CENTRAL BANK OF NIGERIA
HALF OF 2011
ECONOMIC REPORT FOR THE FIRST


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011


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


© 2011 Central Bank of Nigeria

ISSN 1597 - 2976


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011


Vision

To be one of the most efficient and effective world’s
central banks in promoting and sustaining 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.
iii


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011


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


iv


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

v
MEMBERS OF THE BOARD OF DIRECTORS OF THE BANK
AS AT JUNE 30, 2011

1.
Sanusi Lamido Sanusi, CON
-
Governor (Chairman)
2.
Suleiman A. Barau

-
Deputy Governor (Corporate Services)
3.
Sarah O. Alade (Mrs)
-
Deputy Governor (Economic Policy)
4.
Kingsley C. Moghalu
-
Deputy Governor (Financial System Stability)
5.
Tunde Lemo

-
Deputy Governor (Operations)
6.
Danladi I. Kifasi -
Director (Permanent Secretary, Federal Ministry of


Finance)
7.
Jonah O. Otunla -
Director (Accountant General of the Federation)
8.
Dahiru Muhammad

-
Director
9.
Samuel O. Olofin

-
Director
10.
Joshua O. Omuya

-
Director
11.
Stephen O. Oronsaye, OON, CON -
Director


Yinusa M. Sanusi

-
Ag. Secretary to the Board


MEMBERS OF THE COMMITTEE OF GOVERNORS OF
THE BANK AS AT JUNE 30, 2011

1.
Sanusi Lamido Sanusi, CON
-
Governor (Chairman)
2.
Suleiman A. Barau

-
Deputy Governor (Corporate Services)
3.
Sarah O. Alade (Mrs)
-
Deputy Governor (Economic Policy)
4.
Kingsley C. Moghalu
-
Deputy Governor (Financial System stability)
5.
Tunde Lemo


-
Deputy Governor (Operations)


Yinusa M. Sanusi

-
Ag. Secretary


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

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
Payments and Clearing 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..


2.4
Financial Sector Surveillance


2.4.1 Banking Supervision


2.4.2 Target Examination


2.4.3 Banking Sector Soundness ..


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

2.4.5 Fraud and Forgeries..


2.4.6 Financial Crimes Survelliance ..


2.4.7 Examination of Other Financial Institutions..
..
..

2.5
Foreign Exchange Management ..


2.5.1 Foreign Exchange Forward Market
..
..
..

2.5.2 Foreign Exchange Flows


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

2.5.4 Foreign Exchange Receipts by Top Hundred (100)

Exporters


2.6
Development Finance Operations


2.6.1 Agricultural Credit Guarantee Scheme
Fund (ACGSF)


2.6.2 Interest Drawback Programme


2.6.3 The Trust Fund Model (TFM) ..


2.6.4 Microfinance Related Activities .. ..
..
..
..

2.6.4.1 International Microfinance Conference ..
..
..

2.6.4.2 National Microfinance Policy Consultative Committee..

2.6.4.3 Rural Finance Institutions Building (RUFIN) Programme..

2.6.4.4 Entrepreneurship Development Centres (EDCs)..
..

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

vii

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

2.6.6 Agricultural Credit Support Scheme (ACSS)
..
..

2.6.7 N200 Billion Intervention Fund for Refinancing and
Restructuring of Banks’ Loans to the Manufacturing/
SME Sector ..


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

2.6.9 N300 Billion Power and Airline Intervention Fund (PAIF) ..

2.6.10 Nigeria Incentive-Based Risk Sharing for Agriculture
Lending (NIRSAL)


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 2011
..
..
..

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..


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) ..


4.1.6.3 Net Domestic Credit (NDC) ..


4.1.6.4 Credit to the Government (Cg) .. ..
..
..
..

4.1.5.5 Credit to the Private Sector (Cp) ..
..
..
..

4.1.6.6 Other Assets (Net)


4.1.7 Sectoral Distribution of Credit..


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

4.1.9 Money Market Developments..


4.1.9.1 Money Market Assets Outstanding..
..
..
..

4.1.9.2 Primary Market..


4.1.9.3 Open Market Operations (OMO) ..
..
..
..

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

4.1.9.5 Inter-Bank Funds Market


4.1.9.6 Reserve Averaging Framework


4.1.10 Interest Rates Developments


4.1.10.1
Inter-Bank Rates Movement..
..
..
..

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

viii
4.1.10.2
Money Market Rates


4.1.10.2.1
Deposit Rates..


4.1.10.2.2
Lending Rates..


4.1.11 Institutional Savings ..


4.1.12 Other Financial Institutions ..


4.1.12.1
Micro Finance Banks..


4.1.12.2
Discount Houses..


4.1.12.3
Finance Companies (FCs) ..
..
..
..

4.1.12.4
Primary Mortgage Institutions (PMIs) ..
..
..

4.1.12.5
Asset Management Corporation of Nigeria
(AMCON)


4.1.13 Capital Market Developments..


4.1.13.1
Institutional Developments..
..
..
..

4.1.13.2
The Nigerian Stock Exchange (NSE)..
..
..

4.1.13.3
New Issues Market.. ..


4.1.13.4
The Secondary Market..


4.1.13.5
Value Index of Equities..


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.. ..
..
..
..

4.2.5.1.1
Domestic Debt..


4.2.5.1.2
External Debt..


4.2.5.2 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


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 Mineral ..


4.3.7 Electricity Generation ..


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

ix
4.3.8 Electricity Consumption..


4.3.9 Industrial Financing ..


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


4.4
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 Transferes


4.4.2 Financial Account.. ..


4.4.2.1 Foreign Direct Investment.. ..


4.4.2.2 Portfolio Investment..


4.4.2.3 Capital Importation by Sectors.. ..
..
..
..

4.4.3 Reserve Assets


4.4.4 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 African Union (AU) Meetings..


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

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

5.1.5 West African Institute for Financial and Economic
Management (WAIFEM)


5.1.6 Economic Community of West African States
(ECOWAS)


5.1.7 ECOWAS, WAMI and WAMA Joint Multilateral
Surveillance Mission ..


5.1.8 The 13th Legal and Institutional Issues Committee
(LIIC) Meeting


5.2
Multilateral Economic and Financial institutions..
..

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

5.2.2 The World Bank/IMF 2011 Spring Meetings
..
..

5.2.3 The New IMF Managing Director and the Focus
of the Fund ..


5.2.4 Group of 8 (G-8) Summit


5.2.5 Global Monitoring Report 2011


6.0
ECONOMIC OUTLOOK FOR THE SECOND HALF OF 2011 ..
..

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

x

TABLES

Selected Macroeconomic Indicators


Monetary Policy Targets .. ..


Percentage Value and Volume of Electronic Payments Channels .. ..

Sectoral Distribution of DMBs Credit (June 2010-June 2011)
..
..

Maturity of DMBs’ Assets and Liabilities.. ..


Money Market Rates..


Selected Interest 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.. ...


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


Allocation to Local Governments from the Federation and VAT Pools
Accounts
..


Domestic Debt of Federal Government ..


Domestic Debt Service Payment of the Federal Government ..
..

External Debt Outstanding ..


External Debt Service Payment.. ..


Consolidated Debt Outstanding ..


Selected Debt Indicators ..


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

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

Selected Real Sector Indicators


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

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xi

Balance of Payments Analytical 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


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xii
CHARTS

Volume and Value of Cheques Cleared, Half Year ..
..
..

Volume and Value of ATM Transactions, Half Year..
..
..

Volume of POS Transactions, Half Year.. ..
..
..
..

Value of POS Transactions, Half Year..


Volume of Mobile Transactions, Half Year..
..
..
..

Value of Mobile Transactions, Half Year.. ..
..
..
..

Demand, Supply and Net Demand for Foreign Exchange..
..

Demand and Supply at the Foreign Exchange Market ..
..

Exchange Rates Movements


Bureaux-de-Change Premium..


Forward Exchange Rate Movements, First Half 2011
..
..

Performance of the Naira against Major Currencies
..
..

Performance of the Naira against Regional Currencies..
..

Foreign Exchange Disbursements through the CBN..
..
..

Foreign Exchange Flows Through the CBN..
..
..
..

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

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

Sectoral Disbursement of ACGSF Loans ..
..
..
..

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

Sectoral Distribution of Facilities through Participating Banks.. ..

21a
Reserve Money and its Components (Uses)..
..
..
..

21b
Reserve Money and its Components (Sources) ..
..
..

Growth in Money Supply.. ..


Share in Outstanding Credit to the Core Private Sector..
..

Share (%)of Government and Private Sector in Banking System’s


Credit to the Economy


Share of State & Local Government and Core Private
Sector in Private Sector Credit..


Money Market Assets Outstanding..


Distribution of Federal Government of Nigeria Bonds.. ..
..

Money Market Rates..


Nominal Interest Rates Movements..


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xiii

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

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

Composition of 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 Allocations to State Governments ..
..

Composition of Total Allocations to Local Governments ..
..

Composition of Federal Government Consolidated Debt
..

Trend in Federal Government Debt Service..
..
..
..

GDP Growth Rate.. ..


Industrial Production Index..


Average Manufacturing Capacity Utilization Rate..
..
..

Crude Oil Production and Exports..


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


Gas Production and Utilization..


Consumption of Petroleum Products..


Sectoral Analysis of Restructuring and Refinancing facility
..

Total Connected Lines and Teledensity.. ..
..
..
..

Consumer Price Indices


Inflation Rate (Year-on-Year)


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

Exports, Imports and Trade Balance..


Value of Oil and Non-Oil Exports.. ..


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.. ..


External Reserves and Months of Imports Commitments..
..

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

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xiv
SSUUM
MA
ARRYY
POLICY FRAMEWORK
The monetary targeting framework for monetary management was
sustained to achieve the primary objective of monetary and price
stability. In this regard, open market operations (OMO) continued to be
the major tool, complemented with cash reserve requirement (CRR),
liquidity ratio (LR), discount window operations, primary market
transactions in government securities and foreign exchange market
interventions, including forward transactions. The monetary policy rate
(MPR) remained the anchor for money market and other rates. The
Bank also intensified its surveillance activities through sustained efforts
at resolving the banking crisis and the implementation of the revised
prudential guidelines to promote stability and soundness of the
financial system. In addition, it released the guidelines on non-interest
banking and granted an approval-in-principle in respect of a fullfledged non-interest bank and a window for non-interest banking
products. In continuation of its developmental activities, the Bank
sustained its various schemes including; the N200 billion intervention
fund
for
the
refinancing
and
restructuring
of
loans
to
the
manufacturing and SME sector, the N200 billion SME Credit Guarantee
Scheme Fund and the N300 billion Power and Airline Intervention Fund
initiatives. The Bank continued the implementation of the Agricultural
Credit Guarantee Scheme (ACGS), the Commercial Agricultural Credit
Scheme (CACS) and, in addition, established the Nigeria IncentiveBased Risk Sharing System for Agricultural Lending (NIRSAL) to address
the weaknesses in the existing agricultural financing schemes, aimed
at unlocking the agricultural value-chain.
CBN OPERATIONS


Liquidity
Management
The OMO continued to serve as the main tool for liquidity
management. This was supported by the discount window operations
(including standing facilities), the CRR, foreign exchange market
interventions and the issuance of treasury securities in the primary
market to achieve optimum banking system liquidity. The Bank also
continued to guarantee inter-bank transactions and foreign credit lines
to sustain confidence in the financial system. The MPR was raised three
times during the period to address the monetary policy challenges.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xv


Payments
&
Clearing System
The Nigeria Payments System witnessed increased usage of other
modes of payment such as the Real Time Gross Settlement (RTGS)
System, Nigeria Inter-Bank Settlement System (NIBSS), Inter-Bank Funds
Transfer (IFT), Automated Teller Machines (ATMs), mobile banking and
internet payments, etc. as the volume and value of cheques cleared
declined during the first half of 2011. In order to reduce cash
dependency and further promote e-payments within the economy, the
Bank initiated other policy measures which, among others, included the
fixing of daily cumulative limit for individual and corporate customers
on cash withdrawals and lodgements effective from June 1, 2012. The
pilot run would commence on January 2, 2012 in some selected areas.
Furthermore, the Bank directed the cessation of the cash-in-transit
lodgement services to merchant customers and prohibited exclusive
acquirers’ contracts for card scheme with effect from June 1, 2011.


Financial Sector
Surveillance


As part of the implementation of the new banking model, the CBN
issued new regulations on the scope of banking activities and ancillary
matters to effectively curtail excessive intra-group transactions and
refocus banks to core banking business. The Bank also intensified efforts
at recapitalising the eight intervened banks through industry-induced
mergers and acquisitions or outright sales to new investors. In addition,
it issued a reporting template for capturing standardized sectoral and
other information and directed banks to adopt the Nigeria Generally
Accepted Accounting Principles plus (NGAAP+) to facilitate the
adoption of the International Financial Reporting Standards (IFRS).
Furthermore, the CBN in conjunction with the NDIC conducted target
examinations of the 24 banks to evaluate the adequacy of the
provisions made for bad and doubtful credits. It also carried out spot
checks on various aspects of the DMBs operations including liquidity,
foreign exchange utilisation and public sector deposits in line with the
risk-based supervision methodology. The assessment of the health of
the banking sector indicated that the average capital adequacy ratio
(CAR) of the sixteen (16) non-intervened banks was 21.5 per cent at
end-June 2011, while that of the eight (8) intervened banks was
negative. The banks’ industry-wide average liquidity ratio (LR)
exceeded the 30.0 per cent minimum requirement, while the ratio of
non-performing credits to total loans at 10.4 per cent was below the


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xvi
acceptable contingency threshold of 20.0 per cent for the industry. As
part of the efforts to strengthen corporate governance, the Bank
issued a circular on “Approved Persons Regime” for banks and
discount houses to regulate appointments into management positions
in these institutions. To further combat money laundering and financial
terrorism, the Money Laundering Prohibition Act (as amended) was
enacted during the period.


Foreign Exchange
Management
The market experienced significant pressure as demand by authorised
dealers at the Wholesale Dutch Auction System (WDAS) and Bureaude-Change (BDC) segments of the market rose substantially relative to
the level in the corresponding period of 2010. The Bank introduced the
forward transactions to reduce the pressure on the foreign exchange
market during the first half of 2011. The WDAS Forward (WDAS-FWD)
rate for the 1-, 2- and 3-month tenors averaged N151.48/US$ while the
WDAS spot rate averaged N152.55/US$ in the first half of 2011.
Furthermore, foreign exchange inflows into the economy increased
substantially during the first half of the year, reflecting the rise in crude
oil receipts and autonomous inflows. Similarly, foreign exchange
outflow rose significantly over its level in the corresponding period of
2010. Notwithstanding, a net inflow of US$29.71 million into the
economy was achieved at the end of the first half of 2011, compared
with US$21.72 million in the corresponding period of 2010.


THE FINANCIAL
SECTOR


Growth in monetary aggregates was modest relative to the
benchmark for the first half of 2011. Available data indicated that
relative to the level at end-December 2010, broad money supply (M2)
rose by 5.7 per cent. Similarly, narrow money supply (M1) grew by 1.3
per cent at end-June 2011, compared with a decline of 2.0 per cent in
the corresponding period of 2010. The moderate growth in money
supply reflected the efforts to contain inflationary pressures. However,
reserve money exceeded the indicative benchmark for the first half of
2011 by 16.6 per cent. The Federal Government remained a net
creditor to the banking system despite the 5.1 per cent rise in credit to
government (net). Credit to the domestic economy grew by 2.3 per
cent at end-June 2011, driven largely by the expansion in net claims on
the Federal Government. Instruments of short-term maturity remained
a dominant feature of the credit and deposit portfolios of banks.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xvii


Banks’ average prime and maximum lending rates fell significantly and
the spread between banks’ average term deposit and maximum
lending rates widened to 17.60 percentage points from 15.50
percentage points in the first half of 2010. With the year-on-year
inflation rate at 10.2 per cent at end-June 2011, all the deposit rates
were negative in real terms. At N8,521.4 billion, aggregate institutional
savings at end-June 2011 increased by 42.9 per cent over the level in
the corresponding half year of 2010. The DMBs remained the dominant
savings institution, accounting for 99.0 per cent of the total. Activities
on the floor of the Nigerian Stock Exchange were mixed, as the market
capitalization (MC) grew by 36.6 per cent, to close at N11.2 trillion,
while the All-share Index (ASI) declined by 1.6 per cent to 24,980.20 at
end-June 2011.


THE
GOVERNMENT
SECTOR
Provisional data indicated that total federally-collected revenue
(gross), at N4,762.20 billion, exceeded both the proportionate budget
estimate and the actual revenue in the corresponding period of 2010,
by 3.3 and 45.4 per cent, respectively. Oil-revenue accounted for 80.4
per cent and non-oil revenue accounted for the balance. At N1,307.33
billion, Federal Government retained revenue was lower than both the
proportionate budget estimate and the level in the first half of 2010, by
27.4 and 6.0 per cent, respectively. At N1,997.85 billion, aggregate
expenditure of the Federal Government was below the proportionate
budget estimate by 15.7 per cent, but exceeded the outlay in the first
half of 2010 by 9.9 per cent. The reduced outlay relative to the
proportionate budget estimate reflected the delayed disbursements of
capital
expenditure
and
transfers.
Notwithstanding,
the
fiscal
operations of the Federal Government resulted in a provisional overall
deficit of N690.52 billion or 4.3 per cent of GDP, as against the
proportionate budget deficit of N568.31billion and the actual deficit of
N427.93 billion in the corresponding period of 2010. At N6,038.00 billion,
the stock of Federal Government consolidated debt rose by 37.1 per
cent over the level at end-December 2010 and comprised - domestic
N5,210.44 billion and external US$5.40 billion (N827.56 billion).


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xvii


THE REAL
SECTOR


Provisional data from the National Bureau of Statistics (NBS) revealed
that the gross domestic product (GDP) at 1990 constant basic prices,
grew by 7.3 per cent in the first half of 2011, relative to the 7.5 per cent
achieved in the first half of 2010. The development largely reflected the
growth in the output of the non-oil sector, which rose by 8.7 per cent
and accounted for 84.1 per cent of the total. At 240.8 (1990=100),
provisional aggregate index of agricultural production grew by 5.6 per
cent, compared with 5.9 per cent in the first half of 2010. The industrial
sector witnessed improved performance as the index of production
rose by 3.0 per cent over the level in the corresponding period of 2010
to 128.8 (1990=100). This reflected improved activities in manufacturing
and mining production as well as electricity supply. Crude oil
production, including condensates improved as the average daily
production grew to 2.14 million barrels per day (mbd) in the first half of
2011, compared with 2.06 mbd in the corresponding period of 2010.
The average spot price of Nigeria’s reference crude, the Bonny Light
(370 API), rose by 43.3 per cent to US$113.86 per barrel. The inflationary
pressures which persisted in 2010 lingered into the first half of 2011 as
the inflation rate remained in the double digit. The year-on-year
headline inflation fluctuated downwards to 10.2 per cent at end-June
2011. Similarly, the 12-month moving average dropped to 12.3 per cent
at end-June 2011, compared with 13.1 per cent at end-June 2010. Both
components of inflation (food and non-food) exhibited the same
trend.


EXTERNAL
SECTOR


The external sector remained strong in the first half of 2011, following
the sustained high price of crude oil at the international market and
increased domestic oil production. Consequently, the current account
recorded in an estimated surplus of N1,960.7 billion or 12.8 per cent of
GDP. Provisional data indicated that external assets at end-June 2011
dropped by 4.6 per cent to N6,535.45 billion (US$42,629.56 billion), from
its level at end-June 2010. Similarly, at US$31.89 billion, the external
reserves could finance 7.2 months of current imports. The projected 4.3
per cent growth rate of world output was not realised in the first half of
2011. Preliminary figures indicated that the real GDP in the United
States grew by an annualised rate of 1.9 per cent in the first quarter of
2011, while that for the UK rose by 0.5 per cent over the same period.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

xix


However, the real GDP in Japan contracted by 0.9 per cent owing to
the devastating effects of the earthquake and tsunami which
disrupted industrial production and consumer spending. Output in
China and India grew by 9.6 and 7.8 per cent, respectively, in the first
half of 2011. Similarly, activities in sub-Sahara Africa continued to
rebound, driven by the sustained demand and favourable prices for
commodity exports. Global commodity prices remained high and
inflationary
pressures
persisted,
particularly,
in
the
developing/emerging economies as a result of the continued demand
pressure as well as higher share of food and fuel in the consumption
basket.


OUTLOOK
FOR THE REST
OF 2011
The favourable weather conditions occasioned by early on-set and
fairly distributed rainfall are expected to bolster agricultural output in
the second half of the year. The continuing efforts of the government
to fix infrastructure, particularly, power supply is expected to improve
productivity in the economy and have salutary effects on the real GDP
growth rate. In addition, the high international price of crude oil and
the sustained peace in the Niger Delta region which has enhanced
domestic oil production/exports will continue to boost fiscal revenue,
increase foreign exchange inflows and ensure the stability in the foreign
exchange market as well as improve the balance of payments
position. However, the liquidity injections from both the efforts at
resolving the banking crisis and the fiscal arm in addressing the
developmental challenges facing the country in the second half of
2011, may engender liquidity surfeit and drive-up prices generally,
including the exchange rate. It is expected that the monetary authority
will engage in proactive monetary management to reduce the risks
and threats of any imminent inflationary pressure.
Notwithstanding the favourable near-term growth outlook for the
domestic economy, recent developments in the global economy that
have seen a sharp slowdown in economic activities in major advanced
economies that prompted a downward review of global economic
growth forecast for 2011, pose a major risk to the domestic economy in
the near-to-medium term. These have raised concerns about the
prolongation of the current recession in the industrialized economies
with potential spill-over to the emerging and developing economies.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
Indicator
Jun-07
Jun-08
Jun-09
Jun-10 1/
Jun-11 2/
Domestic Output and Prices
GDP at Current Mkt Prices (N' billion) 3/
9,594.65
11,820.52
11,719.83

13,536.45

15,955.63

GDP at Current Mkt Prices (US$' billion) 3/
75.36
100.22
79.55

90.22

104.14

GDP per Capita (N) 3/
66,398.96
79,279.16
76,102.77

85,173.48

97,282.28

GDP per Capita (US$) 3/
521.55
672.20
516.58

567.67

634.92

Real GDP Growth (Growth Rate %) 3/

Oil Sector

Non-oil Sector

Sectoral Classification of GDP (Growth Rate %)
Agriculture

Industry 4/

Services 5/

Oil Production (mbd)

Manufacturing Capacity Utilisation (%) 1/

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

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

Core Inflation Rate (%) (Year-over-Year) 7/

Core Inflation Rate (%) (12-month moving average) 7/

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

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

Selected Macroeconomic and Social Indicators


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
Indicator
Jun-07
Jun-08
Jun-09
Jun-10 /1
Jun-11 /2
Interest Rates (% per annum)
Monetary Policy Rate (MPR) 9/


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

Average Crude Oil Price (US$/barrel)

Average AFEM/DAS Rate (N/$1.00)
127.94
117.94

147.32
150.04
153.22
End of Period AFEM/DAS Rate (N/$1.00)
127.31
117.80

148.22
150.19
153.31
Average Bureau de Change Exchange Rate (N/$)
129.31
119.21

168.03
152.77
156.93
End of Period Bureau de Change Exchange Rate (N/$)
128.00
119.00

158.00
153.87
159.00
Capital Market
All Share Value Index (1984=100)
51,330.5

55,949.0

26,249.28
25,384.14
24,980.20
Value of Stocks Traded (Billion Naira)

Market Capitalization (Trillion Naira)

1/ Revised
2/ Provisional
3/ Revised based on National accounts of Nigeria 1981-2005 Harmonised series
4/ Includes Building and Construction.
5/ Includes Wholesale and Retail Services
6/ Based on GDP at purchasers' value (i.e. GDP at market prices)
7/ Core Inflation is measured as the rate of change of all-item Consumer Price Index (CPI) less farm produce
8/ Based on GDP at Current Purchasers' Value (Current Market Price).
9/ MPR replaced MRR with effect from December 11, 2006
*** indicates not available.
Selected Macroeconomic and Social Indicators (Cont...)
.00


xxi


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011


CENTRAL BANK OF NIGERIA
ECONOMIC REPORT FOR THE FIRST HALF OF 2011


1.0
Introduction
The focus of monetary policy during the first half of 2011 was on maintaining
price stability, consistent with the projected real gross domestic product
(GDP) growth rate target of 7.40 per cent for 2011. In this regard, the Bank
adopted various restrictive monetary policy measures aimed at containing
the threat of inflationary pressure, achieving positive real interest rates and
facilitating access to bank credit by the private sector. Monetary targeting
remained the main framework for monetary policy management. The
Central Bank of Nigeria (CBN), however, continued to guarantee inter-bank
transactions to sustain confidence in the money market. The major approach
to monetary management was the sales and purchases of treasury bills
through the open market operations (OMO), complemented with discount
window operations (including standing facilities and repo transactions), cash
reserve requirement (CRR) and liquidity ratio (LR). Primary market transactions
in government securities and foreign exchange market interventions were
also used in monetary management. The monetary policy rate (MPR)
remained the anchor for short-term money market and other rates.

Table 1
Monetary Policy Targets (Growth in % except otherwise stated)
Key Policy Variables

Target
Outcome
Half Year 2011 1/
Broad Money Growth (M2)

Narrow Money Growth (M1)


Base Money (Reserve) Naira
Billion
N860
N1,124.8
N1,346.3
N1,872.80
N1,771.40
N2,065.06
Aggregate credit to the
domestic economy(Net)

Credit to Government (Net)

Credit to the private sector

Inflation rate

Real GDP Growth

1/ Provisional

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2.0 Operations of the Central Bank of Nigeria
2.1 Liquidity Management
The economy witnessed high banking system liquidity, driven largely by the
fiscal injections in the first half of 2011. Against the backdrop of the expected
increase in government spending in the run up to the April/May 2011
elections and the rising global energy and food prices, and their potential
threat to the general price level and, hence, inflation, the Bank deployed
various liquidity management tools to contain the inflationary impact of
these factors. These included the upward review of the MPR from 6.5 per
cent in 2010 by 25, 100 and 50 basis points to 6.50, 7.50 and 8.00 per cent in
January, March and June 2011, respectively. The symmetric corridor of +/-200
basis points around the MPR was retained during the review period. Similarly,
CRR was increased by 100 basis points from 1.00 per cent in 2010 to 2.00 and
4.00 per cent with effect from February 1 and June 8, 2011 respectively. The
LR was also raised, by 500 basis points to 30.00 per cent, with effect from
March 1, 2011.

OMO continued to serve as the main instrument for liquidity management
during the review period. This was complemented by the CRR and foreign
exchange market interventions. Other tools included the discount window
operations through tenored repurchase transactions and issuance of treasury
securities in the primary market to achieve optimum banking system liquidity.

The Bank’s guarantee of the inter-bank transactions and foreign credit lines,
introduced in 2009 in the wake of the banking crisis, was extended from June
30, 2011 to September 30, 2011, to continue to enhance trading among
operators. The domestic money market instruments were supported by
foreign exchange market interventions at the Wholesale Dutch Auction
System (WDAS). There were foreign exchange auctions at the Wholesale
Dutch Auction Forward (WDAS-FWD) which was introduced on March 23,
2011 to complement the WDAS-Spot market transactions, following the high
demand for foreign exchange at the spot market.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Despite the efforts made by the Bank to contain the liquidity surge observed
during the period, the liquidity level of N2,065.08 billion at end-June 2011
exceeded the reserve money (RM) indicative benchmark of N1,771.40 billion
by N293.66 billion or 16.58 per cent.

2.2 Monetary Policy Committee (MPC) Decisions
The Monetary Policy Committee met three times during the review period, in
January, March and May 2011. A summary of the key decisions of the MPC
during the period are presented below:
Date of
Meeting
Type of Meeting
Decisions
Jan 24 -
25, 2011
Regular
•
Raised the Monetary Policy Rate (MPR) by 25 basis points from
6.25 to 6.50 per cent
•
Maintained the symmetric corridor of +/- 200 basis points around
the MPR
•
Raised the Cash Reserve Requirement (CRR) by 100 basis points
from 1.00 to 2.00 per cent with effect from February 1, 2011
•
Raised the Liquidity Ratio (LR) by 500 basis points from 25.00 to
30.00 per cent.
Mar 21 -
22, 2011
Regular
•
Raised the MPR by 100 basis points from 6.50 to 7.50 per cent
•
Retained the symmetric corridor of +/- 200 basis points around
the MPR
•
Retained the CRR and LR at 2.00 and 30.00 per cent,
respectively
•
Extended the CBN guarantee on inter-bank transactions and
foreign credit lines by three months from June 30 to September
30, 2011.
•
New reserve averaging, and operational framework for the
computation of CRR was introduced in March 2011 to
moderate volatility in the money market rates and boost
liquidity condition of the DMBs.
May 23 -
24, 2011
Regular
•
Raised the MPR by 50 basis points from 7.50 to 8.00 per cent
•
Raised the CRR by 200 basis points from 2.00 to 4.00 per cent
with effect from June 8, 2011
•
Retained the symmetric corridor of +/- 200 basis points around
the MPR.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2.3 Payments and Clearing System
Consistent with the objectives of the Payments System Vision 2020, the Bank
initiated a number of payments policy measures that focused on migration
from cash-based to e-payment-driven economy. These included:
• Fixed a daily cumulative limit of N150,000 for individual customers and
N1,000,000 for corporate customers on cash withdrawals and
lodgements with effective implementation date fixed for June 1, 2012.
A Pilot run would commence in Lagos State, the Federal Capital
Territory (FCT), Kano, Port-Harcourt, and Aba from January 2, 2012;
• Disallowed encashment of third party cheques above N150,000 over
the counter, as value for such cheques shall only be received through
clearing;
• Directed that Cash-in-transit (CIT) lodgement services rendered to
merchant customers by banks shall cease from June 1, 2011. However,
customers could engage the services of the CBN-licensed CIT
companies to facilitate cash movement to and from their banks at
mutually-agreed terms and conditions;
• Prohibited exclusive acquirer contracts for card schemes to enhance
inter-operability with effect from June 1, 2011;
• Facilitated massive deployment of Point-of-Sale (POS) terminals under
the shared services project with a view to reducing the cost of
operations; and
• These initiatives were expected to increase public awareness and
confidence, improve customer convenience, reduce the time spent
on banking transactions and enhance financial inclusion.

