annual Meetings of the Board of Governors of
the World Bank Group (WBG), the International Monetary
Fund (IMF) and the Inter-Governmental Group of Twenty-Four
(G-24) on International Monetary Affairs and Developments
were held in Washington D. C., USA from October 9 – 15, 2017.
The Ministers of the Inter-Governmental Group of 24, the
International Monetary and Finance Committee (IMFC) and
the Development Committee also held their respective
meetings. Among others:

The Ministers welcomed the increasing momentum in
global growth, trade and investment and noted that
emerging market and developing economies (EMDEs)
would continue to account for the bulk of global growth;

The Ministers also noted the importance of transforming
their economies to boost growth, improve job creation
and reduce inequality and poverty; and

The IMFC noted that the upturn in global activity provided
a window of opportunity to tackle key policy challenges
and
stave
off
downside
risks,
including
ensuring
appropriate buffers, and maximising returns on structural
reforms to raise potential output.
The IMFC called on the IMF to continue to analyse the causes
of
the
productivity
slowdown
and
the
measurement
challenges of the digital economy, and help members identify
structural reform priorities as well as analyse their impact on
macroeconomic resilience.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

APPENDIX TABLES


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Table A1: Money and Credit Aggregates


Source: CBN

1/ Quasi money consist of Time, Savings and Foreign Currency Deposit at Deposit Money Banks excluding Taking from Discount Houses.

2/ Demand Deposit consist of State, Local and Parastatals Deposits at CBN, State, Local Government and Private Sector Deposits as well
as Demand Deposits of non-financial Public Enterprises at Deposit Money Banks.


Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Domestic Credit (Net)
26,857.72


Claims on Federal Government (Net)

Central Bank (Net)

Banks

Claims on Private Sector

Central Bank

Banks

Claims on Other Private Sector

Central Bank

Banks

Claims on State and Local Government

Central Bank

DMBs

Claims on Non-financial Public Enterprises

Central Bank

DMBs

Foreign Assets (Net)

Central Bank

DMBs and Non Interest Banks

Other Assets (Net)

Total Monetary Assets (M2)

Quasi-Money 1/

Money Supply (M1)

Currency Outside Banks

Demand Deposits 2/

Total Monetary Liabilities (M2)

Memorandum Items:
Reserve Money (RM)

Currency in Circulation (CIC)

Banks' Deposit with CBN

N billion


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Table A2: Money and Credit Aggregates (Growth Rates)
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Domestic Credit (Net)

Claims on Federal Government (Net)

Claims on Private Sector

Claims on Other Private Sector

Claims on State and Local Government

Claims on Non-financial Public Enterprises
Foreign Assets (Net)

Other Assets (Net)

Total Monetary Assets (M2)

Quasi-Money 1/

Money Supply (M1)

Currency Outside Banks

Demand Deposits 2/

Total Monetary Liabilities (M2)

Memorandum Items:
Reserve Money (RM)

Currency in Circulation (CIC)

DMBs Demand Deposit with CBN

Domestic Credit (Net)

Claims on Federal Government (Net)

Claims on Private Sector

Claims on Other Private Sector

Claims on State and Local Governments

Claims on Non-financial Public Enterprises
Foreign Asset (Net)

Other Asset (Net)

Total Monetary Assets (M2)

Quasi-Money 1/

Money Supply (M1)

Currency Outside Banks

Demand Deposits 2/

Total Monetary Liabilities (M2)

Memorandum Items:
Reserve Money (RM)

Currency in Circulation (CIC)

DMBs Demand Deposit with CBN
-7.23
-0.25
-1.69

17.76
Percentage Change Over Preceding Quarter
Percentage Change Over Preceding December

Source: CBN
1/ Quasi money consist of Time, Savings and Foreign Currency Deposit at Deposit Money Banks excluding Taking from Discount Houses.
2/ Demand Deposit consist of State, Local and Parastatals Deposits at CBN, State, Local Government and Private Sector Deposits as well as Demand Deposits of
non-financial Public Enterprises at Deposit Money Banks.


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter

Table A3: Federal Government Fiscal Operations (N billion)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Q3-17
Q4-17
Retained Revenue

Federation Account

VAT Pool Account

FGN Independent Revenue

Excess Crude

Others/SURE-P

Expenditure

Recurrent

Capital

Transfers

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


C e n t r a l B a n k o f N i g e r i a

Economic Report Fourth Quarter