2.3.1 Retail Payments System
2.3.1.1
Cheque
In the first half of 2011, the volume and value of cheques cleared stood at
16,188,775 and N9,919.05 billion, respectively, compared with 18,458,480 and
N10,412.12 billion in the second half of 2010. The decline was attributed to the
increased usage of other modes of payment such as the Real Time Gross
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Settlem
bank F
and in
In term
followe
75.0 pe

2.3.1.2
Availa
indica
per ce
0.71 p
per ce
ATM a
1.67 pe

The v
167,96
106,73
attribu
ment (RTG
Funds Tran
nternet pa
ms of volu
ed by Ab
er cent, fo

Electro
able data
ted that
ent, follow
er cent. T
ent of the
accounted
er cent, w
volume a
62,665 an
39,822 and
uted to th
Vol me (million)
CBN ECON
GS) system
nsfer (IFT),
ayments, a
Volume
ume, the
uja (8.4%)
ollowed b
onic Paym
on variou
the ATM r
wed by the
he POS te
e total e-p
d for 91.37
while mob
and value
d N764.1
d N610.22
he enhanc
‐

Volume (million)
NOMIC REPO
m, Nigeria
Automat
among ot
and Value
Lagos cle
) and Ben
by Abuja (
ments
us e-paym
remained
e web (In
erminal w
payment
7 per cen
bile payme
e of elec
4 billion
2 billion in
ced publ
1st Half 200
Volume

ORT FOR TH
Inter-Ban
ted Teller
thers.

Figure 1
of Cheques
earing zo
nin (1.3%).
8.9%) and
ment cha
d the most
ternet) 0.
as the lea
transacti
nt, the we
ents acco
ctronic c
in the fir
the seco
ic confide

1st Half
HE FIRST HA
nk Settlem
Machines
s Cleared, H
one led ot
In value t
d Kano (3.
annels for
t patronis
72 per ce
ast patron
ons. Sim
b (Interne
ounted for
card (e-c
rst half o
ond half o
ence in c

1st H
Value
ALF OF 2011
ment Syste
s (ATMs), m
Half Year
thers with
terms, Lag
.1%).
the perio
ed, acco
ent, and m
nised, acc
ilarly, in v
et) 6.04 pe
r 0.92 per
card) tran
of 2011, c
of 2010. Th
card paym
Half 2011
m (NIBSS)
mobile ba
h 82.1 per
gos also le
od under
ounting fo
mobile pa
counting f
value term
er cent, th
cent.
nsactions
compared
he increas
ments, fol

, Interanking,

r cent,
ed with
review
r 98.09
ayment
or 0.48
ms, the
he POS
were
d with
se was
lowing

the ad
payme
P

Volu


Valu


2.3.1.2
The nu
with th
N698.1
in the


doption of
ents.
Percentage
ume Terms
ue Terms

2.1 ATM Tr
umber of A
he volum
19 billion,
second h
CBN ECON
f stringent
Value and
ransaction
ATMs dep
me and va
compare
alf of 2010
Volume

NOMIC REPO
t measure
Volume of
Transaction
ATM
Web (Intern
POS
Mobile
ATM
Web (Intern
POS
Mobile
ns
ployed in t
alue of tr
ed with 10
0.
e and Value
1st Half 20
56.1
283.3

ORT FOR TH
es to com

Table 2
Electronic P
n Channel
net)
net)
the system
ransaction
02,608,918
Figure 2
of ATM Tran
009 1st Half 2
102.6
283.3
HE FIRST HA
bat fraud
Payments C
Pe
m stood a
ns amoun
8 and N54
nsactions, H
2010 1st Hal
164.8
546.5
ALF OF 2011
d and prom
Channels, Ha
er cent Shar
at 9,443 at
nting to 1
46.55 billio
Half Year
lf 2011
698.2
mote elec
alf Year 201
re

t end-Jun
64,755,05
on, respec

ctronic


e 2011
55 and
ctively,

2.3.1.2
Interne
billion
was d
payme

2.3.1.2
The firs
terms
transa
of 201
numbe
2.2 Web T
et payme
in volume
due to the
ents onlin
2.3 Point-o
st half of 2
of on-lin
ctions ros
0. The gro
er of peop
N'million
CBN ECON
ransactio
ents increa
e and va
e rise in t
e through
of-Sale (P
2011 witne
e POS tr
se by 39.1
owth in th
ple and m
Vo
V


‐

N million
NOMIC REPO
ns
ased by 5
alue, respe
the numb
h their web
OS) Transa
essed a su
ransaction
and 74.7
he POS tr
merchants
olume of PO
Value of POS

91,211

946.22

ORT FOR TH
57.5 and 1
ectively, i
ber of airl
bsites.
actions
ubstantial
ns. At 80
7 per cent
ransaction
s using de

Figure 3
OS Transacti
Figure 4
S Transactio

535,376
490,172

6,800.00
6 266 57
HE FIRST HA
11.2 per c
n the rev
ines and
increase
9,115 an
t over the
ns was du
bit cards.
ons, Half Ye
ons Half Yea

490,919

6,266.57
5,438.93
ALF OF 2011
cent to 1,2
iew perio
merchan
in the vo
d N12,73
levels in
ue to the

ear
ar

809,115

12,737.84
203.0 and
od. The inc
nts that a
lume and
7.8 billion
the secon
increase

d N46.1
crease
accept
d value
n, POS
nd half
in the

2.3.1.2
The vo
increa
respec
billion
2.3.2
The vo
system
7.1 pe
2.4 Mobile
olume an
ased by
ctively, in
in the sec
Wholesale
olume an
m (CBN Int
er cent, to


N'million
CBN ECON
e Paymen
nd value
61.0 and
the perio
cond half
Vol
Va
e Paymen
nd value
ter-bank F
o 223,959 a


‐

NOMIC REPO
nts
of payme
d 60.0 p
od under
of 2010.
lume of Mo
alue of Mobi
nts System
of inter-b
Funds Tran
and N53,

161,679

44.73

ORT FOR TH
ents throu
per cent
review, c

Figure 5
bile Transac
Figure 6
ile Transact
m
bank tran
nsfer Syste
146.82 bill

1,576,207
1 577 601

164.80
167 54
HE FIRST HA
ugh the m
to 1,195
compared
ction, Half Y
ions, Half Ye
nsactions
em (CIFTS
ion, respe

1,577,601
413,839

167.54
2,236
ALF OF 2011
mobile ba
5,459 and
d with 742
Year
ear
through
)) increas
ectively, in

1,195,459

7,065
anking ch
d N7.06
2,694 and
the CBN
sed by 17
n the first

hannel
billion,
d N4.41


N RTGS
.8 and
half of

2011, compared with 190,138 and N49,640.0 billion in the second half of
2010.

2.4 Financial Sector Surveillance
2.4.1 Banking Supervision
The CBN continued its drive to promote the stability and soundness of the
financial system in the first half of the year. The Bank’s surveillance activities
were focused on the implementation of the revised prudential guidelines, the
revised banking model as well as the resolution of the banking crisis through
the Asset Management Corporation of Nigeria (AMCON). The legal
framework for financial safety and stability was further enhanced with the
passage of the following bills by the National Assembly: the Nigeria
International Financial Centre Bill; the Electronic Transactions Bill; the
Alternative
Dispute
Resolution
Commission
Bill;
and
the
Financial
Ombudsman Bill.

In addition, in order to effectively ring-fence banks from excessive intra-group
transactions and refocus them to core banking functions, the CBN in line with
the new banking model, issued a new regulation on the scope of banking
activities and ancillary matters. Under the new banking regulation policy,
banks would no longer invest their capital or depositors’ funds in non-bank
subsidiaries and were expected to divest or spin-off to a holding company
(HoldCo), all non-bank-related businesses. At end-June 2011, seventeen (17)
out of the twenty-four (24) deposit money banks (DMBs) had been granted
Approvals-In-Principle (AIPs) to operate as Commercial Banking entities. Of
this number, nine (9) were granted International Banking status, six (6)
National Banking status and two (2) Regional Banking status. In addition, of
the 17 banks, 13 had chosen to divest from their non-banking subsidiaries,
while four (4) adopted the HoldCo structure.

In order to enhance the supervision of the foreign exchange operations of
the DMBs, a new unit was created by the Bank. Prior to the creation of the
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Unit, the review of foreign exchange operations of banks was integrated into
the routine risk-based examination.

Furthermore, the Bank released the Framework and Guidelines for the
Regulation and Supervision of Non-Interest Banking in Nigeria. In this regard,
the Bank granted AIPs to Jaiz International as a full-fledged non-interest bank
and a window to Stanbic-IBTC to offer non-interest (Islamic) banking
products. The AIPs require the institutions to meet the conditions for the
granting of licence within six (6) months.

The CBN intensified efforts at re-capitalizing the eight banks in which it
intervened to prevent a systemic distress. In this regard, the Bank adopted an
industry-induced mergers and acquisitions or outright sale to new investors, as
part of the resolution options for the affected banks. Although appreciable
level of progress had been made in this direction, the re-capitalisation
process was, however, slowed down by litigations instituted by shareholders
of some of the banks.

As part of efforts to facilitate the adoption of the International Financial
Reporting Standards (IFRS) by banks, the CBN issued reporting templates for
capturing standardized sectoral and/or other information, and directed
banks to adopt the Nigerian Generally-Accepted Accounting Principles plus
(NGAAP+).

The Bank also strengthened its collaborative efforts with other stakeholders
under the aegis of the Roadmap Committee on the Adoption of IFRS in
Nigeria. In this regard, it collaborated with the Nigerian Accounting
Standards Board (NASB), Federal Ministry of Finance (FMF), Nigeria Deposit
Insurance Corporation (NDIC), Securities and Exchange Commission (SEC),
National Insurance Commission (NAICOM), Federal Inland Revenue Service
(FIRS), among others, to ensure a phased transition to IFRS over a three-year
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

period beginning from the 2012 reporting date for listed and significant
public entities.

The CBN Credit Risk Management System (CRMS) recorded increased basic
credit information on customers in the first half of the year. The number of
borrowers registered in the CRMS database rose by 2.2 per cent to 74,786.
The development was attributed largely to the increased awareness among
the banks and customers on the critical role of CRMS database. Similarly, at
end-June, 2011, the value of credit outstanding reported on the CRMS rose,
by 29.4 per cent to N5,227 billion from N4,037.66 billion at end-December
2010. The number of borrowers with outstanding credit facilities equal to or
above N1.0 million declined by 4.4 per cent to 26,854 from 28,093 at endDecember 2010. Similarly, the aggregate borrowers’ base of the two private
credit bureaus (PCBs) stood at 2,639,460, compared with 228,808 recorded at
end-June 2010. Of this total, 2,262,079 were individuals, while the remaining
377,381 were corporate borrowers.

The CBN signed a number of Memoranda of Understanding (MoUs) for
cooperation and information sharing on cross-border supervision with
regulators in other jurisdictions. In that regard, the Bank signed MoUs with the
National Bank of Rwanda, Central Bank of Kenya, Bank of Zambia and the
Banking Commission of the West African Monetary Union (BCEAO). Also, in
compliance with the new banking model, three (3) banks were granted
approval to either divest or close their foreign subsidiaries, while another was
granted approval to discontinue the process of establishing a subsidiary in
The Gambia. In furtherance of its efforts to harmonise supervisory process in
the region, the College of Supervisors of the West African Monetary Zone
reached a decision to adopt the electronic Financial Analysis and
Surveillance System (e-FASS) as a supervisory tool in the Zone. The BCEAO
and Cape Verde were admitted as observers into the College in the review
period.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

At end-June 2011, a total of 2,652 out of 2,742 petitions received from the
public were processed. Of the processed complaints, refunds, involving N3.96
billion, €10,000 and US$198,111.75, were made by banks to their customers on
various issues, including excess charges.

2.4.2 Target Examination
The CBN in conjunction with the NDIC carried out a target examination on all
the 24 DMBs with a cut-off date of December 31, 2010, to evaluate the
adequacy of provisions made at year-end for bad and doubtful credits. In
pursuit of the objective of continuous monitoring under the Risk-Based
Supervision methodology, the Bank carried out several spot checks and
reviews of various aspects of the DMBs’ operations, such as liquidity, foreign
exchange utilization and volume of public sector deposits. The outcomes
were used for the continued strengthening of the financial system.

2.4.3 Banking Sector Soundness
The average Capital Adequacy Ratio (CAR) of the sixteen (16) nonintervened banks was 21.5 per cent at end-June 2011, while the CAR of the
eight (8) intervened banks was -53.5 per cent. Overall, the average CAR of
the industry stood at 5.0 per cent at end-June 2011, representing a decline of
2.0 percentage points from its levels at end-December 2010 and a shortfall of
3.0 percentage points relative to the Basel II minimum requirement of 8.0 per
cent. Banks’ industry-wide average liquidity ratio, at 50.3 per cent, was
above the 30.0 and 47.5 per cent minimum requirement and the level at
end-December 2010, respectively. One (1) bank, however, failed to meet the
stipulated ratio, compared with the 100.0 per cent compliance achieved at
end-December 2010.

The quality of risk assets in the banking sector improved significantly in the first
half of 2011. The industry ratio of non-performing loans to total loans declined
to 10.4 per cent, from 20.1 and 37.1 per cent at end-December 2010 and the
corresponding period of 2010, respectively. The ratio was well below the
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

acceptable contingency threshold of 20.0 per cent for the industry. Also, the
ratio of non-performing loans (net of provisions) to capital declined to 34.7
per cent from 64.2 per cent at end-December 2010. The development was
attributed to the acquisition of N2.73 trillion eligible bank assets (EBAs) by
AMCON and the improved risk management practices by banks. The
activities of AMCON had significantly improved the quality of DMBs’ credit
portfolio. The Corporation’s acquisition of NPLs significantly improved banks
assets quality from the all-time high record of 34.4 per cent at end-November
2010 prior to the commencement of AMCON to 10.4 per cent at end-June
2011, compared with its extant threshold of 25.0 per cent.

2.4.4 Compliance with Code of Corporate Governance for Banks in Nigeria
As part of the efforts towards strengthening corporate governance in the
industry, the CBN issued a circular on “Approved Persons’ Regime” for banks
and discount houses with a view to regulating individuals appointed into
management positions. In this regard, standard questionnaire was
developed to elicit information from prospective appointees in the institutions
on competence, integrity and financial soundness.

2.4.5 Fraud and Forgeries
The number of reported cases of attempted and/or successful fraud/forgery
in the banking industry declined in the first half of the year. There were a total
of 1,393 cases of attempted or successful fraud and forgery, involving the
sum of N6.5 billion. Out of this number, 410 cases were successful and
resulted in a loss of N1.95 billion to the banks, compared with 5,960 reported
cases of fraud and forgery, involving N11.6 billion with actual loss of N8.0
billion in the second half of 2010.

Similarly, 116 ATM-related cases valued at N17.2 million were reported in the
first half of 2011, compared with 411 cases amounting to N82.2 million
recorded in the second half of 2010. The development was attributed to the
improvements in risk management practices in the banking system.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2.4.6 Financial Crime Surveillance
The on-going efforts of the CBN to combat money laundering and financing
of terrorism received a boost with the enactment of the Money Laundering
Prohibition Act (MLPA), as amended during the review period. The Act
criminalises the financing of terrorism and addresses the issues of freezing,
seizure and confiscation of both laundered money and terrorist funds.
Furthermore, the Anti-money Laundering/Combating the Financing of
Terrorism (AML/CFT) Office established in the CBN undertook some key
activities, including the preparation of a draft AML/CFT risk-based
examination manual and AML/CFT risk–based regulation for financial
institutions; review of the Inter-governmental Action Group Against Money
Laundering in West Africa (GIABA) Country Report on Nigeria for year 2010,
and establishment of an enforcement unit responsible for monitoring
compliance.

2.4.7 Examination of Other Financial Institutions
A special examination was conducted on one hundred and nineteen (119)
of the one hundred and twenty-one (121) microfinance banks (MFBs) that
were issued new provisional licences in September 2010. The exercise
revealed that seventy-four (74), or 62.2 per cent of the total, had injected
sufficient capital to bring their shareholders’ funds, unimpaired by losses, to
the minimum requirement of N20.0 million. Furthermore, eleven (11) had
injected fresh capital which was, however, insufficient to bring the
shareholders’ funds, unimpaired by losses, to the regulatory minimum of N20.0
million; while thirty-four (34) were “technically insolvent” and “terminally
distressed”, owing to the failure of the shareholders to inject additional
capital necessary for the improvement and sustainability of operations.

Analysis of the report of the examination of 100 primary mortgage institutions
(PMIs) in 2010 led to the classification of 29 PMIs as sound, 5 marginal, 18
unsound and 22 as insolvent. Nine (9) others were undergoing restructuring,
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

while 17 had closed shop. Consequently, the following regulatory decisions
were taken in the review period:
• PMIs classified as “marginal” were required to inject fresh capital or
liquid assets necessary to bring their prudential ratios within the
acceptable limits;
• PMIs classified as “unsound” were, in addition to the above, prohibited
from paying dividends; restricted from making new investments in fixed
assets and subsidiaries without the prior approval of CBN; advised to
embark on aggressive loan recovery; and placed on CBN/NDIC watch
list; and
• PMIs classified as “technically insolvent” were, in addition to the
above, restricted from any new lending – except to the extent of
recoveries made; and requested to submit business plans outlining how
fresh funds would be injected into the institutions.
The target examination conducted on the five (5) discount houses indicated
that, three had a composite risk rating of “above average”, while the
remaining two (2) were rated “moderate”. The risk management function of
most of the institutions were, however, rated as “needs improvement” due to
weaknesses in risk management, weak board oversight and failure to
appoint independent directors. Based on the minimum regulatory capital
requirement, four (4) out of the five (5) discount houses had exceeded the
regulatory minimum and were rated “acceptable”, while one (1) was rated
“weak” as it failed to meet the minimum ratio of 10.0 per cent for most of the
examination period. Earnings of three (3) of the institutions were rated as
“acceptable” and two (2) as “needs improvement”.

Follow-up actions were taken to address the issues of supervisory concerns
raised in the report of the examination of seventy-three (73) finance
companies conducted in the last quarter of 2010. The issues raised included
pervasive low capital base, weak corporate governance, large volumes of
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

delinquent facilities and excessive focus of the institutions in capital market
activities.

A preparatory work towards the conduct of spot-check examination of BDCs
in order to ascertain the level of compliance with the set rules and
regulations, was concluded during the review period. Similarly, consultations
were made with the umbrella association of the BDCs, Association of
Bureaux-de-Change Owners of Nigeria (ABCON) with a view to enhancing
the quality of returns by the institutions.

In line with the Bank’s renewed resolve to enforce a zero-tolerance for
prudential violations, one hundred and thirteen (113) other financial
institutions (OFIs) operators were penalised for various breaches and
violations of the approved guidelines.

2.5
Foreign Exchange Management
The Wholesale Dutch Auction System (WDAS) continued to be the
mechanism for the management of exchange rate in the first half of 2011.
The Bank introduced the exchange rate forward market on March 23, 2011,
designed to reduce the pressure in the market. In the spot segment of the
foreign exchange market, forty-eight (48) sessions were held under the
WDAS, compared with forty-seven (47) at end-June 2010. Aggregate
demand for foreign exchange by authorized dealers at the WDAS and
Bureau-de-Change (BDC) segments amounted to US$20.97 billion, indicating
an increase of 24.5 per cent over its level in first half of 2010. Of this, demand
under WDAS, including forward market amounted to US$19.14 billion or 91.3
per cent and the balance of US$1.83 billion or 8.7 per cent was recorded at
the BDC segment. The increase was attributed to the maturity of letters of
credit, dividend payments, oil products importation and lower sales of
foreign exchange by oil companies.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

In ord
excha
excha
level a
BDC se

2.5.1
The Ba
March
marke
provid
pressu

Trading
System
in US D
allowa
undert
submit
bough
marke
‐1

Deman
er to stem
ange and
ange sold
at end-Jun
egments a
Foreign Ex
ank comm
h 23, 2011
et. To this e
de hedgin
re that ar
g under
m referred
Dollar/Nig
able bid a
take a bid
tted throu
ht throug
et as aut

Jan‐10
Feb 10
Foreign
CBN ECON
nd, Supply a
m the pre
d achieve
by the C
ne 2010. T
amounted
xchange
menced o
, as part
end, the B
ng oppor
rises in resp
the mark
to as Wh
erian Nai
amount p
d (volume
ugh the
h the for
thorized d
Feb‐10
Mar‐10
Apr‐10
Exchange Deman
NOMIC REPO
and Net De
essure oc
e exchan
BN rose, b
The sale to
d to US$15
Forward M
operation
of its effo
Bank appr
rtunities t
ponse to
ket is con
holesale D
ra (curren
per autho
e and forw
Reuters D
rward ma
dealers a
May‐10
Jun‐10
Jul‐10
nd
For

ORT FOR TH
Figure 7
mand for Fo
casioned
nge rate
by 20.2 pe
o the WDA
5.17 billion
Market
in the fore
orts to furth
roved sho
o end-us
policy cha
nducted
Dutch Auc
ncy pair) w
orized dea
ward poin
Dealing 3
arket is n
are expe
Aug‐10
Sep‐10
Oct‐10
reign Exchange Su
HE FIRST HA
oreign Exch
by the h
stability,
er cent to
AS (includ
n and US$
eign exch
her deep
ort-tenored
sers and
ange and
in a mult
ction Syste
with US$5
aler. Auth
nts) on a
3000 syste
not transfe
cted to
Oct‐10
Nov‐10
Dec‐10
upply
ALF OF 2011
ange (US$ M
high dem
the amo
o US$17.00
ding forwa
$1.83 billio
hange forw
en the Ni
d forward
smoothen
d supply g
tiple–price
em–Forwa
500,000.0 a
horized d
single ten
em. Fore
erable in
bid on
Jan‐11
Feb‐11
Mar‐11
Net Foreign Exch
Million)
mand for f
ount of f
0 billion fro
ard trading
n, respec
ward mar
gerian fin
d transact
n out de
gap.
e Dutch A
ard (WDAS
as the min
ealers ca
nor and b
eign exc
the inte
behalf o
Apr‐11
May‐11
Jun‐11
hange Demand

foreign
foreign
om the
g) and
tively.
rket on
nancial
ions to
emand
Action
S-FWD)
nimum
an only
bidding
hange
er-bank
f their
Jun 11

custom
tenor.

In the
held t
forwar
amou
US$552
and 1
showe
or 49.3
month
Bank
weigh
disburs
D
In the
WDAS
When
WDAS
mers. Mat
first half o
twice a w
rd. The ag
nted to U
2.9 million
9.6 per c
ed that th
3%), follow
h tenor (US
sold forw
ted avera
sed at ma
Demand and
first half
-FWD we
compare
spot, the

CBN ECON
urity date
of 2011, th
week (Mo
ggregate
US$1.3 bil
n, US$439.4
cent of th
he 1-mont
wed by 2
S$151.3 m
ward US$0
age rate.
aturity in th
d Supply at
of 2011,
re N152.8
ed with t
e average
1 Month Te
NOMIC REPO
es were se
he Bank c
ondays a
demand
llion. This
4 million a
he total, r
th tenor re
2-month te
million or 15
0.95 billion
A cumul
he first ha
the Foreign
(
the forwa
84/US$, N
he avera
e forward
nor
Demand

ORT FOR TH
et at spot
conducte
and Wed
for WDA
comprise
and US$24
respective
eceived t
enor (US$
5.0%). Of
n based
ative sum
lf of 2011.

Figure 8
n Exchange
(US$ Million
ard price
152.91/US
age excha
price refl
2 Months T
HE FIRST HA
date (T+2
d fifteen
nesdays)
AS-FWD in
ed 1-, 2-,
42.5 millio
ely. A bre
the highe
$359.7 mill
the total
on the s
m of US$54
.
e Forward M
)
at the 1S$ and N
ange rate
ected dis
Tenor
Sup
ALF OF 2011
2) plus 1-,
(15) WDA
for 1-, 2
the perio
and 3-m
n, represe
eakdown
st share (
ion or 35
amount d
uccessful
47.4 millio
arket for Ha
-, 2- and
152.93/US
e of N153
scounts of
3 Months T
pply
2- and 3AS-FWD Au
2- and 3od under
month ten
enting 44.
of total
US$496.6
.7%) and
demande
bids usin
on was ho
alf Year, 201
3-month
S$, respec
3.22/US$
f 0.03, 0.0
Tenor

month
uctions
month
review
nors of
8, 35.6
supply
million
the 3ed, the
ng the
owever

tenors
ctively.
at the
01 and

0.01 a
respec
segme
with th
WDAS
excha
These
in the
excha
inter-b
respec
the fre
within

Per Cent
nnualized
ctively. Th
ents of the
he corresp
, BDC an
ange rates
represent
first-half
ange mark
bank rates
ctively. Th
equent in
the excha

Jan‐10
Feb‐10
CBN ECON
d percent
e naira ex
e foreign
ponding p
nd inter-b
s of N153
ted depre
of 2010,
ket. Thus,
s widened
e relative
tervention
ange rate
Exc

Jan‐10
Feb‐10
Mar‐10
Apr‐10
May 10
NOMIC REPO
tages for
xchange
exchange
period of 2
bank seg
.22, N156.
eciations o
and refle
the prem
d from 1.8
stability o
n at the o
e manage
change Rat
Bureau
Mar‐10
Apr‐10
May‐10
J

INTERBANK
May‐10
Jun‐10
Jul‐10

ORT FOR TH
the 1-, 2rate vis-áe market
2010. The
ments of
.95 and N
of 2.1, 2.7
ected the
mium betw
8 and 0.5
of the nair
official wi
ement ba
Figure 9
es Moveme
Figure 10
x-de-Chan
Jun‐10
Jul‐10
Aug‐10
Sep‐10
K
BD
Aug‐10
Sep‐10
Oct‐10
HE FIRST HA
, and 3-m
-vis the US
in the first
exchang
f the ma
N154.49 pe
7 and 2.4
e demand
ween the
per cent
ra against
indow to
nd of ±3 p
ents (Naira p
ge Premium
Sep 10
Oct‐10
Nov‐10
Dec‐10
DC
W
Nov‐10
Dec‐10
Jan‐11
ALF OF 2011
month WD
S dollar de
t half of 2
e rate of
rket close
er US dolla
per cent
d pressure
WDAS an
to 2.4 an
t the US do
stabilize
per cent o
per US$)
m
Jan‐11
Feb‐11
Mar‐11
WDAS
Feb‐11
Mar‐11
Apr‐11
DAS-FWD t
epreciate
2011, com
the naira
ed at av
ar, respec
from their
e in the f
nd the BD
nd 0.8 pe
ollar was
the naira
of N150.00
Apr‐11
May‐11
Jun‐11
p
May‐11
Jun‐11

tenors,
d in all
mpared
at the
verage
ctively.
r levels
foreign
C and
r cent,
due to
/dollar
0/US$.

At the WDAS, BDC and inter-bank segments of the market, the end-period
exchange rates closed at N153.31, N159.00 and N153.70 per US dollar, and
represented depreciations of 2.2, 3.5 and 2.4 per cent relative to their levels
in the corresponding period of 2010, respectively.

The WDAS-FWD rate for the 1-, 2- and 3-month tenors averaged N151.48/US$
compared with the WDAS spot rate of N152.55/US$ in the first half of 2011.

Figure 11
Forward Exchange Rate Movements, First Half 2011

150.5

151.5

152.5

153.5

1 MONTH TENOR
2 MONTHS TENOR
3 MONTHS TENOR

Analysis of nominal exchange rate of the domestic currency relative to the
other major international currencies showed that it depreciated against the
pound sterling, euro and Japanese yen by 8.0, 8.5 and 12.7 per cent,
respectively. At the regional level, the naira also depreciated against the
CFA Francs and WAUA, by 9.5 and 6.0 per cent, respectively.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Figure 12
Performance of the Naira against Major Currencies


Naira per Foreign Currency
USD
GBP
EUR
JPY (RHS‐axis)
Figure 13
Performance of the Naira against Regional Currencies


CFA (LHS‐axis)
CEDI (LHS‐axis)
WAUA (RHS‐axis)
2.5.2 Foreign Exchange Flows
Total foreign exchange inflow through the economy rose by 29.8 per cent to
US$51.02 billion from the level in first half of 2010. The increase reflected the
rise in oil receipts and autonomous sources. Of the total, inflow through the
CBN stood at US$19.6 billion or 38.4 per cent, while the autonomous sources
amounted to US$31.4 billion or 61.6 per cent. The total outflow of foreign
exchange through the economy in the first half of 2011 also rose, by 21.2 per
cent to US$21.32 billion from its level in the corresponding period of 2010. The
development was due to the increased WDAS utilization. Overall, foreign
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

excha
comp

Foreig
US$19.
corres
receip
level
produ
receip
in the
capita

Foreig
of 20.6
growth
accou
outflow
sales t
2.7%).

ange flow
ared with
Forei
n exchan
.57 billion
ponding
pts from cr
in the fir
ction/exp
pts through
correspo
al inflow o
n exchan
6 per ce
h was as a
unted for
w showed
o BDC op

Drawings on
4.4%
Externa
Servi
0.9%
National
Priority Proje
0.2%
CBN ECON
through t
US$21.72
ign Exchang
nge inflow
, showing
period of
rude oil sa
rst half o
ports and
h the CBN
nding per
f US$1.3 b
nge outflo
nt from t
a result of
79.8 per
d that WD
perators U
L/C
l Debt
ces
%
ect
Official P
11.
NOMIC REPO
the econo
2 billion in
ge Disburse
w through
g an incre
f 2010. A
ales rose b
of 2010, r
price at t
N rose by
riod of 20
billion and
w through
the level
f the 20.2
cent of t
DAS sales
S$1.83 bill
Payments
8%
WDAS F
2.7

ORT FOR TH
omy show
the corres
Figure 14
ements throu
h the CBN
ease of 5
breakdo
by 49.2 pe
reflecting
he interna
74.3 per c
010. The d
invisibles
h the Ban
in the co
per cent i
the total o
amounte
lion ( 8.9%
Forward
7%
BDC
8.9%
HE FIRST HA
wed a net
sponding
ugh the CBN
N in the fi
50.8 per c
own of th
er cent to
the incr
ational oil
cent to US
evelopme
of US$0.1
k was US$
orrespond
increase i
outflow.
ed to US$1
%) and W
WD
ALF OF 2011
inflow of
period of
N (First Half 2
irst half o
cent over
e inflow,
US$18.1 b
rease in
market.
S$1.4 billio
ent was a
billion.
$20.53 billi
ding perio
in WDAS u
A disagg
14.63 billio
DAS-FWD
DAS Funding
71.2%
US$29.71
f 2010.
2011)
f 2011 sto
r its level
indicated
billion abo
both cru
Similarly, n
on from th
attributed
ion, an inc
od of 201
utilization,
gregation
on (71.3%)
US$0.55 b

billion,

ood at
in the
d that,
ove the
ude oil
non-oil
e level
to the
crease
0. The
which
of the
), cash
billion (

Other sources of outflow through the Bank comprised drawings on letters of
credits (L/Cs) US$0.90 billion (4.4%), other official payments US$2.41 billion
(11.8%), external debt service US$0.18 billion (0.9%) and national priority
projects US$0.04 billion (0.2%). Overall, foreign exchange transactions through
the Bank resulted in a net outflow position of US$0.96 billion in the period
under review, compared with US$4.05 billion in the first half of 2010.

2.5.3 Sectoral Utilization of Foreign Exchange
Aggregate sectoral utilization of foreign exchange rose by 3.6 per cent to
US$18.90 billion in the first half of 2011 from the level in the corresponding
period of 2010. Of the total, the sum of US$14.54 billion (76.9 %) was utilized
on visible imports, while invisibles stood at US$4.36 billion (23.1%). Further
analysis of the visible imports showed that, oil and minerals imports stood at
US$4.95 billion (34.0%), an increase of 64.9 per cent over the level at endJune 2010. Industrial, food products, transport and agricultural products
utilised US$3.59, US$2.58, US$0.84 billion and US$0.24 billion and grew by 30.2,
30.9, 15.9 and 181.3 per cent, respectively, over their levels in the
corresponding
period
of
2010.
However,
the
amount
utilized
for
manufactured products declined by 17.3 per cent to US$2.34 billion from the
level in the corresponding period of 2010. In the invisible category, financial
sector services transactions constituted the bulk, with total foreign exchange
utilized amounting to US$3.12 billion, an increase of 9.4 per cent over the
level in the corresponding period of 2010. In the same vein, utilisation by
transport services grew by 2.1 per cent, while business, communication,
education and other services fell by 21.6, 19.3, 0.1 and 5.2 per cent,
respectively, relative to their levels in the corresponding period of 2010.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Sec
Sec
‐15.00
‐10.00
‐5.00
‐

Agricu
1%
Transp
8%
CBN ECON
Foreign Exc
ctoral Utiliza
toral Utilizat
11.08
20.3
First Half
Transport
6%
ulture
%
port
E
NOMIC REPO
change Flow
ation of Fore
tion of Forei

‐9.31
f 2009
Inflow
Oil & Mineral
34%
Fin
Education
1%

ORT FOR TH
Figure 15
ws Through
Figure 16
eign Exchan
Figure 17
ign Exchang
12.98
17.03
First Half 2
Outflow
In
Bus

nancial
72%
HE FIRST HA
the CBN, Fir
nge (Visible)
ge (Invisible
‐4.05

w
ndustrial
25%
Food Pro
18%
Manufactur
16%
iness
4%
Other
3%
ALF OF 2011
rst Half 2011
) First Half 20
e) First Half 2
19.57
20.53
First Half 20
Netflow
oducts
%
res
Communi
2%
rs

‐0.96

ication
%

2.5.4 Foreign Exchange Receipts by Top Hundred (100) Exporters
Export receipts by the top 100 exporters in the country during the first half of
2011 showed that, Olam Nigeria Limited topped the list with US$288.04 million
from the export of cotton lint. Babawole Enterprises Nigeria Limited ranked
second with US$81.00 million receipt from cocoa beans exports to
Netherland. The third largest exporter was Unique Leather Finishing Company
which realized US$65.32 million through the export of leather to Italy.
Continuing in this order of ranking, Saro Agro Allied (dried cocoa) and Fata
Tanning Limited (crust leather) were fourth and fifth, with exports of finished
leather to India and crumbed rubber to Italy valued at US$58.11 million and
US$57.38 million, respectively.

2 .6
Development Finance Operations
2.6.1 Agricultural Credit Guarantee Scheme Fund (ACGSF)
Aggregate resources of the ACGSF at end-June 2011 was N5.7 billion,
representing an increase of 2.0 per cent compared with the level at endJune 2010. The number of loans guaranteed under the Scheme in the period
stood at 11,410 valued at N2.2 billion, compared with 8,292 loans valued at
N1.4 billion in the first half of 2010, indicating an increase of 37.6 and 57.1 per
cent, respectively, from the levels in the corresponding period of 2010. The
total number of loans repaid was 20,859 valued at N2.9 billion. The
cumulative volume and value of loans under the scheme since inception in
1978 were 709,610 and N44.34 billion, respectively. A total of 25 claims
valued at N10.7 million were settled in the period under review, compared
with the 38 claims valued at N14.2 million in corresponding period of 2010.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2.6.2
The to
with N
claims
respec
direct
the re
betwe

2.6.3
No ne
during
Conse
stakeh
local
organ
N5.5 b

2.6.4
2.6.4.1
The 5th
organ
‘Finan
Sec
Interest D
otal resour
N2.3 billion
s fell signif
ctively, fro
consequ
eview pe
een incep
The Trust F
ew Memo
g the revi
equently,
holders, c
governm
izations a
billion.
Microfina

Interna
h Annual
ised by t
cial Inclu
Mixed Cro
1%
Livestock
10%
CBN ECON
ctoral Distrib
Drawback
rces of th
n at end
ficantly by
om the lev
ence of t
riod. The
tion and J
Fund Mod
orandum o
ew period
the cumu
omprising
ments, 4
and 1 Fed
ance-Rela
ational Mi
Microfina
he Bank
usion for A
ops
k
Fisheries
3%
NOMIC REPO
bution of AC
Programm
e IDP wa
d-June 20
y 53.2 an
vels in the
the sharp
cumulat
June 2011
del (TFM)
of Unders
d, compa
ulative va
g 18 state
multinatio
deral Gov
ted Activi
icrofinanc
ance Con
in Abuja
Accelera
Cash Crops
1%

ORT FOR TH
Figure 18
CGSF Loans (
me (IDP)
as N2.2 bil
10. The n
d 40.9 pe
e first half
decline in
tive numb
1 stood at
standing
ared with
alue of fu
e governm
onal oil
ernment
ities
ce Confere
ference a
from Jan
ted Micro
Others
9%
HE FIRST HA
(By Purpose
lion at en
number a
er cent to
of 2010.
n the valu
ber and
t 127,902 a
(MoU) wa
h one (1)
nds place
ments, 3 g
compan
agency r
ence
and Entre
nuary 17-1
o, Small a
Food C
76%
ALF OF 2011
e) First Half 2
nd-June 2
and value
o 7,430 an
The deve
ue of loan
value of
and N720
as signed
in the fir
ed under
governme
ies, 13 i
remained
epreneursh
18, 2011 w
and Med
Crop
%

2011, com
e of settle
nd N68.9 m
elopment
ns fully rep
f claims s
.6 million.
under th
rst half of
r the TFM
ent ministr
ndividuals
unchang
hip Award
with the
dium Entre

mpared
ed IDP
million,
was a
paid in
settled
he TFM
f 2010.
by 56
ries, 17
s and
ged at
ds was
theme
eprises

Development: The Nigerian Perspective’. The conference attracted 1,198
participants from both the public and private sectors of the economy, as well
as major stakeholders. The following resolutions were passed during the
conference: the huge benefits of micro-leasing and micro-insurance should
be explored by MFBs/MFIs to deepen financial inclusion; MFBs should
inculcate
sound
risk
management
practices
and
good
corporate
governance, design innovative products and financial literacy/education for
their clients; the CBN should endeavour to enhance the financial literacy of
MSMEs; and the CBN should align regulatory actions with other policies of
government, for harmony, economic and financial stability.

2.6.4.2
National Microfinance Policy Consultative Committee (NMFPCC)
The Bank hosted the 11th meeting of the NMFPCC on January 8, 2011. The key
decisions reached at the meeting were: the deferment of the sensitization
exercise and the stoppage of licensing of new microfinance banks, training
of operators in the first and third quarters of 2011 and commencement of
operations of the micro finance rating agencies in the fourth quarter of 2011.

2.6.4.3
Rural Finance Institutions Building (RUFIN) Programme
RUFIN, an IFAD-assisted programme, was formally launched with a startup/sensitization workshop in Abuja from February 1-5, 2011. The primary
objectives of the workshop were to commence the take-off of the RUFIN
programme and train the key officers and major stakeholders on their roles
and responsibilities in the course of implementation. The participating
agencies were the CBN, Bank of Agriculture (formerly the Nigerian
Agricultural, Co-operative & Rural Development Bank (NACRDB)), National
Poverty Alleviation Agency (NAPEP) and the Federal Department of Cooperatives. Furthermore, the CBN, RUFIN, the United Nations Development
Programme (UNDP) and NBS met to harmonise the baseline surveys on the
National Microfinance Development Strategy (NMDS) and RUFIN. The
baseline survey would provide reliable and up-to-date database on the
activities of the microfinance and rural finance sub-sector.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2.6.4.4
Entrepreneurship Development Centres (EDCs)
The evaluation of the pilot phase of the EDCs was completed by the
consultants and the final report was submitted to the Management of the
CBN. In addition, as a result of the expansion programme undertaken by the
three implementing agencies, State Entrepreneurship Development Satellite
Centres were established in nine states and Abuja. Since their establishment,
EDCs have trained 84,758 entrepreneurs, comprising 42,615 graduate
trainees and other 42,143 trainees who were offered business advisory
services.

2.6.5 Commercial Agricultural Credit Scheme (CACS)
Additional eight (8) state governments (Plateau, Edo, Benue, Kano, Bayelsa,
Ogun, Osun and Cross River) and the FCT accessed N1.0 billion each under
the scheme for on-lending to co-operative farmers and unions in their
respective states. This brought the number of state government beneficiaries
to twenty six (26) since inception. Furthermore, the number of participating
banks rose to 14 (fourteen) compared with seven (7) a year earlier.
Cumulative disbursement at end-June 2011 was N131.5 billion to 148
beneficiaries
comprising

individuals/private
promoters,

state
governments and the FCT. The balance of the CACS fund at end-June 2011
was N68.5 billion. Analysis of the value of private projects financed by valuechain, indicated that processing, production, marketing and storage
accounted for 54.0, 34.0, 8.0 and 4.0 per cent, respectively.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2.6.6 T
Since i
verified
made

2.6.7
At en
Refina
disburs
eligible
breakd
21.3 p
with 1
cent,
accou


Analy
he Agricu
inception
d. Payme
for 41 pro
N200 Billio
Banks’ Lo
nd-June 2
ancing a
sement in
e obligors
down of t
per cent,
9.1 and 1
while ag
unted for t
CBN ECON
ysis of CACS
ultural Cre
in 2006, a
ent of the
ojects, val
on Interve
oans to the
2011, N19
nd Restr
n two tran
s with N5
the disbu
followed
16.2 per c
gro-allied
the balan
Processin
54%
Marketi
8%
NOMIC REPO
S-Financed
edit Suppo
a total of
e 6.0 per
lued N844
ention Fun
e Manufac
99.7 billio
ructuring
nches. Of
5.8 billion
rsement s
by engin
cent, resp
account
nce.
ng
ing

ORT FOR TH
Figure 19
Projects by

ort Schem
101 projec
cent inte
4.3 million.
d for Refin
cturing/SM
on or 92.
Facility
this, the B
repaid in
showed th
neering/co
pectively.
ted for 9
Storage
4%
HE FIRST HA
y Value-Cha
e (ACSS)
cts valued
erest reba
.
nancing a
ME Sector
.0 per ce
(RRF) ha
BOI disbu
n the first
hat food
onstructio
Paper/all
9.3 per c
Prod

ALF OF 2011
ain, First Half
d N18.9 bi
ate has,
and Restru
ent of th
ad been
rsed N190
half of 2
and bev
on and ch
ied produ
cent. The
duction
34%
f 2011

illion have
however,
ucturing of
he N200
n release
0.7 billion
2011. A se
erages le
hemical/p
ucts got 9
e other s

e been
, been
f
Billion
ed for
to 539
ectoral
ed with
plastics
9.9 per
sectors

Prelimi
includ
improv
improv

2.6.8
There
Conse
repaym
establ
equipp

2.6.9
In the
release
projec

2.6.10
The C
Green
agricu
Pha
Hote
Tran

Sectoral
inary asse
ed: resu
vement in
vement in
N200 Billio
was an u
equently,
ment per
ishment o
ping of ho
N300 Billio
first half
ed by the
cts benefit
Nigeria In
(NIRSAL)
BN establ
n Revoluti
ultural fina
rmaceuticals
4%
el/Tourism
2%
nsport
1%
Textile/Leath
2%
Oil &
5%
CBN ECON
Distribution
essment
uscitation
n average
n DMBs’ liq
on SME Cr
pswing of
five proj
riod rang
of printing
otel and e
on Power
of 2011, N
e BOI to
tted from
ncentivelished NIR
on in Afr
ancing sc
her
Gas
%
NOMIC REPO
of Facilities
of the sc
of firm
e capacit
quidity po
redit Guar
f activities
jects wor
ed from
press; pro
eatery.
and Airlin
N82.4 billi
7 DMBs u
the Fund.
Based Ris
RSAL follow
rica (AGR
hemes. It
F
Paper/Allied
10%

ORT FOR TH
Figure 20
s through Pa
cheme in
ms which
ty utilizatio
sition.
rantee Sc
s under th
rth N247.5
one to f
ocuremen
ne Interve
on out of
under the
.
sk Sharing
wing an a
RA) to ad
is an inn
Food/Bev.
21%
Prod.
ICT
6%
HE FIRST HA
articipating
ndicated
were
on from 25
heme (SM
he Schem
5 million
five years
nt of equip
ntion Fund
f the app
e PAIF. A
g System
agreemen
ddress the
ovative m
Agro Al
9%
C
ALF OF 2011
Banks, First
some qu
hitherto
5.0 to 28.0
MECGS)
me in the f
were gu
s. The pro
pment/raw
d (PAIF) In
proved N1
total of
for Agric
nt with the
e weakne
mechanism
lied Solid Min
5%
Chem./Plastics
16%
Half 2011
uick-wins
closed
0 per cen
first half o
uaranteed
ojects inc
w materia
nitiative
185.2 billio
eight (8)
cultural Le
e Alliance
esses of e
m for unlo
nerals Eng./Co
19%
s

which
down,
nt, and
f 2011.
d. The
cluded:
al; and
on was
airline
ending
e for a
existing
ocking
onst.
%

finance
to
serve
particularly
smallholder
farmers,
agro-processors,
agribusiness and input suppliers in the agricultural value-chain. The aim is to
provide farmers with affordable financial products, while reducing the risk of
loans offered by the financial institutions. The new scheme would also build
capacities of banks to lend to agriculture, deploy risk sharing instruments to
lower risks of lending and develop a bank rating scheme that would rate
Nigerian banks based on their commitment to lending to the agricultural
sector.

Work was in the final stage to design solution for NIRSAL’s five pillars of risk
sharing facility, insurance facility, technical assistance, holistic bank rating,
and bank incentive mechanism. A number of activities such as
engagements with both local and international stakeholders to solicit their
buy-in has been embarked upon. An interim NIRSAL Project Implementation
Team has been constituted to manage all processes and recommend an
implementation road-map.

2.7
CBN Assets and Liabilities
Provisional data indicated that total assets of the CBN fell by 4.6 per cent
relative to the immediate preceding half year, but rose by 1.4 per cent
compared to end-June 2010. The increase relative to the corresponding half
of 2010 was occasioned by the substantial growth in other assets (107.0%),
other securities (59.9%), Federal Government securities (47.1%), fixed assets
(30.3%) and special drawing rights (21.7%). The drop in assets relative to endDecember 2010 was mainly driven by the decline of 39.1, 18.2, 9.4 and 8.4
per cent in Federal Government securities, rediscount and advances,
convertible securities and external reserve assets, respectively. The decline in
total liabilities relative to end-December 2010 was attributed to the 52.8, 28.4,
7.1 and 3.1 per cent decline in other reserves, total capitalization, other
liabilities and total deposits, respectively. Total liabilities, however, edged-up
relative to the corresponding period of 2010 and were largely due to the 27.3
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

and 16.2 per cent growth in currency in circulation and general reserves,
respectively.

ECONOMIC REPORT
3.0
GLOBAL ECONOMIC DEVELOPMENTS
The global economy was estimated to grow by 4.3 per cent in 2011. Global
activity was projected to slow in the second quarter of 2011 and then
accelerate in the second half of the year according to the forecast by the
International Monetary Fund (IMF). This was attributed to the devastating
effects of the earthquake and tsunami on the Japanese economy, with
supply disruptions weighing heavily on industrial production, consumer
sentiment and spending.

Growth in the advanced economies was projected to average about 2.5
per cent during 2011–12. This would represent a modest deceleration from an
average of 3.0 per cent in 2010. For 2011, growth was expected to be
weaker than previously projected in the United States and Japan, partly
offset by stronger activity in core euro area economies. Preliminary figures
released by the Bureau of Economic Analysis indicated that real GDP in the
United States increased by an annualized rate of 1.9 per cent in the first
quarter of 2011, while the real GDP growth for the UK in the same period was
0.5 per cent. The GDP in Japan contracted by 0.9 per cent in the first quarter
of 2011 over the previous quarter

The economy of the countries of the euro area and the European Union (EU)
grew by 0.8 per cent in the first quarter of 2011 compared with the previous
quarter, according to the preliminary GDP data released by the Eurostat. On
annualized basis, GDP growth was 2.5 per cent in the euro area and the
entire European Union. Germany recorded an annualized GDP growth of 5.2
per cent in the first quarter of 2011, thus surpassing the pre-crisis growth rate in
2008.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

In emerging market economies, China posted a second quarter GDP growth
of 9.5 per cent, compared with 9.7 per cent growth in the first quarter,
according to reports released by the China National Bureau of Statistics. The
GDP in India expanded by 7.8 per cent in the first quarter of 2011 over the
same quarter of 2010.

Growth in emerging Europe was projected to be higher than previously
expected in 2011, followed by a softening in 2012, driven in part by a sharp
domestic demand cycle in Turkey. Economic activity was projected to
continue strengthening in sub-Saharan Africa, with domestic demand
remaining robust and commodity exporters benefiting from favorable prices.
Economic prospects in the Middle East and North Africa (MENA) region
remained clouded by the political and social unrest, though the outlook has
improved for some oil and mineral exporters.

3.1
Global Commodity Prices
Commodity markets have experienced volatility since late April 2011. After
surging through April, commodity prices fell in May. The market corrections
partly reflected the unwinding of an earlier build-up of non-commercial
derivative position and less than expected global economic recovery. The
price of crude oil came close to US$120.00 a barrel in April, fell sharply in May,
but stabilized at US$116.66 in June 2011. Although, food prices have stabilized
beginning in early 2011, social unrest in the MENA region could place further
upward pressure on food prices.

3.2
Global Inflation
Global inflation edged-up from 3.5 per cent in the last quarter of 2010 to 4.0
per cent in the first quarter of 2011, more than 0.25 percentage point higher
than projected in April 2011. Inflation accelerated mainly because of larger
than expected increases in commodity prices. Core inflation also crept up
across a number of economies. Among advanced economies, core inflation
remained subdued in the United States and Japan, but rose moderately in
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

the euro area. In the emerging and developing economies, inflationary
pressures have become increasingly broad-based, reflecting a higher share
of food and fuel in consumption as well as accelerated demand pressure.

3.3
International Financial Markets
In the first half of 2011, stock market indices declined across the global
financial market. These were largely attributed to the debt crisis in some
countries in the euro zone and the socio-political uprisings in the countries of
the MENA region. In addition, the cut of U.S. growth forecasts by the IMF,
coupled with the ongoing concerns about the stand-off in resolving the U.S.
public debt ceiling, may have dampened investors’ enthusiasm for further
investment in equities.
Rising inflation necessitated some countries in emerging and developing
economies to tighten monetary policy by raising policy rates and reserve
requirements. In contrast, many developed nations kept policy interest rates
low to boost economic growth.
On a year-to-date and year-on-year basis, the currencies of selected
emerging markets and euro area appreciated against the U.S. Dollar. For
example, the Mexican and Colombian Peso as well as the Russian Ruble
appreciated by 1.51, 6.22 and 2.01 per cent, respectively.
In Greece and other vulnerable euro zone countries the year-to-date 10year benchmark yield spread which are higher than the U.S. sovereign bond,
were considered relatively high credit risks. To this end, though, lower risk
appetite may initially reduce capital flows to emerging and developing
economies, but relatively, it may eventually result in higher capital flows, as
some emerging market economies become more competitive than some
advanced economies.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

3.4
World Economic Outlook for the Rest of 2011
In the second half of 2011, it was expected that both the domestic and
global economies would gradually be pulling out of the financial and
economic crises, though the recovery would be uneven. The pace of
recovery and its composition would remain different across regions with the
smaller
export-dependent
economies
generally
experiencing
more
pronounced challenges than larger economies with sizable domestic
demand. In America, the overriding concern is how to grow output and
reduce unemployment. The major threat to recovery in Europe is rising prices,
particularly, food and oil prices, occasioned by natural disasters in some
parts of the region and the political instability in the MENA region. On the
domestic scene, inflation would remain a major macroeconomic problem for
Nigeria. Monetary aggregates might continue to lag behind their indicative
benchmark, while money market rates could remain high. Furthermore, the
continuous pressure on the foreign exchange market would pose major
policy challenges for the CBN.

4.0
DEVELOPMENTS IN THE DOMESTIC ECONOMY

4.1
Monetary and Credit Developments
Developments in Nigeria’s financial system were influenced by the monetary
policy stance of the CBN, which aimed at containing inflationary pressure
arising from huge the fiscal expansion and anticipated rise in global energy
and food prices. Accordingly, monetary policy was restrictive and led to a
modest growth in money supply, particularly credit to the economy.
However, credit to government increased during the review period and
would remain a threat to price stability if the trend persists in the second half
of the year.

4.1.1 Reserve Money
At N2,065.1 billion, reserve money (RM) at end-June 2011 grew by 11.9 per
cent, relative to the level at end-December 2010, and exceeded the
indicative benchmark for fiscal 2011 by 16.6 per cent. The growth in reserve
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

money
signific
assets
respec
attribu
as cur

4.1.2 B
Provisio
mode
M2 ros
to an
bench
y relative
cant incre
(net) an
ctively. Th
uted, who
rency in c
Broad Mon
onal data
st in the f
e by 5.7 p
annualize
hmark of 1
CBN ECON
e to the
ease (50.5
d net do
he corresp
lly, to the
circulation
Rese
Reserv
ney (M2)
a indicat
first half o
per cent
ed growth
13.8 per c

N'billion
‐10,000.0
‐8,000.0
‐6,000.0
‐4,000.0
‐2,000.0

N'billion
NOMIC REPO
level at
per cent
omestic cr
ponding
52.1 per c
n declined
erve Money
ve Money a
ed that g
f 2011. Re
to N12,17
h rate of 1
cent for fis
Jun‐07
Ju
Reser

‐

Jun‐
Reserv

ORT FOR TH
t end-De
t) in other
redit both
increase
cent grow
d by 1.8 pe
Figure 21a
and its Com
Figure 21b
and its Comp
growth o
elative to
77.4 billion
1.3 per ce
scal 2011
un‐08
Jun‐0
rve Money
‐09
Ju
ve Money
HE FIRST HA
ecember
r items (ne
h fell, by
in the us
wth in DMB
er cent du
mponents (U
ponents (So
of broad
the level
n at end-J
ent, comp
. The dev

Jun‐10
CIC
Ban
n‐10
NFA
NDA
ALF OF 2011
2010, wa
et) of the
11.1 and
ses of ba
Bs’ reserve
uring the f
Uses)
ources)
money su
at end-D
June 2011
pared wit
elopment
Jun‐11
nk Reserves
Jun‐11
A
OIN
as due t
CBN, as f
d 22.8 per
ase mone
es with the
first half o
upply (M2
Decembe
. This tran
th the indi
t was attr

to the
foreign
r cent,
ey was
e CBN,
f 2011.


2) was
r 2010,
nslated
icative
ributed

to the
dome
bankin
From
narrow
althou
at end

4.1.3 N
Narrow
2010. T
to the
attribu
outside

4.1.4 Q
Quasicomp
of 2010
4.1.5 C
Curren
the firs
respectiv
stic credi
ng system
the liabil
w money
ugh quasid-June 20
Narrow Mo
w money
This transla
e decline
uted to th
e banks d
Quasi Mon
-money g
ared with
0.
Currencyncy in circ
st half of
‐15
‐10
‐5

Ju
N' billion
CBN ECON
ve growth
it (net) o
m, on the
ity side b
(M1) an
-money c
11.
oney (M1)
(M1), gre
ated to a
of 2 0 p
he 3.1 pe
declined b
ney
grew by
h 2.9 per c
Growth
in-Circula
culation fe
2011, rela
un. 08
Dec
M1 (
NOMIC REPO
h of 13.7
of the ba
other ha
both com
nd quasi-m
contribute

ew by 1.3
n annuali
per cent
er cent in
by 6.1 per
9.8 per
cent grow
in Money S
ation and
ell by 1.8
ative to it
c. 08
Jun.
(Money Suppl

ORT FOR TH
and 2.3 p
anking sys
and, decl
mponents
money c
ed more w
per cent
ized grow
at end-Ju
ncrease i
cent.
cent at
wth at the

Figure 22
upply (Per c

Deposits a
per cent
ts level at

Dec. 0
ly)
HE FIRST HA
per cent i
stem. Fore
lined mar
of broa
ontributed
with a gro
t over the
wth rate of
une 2010
in deman
the end
e end of t
cent), First H
at the CBN
to N1,35
t end-Dec

Jun. 10
M2 (Broad
ALF OF 2011
in other a
eign asse
rginally b
d money
d to the
owth rate
e level at
f 2.6 per c
0. The dev
nd depos
d of the
he corres
Half 2011
N
3.98 billio
cember 2

Dec. 10
Money)
assets (ne
ets (net)
y 0.8 per
y (M2), na
growth
of 9.8 pe
end-Dec
cent, in co
velopmen
sits as cu
review p
ponding
n at the e
2010, com
Jun. 11

et) and
of the
r cent.
amely,
in M2,
er cent
ember
ontrast
nt was
urrency
period,
period

end of
mpared

with the decline of 10.0 per cent at the end of the corresponding period of
2010. Similarly, currency outside banks (COB) fell by 6.1 per cent, compared
with the decline of 14.2 per cent at the end of the corresponding period of
2010. The ratio of COB to M2 rose by 1. 0 percentage point to 8.3 per cent at
the end of the review period. The slight increase in COB/M2 ratio reflected
temporary apathy in the use of alternative, non- cash, means of transactions
in the economy.

4.1.6 Drivers of the Major Monetary Aggregate
4.1.6.1 Net Foreign Assets (NFA)
Foreign assets (net) of the banking system declined by 0.8 per cent to N6,
453.7 billion at end-June 2011, relative to the level at end-December 2010.
Compared with the level at the end of the corresponding half of 2010, this
represented a decline of 14.6 per cent. As a percentage of M2, NFA was
53.0 per cent at the end of the first half of 2011, compared with 59.8 per cent
a year earlier.

4.1.6.2 Net Domestic Assets (NDA)
Net domestic assets increased by 14.0 per cent to N5, 723.7 billion at endJune 2011, compared with the growth of 36.8 per cent recorded at the end
of the corresponding period of 2010. The development was attributable to
the 2.3 per cent increase in domestic credit (net) of the banking system and
the 13.7 per cent increase in other assets (net) of the banking system.

4.1.6.3 Net Domestic Credit (NDC)
Net domestic credit (NDC), grew by 2.3 per cent to N8,908.5 billion at the
end of the first half of 2011, compared with the growth of 8.8 per cent at the
end of the corresponding period of 2010. The development was due to the
5.1 per cent increase in net claims on Federal Government and the 1.5 per
cent growth in credit to private sector.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.1.6.4 Credit to the Government (Cg)
Net claims of the banking system on government rose by 5.1 per cent to
negative N1064.74 billion at end-June 2011, compared with the 35.3 per cent
growth at end-June 2010. The development reflected the increased
investment in treasury securities, especially in FGN bonds, by the banking
system, which rose by 6.9 per cent at end-June 2011, compared with 26.8 per
cent at the end of the corresponding period of 2010. The Federal
Government as in the preceding half year, however, remained a net lender
to the system.

4.1.6.5 Credit to the Private Sector (Cp)
Banking system’s credit the private sector increased by 1.5 per cent at the
end of the first half of 2011, in contrast to a decline of 1.1 per cent recorded
at the end of the corresponding period of 2010. The development reflected
the 1.0 per cent rise in claims on the core private sector, which contrasted
with the 1.2 per cent fall a year earlier. Credit to the private sector
contributed 1.3 percentage points to the growth in M2 at end –June 2011, in
contrast to the negative contribution (-1.07 percentage points) at the end of
the corresponding period of 2010.

4.1.6.6 Other Assets (Net)
Other assets (net) of the banking system grew by 13.7 per cent at end-June
2011, compared with the growth of 10.1 per cent a year earlier, and
contributed 4.4 percentage points to the growth in broad money at the end
of the review period.

4.1.7 Sectoral Distribution of Credit
Credit to the core private sector by DMBs grew by 1.0 per cent at end-June
2011, relative to end-December 2010. Of the amount outstanding, credit to
the priority sectors accounted for 34.3 per cent, of which Agriculture, solid
minerals, Export and manufacture got 2.1, 18.1, 1.5 and 12.6 per cent,
respectively. The less priority sectors accounted for 47.8 per cent, while the
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

unclassified category accounted for the balance of 17.3 per cent. At these
levels, credit to the preferred sector was 6.4 per cent higher than its level at
the end of the first half of 2010, while credit to the less preferred and
unclassified fell, respectively, by 2.0 and 4.2 per cent from their levels at the
end of the corresponding period of 2010.

Table 3
Sectoral Distribution of DMBs Credit (June 2010 – June 2011)

Share in Outstanding (per cent)
Jun 10
Dec 10
Jun 11
1. Priority Sectors
27.9
30.4
34.3
Agriculture
1.7
1.7
2.1
Solid Minerals
15.7
15.3
18.1
Exports
0.4
0.6
1.5
Manufacturing
10.1
12.8
12.6
Small Scale Enterprises
--
--
--
2. Less Preferred Sectors
49.8
47.8
47.8
Real Estate
9.2
8.7
7.9
Public Utilities
0.8
0.7
0.8
Transport and Communications
10.9
10.7
12.5
Finance & Insurance
15.2
11.1
7.4
Government
3.8
4.9
5.9
Import & Dom. Trade (General Comm.)
10.0
11.7
13.3
3. Unclassified
22.3
21.8
17.9
Total (1+2+3)

Figure 23
Share in Outstanding Credit to the Core Private Sector


end‐June 2010
end‐Dec 2010
end‐June 2011
Per cent
Priority
Less Preferred
Unclassified

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.1.8 M

The str
indica
Outsta
for 62.
corres
tenor
The m
comp
2010.
depos
2010, w
Indeed
comp
depos
2010.
Shar


‐4
‐2

Maturity St
Deposit L
ructure of
ted the c
anding loa
2 per cen
ponding
in favour
medium a
ared with
In the sa
sits structu
with depo
d, 73.3 p
ared with
sits stood
e (%) of Go

CBN ECON
tructure of
Liabilities
f DMBs ou
continued
ans and a
nt of the t
period o
of mediu
and longh 12.6 per
ame vein
ure of the
osits of be
per cent
h 77.9 per
at 1.02 pe
overnment a
% of Go
NOMIC REPO
f DMBs’ O
tstanding
d domina
advances
otal, com
of 2010. T
um-(≥1yr a
-term stoo
r cent an
, the dom
DMBs co
low one y
of depos
cent at e
er cent, c
and Private
overnment Cr

ORT FOR TH
utstandin
g credit as
ance of s
s maturing
mpared wi
The deve
and ≤ 3yr
od at 14
nd 14.1 pe
minance
ontinued a
year, cons
sits had a
end-June
compared

Figure 24
Sector in Ba
redtit
%
HE FIRST HA
g Loans a
s at the en
hort term
g one yea
ith 73.3 pe
lopment
rs) to long
4.6 per c
er cent, r
of the s
as in the
stituting 96
a maturit
2010, whi
d with 0.0
anking Syste
of Private Sec
ALF OF 2011
and Advan
nd of the
m assets in
ar and be
er cent at
reflected
g-term (3y
ent and
respective
hort-term
correspon
6.59 per c
ty of less
ile the sha
05 per ce
em’s Credit
ctor Credit
nces, and
first half o
n their po
elow acco
t the end
a slight
yrs and a
23.2 per
ely at end
deposit
nding pe
cent of the
than 30
are of long
ent at end
to the Econ

d
of 2011
ortfolio.
ounted
of the
shift in
bove).
r cent,
d-June
in the
riod of
e total.
days,
g-term
d-June
nomy

Assets (
Tenor
0-30 da
31-90 d
91-181 d
181-365
Short te
Medium
3yrs)
Long-Te
Liabilitie
0-30 da
31-90 d
91-181 d
181-365
Short te
Medium
3yrs)
Long-Te


(Loans and
ays
ays
days
5 days
erm
m Term (Abo
erm (3 Year
es
ays
ays
days
5 days
erm
m Term (Abo
erm (3 Year
Sh
CBN ECON
Maturit
Advances)
ove 1yr and
rs and Abov
ove 1yr and
rs and Abov
hare of State
NOMIC REPO
ty structure
d below
ve)
d below
ve)
e & Local G
in Priv
Credit
Private

ORT FOR TH
Table 4
of DMBs As
Jun 09


Figure 25
Government
vate Sector

to Core
e Sector
6%
HE FIRST HA
ssets and Lia
Dec 09


and Core P
Credit
Credit to
& Loc
Governm
4%
ALF OF 2011
abilities
Jun 10


Private Sect
o State
cal
ment
%
Dec10
J


tor

Jun 11


4.1.9 Money Market Developments
Activities in the money market during the first half of 2011 were influenced,
largely by the policy stance of the Bank. The bank’s policy stance shifted
from quantitative easing in the last months of the preceding year to
monetary tightening, against the backdrop of the apparent threats of
inflationary build-up. The policy stance was aimed at moderating the
anticipated inflationary pressures, which was expected to be triggered by
the pre-election spending and the liquidity injections into the banks through
the purchase of non-performing loans (NPLs) by the Asset Management
Corporation of Nigeria (AMCON).

The Monetary Policy Committee reviewed the MPR upward from 6.25 per
cent in 2010 by 25, 100 and 50 basis points to 6.5, 7.5 and 8.0 per cent at the
January, March and June 2011 meetings, respectively, with the systematic
corridor retained at +/- 200 basis points. The CRR was also raised to 2.00 per
cent in March from 1.00 per cent and further to 4.00 per cent in May 2011.
These actions, reinforced by the cautious stance of the DMBs in interbank
trading activities led to an increase in interbank rates. As a direct impact,
market players’ continued patronage on the Bank’s Standing Facilities was
sustained. The Standing Deposit Facility (SDF) was however, suspended on
March 9, 2011, following the introduction of Reserve Averaging, which
allowed for the remuneration of the banks’ reserves in excess of the CRR.

The use of AMCON bonds as collateral at the Repo and Standing Lending
Facility window, helped to moderate interest rates. At the open market
operations (OMO) window, Nigerian Treasury Bills (NTBs) were sold at the
direct OMO auction in order to mop-up excess liquidity in the banking
system. Moreover, the applicable rates for repurchase transactions were
reviewed to reflect the prevailing market conditions. DMBs and discount
Houses (DHs) participated at all the primary auctions of NTBs and the Federal
Government of Nigeria (FGN) Bonds as subscription and yields on the
securities remained relatively high.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.1.9.1
Provisio
of the
per ce
June 2
the re
N284.3
comm
attribu
budge
4.1.9.2
In the
offered
amou
subscr
subscr
respec
during
marke
investm

Money M
onal data
first half o
ent over t
2010, it rec
eview per
3 billion (2
mercial pa
uted to th
et deficit.
2 Primary M
first half o
d fortnigh
nt offered
ription wa
ription an
ctively. Th
g the half
et players’
ment outle
CBN ECON
Market Ass
a indicate
of 2011 sto
he level a
corded a
iod reflec
22.3%) and
apers, resp
e floatatio
Money M
Market
of 2011, 9
htly while
d and allo
as N3, 823
nd allotm
e surge in
year was
preferen
et.
NOMIC REPO
sets Outst
ed that m
ood at N5
at end-De
n increase
cted, mai
d N10.3 b
pectively.
on of new
Market Asse
91- and 18
the 364otted for a
.32 billion
ment wer
n subscript
attributa
nce for tra
N

FGN
64.

ORT FOR TH
tanding
oney mar
5,099.26 b
ecember
e of 44.1 p
inly, the i
billion (5.4%
The signif
w issues to

Figure 26
ets Outstand
82-day te
-day teno
all the teno
. In the co
re N1,819
tion at the
ble to the
adable go
TB
.6%
Bond
.2%
HE FIRST HA
rket asset
billion, sho
2010. Rela
per cent.
ncrease
%) in FGN
ficant incr
o finance
ding (End-Ju
enored Nig
or was off
ors was N
orrespond
9.10 billio
e primary
e liquidity
overnmen
A
ALF OF 2011
ts outstand
owing an i
ative to th
The deve
of N374.5
Bonds, tr
rease in tr
the Fede
une 2011)
gerian Tre
fered mo
1,489.55 b
ding perio
on and
market a
surfeit in t
nt securitie
Comme

Bankers
Acceptances
1.2%
ding at th
increase o
he level a
elopment
5 billion (1
reasury bi
reasury bi
ral Gover
easury Bills
onthly. The
billion whil
od of 2010
N734.48
auctions fo
the system
es, as the
ercial Paper
3.9%

he end
of 14.7
at endduring
12.9%),
lls and
ills was
rnment

s were
e total
e total
0, total
billion,
or NTBs
m, and
major

Total N
increa
2010. T
Federa

In co
contin
Gover
openin
Bonds
N861.1
attribu
of inve
on the

Thus, t
276.11
repres
the ho
and D
214.05
NTB outst
ase of 73.3
The increa
al Govern
llaboratio
nued to
rnment se
ngs of 3- a
offered w
11 billion a
uted to th
estors for lo
e bonds.
Distrib
the total v
billion,
enting an
oldings of
DHs, while
5 billion. T
CBN ECON
tanding a
3 per cent
ase was a
nment bud
on with t
act as
ecurities in
and 5-, ye
was N396.
and N396
e high lev
ong-term
ution of Fed
value of b
compare
n increase
the bond
the broke
The re-ope
NOMIC REPO
as at end
t over the
attributab
dget defic
the Debt
the regis
the first h
ear FGN B
.50 billion
6.50 billion
vel of liqu
risk free in
deral Gover
bonds out
ed with
e of N867.
ds showe
ers and th
ened auc
5‐year
49.2%

ORT FOR TH
d-June 20
e N901.02
le to the f
cit.
t Manag
strar and
half of 201
onds were
while pub
n, respecti
uidity in th
nstrument
Figure 27
nment of Ni

tstanding
N2,408.42
.69 billion
d that N2
he non-ba
ctions co

HE FIRST HA
011 stood
billion at t
floatation
ement O
d issuing
1. A num
e auction
blic subsc
ively. The
e banking
ts, and the
igeria Bond
as at end
2 billion
or 36.03 p
2, 062.06 b
ank public
mprised N
3‐year
50.8%
ALF OF 2011
at N1,56
the end o
n of new is
Office (DM
house fo
mber of ne
ned. As a
cription an
huge sub
g system,
e attractiv
s (End-June
d-June 20
as at e
per cent.
billion wa
c held the
N201.50 b
61.42 billio
of the first
ssues to fi
MO), the
or the F
ew issues a
result, tota
nd sale sto
bscription
the prefe
ve coupo
e 2011)
011 stood
end-June
The struc
s held by
balance
billion for

on, an
half of
nance
e CBN
ederal
and real FGN
ood at
s were
erence
n yield

at N3,
2010,
ture of
y DMBs
of N1,
3-year

Bonds, and N95.00 billion for 5-year Bonds, which were floated and allotted.
Total subscription was N861.11 billion.

Trading at the OTC secondary market for FGN Bonds was also active during
the review period. FGN Bonds worth N4,716.59 billion were transacted in
35,374 deals at the secondary market, compared with N7,964.06 billion in
87,188 deals in the first half of 2010.

4.1.9.3 Open Market Operations (OMO)
In line with the Bank’s monetary policy stance, OMO auctions were
conducted in the period under review to manage liquidity and contain
inflationary pressures as well as deepen the secondary market. To this end,
intervention securities of tenors ranging from 21 to 202 days, amounting to
N332.84 billion, were sold during the period under review, compared with
N162.00 billion in the corresponding period of 2010. Total CBN securities
offered was N480.00 billion, while total public subscription amounted to
N768.74 billion. The bid rates ranged from 6.00 to 15.49 per cent, while the
stop rates ranged from 6.75 to 9.29 per cent. CBN securities valued at
N218.01 billion matured during the half year and were repaid, leaving the
outstanding bills at end-June 2011 at N114.83 billion.

4.1.9.4
The Two-Way Quote Trading in NTBs
NTBs of 15-day maturities were traded on the two-way quote trading
platform in April 2011. The bid rates ranged from 7.25 to 9.50 per cent and the
offer rates ranged from 6.60 to 9.00 per cent. Bills worth N1.0 billion were
bought at 7.25 per cent and total sales stood at N0.25 billion at a deal rate of
9.00 per cent.

4.1.9.5
Interbank Funds Market

The volume of interbank transactions rose to N8.63 trillion in the first half of
2011 from N4.54 trillion in the first half of 2010. The total Standing Lending
Facility (SLF) amounted to N162.47 billion in the first half of 2011, compared
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

with N17.47 trillion at end-June 2010. At the Open-Buy-Back (OBB) segment,
the trend was reversed as OBB transactions declined to N3.42 trillion in the first
half of 2011 from N5.56 trillion at end-June 2010.

Total interbank placements and securities traded at end-June 2011 stood at
N12,050.82 billion, representing an increase of 19.3 per cent over the
N10,098.13 billion at end-June 2010.

4.1.9.6
Reserve Averaging Framework

The new reserve averaging framework commenced on March 9, 2011. It was
conceived to smoothen the volatility in interbank rates. Under the framework,
the CRR of DMBs, which was hitherto sterilized by the CBN, is left at the banks’
disposal over a specified and pre-notified maintenance period. At the end of
a maintenance term, DMBs with reserves in excess of the required reserve
level are remunerated at MPR plus 200 basis points, while those with a
shortfall are penalised at MPR times 2.5. During the review period, industry
compliance was 148.0, 128.0, 126.0 and 234.0 per cent over the 1st, 2nd, 3rd
and 4th maintenance periods, respectively.

The base of the reserve requirement was 2.0 per cent for the initial three
maintenance periods, while 4.0 per cent was applied from the fourth
maintenance period in line with the upward review of the CRR at the May
2011 MPC meeting.

4.1.10 Interest Rates Developments
In the first half of 2011, interest rates in all the segments of the money market
exceeded their levels in the corresponding period of 2010. The development
was attributed to steady upward review of MPR from 6.25 to 8.0 per cent and
the increase in CRR to 4.00 per cent from 2.00 per cent.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.1.10.1
Interbank Rates Movement

Interbank call and OBB rates trended upwards following the increase in MPR
from 6.00 per cent in 2010 to 8.00 per cent by end-June, 2011. The average
inter-bank call rate in the review period was 9.21 per cent, compared with
2.52 per cent in the corresponding period of 2010. The weighted average of
the Nigeria Inter-bank Offered Rates (NIBOR) for the 7- and 30-day tenors
were 10.32 and 11.69 per cent, respectively, compared with the 5.41 and
8.51 per cent at end-June 2010. Similarly, the average OBB rates stood at 8.24
per cent, compared with 2.29 per cent at end-June 2010. The sharp rise in
market rates was as a result of a number of monetary policy measures taken
by the Bank during the first half of 2011, including the upward review of MPR
from 6.00 per cent to 8.00 per cent, increase in CRR to 4.00 per cent from 2.00
per cent and the introduction of the reserve averaging framework scheme in
March 2011.

Table 5
Money Market Rates (Per cent)
WEIGHTED AVERAGE
Month
MPR
Interbank
Call Rate
OBB
NIBOR 7-days
NIBOR 30-days
Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Average 2011

Average 2010


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Figure 28
Money Market Rates

'Dec. 08
May '10
Dec'10
Jun'11
Per cent
MPR
Call Rate
OBB

4.1.10.2 Money Market Rates
4.1.10.2.1 Deposit Rates
The average deposit rate fell at the end of the first half of 2011. Average term
deposit rate fell by 2.79 percentage points to 4.4 per cent from the average
rate at end-June 2010. Rates on deposits of various maturities fell to a range
of 2.00 to 6.28 per cent at the end of the first half of 2011from a range of 3.29
to 8.41 per cent in the first half of 2010. With year-on-year inflation rate at 10.2
per cent in June 2011, all deposit rates were negative in real terms.

4.1.10.2.2 Lending Rates
In the first half of 2011, the prime and maximum lending rates fell to 15.76 and
22.02 per cent from 18.5 and 22.7 per cent, respectively, at end-June 2010.
The spread between banks’ average term deposit and maximum lending
rates, however, widened to 17.60 percentage points in the first half of 2011
from 15.50 per cent at end-June 2010.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Table 6
Selected Interest Rates (Per cent)

Month
Savings
Average
Term
Deposit
Prime
Lending
Maximum
Lending
Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Average 2011

Average 2010


Figure 29
Nominal Interest Rates Movement per cent per annum

1st Half 2008
2nd Half 2008
1st Half 2009
2nd Half 2009
1st Half 2010
1st Half 2011
Prime Lending Rate
Maximum Lending Rate

4.1.11 Institutional Savings
Aggregate institutional savings at end-June 2011 stood at N8,521.4 billion,
indicating an increase of 14.2 and 42.9 per cent over the levels at endDecember and end-June 2010, respectively. The DMBs remained the
dominant savings institution, accounting for 99.0 per cent of the total at endJune 2011, compared with 97.6 and 98.0 per cent at end-December and
end-June 2010, respectively. Other institutions, including primary mortgage
institutions (PMIs), life insurance funds, the Nigerian Social Insurance Trust Fund
(NSITF), and microfinance banks (MFBs) held the balance of 1.0 per cent. The
ratio of institutional savings to first half 2011 GDP (at current basic prices) was
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

53.4 per cent, compared with 44.1 per cent in the corresponding period of
2010.

4.1.12 Other Financial Institutions
4.1.12.1 Microfinance Banks (MFBs)
The total assets/liabilities of MFBs increased to N187.2 billion, representing a
9.9 per cent increase over the level at end-December 2010. Similarly, loans
and advances granted by the MFBs increased, by 23.8 per cent to N65.5
billion, while the paid-up share capital and shareholders’ funds increased by
7.2 and 7.8 per cent over the levels in December 2010 to N44.5 billion and
N47.4 billion, respectively. When compared with the levels in the
corresponding period of 2010, total assets, loans and advances, paid-up
share capital and shareholders’ funds increased by 16.4, 7.7, 12.9 and 3.7 per
cent, respectively. Investible funds available to the sub-sector amounted to
N17.7 billion, compared with N8.8 billion at end-June 2010. The funds were
sourced mainly from increases in deposit liabilities (N9.3 billion), paid-up
capital (N3.0 billion) and long-term loans (N2.8 billion); and were used mainly
to increase loans and advances (N12.6 billion), balances with banks (N2.8
billion) and short-term investments (N2.0 billion).

4.1.12.2 Discount Houses
Total assets/liabilities of the five (5) discount houses at end-June 2011
declined by 23.8 and 25.1 per cent to N276.2 billion from the levels at endDecember and end-June 2010, respectively. The total funds sourced
amounted to N12.9 billion, compared with N37.0 billion at end-June 2010. The
funds were sourced mainly from money-at-call (N11.7 billion), and were used
mainly in the settlements of claims on “others” (N5.6 billion) and purchase of
Federal Government securities. Discount houses’ investments in Federal
Government securities of less than 91 days maturity amounted to N12.5 billion
at end-June 2011, representing 6.5 per cent of their total deposit liabilities.
This was 53.5 percentage points below the prescribed minimum of 60.0 per
cent for fiscal 2011.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.1.12.3 Finance Companies (FCs)
The total assets/liabilities of the FCs increased to N116.3 billion at end-June
2011, from N113.8 billion at end-December 2010, representing an increase of
2.3 per cent. Cash and short-term funds, fixed assets and investments
increased by 1.3, 7.7 and 6.4 per cent to N28.2 billion, N9.8 billion, N28.9
billion,
respectively,
at
end-June
2011.
Total
paid-up
capital
and
shareholders’ funds also increased, by 4.5 and 30.5 per cent to N20.4 billion
and N13.3 billion, respectively, at end-June 2011, from N19.5 billion and N10.2
billion at end-December 2010. However, the total borrowings declined by 2.2
per cent to N79.5 billion at end-June 2011, from N81.2 billion at endDecember 2010. Investible funds available to the sub-sector during the
period totalled N5.8 billion. The funds were sourced mainly from increases in
paid-up capital, reserves and other liabilities of N0.87 billion, N2.3 billion and
N1.3 billion, respectively, and the reduction of net loans and advances by
N1.3 billion. They were utilized mainly to reduce borrowings by N1.8 billion
and increase investments and other assets by N1.7 billion and N1.0 billion,
respectively.

4.1.12.4 Primary Mortgage Institutions (PMIs)
The total assets of the PMIs increased marginally by 0.3 per cent to N360.0
billion at end-June 2011, compared with N358.8 billion and N122.9 billion at
end-December 2010 and end-June 2010, respectively. The paid-up capital,
shareholders’ funds and loans/advances of the PMIs also increased, by 2.9,
6.8 and 1.6 per cent to N64.2 billion, N89.2 billion and N135.1 billion,
respectively, at end-June 2011. The deposit liabilities, however, declined by
4.9 per cent to N177.8 billion at end-June 2011 from the level at endDecember 2010. Investible funds available to the PMIs in the period under
review totalled N23.1 billion, compared with N24.1 billion at end-June 2010.
The funds were sourced mainly from a reduction of deposits with banks
(N11.5 billion) and an increase in other liabilities (N4.3 billion), and were used
mainly to reduce the deposit liabilities (N9.2 billion) and acquisition of other
assets (N4.4 billion).
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.1.12.5
Asset Management Corporation of Nigeria (AMCON)
The Asset Management Corporation of Nigeria (AMCON) continued to play
a significant role in stabilizing the financial system through the acquisition of
eligible bank asset (EBAs). Since inception, three tranches of bonds worth
N1.811 trillion had been issued by the Corporation in exchange for EBAs
valued at N2.827 trillion. The Corporation issued two 3-year zero-coupon
consideration bonds with a face value of N534.48 billion to twenty-two (22)
DMBs in the first half of 2011 in exchange for their EBAs at a discounted value
of N377.76 billion. In line with its objectives, the Corporation has improved
confidence in the banking industry, injected liquidity to the financial system,
increased lending by banks, enhanced income opportunities to the banks
through the bond income, and reduced the NPL ratio.

4.1.13 Capital Market Developments
4.1.13.1 Institutional Developments
The Board of the Securities and Exchange Commission (SEC) approved a
new Code of Corporate Governance for public companies regulated by the
Commission so as to entrench transparency and accountability. The new
Code, which came into effect from April 1, 2011, outlined the responsibilities
and duties of the Board, including the mode of appointments, structure,
remunerations and board composition of public companies. It further stated
the standard requirements on matters relating to reporting formats,
protection of shareholders rights, risk management, insider trading, whistle
blowing policy, accountability, communication policy, code of ethics and
resolutions, among others.

The Council of the Nigerian Stock Exchange (NSE) commenced the
restructuring of its operations during the review period. Consequently, the
directorate of strategy and business development was divided into two
separate units. The business development arm was merged with the Listings
department, while the strategy unit formed part of the Office of the Chief
Executive of the Exchange. A new Director General, Mr Oscar Onyema, was
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

appointed for the Nigerian Stock Exchange.

As part of measures to improve its interface with the investing public and
other stakeholders, the NSE on March 12, 2011 commissioned a Contact
Centre where investors and other stakeholders could phone to make
enquiries and lay complaints on issues concerning the stock market. The
Centre is opened for the investing public for 12 hours, while enquiries and
complaints could be made using the country’s three major languages and
“pidgin” English.

As part of measures to instil discipline in the Exchange, the NSE directed stock
broking firms to separate their accounts from clients’ accounts. The number
of trading hours on the stock exchange was also increased from five (5) to
seven (7) daily to accommodate more trading activities.

Furthermore, Nigeria’s first Sovereign Eurobond worth US$500 million was
admitted for trading on the International capital market on the platform of
the London Stock Exchange. On cross-border listing, the SEC commenced
collaboration with regulators in the West African sub-region to facilitate the
formation of a single stock exchange in order to address the challenges of
cross-border listings on exchanges within the region.

4.1.13.2 The Nigerian Stock Exchange (NSE)
The performance of the NSE was mixed in the first half of 2011. In the primary
market segment, a total of 5.1 billion supplementary listings were made,
compared with 10.7 billion at end-June 2010. In the secondary segment of
the market, the cumulative volume and value of securities traded declined
by 8.0 and 14.5 per cent to close at 50.4 billion shares and N373.5 billion,
respectively, in 733,609 deals, compared with 54.8 billion shares and N437.0
billion at end-June 2010. Market capitalization of listed securities closed at
N11.2 trillion, indicating an increase of 36.6 per cent over the level at endJune 2010. As a percentage of estimated nominal GDP, market
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

capitalization stood at 70.0 per cent, compared with 60.7 per cent recorded
at end-June 2010.

4.1.13.3 New Issues Market
In the first half of 2011, six (6) companies were granted supplementary listings
of 5.1 billion shares on the Exchange. The companies comprised C & I
Leasing Plc, Wema Bank Plc, Unity Bank Plc, Smart Products Nigeria Plc, Great
Nigeria Insurance Plc, and Oando Plc. Additional shares of 0.3 billion were
added to C & I Leasing Plc as part of conversion of loan stock to equity, while
2.2 billion shares were added to Wema Bank Plc following its conclusion of
placement. A total of 1.7 billion shares was added to the shares outstanding
of Unity Bank Plc following the issuance of bonus of 1 share for every 20
shares held. In addition, 0.9 and 0.5 billion shares were added to the shares
outstanding of Smart Products Nigeria Plc and Oando Plc following the bonus
of 1 share for every 4 shares held, respectively. Also, an additional 0.5 billion
shares were added to the shares outstanding of Great Nigeria Insurance Plc
due to the conclusion of its placement.

Thirty-two (32) companies adjusted their share prices due to payment of
dividends and bonuses. A new series of 5-year FGN Bond was added to the
FGN Bonds portfolio, while the 3- and 5-year tenors were re-opened and
auctioned (in line with the debt management programme) in the first half of
2011. The 13.5% FGN April 2011 (3rd FGN Bond 2011 Series 7) and 14.5% FGN
February 2011 (3rd FGN Bond 2011 Series 3) were de-listed.

4.1.13.4 The Secondary Market
The cumulative volume and value of securities traded in the secondary
segment of the market declined by 8.0 and 14.5 per cent to close at 50.4
billion shares and N373.5 billion, respectively, in 733,609 deals, compared with
54.8 billion shares and N437.0 billion recorded at end-June 2010. In terms of
volume, value and number of deals, the equity sub-sector sustained its
dominance of trading activities in the stock market as it accounted for 99.5,
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

49.9 a
of the
remain
billion
active
shares

Cumu
the m
30,753
units v

4.1.13.
The Al
end-Ju
June 2
the lev
cent.


nd 99.9 p
e develop
ned the m
shares, v
e sector w
s, valued a
lative tra
market, ind
3 deals in
alued at
.5 Value In
ll-Share In
une 2010.
2011, com
vel at end

Volume in Number
CBN ECON
per cent, r
pments in
most activ
valued at
was the ins
at N3.98 b
nsactions
dicated a
the first h
N 7.0 trillio
Volum
ndex of Eq
ndex (ASI)
. The NSE
mpared wi
d-Decemb
2nd Half 2008
Volum
NOMIC REPO
respective
the mar
ve on the
t N228.2
urance su
billion in 34
on the O
a turnove
half of 201
on in 67,19
me and Valu
quities
recorded
ASI decl
th 25,384.
ber 2010,
1st Half 2009
e of Transacti

ORT FOR TH
ely, of all
ket indica
e Exchan
billion in
ub-sector
4,799 dea
Over-theer of 6.1
1, compa
93 deals a
Figure 30
ue of Transa

d low pe
lined by
.14 at end
the index
2nd Half 2009
ons
HE FIRST HA
trading a
ated that
ge with a
412,233 d
with a tra
ls.
Counter
billion un
ared with
at end-Jun
actions at th
rformance
1.6 per c
d-June 201
x increase
1st Half 2010
Value o
ALF OF 2011
ctivities. S
t the ban
a traded
deals. The
aded volu
(OTC) bo
its worth
a turnov
ne 2010.
he NSE
e relative
ent to 24
10. When
ed margin

1st Half 201
of Transaction
Sectoral a
nking subvolume o
e second
ume of 4.2
ond segm
N11.6 tri
er of 5.95
e to the le
4,980.20 a
compare
nally by 0.

Naira Billion
ns

analysis
-sector
of 26.6
d most
2 billion
ment of
llion in
5 billion

evel at
at ended with
.85 per
Naira Billion

4.2
4.2.1
Provisio
stood
propo
corres
increa
due la
Furthe
total, w
gross o
in the
Non-o
cent, t
FISCAL O
Federatio
onal dat
at N4,76
rtionate
ponding
ase in fede
argely, to
r analysis
while non
oil-revenu
correspo
il revenue
though it


Index
CBN ECON
Mark
PERATION
on Accoun
a indicat
2.20 billio
budget e
period o
erally-coll
o the rise
indicated
n-oil reven
e exceed
nding pe
e fell shor
exceeded

1st Half

NOMIC REPO
ket Capitalis
NS
nt Operati
ted that
on in the
estimate
f 2010 by
ected rev
in dome
d that oil-r
nue acco
ded the pr
riod of 20
rt of its p
d its level
1st Half

NSE Index

ORT FOR TH
Figure 31
sation and N
ions
total fed
first half
for 2011
y 3.3 and
venue rel
estic crud
revenue a
unted for
roportiona
010 by 12.
proportion
in the first


1st Half

x
HE FIRST HA
NSE Value In
derally-co
of 2011.
and the
d 46.3 pe
ative to t
e oil/gas
accounte
r the bala
ate budg
.3 and 56
ate budg
t half of 20
1st Half

Market ap
ALF OF 2011
ndex
ollected r
This exce
actual
r cent, re
he budge
sales an
d for 80.4
ance. At N
et estima
.5 per ce
get estima
010 by 15.
1st Half

pitalisation

revenue
eeded bo
revenue
espective
et estimat
nd PPT/roy
4 per cent
N3,828.05
te and th
nt, respec
ate by 22
.3 per cen

Naira Trillion

(gross)
oth the
in the
ly. The
te was
yalties.
of the
billion,
e level
ctively.
2.3 per
nt.

Of the
or 44.6
2.0 pe
billion
cent to
and N
oil and
Excess
(FIRS)
N2,172
C
e total fed
6 per cen
er cent to
or 6.2 pe
o other tra
National In
d non-oil r
s PPT/Roya
and the
2.80 billion
Breakd

"Other
Transfers"
1.6%
Deduct
45.6
CBN ECON
Compositio
derally-co
t was tran
o the Fed
er cent to
ansfers (in
nformation
revenue,
alty, cost
Nigerian
n or 45.6 p
down of Fed

O
VAT
6.2%
tions
6%
NOMIC REPO
n of Federa
ollected re
nsferred t
deral Go
the VAT
ncluding E
n Techno
including
of collec
Customs
per cent.
derally-Colle

il Revenue

ORT FOR TH
Figure 32
ation Revenu
evenue (g
o the Fed
vernment
Pool Acc
Education
logy Deve
the Joint
tion to th
Service (

Figure 33
ected Reve

Non‐O
HE FIRST HA
ue, Half Yea
gross), the
deration A
t Indepen
count and
n Tax Fund
elopment
Venture
e Federa
NCS) and
nue: First Ha

Oil Revenue
FG In

ALF OF 2011
ar (per cent
e sum of N
Account,
ndent Rev
d N77.62 b
d, Custom
t Fund). D
Cash Cal
l Inland R
d ‘others’
alf, 2011 (pe

Federa
Accou
44.6
dep. Rev.
2.0%
)

N2,121.38
N95.58 bi
venue, N
billion or 1
ms Special
Deduction
ll, Excess C
Revenue S
account
er cent)

tion
unt
%

billion
llion or
N294.82
1.6 per
Levies
ns from
Crude,
Service
ted for

4.2.1.1
Federation Account Distribution
The sum of N2,121.38 billion was distributed to the three tiers of governments
from the Federation Account in the first half of 2011, indicating a shortfall of
36.3 per cent relative to the proportionate budget estimate, but exceeded
the disbursements in the corresponding period of 2010 by 25.8 per cent. The
share of Federal Government was N1,001.70 billion, while state and local
governments received N508.08 billion and N391.70 billion, respectively. The
balance of N219.90 billion was transferred to the 13% Derivation Fund. In
addition, the sum of N308.85 billion was distributed as revenue augmentation,
bringing the total amount distributed among the three tiers of government,
including the 13% Derivation Fund to N2,430.23 billion.

A breakdown of the total distributed revenue showed that the Federal
Government received N1,143.25 billion (including Special Funds), state
governments N579.87 billion, local governments N447.06 billion, and the sum
of N260.05 billion was allocated to the 13% Derivation Fund for the oil
producing states.

4.2.1.2
VAT Pool Account
The sum of N294.82 billion accrued to the VAT Pool Account in the first half of
2011, representing a shortfall of 20.2 per cent relative to the proportionate
budget estimate. This was distributed among the three tiers of government as
follows: Federal Government, N44.22 billion; state governments, N147.41
billion while the 774 local governments shared the balance of N103.19 billion.

4.2.2
Federal Government Finances
4.2.2.1
Federal Government Retained Revenue
At N1,307.33 billion, the Federal Government’s retained revenue was lower
than both the proportionate budget estimate and the level in the
corresponding period of 2010 by 27.4 and 6.0 per cent, respectively. The
shortfall in retained revenue relative to the proportionate budget estimate
was attributed largely to the drop in the share from the Federation Account.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Analysis of the retained revenue showed that the share from the Federation
Account was N1,001.70 billion, VAT Pool Account N44.22 billion, Federal
Government Independent Revenue N95.58 billion, share of augmentation
N141.55 billion and ‘others’ N24.28 billion.

Figure 34
Composition of Federal Government Retained Revenue, First Half 2011 (per cent)

Federation
Account
76.6%
VAT
3.4%
FG Indep.
Revenue
7.3%
Augmentation
10.8%
Others
1.9%

4.2.2.2
Total Expenditure of the Federal Government
Aggregate expenditure of the Federal Government stood at N1,997.85 billion
or 12.5 per cent of GDP in the first half of 2011. This was 15.7 per cent lower
than the proportionate budget estimate, but exceeded the total
expenditure in the corresponding period of 2010 by 9.9 per cent. The lower
total expenditure relative to the proportionate budget estimate reflected
largely, the delayed disbursement of capital expenditure and transfers. Of
the total amount expended, recurrent and capital outlays accounted for
77.4 and 15.2 per cent, respectively, while transfers accounted for the
balance of 7.4 per cent.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Figure 35
Composition of Federal Government Expenditure, First Half 2011 (per cent)

The economic classification of the recurrent expenditure showed that outlay
on goods and services was N1,235.19 billion or 7.7 per cent of GDP, interest
payments N218.06 billion (1.4 per cent of GDP) and transfers N92.87 billion
(0.6 per cent of GDP). Functionally, the recurrent expenditure on social and
community services rose in absolute terms by 19.1 per cent to N287.08 billion
(1.8 per cent of GDP), compared with N240.99 billion (1.9 per cent of GDP) in
the corresponding period of 2010. Similarly, the outlay on economic services
increased, by 25.5 per cent to N195.35 billion (1.2 per cent of GDP) in the first
half of 2011, compared with N155.62 billion (1.2 per cent of GDP) achieved in
the corresponding period of 2010.
Recurrent
77.4%
Capital
15.2%
Transfers
7.4%

The functional classification of Federal Government capital expenditure in
the first half of 2011 showed that total capital releases for economic services
declined by 52.3 per cent to N118.89 billion (0.7 per cent of GDP) from its
level in the first half of 2010 and accounted for 39.1 per cent of the total.
Social and community services also declined, by 12.9 per cent to N54.85
billion (0.3 per cent of GDP) and accounted for 18.1 per cent of the total.
However, the outlay on administration increased by 4.5 per cent to N119.27
billion (0.7 per cent of GDP) and accounted for 39.3 per cent of the total.
Overall, provisional data indicated that the total capital releases, at N303.62
billion, was 53.0 per cent of the proportionate budget estimate of N573.38
billion for the first half of 2011.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

On the
overal
projec
deficit
2010.
(N476.
‘other

4.2.3
Gross
amou
from t
N45.35
comm
contrib
Fadam
Progra
repres

e whole, t
ll deficit
cted prop
t of N427.9
The de
.00 billion
funds’ N1
Fe
State Gov
statutory
nted to N
the level
5 billion w
mitment i
bution to
ma Proje
amme. Thi
ented a d
‐700.00
‐600.00
‐500.00
‐400.00
‐300.00
‐200.00
‐100.00
‐
100.00
CBN ECON
the fiscal o
of N690.
portionate
93 billion
ficit was
), interna
141.19 billi
ederal Gove
vernment
allocatio
N987.33 b
in the co
was dedu
in respe
external
ects and
is resulted
decrease

‐30.33
NOMIC REPO
operation
.52 billion
e budget
(3.3 per c
financed
tional bo
ion.
ernment Fisc
Finances
on to sta
billion, whi
orrespond
ucted from
ct of v
debt ser
the Na
d in a net s
of 5.6 per

‐31.10

ORT FOR TH
ns of the F
n (4.3 pe
deficit o
cent of GD
d through
ond (N73.

Figure 36
cal Balance
ate gove
ich repres
ding perio
m the gro
various
c
rvice fund
ational A
statutory a
r cent from

‐324.2
HE FIRST HA
Federal G
er cent o
of N568.3
DP) in the
h borrowi
33 billion
e, Half Year
rnments i
sented a
od of 201
oss share
contractua
d; payme
Agricultura
allocation
m the leve

‐427
ALF OF 2011
overnmen
of GDP)
1 billion a
correspo
ng name
or $500.0
(Naira Billio
in the fir
decline
0. Howev
e, as state
al obliga
ents for fe
al Techn
n of N941.
el in the fir

.93
‐69
nt resulted
as again
and the
onding pe
ely, FGN
00 million
on)

rst half o
of 4.6 pe
ver, the s
e governm
ations na
ertilizer; Na
nology Su
99 billion,
rst half of

0.52

d in an
nst the
actual
riod of
Bonds
), and
f 2011
er cent
sum of
ments’
amely:
ational
upport
which
2010.

The ne
N462.7
and sh
8.8 pe
contrib
augm
contrib
Compo
4.2.4
Aggre
Federa
Accou
total r
breakd
and V
(10.1%
et statuto
73 billion;
hare of a
er cent, w
bution,
entation)
buted the
osition of Tot
Local Gov
egate sta
ation Ac
unt was N
receipts i
down sho
VAT Pool A
%) and N10
Federatio
73.8
CBN ECON
ory alloca
13% Deri
augmenta
while aug
the
sha
recorde
e balance
tal Allocatio
vernment
tutory all
ccount (i
N550.24 bi
n the co
owed tha
Account,
03.19 billio
on Acct
%
NOMIC REPO
ation com
ivation Fu
ation, N11
gmentatio
re
from
ed the h
e.
ons to State
t Finances
location
ncluding
illion in th
orrespondi
at the Fe
accounte
on (18.7%)

ORT FOR TH
mprised: F
und, N219
1.95 billio
on decline

the
F
highest w

Figure 37
Governmen

s
to the 7
budget
e first hal
ing period
ederation
ed for N3
), respecti


HE FIRST HA
Federation
9.90 billion
n. The sha
ed by 25
Federation
with 85.1
nts, First Hal
774 local
augmen
f of 2011.
d of 2010
Account
391.70 billi
ively.
Au
ALF OF 2011
n Accoun
n; share o
are of VA
5.4 per ce
n
Acco
per ce
f 2011 (per
governm
ntation) a
. This was
0 by 17.6
t, budget
on (71.2%
ugmentation
11.3%
nt allocat
of VAT, N
AT increas
ent. In te
unt
(inc
ent while
cent)

ments fro
and VAT
lower tha
6 per cen
t augmen
%), N55.35
VAT
14.9%

tion of
N147.41
sed by
rms of
cluding
e VAT
m the
T Pool
an the
nt. The
ntation
billion

C

4.2.5
4.2.5.1
The sto
half of
repres
The br
cent w
of tota
C
Composition

Pub

Co
ock of Fe
f 2011 wa
ented an
reakdown
while exte
al.
Composition
D
CBN ECON
n of Total Al
blic Debt
nsolidated
ederal Go
as estimat
n increase
n showed
ernal debt
n of Federal
Domestic
86.3%
NOMIC REPO
locations to
d Govern
overnmen
ted at N6
e of 37.1
that dom
t was US$5
Governme
Fed
A

ORT FOR TH
Figure 38
o Local Gov
ment Deb
t consolid
,038.00 bi
per cent
mestic deb
5.40 billion

Figure 39
nt Consolid


deration
Account
71.2%
VAT
18.7%
A
HE FIRST HA
vernments, F
bt
dated deb
illion or 37
over the
bt was N5
n (N827.5
ated Debt,
Augmentation
10.1%
ALF OF 2011
First Half 201
bt at the
7.8 per ce
level at
5,210.44 b
6 billion) o
First Half 20
E
11 (per cent

end of t
ent of GD
end-June
illion or 86
or 13.7 pe
11 (per cen

External
13.7%

t)
he first
DP. This
e 2010.
6.3 per
er cent
nt)

4.2.5.1.1
Domestic Debt
The Federal Government’s outstanding securitized domestic debt was
estimated at N5,210.44 billion or 32.7 per cent of GDP at end-June 2011,
representing an increase of 38.4 per cent over the level at end-June 2010.
The rise was due largely to the issuance of additional FGN Bonds. The
banking system remained the dominant holder of the total outstanding
domestic debt with 57.3 per cent, while the non-bank public accounted for
38.6 per cent and the balance of 4.1 per cent was held in a Sinking Fund.

4.2.5.1.2
External Debt
The Federal Government’s stock of external debt at end-June 2011 was
US$5.40 billion (N827.56 billion) or 5.2 per cent of GDP. This represented an
increase of 26.4 per cent over the level at end-June 2010. Further analysis
indicated that 84.5 per cent was owed to multilateral creditors, while nonParis Club bilateral and commercial debts accounted for the balance of 15.5
per cent.

4.2.5.2
Debt Service Payments
The total debt service payments of the Federal Government at the end-June
2011 was estimated at N255.64 billion or 1.6 per cent of GDP. This represented
an increase of 48.8 per cent over the level in the corresponding period of
2010. The breakdown showed that domestic debt service was N228.60 billion
or 89.4 per cent while external debt service payments amounted to US$0.18
billion (N27.04 billion) or 10.6 per cent of the total.
Figure 40
Trend in Federal Government Debt Service, Half Year

‐

‐


US$ Million
Naira Billion
Domestic
External
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

At N228.60 billion, domestic debt service payments was 57.5 per cent higher
than the level in the corresponding period of 2010. The significant increase
was as a result of the appreciable interest payments on FGN Bonds and
treasury bills, as well as some principal repayments of maturing development
stocks. External debt service payments declined by 0.6 per cent to US$0.18
billion from its level at end-June 2010. A breakdown of the external debt
service payments showed that 65.9 per cent was paid to multilateral
institutions while the ‘other creditors’ received the balance.

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 grew by 7.3
per cent in the first half of 2011, compared with 7.5 per cent in the
corresponding period of 2010. The development largely mirrored the growth
of output in the non-oil sector, which rose by 8.7 per cent and accounted for
84.1 per cent of the total. The oil sector output grew by 0.5 per cent and
accounted for the balance. The improved performance of the oil sector was
due largely to the sustained surge in world crude oil demand, which kept
prices high and supported increased domestic output. The growth in the
non-oil GDP was driven largely by increases of 5.6 and 12.6 per cent in
agricultural and services output, respectively. Wholesale and retail trade
grew by 10.7 per cent, while industry (including oil) as a whole, and building
and construction rose by 1.5 and 12.8 per cent, respectively. Agriculture
remained the dominant sector accounting for 38.5 per cent of total GDP and
contributed 2.2 percentage points to total GDP growth. It was followed by
services, wholesale and retail trade, industry, and building and construction,
with shares of 20.5, 19.7, 18.8 and 2.4 per cent and relative contributions of
2.5, 2.1, 0.3 and 0.3 percentage points, respectively.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.3.1 A
4.3.1.1
During
was t
(MDGs
hunge
suppo
which
improv
encou
growth

Financ
develo
variou
were
(CACS
comm
agricu
well a
the CA
Agriculture
Agricultu
g the peri
o enable
s) of ensu
er, as well
ort measur
were ai
ving acce
uraging bi
h target o
ce has
opment o
s agricultu
sustained
S). The CA
mercial ag
ultural pro
s provide
ACS, the s

CBN ECON
GDP
e
ural Policie
iod unde
e the sec
uring susta
as the ob
res implem
med at
ess to cre
io-fuel pro
of 10.0 per
been id
of the ag
ural finan
d includi
ACS is aim
gricultural
duction a
e inputs fo
sum of N1
1st Half
7.53

NOMIC REPO
P Growth Ra
es and Ins
r review,
ctor ach
ainable e
bjectives
mented in
addressin
edit by fa
oduction
r cent as e
dentified
gricultural
cing sche
ng the
med at p
enterprise
and to div
or the ind
133.11 bill
f 2010

.28
4.02
Total GDP

ORT FOR TH
Figure 41
te, First Half
stitutional
the polic
ieve the
nvironme
of Vision 2
n 2010 we
ng the ch
armers, pr
as well a
enunciate
as a c
sector. T
emes whic
Commerc
providing
es at a sin
versify the
ustrial sec
ion had b
2nd Half 2010
8.36 8.68
6.
Non‐Oil GD
HE FIRST HA
f 2011 (per c
Support
cy thrust o
Millenniu
nt, food s
20:2020. T
re retaine
hallenges
romoting
s achievin
ed in the V
critical c
To amelio
ch were in
cial Agric
funds thr
ngle digit
revenue
ctor on a
been rele

1st Ha
7.31
.56
DP
Oil‐GD
ALF OF 2011
cent)
of the ag
um Deve
security a
Therefore,
ed in the f
s of rising
commerc
ng the mi
Vision 20:2
onstraint
orate this
nitiated in
cultural C
rough cre
t interest r
base of t
sustainab
ased for d
alf 2011
8.71
0.45
DP
gricultural
elopment
nd reduc
the institu
first half o
g cost of
cial agric
inimum se
2020 docu
inhibiting
challeng
the last 3
Credit Sc
edit schem
rate to im
he econo
ble basis.
disbursem

sector
Goals
ction in
utional
f 2011,
food,
culture,
ectoral
ument.
g the
ge, the
3 years
cheme
mes to
mprove
omy as
Under
ment to

139 projects/promoters (inclusive of 24 states government) as at end June
2011. Notably, the establishment of the state-of-the-art rice processing mill in
Kano, Kano State during the period of analysis was financed from the CACS
fund. In addition, the agricultural sector is expected to benefit from other
programmes designed to unlock credit to the real sector of the economy,
which includes the Nigerian Incentive-Based Risk Sharing System for
Agricultural Lending (NIRSAL) which is another policy initiative towards
ensuring lending to the agricultural sector. NIRSAL is an initiative of the CBN in
collaboration with various stakeholders to bring together a set of critical
factors that are essential for success in expanding agricultural lending in
Nigeria in an integrative manner so that the risks and capacity bottlenecks
along the agricultural and financial value chains are simultaneously
addressed.

Besides, the Rural Finance Institution Building Programme (RUFIN) had
impacted positively on the capacity of rural financial institutions in providing
resources to meet the credit requirements of the rural farm communities. The
programme was being implemented in 12 selected states through a loan of
US$27.2 million from IFAD, a grant of US$0.5 million from the Ford foundation
and counterpart funding from the Federal Government and the participating
states.

The policy of Guaranteed Minimum Price (GMP) was sustained during the
period under review so as to protect farmers from the effects of produce
price volatility. Under the scheme, buying agents were selected and
registered to purchase food items at GMP for storage in the National Food
Reserves. The GMP and the use of buying agents are expected to engender
profitability for farmers and, consequently, improve their incomes. As part of
the national food security measures, grains were purchased under the Buyerof-Last Resort programme to mop up excess grains from farmers, which
would be released during periods of high prices of grains and staples.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

The deregulation of fertilizer supply and expansion of irrigation infrastructure
continued to be accorded high priority. During the first half of 2011,
government continued its involvement in the supply of fertilizers by instituting
an effective monitoring and quality assurance framework to ensure that
fertilizers get to the targeted recipients.

Efforts made to ensure that the country regains her lost share of the global
commodity trade were sustained during the period. To this end, the InterMinisterial Committee on Trade that was established since last year
continued to create awareness on the potentials of cocoa production,
processing, warehousing and export.

4.3.1.2 Agricultural Production and Prices
Agricultural output recorded modest growth in the first half of 2011. At 240.8
(1990=100), the estimated index of agricultural production increased by 5.6
per cent, compared with 5.9 per cent growth in the first half of 2010. The
growth in agricultural output was attributed to the early rains and the various
government intervention measures rolled over from 2010. The measures
included a refocused and re-engineered tractor provision programme,
subsidy on fertilizers, the Commercial Agricultural Credit Scheme (CACS),
zero tariffs on imported agro-chemicals, and tightening of controls on
smuggling of agricultural products into the country. All the sub-sectors of
agriculture contributed to the growth during the period under review. The
output of crops rose by 5.5 per cent compared with 5.8 per cent in the first
half of 2010. Staples and ‘other’ crops rose by 5.6 and 5.5 per cent,
compared with 5.9 and 5.7 per cent, respectively, in the first half of the
preceding year. The output of livestock, fisheries and forestry rose by 6.4, 6.1,
and 5.5 per cent, compared with 6.4, 8.5 and 4.2 per cent, respectively, in
the first half of 2010.

A survey conducted by the CBN showed that the domestic retail prices of
seven (7) out of the fourteen (14) selected food items trended upward when
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

compared with their levels in the first half of 2010. The increase in seven (7)
out of the fourteen (14) commodities monitored ranged from 2.4 per cent
each for brown beans and local rice to 38.3 per cent for vegetable oil. The
price increase for most of the commodities was attributed largely to seasonal
factors, coupled with the distribution constraints and hoarding attitude of
middlemen. The remaining seven (7) commodities recorded marginal price
decline which ranged from 0.1 per cent for yellow garri to 6.6 per cent for
white maize.

The prices of Nigeria’s major agricultural export commodities at the London
commodities market increased in the first half of 2011. At 448.8 (1990=100),
the dollar-based all-commodities price index rose by 3.0 per cent over the
level in the first half of 2010. Five of the six commodities monitored: copra,
cotton, coffee, palm oil and soya beans recorded price increases of 128.5,
127.6, 68.5, 50.6 and 43.3, respectively. The price of cocoa, however,
recorded a decline of 1.4 per cent. The price increases of the commodities
were attributed largely to speculation, seasonal factor and weather
conditions.

4.3.2 Industry
4.3.2.1 Industrial Policy and Institutional Support
The government intensified efforts to provide the infrastructural backbone
across the country in order to improve industrial and economic activities. The
reform of the power sector reached an advanced stage while efforts were
sustained in the upgrading, expansion and rehabilitation of existing power
transmission and distribution infrastructure. The Nigerian Electricity Regulatory
Authority (NERC) also commenced the implementation of the Multi-Year
Tariff Order (MYTO) as an appropriate tariff model for effective pricing to
encourage investment in the sector.

A private sector operator, the Dangote Group, initiated a N20.0 billion small
and medium-scale enterprises fund aimed at helping with job creation, of
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

which
(BOI).
next th
set asi
and p
billion
billion
proce

4.3.2.2
Provisio
industr
128.8
corres
of 201
manuf
and 2.


the first tr
Governm
hree year
de N35.27
romotion
is earmar
for the e
ssing and
2 Industria
onal dat
rial outpu
(1990=100
ponding
0 was at
facturing,
.6 per cen
91 5

CBN ECON
ranche of
ment also
rs to revita
7 billion as
of core in
rked for th
establishm
productio
al Produc
a indicat
t in the fir
0), rose by
period of
tributed t
mining a
nt, respec
Industria

nd Half 08
Manufa
NOMIC REPO
f N5 billion
pledged
alise Nige
s special f
ndustries b
he recapi
ment of in
on of exp
tion
ted an im
rst half of
y 7.9 per
f 2010. The
to the imp
and elec
tively.
al Productio

1st Half 09
cturing
M

ORT FOR TH
n had bee
the sum
ria’s ailing
fund for th
between
italisation
ndustrial c
ortable p
mproved
2011. The
cent whe
e increase
proved a
tricity co
Figure 42
on Index, Ha

2nd Half 09
Mining
Ele
HE FIRST HA
en release
of about
g manufa
he rehabi
2011 and
of the Ba
clusters in
roducts.
performa
e index of
en compa
e in outpu
ctivities in
nsumption
alf Year 200

1st Half 10
ectricity
In
ALF OF 2011
ed to the
t N118.82
cturing se
ilitation of
d 2013. The
ank of Ind
the state
ance in
f industria
ared with
ut relative
n all the s
n increas

1st Half 11
ndustry
Bank of In
billion ov
ector. It p
f ailing ind
e sum of
dustry and
es to boo
the aggr
al product
the level
e to the fi
sub-secto
ing by 6.

ndustry
ver the
lans to
dustries
N55.15
d N1.89
ost the
regate
tion, at
in the
rst half
ors with
.5, 7.5,

4.3.2.3
At 98.8
by 7.9
attribu
delive
well a
manuf
perce

4.3.3
In orde
Nigeria
Gover
conso
petroc
with a
Lagos,

4.3.3.1
The ag
and c
3 Manufa
88 (1990=
per cent
uted larg
ry from th
as the i
facturing
ntage po
Avera
Crude
er to stren
an Nation
rnment sig
rtium for
chemical
a combine
, Kogi and

Crude
ggregate
condensa

CBN ECON
acturing
=100), the
relative t
gely to im
he variou
improved
capacity
oints when
age Manufa
e Oil
ngthen Ni
nal Petrole
gned a Me
r the co
plant in
ed capac
d Bayelsa
e Oil Produ
producti
ates by th
2nd Half 08
NOMIC REPO
estimate
to the lev
mproved
us interven
electric
y utilisatio
n compare
acturing Ca
igeria’s po
eum Corp
emorand
onstructio
Nigeria a
city of 885
states.
uction and
on of cru
he Organ
1st Half 09

ORT FOR TH
ed index o
el at endbusiness
ntion sche
city supp
on estimat
ed with th

Figure 43
apacity Utilis
osition as
poration
um of Und
n of th
at the cos
5,000 bar
d Demand
ude oil, in
nization o
2nd Half
HE FIRST HA
of manufa
-June 201
s confide
emes, pa
ly. Conse
ted at 57
he corresp
sation, Half
a leading
(NNPC) o
derstandi
ree (3)
st of US$2
rrels per d
d
cluding n
of Petrole

1st Ha
ALF OF 2011
acturing p
0. The de
ence, en
articularly
equently,
7.0 per ce
ponding p
Year 2009 -
g oil and
on behalf
ng (MOU)
new ref
25.0 billion
day would
natural ga
eum Expo
alf 10
1st
productio
evelopme
nhanced
by the C
the av
ent rose
period of 2
- 2011

gas natio
of the F
) with a C
fineries a
n. The refi
d be loca
as liquids
orting Co
Half 11

on rose
nt was
credit
CBN as
verage
by 3.8
2010.
on, the
ederal
Chinese
and a
ineries,
ated in
(NGLs)
ountries

(OPEC) was estimated at 34.40 million barrels per day (mbd) during the first
half of 2011. This represented an increase of 0.9 and 1.6 per cent over the
levels in the preceding and corresponding halves of 2010, respectively. NonOPEC supply was estimated at 52.76 mbd, indicating a 1.7 per cent increase
over the level in the corresponding half of 2010. Total world supply was,
therefore, estimated at 87.16 mbd for the period under review, indicating an
increase of 0.8 and 1.6 per cent above the levels in the preceding and the
corresponding halves of 2010, respectively. World crude oil demand was
estimated at 87.10 mbd compared with 84.79 mbd in the first half of 2010,
representing an increase of 2.7 per cent. Of this, demand from the
Organization for Economic Co-operation and Development (OECD)
countries was estimated at 45.75 mbd, while that of Non-OECD countries was
41.35 mbd. The high global oil demand was driven by the harsh winter in
Europe and some parts of North America in the first quarter of the year, and
strong economic growth in emerging economies.

Nigeria’s crude oil production increased in the first half of 2011 with a total
estimated daily production of 2.14 mbd, compared with 2.06 mbd in the first
half of 2010. Total crude oil production for the period under review, including
condensates was estimated at 387.34 million barrels, up by 3.9 per cent when
compared with the corresponding period in 2010. The increase was
attributed to the re-opening of Shell’s Bonga Oil and Gas field which
accounts for about 10 per cent of the country’s daily output and the relative
peace in the Niger Delta during the second quarter of the year. The
aggregate export of crude oil for the period was estimated at 305.89 million
barrels, compared with 291.41 million barrels in the corresponding half of the
preceding year.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Figure 44
Crude Oil Production and Exports

First Half 2010
Second Half 2010
First Half 2011
Million barrels per day
Output
Exports
Domestic Consumption


4.3.3.2 Crude Oil Prices
The average spot price of Nigeria’s reference crude, the Bonny Light (37o
API), increased by 43.3 per cent to US$113.86 per barrel over its level in the
first half of 2010. The average prices of the UK Brent, West Texas Intermediate
and the Forcados also increased, by 42.8, 25.3 and 44.7 per cent to
US$111.91, US$98.62 and US$114.40 per barrel, respectively, compared with
the corresponding half of 2010. The average price of the OPEC Basket of
twelve crude streams was estimated at US$105.78 per barrel. The
development was due to the global increase in the demand for crude oil,
arising from fragile improvements in the world economy and the lingering
political unrest in some parts of North Africa and the Middle East.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Source:

4.3.4
Total a
27.61
when
this, 22

d ll
b
l

Million Cubic Meters
Average Sp
: Reuters
Gas
associated
million cu
compare
2.51 MMm

US dollar per barrel
UK BRENT
50.2

1s
CBN ECON
pot Prices o
d gas pro
ubic metr
ed with 50
m3 was utili
78.35
78.70
79.47
1st Half 2
WEST TEXA

41.6
6.1
t HALF 2010
Gas Produc
NOMIC REPO
of Selected C
oduced d
res (MMm
0.22 MMm
ised, while
Gas Prod
79.09
75.99

AS INTERMEDI
ced

ORT FOR TH

Figure 45
Crudes Trad
during the
m3), repres
m3 in the
e 5.10 MM

Figure 46
uction and
82.30
81.25
83.02
2nd Hal
ATE
BONN
32.8
24.2
2nd HALF 20
Gas Utilise
HE FIRST HA
ded in the In
e review p
senting a
correspon
Mm3 was fl
Utilisation
83.63
78.78
f 2010
NY LIGHT
8.6

d
ALF OF 2011
nternational
period wa
decline
nding per
ared.
111.91
98.62
113 86
1st Ha
FORCADOS
27.6

1st HAL
Gas Flared
l Oil Market
as estima
of 22.61
riod of 20
113.86
114.40
105.78
alf 2011
OPEC BASK
.5
5.1
F 2011

t

ted at
MMm3
010. Of

KET

4.3.5
The to
stood
litres d
produ
was 3
340,56
and 46
4.3.6
Provisio
that th
of 201
produ
attribu
poison
the live

4.3.7 E
At a p
electri
Petroleum
otal volum
at 4,599,7
during the
cts distrib
3,978,326.6
60.65 litres
68,017.36
Solid Mine
onal data
he total so
11, declin
ced in t
uted to th
nous lead
es of man
Electricity
provisiona
city gene
CBN ECON
m Products
me of vario
743.67 litre
e same p
buted by
61 litres a
of house
litres of au
Consump
erals
a from the
olid minera
ned by 2
he corre
e strict mi
exposure
ny miners.
y Generati
al figure o
eration in
NOMIC REPO
s
ous white
es in the
eriod of 2
the Majo
and com
hold kero
utomotive
ption of Petro
e Ministry
als produc
25.7 per
sponding
ining regu
e incident

ion
of 2,800 m
the coun
DPK
8.6%

ORT FOR TH
products
first half 2
2010. The
or and Ind
mprised 3,
osene (HH
e gas oil (A

Figure 47
oleum Prod
y of Mines
ction, whi
cent wh
g period
ulations pu
t in some
megawatt
ntry rose
AGO
11.8%
HE FIRST HA
s processe
2011, com
estimate
dependen
,169,748.6
K) or dua
AGO).
ucts, First Ha
s and Stee
ch stood
en comp
of 2010.
ut in plac
parts of t
s per hou
by 1.8 pe
PMS
79.7%
ALF OF 2011
ed by the
mpared w
ed quantit
nt Market
60 litres o
l purpose
alf of 2011
el Develo
at 10.07M
pared wit
The dev
e in the a
the count
ur (Mw/h)
er cent fr
e local ref
with 4,031,
ty of petr
ting Com
of petrol
kerosene
opment sh
MT in the fi
th the 12
velopmen
aftermath
try that cl
, average
rom the 2

fineries
,960.76
roleum
panies
(PMS),
e (DPK)

howed
rst half
2.66MT
nt was
of the
aimed
e total
2,749.9

Mw/h
electri
increa

4.3.8 E
Provisio
consu
corres
attribu

4.3.9
The va
sector
showe
disburs
Schem
went t
17.80
respec

attained
c power g
ased gas s
Electricity
onal dat
mption in
ponding
uted to the
Industrial
arious inte
r continue
ed that as
sement to
me. A sec
to the en
per cent
ctively.
Sectoral
Pharmaceutical
5%
Hotel/Tourism
1%
Transporta
1%
Textile/

CBN ECON
during th
generatio
supplies to
y Consump
a showed
the coun
period o
e increase
Financing
ervention
ed to be
at end-Ju
o 539 pro
ctoral bre
ngineering
went to
Analysis of
Foo
m
ation
/Leather
%
Oil/G
4%
Pap
NOMIC REPO
e corresp
on in the f
o the therm
ption
d that a
ntry increa
of 2010.
ed supply
g
funds pu
accessed
une 2011,
ojects und
akdown s
g and co
the food/
Restructurin
od/Beverages
21%
Gas
%
per/Allied Produc
9%

ORT FOR TH
ponding p
irst half of
mal statio
t 2,673.6
ased by 2
The rise
y from the
t in place
d in the
, N199.7 b
der the SM
showed 2
nstruction
/beverag
Figure 48
ng and Refi

Agro A
6%
Chem
cts ICT
3%
HE FIRST HA
period of 2
f 2011 was
ons.
Mw/h, a
2.3 per ce
in elect
generatin
e by the
first half o
billion had
ME Restru
22.76 per c
n sector w
ges and c
nancing Fa
llied
%
Solid Miner
5%
Engineerin
&Construct
23%
mical/Plastics
18%
ALF OF 2011
2010. The
s attribute
average
nt above
tricity co
ng station
CBN to s
of 2011. P
been rele
cturing a
cent of th
while 21.39
chemical/
cility (% Dis
als
ng
tion
improvem
ed mainly
total ele
e the level
nsumption
ns.
support th
Provisiona
eased to
and Refina
he disburs
9 per cen
/plastics se
tribution)

ment in
to the
ctricity
l in the
n was
he real
al data
BOI for
ancing
ement
nt and
ectors,

The to
benefi
level a
facilitie
Facility
among
to the
were
respec

4.3.10
Develo
first h
Comm
grew b
lines a
inhabi
The g
teleph
cent t
develo
service
No. of Active Lines (Millions)
otal disbur
iciaries at
at end-Jun
es, namel
y (STDLF),
g others.
e manufac
disbursed
ctively.
Telecom
opments
alf of 20
mission (NC
by 13.3 pe
at end-Jun
tants at e
rowth in
hony sub-s
o 89.7 mil
opment w
e innovati


J
(
)
CBN ECON
rsement b
t end-June
ne 2010. T
ly, Mid-Te
Direct Le
A sectora
cturing se
d to the
mmunicatio
in the tele
011. Ava
CC) indic
er cent fr
ne 2011. C
end-June
the sect
sector wh
lion at en
was attrib
ion as we
Tot
.56
1.31
48.05

un. 08
Dec
NOMIC REPO
by the Nig
e 2011 gre
This amou
rm Direct
ending (D
al breakdo
ector, whi
agricultu
ons
ecommun
ailable da
ated that
om 79.9 m
Conseque
2010 to 6
tor was d
ere the n
nd-June 20
buted to
ll as relativ
tal Connect

1.44
63.00
66.4
c. 08
June. 0
Fixed

ORT FOR TH
geria Expo
ew by 36
unt was di
Lending
DL), Restru
own show
ile N0.6 b
ural, serv
nications
ata from
t the total
million line
ently, the
64.7 per 1
driven lar
umber of
011, from
the incre
vely chea
Figure 49
ted Lines an
1.48

73.10

Dec. 09
Mobile
HE FIRST HA
ort-Import
.2 per cen
isbursed u
(MTDL), S
ucturing a
wed that N
billion, N0.
vices and
sub-secto
m the Nig
l number
es at endteledensi
100 inhab
rgely by
active lin
78.7 millio
eased co
aper call t
nd Teledens
1.21

78.65
June '10
D
Teleden
ALF OF 2011
t Bank (NE
nt to N3.1
under the
Short-Term
and Refin
N1.6 billion
.3 billion a
d solid m
or remaine
gerian C
of active
-June 201
ty rose fro
bitants at
activities
nes increa
on at end
ompetition
ariffs.
sity
.05
0.88
87.30

Dec. '10
Apri
sity
EXIM) to v
billion fro
various le
m Direct Le
nancing F
n was disb
and N0.2
minerals se
ed robust
Communic
telephon
0 to 90.5
om 57.0 p
end-June
in the m
ased by 14
d-June 201
n, produc

89.65

il '11
Teledensity ( per 100

various
om the
ending
ending
Facility,
bursed
billion
ectors,
in the
cations
ne lines
million
per 100
e 2011.
mobile
4.0 per
10. The
ct and

Inhabitants)

4.3.11
The up
first an
comp
at end
Decem

4.3.11.
The ye
stood
cent a
month
downw

4.3.11.
Core i
fluctua
2011,
Decem

CPI
Consume
pward tre
nd second
osite Con
d-June 20
mber, 201
.1 Headlin
ear-on-ye
at 10.2 p
at end-Ju
h moving
wards to 1
.2 Core In
nflation, t
ated in th
compare
mber 2010
95.3
95.6

1st Half
CBN ECON
er Prices
nd in the
d halves o
nsumer Pric
011, comp
0, respec
Consum
ne Inflatio
ar headli
per cent b
une and e
average
12.3 per c
nflation
hat is, all i
he first ha
ed with
0, respect
102.2
95.3

2nd H
NOMIC REPO
general
of 2010, lin
ce Index
pared wit
tively.
mer Price In
on
ine inflatio
by end-Ju
end-Dece
e inflation
cent from
items less
alf of 2011
12.7 and
tively.
108 8
102.4
101.5
Half 2009
1s
Compos

ORT FOR TH
price leve
gered into
(CPI) stoo
th 114.2 a

Figure 50
ndices (Nov
on fluctua
ne 2011,
ember 20
n rate in
13.1 per c
farm prod
1 and sto
d 10.9 pe
108.8
110.0
107.4
st Half 2010
ite
Food
HE FIRST HA
el which p
o the first
od at 119.
and 108.8
ember 2009
ated in th
compare
010, respe
n the first
cent at en
duce, on
od at 11.
er cent
114.2
115.4
112.6
2nd Half 201
Core
ALF OF 2011
persisted t
half of 20
9 (Novem
8 at end9 = 100)
he first ha
ed with 14
ectively. S
t half of
nd-June 20
a year-on
.5 per ce
at end-J
119.9
120.1

1st Half 2
through o
011. The al
mber 2009
-June and
alf of 201
4.1 and 11
Similarly, t
2011, tre
010.
n-year ba
nt by end
une and
119.8

out the
ll-items
= 100)
d end-

1 and
1.8 per
he 12ended
sis also
d-June
d end-

4.3.11.
Food
exhibit
cent b
and e


4.4. EX
The pe
2011 w
cent o

Per cent
.3 Food In
inflation o
ting the s
by end-Ju
nd-Decem
Urba
XTERNAL S
erformanc
with the cu
of gross

1st Half
CBN ECON
nflation
on a yea
same tren
une 2011,
mber 2010
Inflation R
an and Rura
ECTOR DE
ce of the
urrent acc
domestic

2nd H

Urb
NOMIC REPO
ar-on-year
nd as the
compare
0, respect
Rate (Yearal Consume
EVELOPME
e external
count surp
c product
Half 2009
1s
Headline

1st Half

97.2
94.4
an Consumer

ORT FOR TH
r basis flu
headline
ed with 15
tively.
Figure 51
on-Year), N
Figure 52
r Price Indic
ENTS
sector re
plus estim
t (GDP).
st Half 2010
Food
2nd Half

1st

101.4
107 7
102.8
Price Index
HE FIRST HA
uctuated
e inflation
5.1 and 12
November 2
ces (Novem
emained
mated at N
The dev
2nd Half 201
Core
t Half

2nd Ha


Rural Co
ALF OF 2011
in the fir
rate. It s
2.7 per ce
009 = 100
mber 2009 =
robust in
N1,960.7 b
velopmen

1st Half 2
alf

1st Half

116.6
115.9
122.6
onsumer Price
rst half of
tood at 9
ent at end
100)
the first
billion or 12
t reflecte

Index

f 2011,
9.2 per
d-June

half of
2.8 per
ed the

favourable terms of trade, occasioned by the sustained high oil prices in the
global market and increased domestic output and, hence, export. The
international price of crude oil, averaged US$113.86 compared with US$79.47
per barrel during the first half of 2010. The estimated deficit in the capital and
financial account, as a percentage of GDP, narrowed by 20.0 percentage
points to 7.9 per cent, compared with its level at end-June 2010. The level of
external debt was within sustainable level, while the external reserves at endJune 2011 stood at US$ 31.89 billion and could finance 7.2 months of current
import commitments, exceeding the West African Monetary Zone (WAMZ)
requirement of 3.0 months. The foreign exchange market remained stable,
despite the demand pressure experienced during the period. The premium
between the official and Bureau-de-Change (BDC) rates was 2.4 per cent
and remained within acceptable limit.


4.4.1 Current Account
4.4.1.1 Trade
Total trade for the first half of 2011 rose by 91.0 per cent over its level at endJune 2010 and represented 21.1 per cent of GDP. Aggregate exports grew
by 35.6 per cent and represented 47.3 per cent of GDP. The development
was attributed to the significant increase in international price of crude oil
and improvement in domestic crude oil production and, hence, oil exports.
Oil sector exports continued to dominate and accounted for 96.4 per cent of
the total, while non-oil exports accounted for the balance. Of the total oil
exports, gas declined and accounted for 7.0 per cent representing 3.3 per
cent of GDP, compared with 11.8 per cent and 4.8 per cent, respectively, at
end-June 2010.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

The pe
for 1.3
industr
minera
respec
erformanc
3 per cent
rial, agric
als accou
ctively.
‐


Naira Billion
CBN ECON
Exports,
ce of the
t of GDP.
cultural pr
unted for
Value
5,336.0
3 661 5
1st Half 20
Expo
1st Hal
NOMIC REPO
Imports an
non-oil s
A further
roduce, f
46.6, 16.4
of Oil and N
3,661.5

orts
f 2010
Oil Expo

ORT FOR TH
Figure 53
d Trade Bal
ector con
breakdow
ood prod
4, 3.0, 32

Figure 54
Non-Oil Exp


5,718.5
4,372.1
2nd Half 201
Imports
2nd Half
orts
Non‐
HE FIRST HA
lance (Naira
ntinued to
wn of non
ducts, ma
.3 and 1.
ports (Naira

‐Oil Exports
ALF OF 2011
a Billion)
o be dism
n-oil expo
anufacture
.8 per ce
Billion)
7,264.1
4,028.6
1st Half 2011
Trade Balanc
1st Half 20
mal, acco
orts showe
ed good
ent of the

ce

ounting
ed that
s, and
e total,

Aggre
with th
cent o
dema
infrastr
billion,
accou
during
finishe
sector
cent, o
egate imp
he level in
of GDP. Th
nd for co
ructural d
, constitu
unted for
g the perio
d goods
r 1.6 per c
of the tota
Indust
46.6
CBN ECON
Non-Oil Ex
port bills g
n the corr
he upward
onsumer g
developme
ted 85.6
the balan
od showe
(food an
cent, and
al.
Non-Oil I
Minerals
1.8%
trial
6%
NOMIC REPO
xports by Pr
grew by 1
respondin
d trend in
goods to
ent projec
per cent
nce (14.4%
ed that ind
nd manufa
other sec
mports by S
Finish

Indus
29.3

ORT FOR TH
Figure 55
roducts, Firs
0.0 per c
g period
n imports w
meet pro
cts. The sh
t of tota
%). A sect
dustrial se
actured p
ctors acco
Figure 56
Sectors, First
hed goods
49.6%
strial
3%
HE FIRST HA
st Half 2011
ent to N4
of 2010 a
was trace
oduction
hare of no
l imports
toral brea
ector acco
products)
ounted fo
t Half 2011 (
Tra

ALF OF 2011
(per cent)
4,028.5 bil
and repre
ed to the s
gaps an
on-oil imp
while oil
akdown of
ounted fo
49.6 per
r the bala
(per cent)
Agricultur
Produce
16.4%
Manufactu
Goods
32.3%
Food

nsport
1.6%
Others
19.4%

lion, com
sented 26
strong do
d the on
orts, at N3
sector im
f non-oil im
or 29.3 pe
cent, tra
ance of 19
ral
e
ured
s
Products
3.0%

mpared
6.2 per
mestic
-going
3,449.9
mports
mports
r cent,
ansport
9.4 per

4.4.1.2
Services
The estimated deficit in the services account (net) was 8.3 per cent of GDP,
up from 10.5 per cent in the corresponding period of 2010. The deficit was
accounted for largely by out-payments in respect of transportation (N607.2
billion), travels (N309.7 billion) and other business services (N279.1 billion).

Figure 57
Share of Services Out-Payments, First Half 2011 (per cent)

Transport
42.9%
Travel
20.2%
Other Bussiness
20.0%
Government
11.5%
Others
5.4%
4.4.1.3
Income
The deficit in the income account (net) widened by 26.6 per cent to N1,653.5
billion and, represented 10.8 per cent of GDP, compared with N1,306.1billion
in the corresponding period of 2010. This was due mainly to the higher
payments of dividends and profit repatriation to non-resident investors.

4.4.1.4
Current Transfers
The current transfers (net) declined by 5.3 per cent during the first half of
2011when compared with the second half of 2010 but rose by 24.1 per cent
over the level in the corresponding period of 2010. At US$10.9 billion, inward
transfers, mainly personal home remittances by Nigerians in dispora,
surpassed the outward transfer of US$0.2 billion recorded in the general
government accounts for the expenses on foreign embassies, payments to
international organizations and remittances of foreigners resident in the
country.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

4.4.2 F
4.4.2.1
Provisio
mainly
investm
23.5 pe

4.4.2.2
Portfol
2011,
repres
securit
billion.
and d
Financial A
Foreign
onal data
y equity c
ment clim
er cent ov
2 Portfoli
lio investm
compare
ented 2.2
ties of US$
. This reflec
ebt marke


CBN ECON
Pri
Account
n Direct Inv
a indicate
capital, i
mate. Simi
ver its leve
o Investm
ment reco
ed with
2 per cent
$1.1 billion
cted the
ets.
Net FDI
1st Half 20
3.0
1st Half 2
NOMIC REPO
vate Home
vestment
ed that gr
ncreased
larly, net
el in the se
ment
orded an
US$2.3 b
t of GDP.
n, followe
renewed
and Portfoli

1.7

FDI

ORT FOR TH
Figure 58
Remittance
oss inflow
d by 25.3
FDI, at 3.
econd ha
n inflow o
billion in
The net in
ed by sho
foreign c
Figure 59
io Investme
2nd Half 20
2.2

2nd Half 2
HE FIRST HA
es (US$ Billio
w of foreig
per cen
.0 per ce
alf of 2010.
of US$2.2
the seco
nflow was
rt-term de
onfidence
nt Flows (%

1.6

PI
ALF OF 2011
on)
n direct in
nt due to
nt of GDP
.
billion in
ond half
accounte
ebt instrum
e in the d
of GDP)
1st Half 20
3.2

1st Half 20

nvestmen
o the imp
P, increas
the first h
of 2010
ed for by
ments of
domestic c

.0

t (FDI),
proved
sed by
half of
0 and,
equity
US$0.9
capital

4.4.2.3
Capita
amou
billion
marke
“Othe

4.4.3
The g
comp
largely
holdin
Federa
(67.4%
import

Capita
al importe
nted to U
in the co
et (shares)
rs” sectors
Reserve A
gross exte
ared with
y to the
gs of fore
al Govern
%). The lev
t commitm

US$ Billion
CBN ECON
al Importa
ed into t
US$4.3 bil
orrespond
(83.1%),
s accoun
Capital Imp
Assets
ernal rese
h US$32.33
increased
eign rese
nment US
vel of ext
ments, co
External Re
Shares
83.1%
37.4
1st Half
Ex
NOMIC REPO
ation by Se
he econo
lion in th
ding perio
while fina
ted for (7
portation by
erves at e
3 at end-D
d funding
rves by t
S$2.96 bil
ternal rese
mpared w
eserves and

9.1

2n
xternal reserve

ORT FOR TH
ector
omy as c
e first ha
od of 2010
ancing/ba
.6%).
Figure 60
y Sector, Firs
end-June
Decembe
g of the
he Feder
llion (9.3%
erves cou
with 6.6 m
Figure 61
d Months of
32.3
6.6
nd Half 2010
es
M
HE FIRST HA
captured
lf of 2011
0. The infl
anking ac
st Half 2011
2011 sto
er 2010. Th
foreign e
ration wa
%) and th
uld financ
months at e
Imports Co
31.9
1st Half
Months of Imp
ALF OF 2011
in the D
1 compar
low was i
ccounted
(% of GDP)
ood at U
e develo
exchange
as US$7.43
he CBN
ce 7.2 mo
end –Dec
mmitments
Others
7.6%


port Cover
DMBs’ dat
red with
into the c
for (9.3 %
)
US$31.89
pment wa
e market
3 billion (2
US$21.50
onths of c
cember 20

Financing/B
9.3%

0.0
No. of Months

tabase
US$3.1
capital
%) and
billion,
as due
. The
23.3%),
billion
current
010.

Banking
%

4.4.4
Provisio
the C
comp
13.2 p
total.
N1,531
cent, a

5.0
5.1 Reg
5.1.1 A
The Bo
May 2
The fir
mediu
and U
Industr
to pay
SMEs.
Extern
onal data
CBN and
ared with
per cent t
DMBs’ ho
1.06 billion
at end-Ju
Total Exter
INTERNAT
gional Ins
African De
oard of D
26, 2011 a
rst was t
um-sized e
US$500 m
ry (BOI). A
y for Tech
CBN ECON
al Assets
a indicate
the DMB
h N6,848.5
to N5,004
oldings on
n and ac
ne 2010.
rnal Assets o
IONAL EC
stitutions
evelopme
Directors o
approved
the US$20
enterprises
million for
A portion
hnical Assi
NOMIC REPO
of Financi
ed that, to
Bs, at en
3 billion a
.38 billion
n the oth
counted
of Financial
CONOMIC
nt Bank (A
of the Afr
two sove
00 million
s (SMEs) t
financing
of the pro
istance fo
DMB
23.4%

ORT FOR TH
ial Instituti
otal extern
nd–June
at end-Jun
n and acc
her hand
for 23.4 p

Figure 62
l Institutions
C RELATION
AfDB) Ann
rican Dev
ereign gua
for fina
to the Nig
g domest
oceeds o
or capaci

Bs
%
HE FIRST HA
ions
nal assets
2011 sto
ne 2010. C
counted
assets gr
per cent
: First Half o
NS
nual Meet
velopmen
aranteed
ncing ex
gerian Exp
ic-oriente
of the prog
ity buildin
CBN
76.6%
ALF OF 2011
of bankin
od at N
CBN holdin
for 76.6 p
rew by 41
compare
f 2011 (Shar
ings
t Bank (A
program
xport-orien
port-Impo
ed SMEs t
grammes
g at NEXI
g system,
6,535.45
ngs declin
per cent
1.3 per c
ed with 15
re of Total)
AfDB) Gro
mes for N
nted sma
rt Bank (N
to the Ba
would be
IM, BOI an

that is
billion,
ned by
of the
cent to
5.8 per
oup on
Nigeria.
all and
NEXIM)
ank of
e used
nd the

The NEXIM programme would mobilize significant financial resources for
Nigeria’s export-oriented SMEs, employment opportunities, foreign exchange
and regional trade integration. The funds for the BOI programme would be
deployed towards systematic poverty reduction, employment generation
and wealth creation. The financing would be extended for loans to SMEs as
well as for capital projects in the form of cluster and infrastructure
development.
5.1.2 African Union (AU) Meetings
The 16th African Union (AU) Heads of State and Government Summit was held
from January 30 – 31, 2011 in Addis Ababa, Ethiopia. The Summit deliberated
on the theme “Towards Greater Unity and Integration through Shared
Values”. The AU Heads of State and Government agreed to:
• Implement the previous decisions of the Executive Council and the
Assembly;
• Launch the African Women’s Decade;
• Implement the decisions on the International Criminal Court (ICC);
• Ensure that the Principle of Universal Jurisdiction is not abused;
• Implement the African Union Solemn Declaration on Gender Equality in
Africa; and
• Implement the African Charter on the Values and Principles of Public
Service and Administration.
The 4th Joint Annual Meetings of the AU Conference of Ministers of Economy
and Finance; and Economic Community of Africa (ECA) Conference of
African Ministers of Finance, Planning and Economic Development were held
in Addis Ababa, Ethiopia from March 24–29, 2011, with the theme “Governing
Development in Africa”.
The conference stressed the need for:
• Significant
and
meaningful
economic
diversification
and
transformation;
• Policies to address the structural constraints of infrastructure deficit,
rigid regulatory framework and weak regional integration; and
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

• Effective policies to promote shared growth and employment creation
in order to improve living standards and mainstream gender and youth
concerns into development plans and national budget.
The meeting also identified the challenges impeding progress to regional
integration in Africa to include:
• Inadequate mainstreaming of regional agreements in national
development policies, strategies and budgetary allocations;
• Non-implementation of protocols on free movement of peoples and
right of establishment; and
• Inadequate financing of integration programs and projects.
It noted the progress made towards achieving the Millennium Development
Goals (MDGs) in the areas of education, women empowerment, debt
sustainability and access to treatment of HIV/AIDS. Despite this, it was of the
view that, overall, most African countries were not likely to meet the MDGs
targets by 2015.

5.1.3 Association of African Central Banks (AACB)
The Meeting of the 35th Bureau of the Association of African Central Banks
(AACB) was held on February 23, 2011 at the Headquarters of the Banque
Centrale des Etats de l’Afrique de l’Ouest (BCEAO), Dakar, Senegal.

The meeting observed that the African Union Commission (AUC) - AACB Task
Force, assigned to design the roadmap for the creation of the African
Central Bank (ACB), was yet to commence work and that member states
performed better on primary and secondary criteria of the African Monetary
Cooperation Programme, compared with the corresponding period of 2009.

The AACB held its year 2011 continental seminar on the theme, “Financing
Development in Africa: What role for Central Banks?” The seminar was hosted
by the National Bank of Rwanda in Kigali, from May 30 to June 1, 2011.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

A key recommendation was that AACB member central banks should revisit
their laws to include financing development. Members expressed the desire
to leverage on the experiences of Nigeria, The Gambia and Egypt, in their
efforts to finance development in their respective countries.

5.1.4 West African Monetary Zone (WAMZ)
The end-of-year 2010 statutory meetings of the West African Monetary Zone
(WAMZ) were held in Abuja from February 6-11, 2011. The meetings
deliberated on the technical and administrative reports of the West African
Monetary Institute (WAMI) for 2010.

The Convergence Council of Ministers and Governors of the WAMZ,
approved the report of macroeconomic developments in the WAMZ on the
status of convergence as at end-June 2010, and noted with concern, the
decline in key indicators/macroeconomic performance of the Zone during
the first half of 2010. The meeting also observed that the continuation of
countercyclical fiscal stimulus packages implemented in many member
states since 2009, were no longer tenable, especially on recurrent
expenditure. On overall fiscal management, the Council reiterated the need
for member states to undertake structural reforms, particularly the widening
of the tax base, enhancement of the efficiency of public expenditure, and
the creation of an enabling environment for economic growth and
development.

Member states were urged to implement all necessary measures relating to
the ECOWAS Trade Protocols. The Council noted the impact of political
events on economic performance as a result of the on-going political
developments in North Africa and the Cote d’ Ivoire. The Council adopted
the European Central Bank model, with sufficient modifications, for the
common central bank of the WAMZ.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

The 4th WAMZ Trade Ministers’ Forum was held in Freetown, Sierra Leone from
May 18–19, 2011. On compliance by member states with the ECOWAS Free
Trade Area and the Right of Establishment, it was reported that all member
countries, except the Republic of Liberia had adopted and were
implementing the ECOWAS Trade Liberalisation Scheme (ETLS) and the
Common External Tariff (CET) programme. The meetings noted that there
continued to be checkpoints on transit corridors and harassment of
Community citizens seeking employment or trying to establish in countries
other than their own.

It was agreed that the adoption of a common standard for products and
services throughout the ECOWAS would eliminate the need for multiple crossborder certifications. The meetings agreed to consider the adoption of an
exchange rate mechanism among member states’ currencies to facilitate
intra-zone trade without recourse to the US dollar and other convertible
currencies.

The Trade Ministers encouraged the domestication of the WAMZ and
ECOWAS Trade Rules by incorporating them into national trade policies. They
directed WAMI to collaborate with the ECOWAS Commission to do a needs
assessment of member countries’ capacity to implement ECOWAS trade
integration obligations.

5.1.5
West African Institute for Financial and Economic Management
(WAIFEM)
The Governing Board of the West African Institute for Financial and Economic
Management (WAIFEM), at its meeting in Abuja in February 2011, considered
the Institute’s report, approved the work programme and budget for 2011 as
well as the efforts at securing external resources.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

5.1.6
Economic Community of West African States (ECOWAS)
The Economic Community of West African States (ECOWAS) Inter-Institutional
Sub-Committee for the Single Currency held a meeting in Dakar during June
27 – 29, 2011. The objective of the meeting was to evaluate the
achievements of various regional institutions as well as assess the
implementation of the Roadmap of the ECOWAS single currency
programme. The meeting also considered the consultant’s report on the
review of the ECOWAS existing convergence criteria. The following were
some of the highlights of the meeting:
• The West African Monetary Agency (WAMA) was urged to collaborate
with relevant Regional Economic Institutions (REIs) and member central
banks
to
conduct
some
studies
on
the
harmonisation
of
macroeconomic activities in the zone.
• The West African Monetary Institute (WAMI) reported that all member
countries had adopted the five bands recommended under the
ECOWAS CET. In addition, compliance with the regional trade
programmes was being monitored through the WAMI/ECOWAS Joint
Task Force.
Members urged the ECOWAS Commission to undertake an appraisal of its
institutions to enhance performance.

5.1.7
ECOWAS, WAMI and WAMA Joint Multilateral Surveillance Mission
The ECOWAS, WAMA and WAMI joint multilateral surveillance mission to
Nigeria was conducted during April 4 – 8, 2011. The purpose of the mission
was to assess the performance in 2010 of the macroeconomic convergence
criteria as well as policy harmonization and institutional framework required
for the establishment of economic and monetary union in the ECOWAS
region.

The joint mission was undertaken in compliance with the decision of the
convergence council (made up of ministers and governors of the central
banks of the WAMZ at its 26th meeting held in Banjul on July 30, 2010. In doing
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

this, the Mission held technical discussions with the officials of the Ministries,
Central Bank of Nigeria, other public officers and the organized private
sector.

5.1.8
The 13TH Legal and Institutional Issues Committee (LIIC) Meeting
The 13th Legal and Institutional Issues Committee meeting was convened by
the West African Monetary Institute (WAMI) in Accra Ghana, during May 23–
25, 2011. The meeting deliberated on the draft Statutes of the proposed
West African Central Bank (WACB) and agreed as follows:
Article 4-Membership: Member Central Banks (MCBs) should be the sole
members and subscribers to the capital of the WACB as against member
states being sole subscribers. This is to enshrine corporate best practice and
independence of the MCBs as obtained in the EU monetary zone.
Article 8-Functions of the WACB: On the issue of holding and managing
Member States official reserves, the WACB should exercise control only on
the pooled reserves.
Article 13-Board of Directors: The membership of the Board of Directors of
the WACB be fifteen members, comprising six Executive Board members, the
six Heads of the MCBs and three other members.
Other Amendments to the Statute:
• Responsibility of the WACB Board with regards to financial sector
policies was replaced with interest rate policies; likewise, issues relating
to prudential supervision as a task of the Board was deleted. This is to
avoid conflict with the role of West African Financial and Supervisory
Authority (WAFSA).
• The meeting agreed that there was no need to set out specific term of
office for the Head of the MCBs on the WACB Board since essentially, it
is the term of office for the respective MCB that should matter and not
the person holding the office.
• The oversight function of promoting safe and sound financial system in
the WAMZ was added to the functions of the WACB in view of the
global financial crisis.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

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 26–30,
2011, in Davos-Klosters, Switzerland. The theme for 2011 was “Shared Norms
for the New Reality”, which underscored that the world was becoming
increasingly complex and interconnected, with continued erosion of
common values and principles.

The forum emphasized the need to “move beyond the old paradigm of how
these problems are solved” to actually solving them. The Forum further
stressed the need to invest in people; develop frameworks for corporate
governance; and build institutions with an inclusive approach to different
cultures.

5.2.2 The World Bank/IMF 2011 Spring Meetings
The 2011 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 11–17, 2011. The meetings noted the multi-speed recovery
and the reliance by advanced economies on overly expansionary monetary
policy as the primary instrument to support recovery. These contributed to a
surge in capital flows, increased risks to financial stability, promoted
speculative movements in commodity prices, and led to overheating and
exchange rate pressures in many emerging markets.

Although risks to recession have abated in advanced economies,
unemployment remained high and growth sluggish. In contrast, most
developing regions continued to maintain strong growth momentum
reflecting robust macroeconomic frameworks. Prospects for a sustained
global recovery remained uncertain because of continued fragilities in most
advanced economies. Of particular concern were the still weak financial
systems and rapid increases in sovereign debt in systemic advanced
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

economies as well as debt sustainability issues in some countries in the euro
area.

The meeting called for urgent and concerted actions to deal with the
immediate consequences of food and energy price increases and to
address the long-standing impediments to food and energy security. The
meetings noted that recent events in some countries of the MENA region
would have long-lasting social and economic impacts that may have
spillover effects on other regions. The meetings further called for a scaling-up
of resources essential for addressing the MENA region’s immense economic
and developmental challenges.

The Development Committee welcomed the sixteenth replenishment of the
International Development Association (IDA) and the approval of the
capital increase for International Bank for Reconstruction and Development
(IBRD) in order to strengthen its capacity to respond rapidly when member
countries are hit by economic crises or natural disasters.

5.2.3 The New IMF Managing Director and the Focus of the Fund
During the period under review, Christine Lagarde, a corporate lawyer and
France’s immediate past Minister of Economy and Finance became the first
woman to head the International Monetary Fund (IMF) following the
resignation of Mr. Dominique Strauss-Kahn on May 18, 2011. Lagarde
promised not only to deepen the reform but to give more weight to
emerging countries through the principle of universality in the international
monetary management and governance. Furthermore she stated that the
Fund’s main priority would be to provide monetary coordination to avoid
excessive volatility of currencies geared towards strengthening the Fund’s
surveillance of member countries’ economies. It must be remembered that
over the years, emerging market countries have called for closer policy
scrutiny by the Fund to accommodate their needs in its policies. In addition,
the Fund will have to discuss the particular challenges faced by countries in
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

fragile situations, and review the implementation of the Heavily-Indebted
Poor Countries (HIPC) Initiative and Multilateral Debt Relief Initiative (MDRI).
With reference to debtor nations, especially Greece, the Fund would work
with the European Union (EU) to ensure that Greece does not default sequel
to the bailout loan which was partly provided by the IMF. In retrospect, one
issue that Lagarde has to contend with revolve around the lessons from the
global financial crisis which many analysts have argued was the Fund's failure
to draw attention to reckless bank lending in the US. The Fund will have to
access possible causes of the surge in private capital into emerging markets
and the implications of near-zero US interest rates which many analysit have
adduced to have a fuelling speculative flows and inflation elements.
With respect to strengthening the IMF and the International Monetary
System, the Managing Director promised to work towards ensuring:
• Better management of capital flows, with particular attention to the
multilateral effects of policies on capital flows both in source and
recipient countries;
• An enhanced global safety net, through in-depth analysis of crossborder linkages and experience with systemic crises; and
• A diversified international currency and reserve system, through a
possible expansion of the basket of currencies making up the Special
Drawing Rights (SDR).

5.2.4 Group of 8 (G-8) Summit
The 2011 G-8 Summit held from May 26 to 27 in Deauville, France, highlighted
the downside risks on the global economy and trade to include fiscal
sustainability in some European countries, commodity and food price
volatility, and the overheating of emerging economies. The G-8 leaders
shared concerns over the present situation of the Doha Development
Agenda, which has proved difficult to conclude.

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

On Climate Change, the G-8 leaders shared the view that it was important to
operationalize the Cancun Agreements during the Conference of Parties
(COP) 17th meeting in South Africa this year. Discussing the internet, the G-8
leaders shared perceptions on the need for further cooperation in protecting
intellectual property, personal data and privacy, and in responding to cyber
security.

On Dialogue with Africa, the G-8 leaders were convinced that it was
important to further strengthen the partnership between the G-8 and Africa
and to exchange views on challenges facing the region. They also invited
the leaders of Cote d’Ivoire, Guinea and Niger to the meeting as well as
welcomed progress towards democratization and political stability in Africa.
They stated that it was important to encourage not only aid to Africa, but
also private sector investment and trade to achieve self-sustaining growth.

5.2.5 Global Monitoring Report 2011
The 2011 Global Monitoring Report entitled “Improving the Odds of Achieving
the MDGs - Heterogeneity, Gaps and Challenges”, was released in May
2011. It reviewed the progress of the MDGs towards the 2015 deadline. The
Report analyzed the diverse efforts and achievements in improving human
development across developing countries, in general, and Africa, in
particular.
Highlights of the Report included:
•
Global progress towards the various targets continued to be mixed
and country performance was predictably diverse;
•
For countries that are on track or close to it, solid economic growth
and good policies and institutions have been the key factors. Policy
responses to the recent global economic downturn have softened the
negative impact, particularly for low-income countries (especially in
Africa);
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

•
Sustenance of progress required a stable expansion of the global
economy, continuing access to advanced and developing country
markets, and adequate assistance from donors; and
•
The need for the AfDB to step up support for fragile states.

6.0
ECONOMIC OUTLOOK FOR THE SECOND HALF OF 2011
The favourable weather conditions occasioned by the early on-set and fairly
distributed rainfall are expected to bolster agricultural output in the second
half of the year. The continuing efforts of the government to fix infrastructure,
particularly, power supply is expected to improve productivity in the
economy and have salutary effects on real GDP growth rate. In addition, the
high international price of crude oil and the sustained peace in the Niger
Delta region, which has enhanced domestic oil production/exports will
continue to boost fiscal revenue, increase foreign exchange inflows and
ensure stability in the foreign exchange market as well as improve the
balance of payments position. However, the liquidity injection from the efforts
at resolving the banking crisis and the fiscal arm in addressing the
developmental challenges facing the country in the second half of 2011 may
engender liquidity surfeit and drive-up prices generally, including the
exchange rate. Monetary aggregates might continue to lag behind their
indicative benchmark, while money market rates could remain high. It is
expected that the monetary authority will engage in proactive monetary
management to reduce the risks and threats of any imminent inflationary
pressure. Furthermore, the continuous pressure on the foreign exchange
market would pose major policy challenges for the CBN.

Notwithstanding the favourable near-term growth outlook for the domestic
economy, recent developments in the global economy that have seen a
sharp slowdown in economic activities in major advanced economies that
prompted a downward review of global economic growth forecast for 2011,
pose a major risk to the domestic economy in the near-to-medium term.
CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

These developments include: the euro zone fiscal/sovereign debt crisis which
has seem some key countries within the zone facing the likelihood of
sovereign debt repayment default, the problem of severe undercapitalization of some high-profile internationally-active banks in the
industrialized economies, and the non-resolution of the US fiscal deficit
problem, which prompted the downgrade of the US sovereign rating by
Standard and Poor’s from AAA to AA+, all of which have raised concerns
about the prolongation of the current recession in these economies and their
potential spillover to the emerging and developing economies. Added to
these are the declining trends in commodity prices, particularly crude oil
prices, inflation build-up in some major emerging market economies and the
prospects of slowdown in the economies of China, India and Brazil, amongst
others.

In addition, most currencies of emerging and developing countries have in
recent months weakened relative to the US dollar. With the growth slowdown
in trading-partner countries, weak currencies will translate into build-up of
inflationary pressures. There are also concerns that the global economic
slowdown will lead to a surge in protectionist tendencies, hurting in the
process expansion of international trade, in particular for emerging and
developing economies like Nigeria.


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Total
Amount
Average
Average Yield
Bids
Sold
Tenor (Days)
(%)
(N' Million)
(N' Million)

January
0.0
0.0

0.00
February
68,200.0
80,100.0

7.30
March
216,900.0
227,100.0

7.30
April
50,300.0
80,100.0

7.30
May
62,400.0
100,100.0

7.20
June
14,000.0
563,500.0

7.70
Total
411,800.0
1,050,900.0
Average
82,360.0
210,180.0

7.36
July
170.0
82,200.0

6.70
August
37,750.0
304,500.0

7.10
September
0.0
461,000.0

6.70
October
19,500.0
528,700.0

6.80
November
24,000.0
570,000.0

7.30
December
134,200.0
585,300.0

8.10
Total
215,620.0
2,531,700.0
Average
35,936.7
421,950.0

7.12

January
0.0
148,300.0

8.90
February
0.0
174,770.0

9.30
March
0.0
210,400.0

8.90
April
10,000.0
291,700.0

8.70
May
24,000.0
205,000.0

8.90
June
0.0
439,200.0

9.40
Total
34,000.0
1,469,370.0
Average
5,666.7
244,895.0

9.02
July
0.0
760,080.0

9.00
August
0.0
101,460.0

9.50
September
0.0
0.0

8.60
October
0.0
0.0

8.80
November
0.0
0.0

0.00
December
0.0
0.0

0.00
Total
0.0
861,540.0
Average
0.0
430,770.0

8.98

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

31.10
Average
36,446.8
18,125.0

5.18

January
255,940.0
140,540.0

February
0.0
0.0

March
170,480.0
94,830.0

April
142,520.0
23,390.0

May
119,340.0
48,610.0

June
80,450.0
25,470.0

Total
768,740.0
332,840.0

Average
128,121.7
55,473.3

Table 7
Open Market Operations (OMO) Sessions
Period


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
Deposit Money
NonBank
Banks
Public

June

December

Total

Average


June

December
Total

Average


June

December

Total

Average


June

December

Total

Average


January

February

March

April

May

June

Total

Average

Table 8
Treasury Bills: Issues and Subscriptions
( Naira million)
Period
Issues
Central
Bank
Subscriber

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
Item
Jun 2007
Dec 2007
Jun 2008
Dec 2008
Jun 2009
Dec 2009
Jun 2010
Dec 2010
Jun 2011 /3
(1) Domestic Credit (Net)

(a) Claims on Federal Government (Net)

By Central Bank
‐3,596,910.41
‐4,074,422.85
‐4,413,045.05
‐4,532,113.63
‐4,348,811.29
‐3,731,603.83
‐3,272,806.06
‐2,884,013.44
‐2,730,017.13
By Banks

(b) Claims on Private Sector

By Central Bank

By Banks

(i) Claims on State and Local Governments

By Central Bank

By Banks

(ii) Claims on NonFinancial Public Enterprises

By Central Bank

By Banks
(iii) Claims on Other Private Sector

By Central Bank

By Banks

(2) Foreign Assets (Net)

By Central Bank

By Banks

(3) Other Assets (Net)

Total Monetary Assets

QuasiMoney /1

Money Supply

Currency Outside Banks

Demand Deposits /2

Total Monetary Liabilities

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

Credit to the Private Sector

‐1.14
‐3.81
1.45
Claims on Federal Government (Net)
‐35.05
‐22.32
‐14.69
‐31.21

By Central Bank
‐28.65
‐45.73
‐8.31
‐11.23

Claims on State and Local Governments
‐50.06

Claims on Non‐Financial Public Enterprises
‐100.00
71.04
Claims on Other Private Sector

‐1.13
‐4.40
0.98
Foreign Assets (Net)

‐10.61
‐11.19
‐14.60
‐14.31
‐0.81
Other Assets (Net)
‐13.75
‐38.43
‐6.30
‐4.60
2.12
‐9.09
10.10
21.99
13.68
Quasi‐Money

Money Supply (M1)

‐7.39
2.41
‐1.98
11.05
1.28
Broad Money (M2)

‐0.86

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 Provisional
Table 9
Monetary and Credit Developments
(N' Million)


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
2011 1/
June
Dec
June
Dec
June
Dec
June
Dec
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

‐1.9
‐8.1
‐17.9
2.2
‐18.0
0.0
‐17.9

Treasury Certificates

Eligible Development Stocks
47.2
‐9.8
‐29.9
‐15.0
0.0
‐21.6
‐26.5
‐26.5
0.0
‐13.9
‐16.1
‐16.1
0.0
0.0
‐57.7
‐57.7
‐100.0
Certificates of Deposits

Commercial Papers

‐5.9
‐0.6

‐26.8
‐38.1
‐63.0
‐62.8
5.4
Bankers' Acceptances
‐28.4
‐22.8
46.8
26.5
4.5
‐1.2

‐18.9
11.8
‐6.3
‐33.6
27.2
‐21.4
FGN Bonds*
0.0
0.0
0.0
‐65.4

Percentage Change of Total

Source: Central Bank of Nigeria


1/ Provisional


* FGN Bonds of 3 Years tenor

Percentage Change Over Preceding December
Table 10
Value of Money Market Assets
(Naira Million)
Instrument

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Jun
Dec
Jun
Dec
Jun
Dec
Jun
Dec
Jun
Monetary Policy Rate

Treasury Bills Issue Rate

Deposit Money Banks (DMBs)
Savings Deposit Rate

Time Deposit Rate (3 months)

Prime Lending Rate

Maximum Lending Rate

Inter‐bank Call Rate

Open Buy Back (OBB)

NIBOR 7‐days

NIBOR 30‐days


Table 11
Selected Interest Rates
(EndPeriod Rate)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2010 1/
2010 2/
1st Half
1st Half
1st Half
1st Half
1st Half
Total Revenue (Gross)

Oil Revenue (Gross)

Crude oil / Gas Exports

PPT and Royalties etc.

Domestic Crude Oil / Gas Sales

Other Oil Revenue

Less:
Deductions


Oil Revenue (Net)

Non-oil Revenue

Companies Income Tax & Other Taxes

Customs & Excise Duties

Value-Added Tax (VAT)

Independent Revenue of Fed. Govt.

Education Tax

Customs Levies

National Information Technology Development Fund (NITDF)

Other Non-oil Revenue

Less:
Cost of Collection

Non-Oil Revenue (Net)

Estmiated Balances in Special Accounts for the previous year

Federally-collected revenue (Net)

Federation Account Allocation:

Transfer to Federal Govt. Ind. Revenue

Transfer to VAT Pool Account

Other Tranfers 3/

Distributable Amount
Amount Distributed

Federal Government

State Government

Local Government

13% Derivation

Vat Pool Account

FG

SG

LG

Special Funds (FGN)

Federal Capital Territory

Ecology

Statutory Stabilization

Natural Resources

Overall Balance

Deductions

JVC Cash calls

Excess Crude Proceeds

Excess PPT & Royalty

Others

Distribution from Excess Crude

Federal Government

State Government

Local Government

13% Derivation

Share of Diff.Btw. Provisional Distribution and Actual
Budget/ Exchange rate Gain

Federal Government

State Government

Local Government

13% Derivation

Federation Revenue Augmentation

Federal Government

State Government

Local Government

13% Derivation

Total Statutory Revenue and VAT Distribution 3/

Federal Government

State Government

Local Government

13% Derivation

Total Excluding VAT

Federal Government

State Government

Local Government

13% Derivation

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

Table 12
Federation Account Operations
(N' Billion)
Memorandum Items
2011 1st Half
Budget


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2007 First
Half
2008 First
Half
2009 First
Half
2010 First
Half
2011 First
Half Budget
2011 First
Half 2/
Total Federal Government Retained Revenu
1,080.28

1,373.10

1,266.73

1,390.24

1,801.95

1,307.33

Share of Federation Account (Gross)
672.68

875.51

675.26

795.99

1,565.23

1,001.70

Share of VAT Pool Account
19.87

28.31

32.00

40.66

55.45

44.22

Federal Government Independent Revenue
22.14

75.53

54.28

65.20

114.47

95.58

Share of Excess Crude Account 2/
183.41

320.64

251.03

289.26

-

141.55

Others 3/
182.18

73.12

254.18

199.12

66.81

24.28

Total Expenditure
1,110.61

1,404.20

1,590.99

1,818.16

2,370.26

1,997.85

Recurrent Expenditure
598.55

948.30

1,017.30

1,297.22

1,587.97

1,546.12

Goods and Services
452.13

700.19

822.92

1,062.35

1,212.53

1,235.19

Personnel Cost
232.89

432.07

452.12

540.21

897.08

861.17

Pension
42.78

65.59

87.16

97.73

77.37

26.01

Overhead Cost
176.47

202.54

283.63

424.40

219.58

348.01

Others
-

-

-

-

18.50

-

Interest Payments
95.62

154.24

120.32

170.56

247.55

218.06

Foreign
51.61

36.88

19.72

19.62

22.54

13.82

Domestic 4/
44.01

117.36

100.60

150.95

225.01

204.25

Transfers
50.79

93.87

74.06

64.31

127.89

92.87

FCT & Others (Special Funds)
50.79

93.87

74.06

64.31

127.89

92.87

Transfer to Financing
-

-

-

-

-

-

Capital Expenditure & Net Lending 5/
460.91

366.26

474.79

445.11

573.38

303.62

Domestic Financed Budgets
460.91

366.26

474.79

445.11

573.38

303.62

Budgetary
460.91

366.26

474.79

445.11

573.38

303.62

Transfers
51.15

89.64

98.90

75.83

208.92

148.10

NDDC
12.00

29.64

12.83

-

28.12

28.04

NJC
21.50

39.00

58.50

45.50

47.50

47.50

UBE
17.65

21.00

19.65

22.16

32.25

23.04

Refund of Signature Bonuses/Others
-

-

7.92

8.17

101.05

49.52

Balance Of Revenue And Expenditure
Primary Surplus (+)/Deficit (-)
65.29

123.14

(203.94)

(257.36)

(320.77)

(472.45)

Current Surplus(+)/Deficit(-)
481.73

424.80

249.43

93.02

213.98

(238.79)

Overall Surplus(+)/Deficit(-)
(30.33)

(31.10)

(324.26)

(427.93)

(568.31)

(690.52)

Financing:
30.33

8.95

324.26

427.93

568.31

690.52

Foreign(Net)
-

-

-

75.03

-

73.33

Domestic(Net)
-

-

-

352.90

568.31

617.19

Banking System
-

-

-

-

-

-

CBN
-

-

-

-

-

-

DMBs
-

-

-

-

-

-

Non Bank Public
-

-

-

366.87

426.14

476.00

Privatization Proceeds
-

-

-

-

8.46

-

Excess Crude
-

-

-

-

-

-

Other Funds
30.33

8.95

324.26

(13.97)

133.72

141.19

1/ Provisional
2/ Includes FG's share of Federation Revenue Augmentation and Share of Difference between Provisonal and Approved Budget.
3/ Includes Loan Refunds, Operating Surplus Redemption & Transfer (from closure)
4/ Include Ways and Means Advances
5/ Includes net deductions for loans on lent to State,local governments and Federal parastatals/companies.
Source: Office of the Accountant-General of the Federation (OAGF)
Table 13
Summary of Federal Government Finances
(N' Billion)


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2007 First Half 2008 First Half 2009 First Half 2010 First Half
2011 First Half
1/
ADMINISTRATION
119.63

94.16

116.16

114.16

119.27

General Administration
94.09

64.61

70.55

69.12

75.05

National Assembly
3.29

7.83

4.15

3.10

3.15

Defence
9.70

18.61

18.59

18.09

15.99

Internal Security
12.55

3.12

22.86

23.85

25.09

ECONOMIC SERVICES
231.51

203.89

286.32

249.50

118.89

Agriculture & Natural Resources
55.44

55.60

46.66

35.67

19.30

Manuf., Mining & Quarrying
5.53

4.01

11.39

10.35

7.81

Transport & Communications
22.93

75.91

32.05

41.99

28.21

Housing
3.93

-

-

-

-

Roads & Construction
59.88

-

130.83

72.01

36.08

National Priority Projects
-

-

-

-

-

JVC Calls/NNPC Priority Projects
-

-

-

-

-

PTF
-

-

-

-

-

Counterpart Funding
-

2.00

-

-

-

NDDC
-

-

-

22.58

-

Others
83.80

66.38

65.39

66.91

27.50

SOCIAL & COMMUNITY SERVICES
103.73

68.13

72.14

62.98

54.85

Education
19.09

26.06

29.09

20.76

17.90

Health
61.43

27.08

18.18

17.15

14.97

Others
23.22

14.98

24.87

25.06

21.98

TRANSFERS 2/
6.04

0.08

0.17

18.47

10.60

Financial Obligations
-

-

-

-

-

Capital Repayments
-

-

-

-

-

Domestic
-

-

-

-

-

Foreign
-

-

-

-

-

External Obligations
-

-

-

-

-

Contingencies
-

-

-

-

-

Capital Supplementation
6.04

-

0.17

18.47

10.60

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

-

-

-

-

Grants to States
-

-

-

-

-

Others
-

0.08

-

-

-

TOTAL
460.91

366.26

474.79

445.11

303.62

1/ Provisional
2/ Excludes statutory transfers to NDDC, NJC and UBE
Sources: Federal Ministry of Finance
Central Bank of Nigeria
Table 14
Functional Classification of Federal Government Capital Expenditure 1/
(Naira Billion)


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
2007 First Half 2008 First Half 2009 First Half 2010 First Half
2011 First Half
1/
ADMINISTRATION
228.05

360.86

437.46

615.65

757.74

General Administration
143.00

201.85

203.36

305.45

340.88

National Assembly
25.78

27.32

61.40

69.54

97.02

Defence
32.76

35.26

66.23

98.80

109.47

Internal Security
26.51

96.42

106.47

141.86

210.38

ECONOMIC SERVICES
41.57

124.96

88.58

155.62

195.35

Agriculture
11.02

22.37

19.16

13.37

15.99

Roads & Construction
12.61

39.25

10.06

17.89

20.57

Transport & Communications
4.97

6.83

32.70

35.96

43.33

Others
12.97

56.51

26.66

88.41

115.46

SOCIAL & COMMUNITY SERVICES
119.73

155.92

189.43

240.99

287.08

Education
74.07

67.88

102.47

107.17

130.42

Health
34.79

50.46

62.01

48.76

57.63

Others
10.87

37.58

24.95

85.07

99.02

TRANSFERS
209.19

306.56

281.55

320.97

305.96

Public Debt Charges (Int)
115.62

150.12

120.32

170.56

187.02

Domestic
64.01

113.24

100.60

150.95

166.19

Foreign
51.61

36.88

19.72

19.62

20.83

Pensions & Gratuities
42.78

62.57

87.16

69.58

36.68

FCT & Others
50.79

93.87

74.06

80.83

82.26

Contingencies (Others)
-

-

-

-

-

External Obligations
-

-

-

-

-

Extra-Budgetary Expenditure
-

-

-

-

-

Deferred Custom Duties
-

-

-

-

-

Unspecified Expenditure
-

-

-

-

-

Others 2/
-

-

-

-

-

TOTAL
598.55

948.30

997.02

1,333.23

1,546.13

**Staff Estimates
1/ ProvisionaL
2/ Excludes statutory transfers to NDDC, NJC and UBE
Sources: Federal Ministry of Finance; Office of Accountant General of the Federation
Central Bank of Nigeria
Table 15
Functional Classification of Federal Government Recurrent Expenditure 1/
(Naira Billion)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
Gross Stat.
Alloc.
13%
Derivation
Excess
Crude
VAT
Total
Alloc.
Gross Stat.
Alloc.
13%
Derivation
Augmentati
on
Excess
Crude 2/
VAT
Total
Alloc.
Gross Stat.
Alloc.
13%
Derivation
Augmentat
ion
Excess
Crude 2/
VAT
Total Alloc.
Gross Stat.
Alloc.
Deductions
13%
Derivation
Total Net
Stat. Alloc.
Augmentati
on
Exchange
Gain
Excess
Crude 2/
VAT
Total Gross
Allocation
Total Net
Alloc.
Gross Stat.
Alloc.
Deductions
13%
Derivation
Total Net
Stat. Alloc.
Augmentat
ion
Exchang
e Gain
Excess
Crude 2/
VAT
Total
Gross
Alloc.
Total Net
Alloc.

ABIA
8.38

1.31

3.02

1.40

14.11

10.79

2.30

3.29

1.66

2.11

20.15

8.26

1.91

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

ADAMAWA
9.35

-

2.77

1.41

13.53

12.04

-

2.92

1.48

2.00

18.44

9.22

-

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

AKWA IBOM
9.23

36.12

17.18

1.66

64.19

12.06

47.61

16.96

8.43

2.35

87.41

9.32

36.60

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

ANAMBRA
9.36

-

2.56

1.62

13.54

12.12

-

2.95

1.48

2.27

18.82

9.31

-

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

BAUCHI
10.55

-

3.12

1.62

15.29

13.88

-

3.42

1.67

2.31

21.28

10.80

-

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

BAYELSA
7.26

22.70

9.86

1.37

41.19

9.49

31.91

11.73

5.82

1.80

60.75

7.39

19.86

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

BENUE
10.09

-

2.99

1.56

14.63

13.00

-

3.16

1.60

2.23

19.98

9.95

-

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

BORNO
10.71

-

3.17

1.59

15.47

14.11

-

3.48

1.70

2.18

21.46

10.98

-

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

CROSS RIVER
8.76

3.44

3.83

1.39

17.42

11.30

4.17

3.97

2.00

1.99

23.42

8.65

1.62

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

DELTA
9.35

23.90

10.52

1.87

45.65

12.12

28.64

11.38

5.67

2.62

60.44

9.32

26.91

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

EBONYI
7.91

-

2.34

1.30

11.55

10.07

-

2.42

1.25

1.81

15.55

7.64

-

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

EDO
9.30

0.83

2.90

1.62

14.65

11.64

0.49

2.90

1.54

2.05

18.62

8.70

1.35

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

EKITI
7.87

-

2.33

1.34

11.53

10.10

-

2.44

1.25

1.84

15.63

7.71

-

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

ENUGU
8.70

-

2.58

1.48

12.76

11.30

-

2.76

1.38

2.44

17.87

8.70

-

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

GOMBE
8.01

-

2.37

1.35

11.73

10.52

-

2.59

1.27

1.81

16.19

8.17

-

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

IMO
9.23

2.22

3.59

1.52

16.57

12.02

3.26

3.90

1.94

2.19

23.32

9.28

2.26

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

JIGAWA
10.24

-

3.03

1.58

14.85

13.27

-

3.23

1.62

2.27

20.40

10.20

-

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

KADUNA
11.46

-

3.39

1.95

16.80

15.00

-

3.68

1.82

2.71

23.21

11.62

-

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

KANO
13.94

-

4.13

2.62

20.69

18.56

-

4.62

2.21

3.76

29.14

14.56

-

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

KATSINA
10.93

-

3.24

1.82

15.99

14.30

-

3.51

1.73

2.54

22.08

11.08

-

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

KEBBI
9.09

-

2.69

1.57

13.35

11.93

-

2.94

1.44

1.99

18.31

9.26

-

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

KOGI
9.12

-

2.70

1.69

13.50

11.95

-

2.93

1.44

2.04

18.36

9.24

-

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

KWARA
8.30

-

2.46

1.31

12.07

10.87

-

2.67

1.31

1.84

16.70

8.42

-

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

LAGOS
13.17

-

3.90

9.94

27.01

17.10

-

4.17

2.09

15.37

38.73

13.16

-

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

NASARAWA
7.85

-

2.33

1.20

11.38

10.23

-

2.50

1.24

1.99

15.96

7.89

-

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

NIGER
10.56

-

3.13

1.50

15.19

13.87

-

3.42

1.67

2.13

21.09

10.78

-

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

OGUN
8.90

-

2.63

1.60

13.13

11.63

-

2.86

1.41

2.28

18.18

9.01

-

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

ONDO
8.74

9.38

6.03

1.57

25.72

11.28

11.96

6.26

3.14

2.11

34.73

8.64

8.27

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

OSUN
8.55

-

2.53

1.52

12.60

11.19

-

2.71

1.35

2.05

17.31

8.54

-

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

OYO
10.67

-

3.16

1.91

15.74

13.92

-

3.41

1.69

2.67

21.70

10.76

-

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

PLATEAU
9.10

-

2.69

1.58

13.38

11.78

-

2.87

1.44

2.01

18.09

9.04

-

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

RIVERS
10.07

56.76

24.32

3.10

94.25

13.04

76.09

25.59

####
4.33

#####
10.10

45.93

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

SOKOTO
9.63

-

2.85

1.73

14.21

12.49

-

3.05

1.53

2.11

19.17

9.61

-

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

TARABA
9.00

-

2.67

1.27

12.93

11.76

-

2.89

1.43

2.06

18.13

9.10

-

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

YOBE
8.75

-

2.59

1.25

12.59

11.57

-

2.86

1.39

2.08

17.90

9.03

-

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

ZAMFARA
9.06

-

2.68

1.45

13.20

11.77

-

2.87

1.44

2.02

18.10

9.06

-

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

Disputed Deriv.
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Rivers/Akwa Dispute
-

-

-

-

-

-

-

-

-

-

-

2.73

2.73

1.24

3.97

3.97

TOTAL
341.19

156.67

158.29

66.25

722.39

444.07

206.41

169.32

84.26

94.35

998.42

342.50

144.70

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

Table 16
Summary of Statutory & VAT Revenue Allocation to State Governments
(Naira Billion)
FIRST HALF 2011
1/ Provisional
S/N
STATES
Source: Federation Account Allo
FIRST HALF 2007
FIRST HALF 2008
FIRST HALF 2009
FIRST HALF 2010
2/ Includes the share of Oil-p


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
S/N State
Fed. Acct
Excess
Crude
Budget
Augment
ation
Exchange
Gain
VAT
Total
Fed. Acct
Excess
Crude
Budget
Augmentatio
n
Exchange
Gain
VAT
Total
Fed. Acct
Excess
Crude
Budget
Augmentatio
n
Exchange
Gain
VAT
Total
Fed. Acct
Excess
Crude
Budget
Augmentati
on
Exchange
Gain
VAT
Total
Fed. Acct
Excess
Crude
Budget
Augmentat
ion
Exchan
ge Gain
VAT
Total
1 Abia
5.67

1.68

-

-

0.9
8.3
7.26

0.90

1.75

-

1.3
11.2
5.85

0.82

1.57

-


-

1.15

-

1.79
11.11
2 Adamawa
7.06

2.09

-

-

1.0
10.2
9.18

1.12

2.25

-

1.4
13.9
6.74

1.06

2.02

-


-

1.49

-

2.16
14.16
3 Akwa-Ibom
8.96

2.65

-

-

1.5
13.1
11.96

1.42

2.96

-

2.0
18.4
9.34

1.39

2.66

-


-

1.96

-

3.39
19.21
4 Anambra
7.07

2.10

-

-

1.2
10.4
9.18

1.12

2.23

-

1.6
14.1
7.02

1.05

2.00

-


-

1.47

-

2.41
14.30
5 Bauchi
8.10

2.35

-

-

1.2
11.6
10.41

1.25

2.58

-

1.5
15.8
8.12

1.21

2.31

-


-

1.70

-

2.41
16.17
6 Bayelsa
3.07

0.91

-

-

0.6
4.6
3.93

0.49

0.95

-

0.7
6.0
2.99

0.45

0.85

-


-

0.63

-

1.02
6.08
7 Benue
8.33

2.41

-

-

1.2
11.9
10.65

1.29

2.62

-

1.6
16.2
8.26

1.23

2.35

-


-

1.73

-

2.51
16.50
8 Borno
8.99

2.67

-

-

1.3
13.0
12.01

1.43

3.01

-

1.7
18.2
9.49

1.42
2.70

-


-

1.99

-

2.79
18.86
9 Cross-River
6.03

1.79

-

-

0.9
8.8
7.74

0.96

1.87

-

1.2
11.8
5.90

0.88

1.68

-


-

1.24

-

1.88
11.87
10 Delta
7.87

2.33

-

-

1.4
11.6
10.19

1.25

2.47

-

1.9
15.8
7.80

1.16

2.22

-


-

1.63

-

2.98
16.18
11 Ebonyi
4.19

1.24

-

-

0.7
6.2
5.46

0.66

1.33

-

0.9
8.4
4.20

0.63

1.20

-


-

0.88

-

1.44
8.55
12 Edo
6.22

1.84

-

-

1.1
9.2
7.85

0.99

1.87

-

1.3
12.0
5.90

0.88

1.68

-


-

1.24

-

2.08
12.08
13 Ekiti
4.94

1.47

-

-

0.9
7.3
6.34

0.78

1.52

-

1.0
9.7
4.80

0.72

1.37

-


-

1.01

-

1.64
9.77
14 Enugu
5.69

1.69

-

-

1.0
8.4
7.41

0.90

1.80

-

1.5
11.6
5.69

0.85

1.62

-


-

1.19

-

1.93
11.57
15 Gombe
4.00

1.19

-

-

0.7
5.9
5.30

0.63

1.32

-

0.8
8.1
4.15

0.62

1.18

-


-

0.87

-

1.31
8.34
16 Imo
8.14

2.41

-

-

1.3
11.8
10.68

1.29

2.61

-

1.8
16.3
8.24

1.23

2.35

-


-

1.73

-

2.74
16.69
17 Jigawa
8.83

2.62

-

-

1.3
12.8
11.35

1.40

2.74

-

1.8
17.3
8.65

1.29

2.46

-


-

1.81

-

2.87
17.51
18 Kaduna
9.26

2.75

-

-

1.5
13.5
12.02

1.47

2.94

-

1.9
18.4
9.27

1.38

2.64

-


-

1.94

-

3.00
18.69
19 Kano
15.23

4.52

-

-

2.5
22.2
19.82

2.42

4.82

-

3.5
30.6
15.22

2.27

4.34

-


-

3.19

-

5.34
31.10
20 Katsina
11.08

3.29

-

-

1.7
16.0
14.45

1.76

3.53

-

2.3
22.0
11.13

1.66

3.17

-


-

2.33

-

3.62
22.46
21 Kebbi
6.95

2.06

-

-

1.1
10.1
8.99

1.10

2.19

-

1.4
13.7
6.91

1.03

1.97

-


-

1.45

-

2.19
13.89
22 Kogi
7.06

2.09

-

-

1.2
10.3
9.25

1.12

2.27

-

1.4
14.0
7.16

1.07

2.04

-


-

1.50

-

2.24
14.37
23 Kwara
5.44

1.61

-

-

0.8
7.9
7.10

0.86

1.74

-

1.0
10.8
5.50

0.82

1.57

-


-

1.15

-

1.66
10.98
24 Lagos
9.30

2.76

-

-

6.9
19.0
12.06

1.47

2.93

-

9.2
25.7
9.24

1.38

2.63

-


-

1.94

-

15.40
31.05
25 Nassarawa
4.36

1.29

-

-

0.7
6.3
5.68

0.69

1.40

-

1.0
8.8
4.40

0.66

1.25

-


-

0.92

-

1.30
8.76
26 Niger
8.78

2.61

-

-

1.2
12.6
11.47

1.39

2.83

-

1.6
17.3
8.92

1.33

2.54

-


-

1.87

-

2.59
17.69
27 Ogun
6.51

1.93

-

-

1.1
9.6
8.53

1.03

2.09

-

1.5
13.2
6.60

0.98

1.88

-


-

1.38

-

2.25
13.42
28 Ondo
6.14

1.82

-

-

1.1
9.1
7.95

0.97

1.93

-

1.3
12.2
6.09

0.91

1.74

-


-

1.28

-

2.03
12.34
29 Osun
8.40

2.49

-

-

1.3
12.2
10.88

1.33

2.63

-

1.8
16.6
8.30

1.24

2.37

-


-

1.74

-

2.82
16.88
30 Oyo
10.53

3.12

-

-

1.7
15.4
13.76

1.67

3.37

-

2.3
21.1
10.62

1.58

3.03

-


-

2.23

-

3.63
21.60
31 Plateau
6.05

1.79

-

-

1.0
8.9
7.87

0.96

1.93

-

1.2
12.0
6.08

0.91

1.73

-


-

1.27

-

1.91
12.20
32 Rivers
7.96

2.36

-

-

2.3
12.6
10.36

1.26

2.52

-

2.8
17.0
7.96

1.19

2.27

-


-

1.67

-

3.68
17.15
33 Sokoto
7.65

2.27

-

-

1.3
11.2
9.92

1.21

2.42

-

1.5
15.1
7.63

1.14

2.17

-


-

1.60

-

2.45
15.37
34 Taraba
6.05

1.80

-

-

0.8
8.7
7.84

0.96

1.93

-

1.2
11.9
6.07

0.91

1.73

-


-

1.27

-

1.62
11.91
35 Yobe
5.78

1.72

-

-

0.8
8.3
7.56

0.92

1.87

-

1.2
11.6
5.89

0.88

1.68

-


-

1.23

-

1.74
11.71
36 Zamfara
5.54

1.64

-

-

0.9
8.1
7.17

0.88

1.75

-

1.1
10.9
5.53

0.82

1.57

-


-

1.16

-

1.67
11.03
37 FCT Abuja
1.84

0.55

-

-

1.4
3.8
2.77

0.29

0.75

-

2.7
6.5
2.35

0.35

0.67

-


-

0.49

-

4.70
8.68
TOTAL

### 390.6
342.4

41.7

83.7

-

###
####
264.1

39.4

75.2

-

###
####
311.3

180.5

74.2

7.1

###
668.0


1/ Provisional
VAT: Value Added Tax
LGA: Local Governments Areas
Source: Federation Account Allocation, Federal Ministry of Finance.
Table 17
Allocation to Local Governments from the Federation and VAT Pools Accounts
(Naira Billion)
FIRST HALF 2011
FIRST HALF 2007
FIRST HALF 2008
FIRST HALF 2009
FIRST HALF 2010


FIRST HALF 2007 FIRST HALF 2008 FIRST HALF 2009 2/ FIRST HALF 2010 2/ FIRST HALF 2011 3/
1. COMPOSITION OF DEBT.
i Treasury Bills
716.93

574.93

641.93

901.02

1,561.42

ii Treasury Bonds
407.93

402.26

392.07

392.07

372.90

iii Development Stocks
0.72

0.52

0.52

0.22

0.00
iv FGN Bonds
925.65

1,361.25

1,778.27

2,408.43

3,276.11
v Promissory Note
-

-

-

63.03

0.00
Total
2,051.23

2,338.96

2,812.79

3,764.76

5,210.44

2. HOLDERS
i Banking System
1,505.56

1,922.70

1,984.14

2,662.82

2,987.31

a. Central Bank.
285.27

288.39

286.95

440.37

516.43

b. Deposit Money Banks
1,220.29

1,634.31

1,697.19

2,222.45

2,470.87

ii Non-Bank Public.
545.66

296.03

699.69

931.38

2,011.17

iii Sinking Fund
-

120.23

128.96

170.57

211.96

3.Total Debt Outstanding
2,051.22

2,338.96

2,812.79

3,764.76

5,210.44

1/ Provisional
2/ Figures for Holders are Staff Estimates
3/ Staff Estimate
Source: Debt Management Office
Table 18
Domestic Debt of the Federal Government
(Naira Billion)

1st Half 2007 1st Half 2008 1st Half 2009 1st Half 2010 1st Half 2011 2/
i Treasury Bills
25.22

23.50

16.29

14.23

73.38

ii Treasury Bonds
25.27

24.99

29.22

18.75

18.75

iv Dev elopment Stocks
0.04

0.14

0.03

0.33

0.23

v FGN Bonds
42.04

72.25

85.60

111.87

136.24

Total
92.58

120.88

131.14

145.18

228.61

1/ 2007 to 2009 Figures are Revised
2/ Staff Estimates
NB: Debt Service excludes sinking fund charges
Source: Debt Management Office
Table 19
Domestic Debt Service Payment of the Federal Government
By Instruments (=N= Billion)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Holders
FIRST HALF 2007
FIRST HALF 2008
FIRST HALF 2009
FIRST HALF 2010
FIRST HALF 2011
3/
1. Multilateral
2,819.50

3,191.50

3,219.65

3,860.68

4,563.39

2. Paris Club
-

-

-

-

-

3. London Club
-

-

-

-

-

4. Promissory Notes
-

-

-

-

-

5. Others 2/
528.70

563.60

499.59

409.03

834.65

Total Debt Outstanding
3,348.20

3,755.10

3,719.24

4,269.71

5,398.04

1/ Provional
2/ Includes Non-Paris Bilateral and Commercial debts and euro bond
3/ Debt Position as at End-June, 2011
Source: Debt Management Office (DMO)
Table 20
External Debt Outstanding
(US$ Million)

FIRST HALF

FIRST HALF

FIRST HALF

FIRST HALF

FIRST HALF

London Club
102.59

-

-

-

-

Paris Club
-

-

-

-

-

Multilateral
193.37

211.26

157.73

133.88

116.37

(i) I. B. R.D.
156.78

56.64

55.26

46.92

27.82

(ii) E. I. B.
1.27

-

-

1.59

-

(iii) A.D.B. & O
35.32

154.62

102.47

85.37

88.55

Promissory Notes
476.60

-

-

-

-

Others 2/
8.56

8.66

26.47

43.72

60.10

Total
781.12

219.92

184.20

177.60

176.47

1/ Staff Estimates
2/ Includes Non-Paris Bilateral and Non-Paris Commercial Debts
Source: Debt Management Office
Table 21
External Debt Service Payment
(US$' Million)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Holders
FIRST HALF

FIRST HALF

FIRST HALF

FIRST HALF

FIRST HALF
2011 1/
External Debt
426.26

442.34

551.26

640.41

827.56

Domestic Debt
2,051.22

2,338.96

2,812.79

3,764.76

5,210.44

Total Consolidated Debt
2,477.48

2,781.30

3,364.05

4,405.18

6,038.00

1/ Provisional
Source: Debt Management Office (DMO)
Table 22
Consolidated Debt Outstanding
(=N= Billion)

FIRST HALF

FIRST HALF

FIRST HALF

FIRST HALF

FIRST HALF

External Debt/GDP

Domestic Debt/GDP

Total Debt/GDP

External Debt/Export

Total Debt/FG. Retained Revenue

Domestic Debt Service/Revenue

Total Debt Service/GDP

Total Debt Service/FG-Retained Rev.

Domestic Debt Service/GDP
1.1
1.1
1.4
External Debt Service/GDP
0.2
0.2
0.2
Domestic Debt Stock/FG Retained Rev.
202.3
288.0
398.6
Nominal GDP
12,397.12

13,061.11

15,955.63

1/ Provisional
2/ Staff Estimates
Table 23
Selected Debt Indicators
(In Percent)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Jun-09
Jun-10
Jun-11
1. Agriculture
124.01
131.03

138.42

39.84
39.14

38.54
(a) Crop Production
107.95
113.96

120.28
34.68
34.05

33.49
(b) Livestock
9.37
9.99

10.64
3.01
2.98

2.96
(c) Forestry
1.89
2.00

2.12
0.61
0.60

0.59
(d) Fishery
4.80
5.08

5.38
1.54
1.52

1.50
2. Industry


18.81
(a) Crude Petroleum


15.89
(b) Solid Minerals


0.33
(c) Manufacturing


2.59
3. Building & Construction


2.44
4. Wholesale & Retail Trade


19.72
5. Services


20.49
(a) Transport


2.91
(b) Communication


5.91
(c) Utilities


2.85
(d) Hotel & Restaurant


0.59
(e) Finance & Insurance


4.10
(f) Real Estate & Business Services


2.09
(h) Producers of Govt. Services


1.02
(I) Comm., Social & Pers. Services


1.02
TOTAL (GDP)


100.00
NON-OIL (GDP)


84.11
TOTAL GDP GROWTH RATE (%)
6.27
7.53
7.31
OIL GDP GROWTH RATE (%)
-1.73
4.02
0.45
NON-OIL GDP GROWTH RATE (%)
8.14
8.28
8.71
Of which Agriculture (%)
5.73
5.66
5.64
Industry (%)
-0.43
7.61
1.50
Services (%)
10.31
11.35
12.56
Mining and Quarying (%)
11.30
11.75
11.85
Manufacturing (%)
7.86
7.12
7.05
Communication (%)
32.72
33.17
33.39
Finance & Insurance (%)
4.31
4.20
4.20
1/ Provisional
2/ Revised
Source: National Bureau of Statistics (NBS)
Table 24
Gross Domestic Product at 1990 Constant Basic Prices
( Naira Billion unless otherwise stated)
Activity Sector
Jun-09
Jun-10
Jun-11 1/

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Jun-09
Jun-10
Jun-11
1. Agriculture
3,847.59
4,317.73

4,754.17

33.95
33.06

30.99
(a) Crop Production
3,382.35
3,786.54

4,146.90
29.84
28.99

27.03
(b) Livestock
267.43
306.16

350.77
2.36
2.34

2.29
(c) Forestry
53.82
59.34

65.69
0.47
0.45

0.43
(d) Fishery
143.98
165.69

190.81
1.27
1.27

1.24
2. Industry


38.41
(a) Crude Petroleum


37.01
(b) Solid Minerals


0.15
(c) Manufacturing


1.24
3. Building & Construction


1.46
4. Wholesale & Retail Trade


17.37
5. Services


11.77
(a) Transport


1.65
(b) Communication


0.85
(c) Utilities


0.25
(d) Hotel & Restaurant


0.40
(e) Finance & Insurance


1.94
(f) Real Estate & Business Services


4.44
(h) Producers of Govt. Services


1.08
(I) Comm., Social & Pers. Services


1.16
TOTAL (GDP)


100.00
NON-OIL (GDP)


62.99
TOTAL GDP GROWTH RATE (%)
0.69
15.24
17.46
OIL GDP GROWTH RATE (%)
-20.37
19.91
30.73
NON-OIL GDP GROWTH RATE (%)
14.97
13.05
10.85
Of which Agriculture (%)
15.95
12.22
10.11
Industry (%)
-19.37
19.23
29.66
Services (%)
12.35
12.14
10.69
Mining and Quarying (%)
13.15
12.59
12.55
Manufacturing (%)
5.49
5.46
5.73
Communication (%)
3.96
3.27
3.31
Finance & Insurance (%)
14.49
16.04
15.03
1/ Provisional
2/ Revised
Source: National Bureau of Statistics (NBS)
Table 25
Gross Domestic Product at Current Basic Prices
( Naira Billion unless otherwise stated)
Activity Sector
Jun-09
Jun-10
Jun-11 1/

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

2009 1/
2010 1/
2011 2/
First Half
First Half
First Half
First Half
First Half
Aggregate

Crop

Staples

Other Crops

Livestock

Fishery

Forestry

All Commodities

Cocoa

Coffee

Cotton

Palm Oil

Copra

Soya Bean

Agricultural Production Index (1990 = 100)
Aggregate

Crop

Staples

Other Crops

Livestock

Fishery

Forestry

All Commodities

Cocoa

Coffee

Cotton

Palm Oil

Copra

Soya Bean

Industrial Production Index

Manufacturing Production Index

Mining Production Index

Electricity Consumption 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/ Provisional
2/ Estimates
Growth Rate Over Preceding Period (%)
Indices of Average World Prices of Nigeria's Major
Agricultural Export Commodities (1990 = 100) (Dollar Based)
Industrial Production Index (1990 = 100)
Table 26
Selected Real Sector Indicators
(Per cent, except otherwise indicated)
Item
Agricultural Production Index (1990 = 100)
Indices of Average World Prices of Nigeria's Major
Agricultural Export Commodities (1990 = 100) (Dollar Based)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

First Half
Second Half
First Half
Second Half
First Half

(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 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
(MMm3)
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

Table 26 cont'd
Selected Real Sector Indicators
(Per cent, except otherwise indicated)
Item

Absolute
Change
Between
Percentage
Change
Between

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

1st HALF 2010 /2
2nd HALF 2010 /2
1st HALF 2011/1
CURRENT ACCOUNT
2,110.09

386.81

12,876.82

Goods
11,387.07

9,019.02

21,264.18

Export s (fob)
35,996.17

38,316.09

47,782.45

Oil and Gas
34,615.31

37,027.85

46,063.38

Non-oil
1,380.86

1,288.24

1,719.08

Import s (fob)
(24,609.10)

(29,297.07)

(26,518.27)

Oil
(5,654.78)

(8,308.18)

(3,805.42)

Non-oil
(18,954.32)

(20,988.90)

(22,712.85)

Unrecorded(TPAdj)
-

-

-

Services(net)
(9,265.34)

(10,125.62)

(8,393.40)

Credit
1,447.96

1,653.90

1,392.68

Transportation
883.82

1,093.88

739.55

Travel
287.98

287.98

299.87

Insurance Services
0.72

0.30

1.36

Communication Services
24.00

24.00

27.36

Construction Services
-

-

-

Financial Services
9.40

4.60

9.82

Computer & information Services
-

-

-

Royalties and License Fees
-

-

-

Government Services
233.36

233.36

303.06

Personal, cultural & recreational services
-

-

-

Other Bussiness Services
8.67

9.78

11.67

Debit
(10,713.29)

(11,779.52)

(9,786.09)

Transportation
(4,612.15)

(4,177.48)

(3,997.67)

Travel
(2,563.97)

(3,069.57)

(2,035.98)

Insurance Services
(216.85)

(319.55)

(264.53)

Communication Services
(114.79)

(173.16)

(88.47)

Construction Services
(40.58)

(89.93)

(37.06)

Financial Services
(12.59)

(21.54)

(38.46)

Computer & information Services
(51.40)

(73.83)

(57.10)

Royalties and License Fees
(108.31)

(117.78)

(105.09)

Government Services
(858.58)

(1,303.19)

(1,301.12)

Personal, cultural & recreational services
(32.68)

(20.40)

(19.84)

Other Bussiness Services
(2,101.41)

(2,413.07)

(1,840.76)

Income(net)
(8,778.30)

(9,999.90)

(10,875.64)

Credit
604.32

385.83

430.49

Investment Income
521.63

299.93

346.20

Compensation of employees
82.69

85.89

84.29

Debit
(9,382.62)

(10,385.73)

(11,306.14)

Investment Income
(9,371.98)

(10,377.35)

(11,295.78)

Compensation of employees
(10.64)

(8.37)

(10.35)

Current transfers(net)
8,766.66

11,493.31

10,881.68

Credit
8,991.58

11,763.18

11,122.65

General Government
467.30

467.30

549.57

Other Sectors
8,524.29

11,295.88

10,573.08

Workers Remittance
8,520.19

11,294.21

10,565.38

Debit
(224.92)

(269.87)

(240.97)

General Government
(67.69)

(102.48)

(37.27)

Other Sectors
(157.23)

(167.39)

(203.70)

Workers Remittance
(15.70)

(13.34)

(15.70)

CAPITAL AND FINANCIAL ACCOUNT
(24,439.14)

27,342.00

(7,950.23)

Capital account(net)
-

-

-

Credit
-

-

-

Capital Transfers(Debt Forgiveness)
-

-

-

Debit
-

-

-

Capital Transfers
-

-

-

Financial account(net)
(24,439.14)

27,342.00

(7,950.23)

Assets
(28,669.99)

22,250.98

(14,645.42)

Direct investment (Abroad)
(427.29)

(495.60)

(564.72)

Portfolio investment
(561.31)

(568.93)

(729.74)

Other investment
(32,595.43)

18,186.32

(13,900.44)

Change in Reserve
4,914.05

5,129.19

549.48

Liabilities
4,230.85

5,091.02

6,695.19

Direct Invesment in reporting economy
2,780.12

3,318.84

3,414.58

Portfolio Investment
1,453.31

2,294.60

2,210.63

Other investment liabilities
(2.58)

(522.41)

1,069.98

NET ERRORS AND OMISSIONS
22,329.04

(27,728.81)

(4,926.59)

Memorandum Items:
Current Account Balance as % of G.D.P
2.40

0.36

12.78

Capital and Financial Account Balance as % of G.D.P
(27.84)

25.27

(7.89)

Overall Balance as % of G.D.P
(5.60)

(4.74)

(0.55)

External Reserves - Stock (US $ million)
37,468.44

32,339.25

31,890.91

Number of Months of Imports Equivalent
9.14

6.62

7.22

External Debt Stock (US$ million)
4,269.71

4,578.77

5,398.04

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

-

-

Effective Central Exchange Rate (N/$)
148.79

149.24

151.95

Average Exchange Rate (N/$)
150.03

150.56

153.20

End-Period Exchange Rate (N/$)
149.99

150.66

153.31

1/ Provisional
2/ Revised
Table 27
Balance of Payments Analytic Presentation
(US$' Million)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

1st HALF 2010 /2
2nd HALF 2010 /2
1st HALF 2011/1
CURRENT ACCOUNT
314,179.62

58,121.46

1,960,714.02

Goods
1,694,438.00

1,346,377.76

3,235,583.94

Export s (fob)
5,355,957.66

5,718,473.92

7,264,142.80

Oil and Gas
5,150,505.61

5,526,202.05

7,003,130.99

Non-oil
205,452.05

192,271.87

261,011.81

Import s (fob)
(3,661,519.66)

(4,372,096.15)

(4,028,558.86)

Oil
(841,362.27)

(1,239,719.05)

(578,573.18)

Non-oil
(2,820,157.40)

(3,132,377.11)

(3,449,985.68)

Unrecorded(TPAdj)
-

-

-

Services(net)
(1,378,563.38)

(1,511,154.47)

(1,274,776.18)

Credit
215,446.48

246,831.34

211,481.74

Transportation
131,511.88

163,250.48

112,384.84

Travel
42,845.74

42,981.51

45,508.46

Insurance Services
107.63

44.08

206.44

Communication Services
3,570.73

3,582.04

4,149.75

Construction Services
-

-

-

Financial Services
1,398.06

685.94

1,498.90

Computer & information Services
-

-

-

Royalties and License Fees
-

-

-

Government Services
34,722.34

34,827.88

45,964.36

Personal, cultural & recreational services
-

-

-

Other Bussiness Services
1,290.11

1,459.41

1,768.99

Debit
(1,594,009.86)

(1,757,985.81)

(1,486,257.92)

Transportation
(686,218.74)

(623,458.18)

(607,229.57)

Travel
(381,498.32)

(458,083.56)

(309,673.59)

Insurance Services
(32,265.48)

(47,688.26)

(40,215.25)

Communication Services
(17,077.29)

(25,844.21)

(13,457.82)

Construction Services
(6,039.76)

(13,423.31)

(5,618.38)

Financial Services
(1,872.74)

(3,215.55)

(5,836.43)

Computer & information Services
(7,647.02)

(11,017.07)

(8,712.98)

Royalties and License Fees
(16,113.93)

(17,578.10)

(15,950.18)

Government Services
(127,725.77)

(194,502.63)

(197,407.11)

Personal, cultural & recreational services
(4,865.08)

(3,044.10)

(3,012.01)

Other Bussiness Services
(312,685.73)

(360,130.83)

(279,144.61)

Income(net)
(1,306,141.62)

(1,492,412.64)

(1,653,517.80)

Credit
89,905.68

57,578.48

65,588.76

Investment Income
77,600.43

44,759.88

52,765.17

Compensation of employees
12,305.25

12,818.61

12,823.59

Debit
(1,396,047.29)

(1,549,991.12)

(1,719,106.56)

Investment Income
(1,394,464.82)

(1,548,741.38)

(1,717,539.23)

Compensation of employees
(1,582.48)

(1,249.75)

(1,567.33)

Current transfers(net)
1,304,446.63

1,715,310.80

1,653,424.06

Credit
1,337,914.29

1,755,587.62

1,690,060.95

General Government
69,524.30

69,745.33

83,505.96

Other Sectors
1,268,389.99

1,685,842.30

1,606,554.99

Workers Remittance
1,267,780.10

1,685,592.48

1,605,385.19

Debit
(33,467.66)

(40,276.82)

(36,636.89)

General Government
(10,072.48)

(15,295.06)

(5,658.54)

Other Sectors
(23,395.18)

(24,981.76)

(30,978.35)

Workers Remittance
(2,336.56)

(1,990.20)

(2,392.92)

CAPITAL AND FINANCIAL ACCOUNT
(3,635,493.16)

4,079,928.87

(1,225,166.66)

Capital account(net)
-

-

-

Credit
-

-

-

Capital Transfers(Debt Forgiveness)
-

-

-

Debit
-

-

-

Capital Transfers
-

-

-

Financial account(net)
(3,635,493.16)

4,079,928.87

(1,225,166.66)

Assets
(4,264,968.12)

3,320,127.06

(2,240,625.36)

Direct investment (Abroad)
(63,581.76)

(73,963.50)

(85,832.51)

Portfolio investment
(83,515.43)

(84,908.43)

(110,915.85)

Other investment
(4,849,169.18)

2,713,529.08

(2,129,980.45)

Change in Reserve
731,298.24

765,469.91

86,103.44

Liabilities
629,474.96

759,801.81

1,015,458.70

Direct Invesment in reporting economy
413,677.73

495,303.98

518,397.36

Portfolio Investment
216,217.55

342,472.98

335,898.70

Other investment liabilities
(420.32)

(77,975.15)

161,162.65

NET ERRORS AND OMISSIONS
3,321,313.54

(4,138,050.33)

(735,547.36)

Memorandum Items:
Current Account Balance as % of G.D.P
2.40

0.36

12.78

Capital and Financial Account Balance as % of G
(27.84)

25.27

(7.89)

Overall Balance as % of G.D.P
(5.60)

(4.74)

(0.55)

External Reserves - Stock (US $ million)
37,468.44

32,339.25

31,890.91

Number of Months of Imports Equivalent
9.14

6.62

7.22

External Debt Stock (US$ million)
4,269.71

4,578.77

5,398.04

Debt Service Due as % of Exports of Goods Non Fac
-

-

-

Effective Central Exchange Rate (N/$)
148.79

149.24

151.95

Average Exchange Rate (N/$)
150.03

150.56

153.20

End-Period Exchange Rate (N/$)
149.99

150.66

153.31

1/ Provisional
2/ Revised
Table 28
Balance of Payments Analytic Presentation
(N' Million)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

1st Half
1st Half
1st Half
1st Half
CATEGORY

2010 /2
2011 /3
INFLOW

A. Through the Central Bank

1. Oil

2.Non‐oil

(i) Drawings on Loans/Grants

(ii) RDAS/WDAS Purchases

(iii) Swaps

(iv) Interest on Reserves & Investments

(v) Refund on World Bank/IBRD/IMF Loans/SDR Allocation
0.00
(vi) Other official Receipts

B. Through Autonomous Sources

1. Non‐oil exports

2. Capital Inflow

3. Invisibles

OUTFLOW

A. Through the Central Bank

1. WDAS/RDAS Utilisation

(i) WDAS/RDAS Sales

(ii) WDAS Forward
547.43
(iii) BDC Sales

(iv) Inter‐bank Sales

(v) Swaps

(vi) Invisibles IFEM

2. Drawings on L/C

3. External Debt Service

(i) Principal

(ii) Interest

(iii) Others 1/

4. Contributions, Grants & Equities Invests. (AFC Equity Participation)
0.00
5. National Priority Projects (NigerDelta Payments)

6. Other Official Payments

(i) Int'l Organisations & Embassies /4

(ii) Parastatals & Estacode

(iii) NNPC/JV Cash Calls

(iv) Miscellaneous(CBN Uses)

B. Through Autonomous Sources

1. Imports

2. Invisibles

NETFLOW THROUGH THE CBN
7,755.54
(9,306.60)

(4,045.82)

(956.59)

NETFLOW

Source: Central Bank of Nigeria
1/ Includes penalty and service charges
2/ Revised
3/ Provisional
4/ Includes IMF (SDR charges)
Table 29
Foreign Exchange Flows Through the Economy
(US$ Million)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

Month

January
54,215.79

50,108.65

42,075.67

33,131.83

February
56,908.42

48,113.06

41,410.10

33,246.07

March
59,756.51

47,081.96

40,667.03

33,221.80

April
60,815.85

45,914.47

40,322.01

32,835.33

May
59,180.14

44,836.40

38,815.79

32,100.81

June
59,157.15

43,462.74

37,468.44

31,890.91

July
60,342.13

43,351.39

37,155.19

August
60,201.74

41,754.31

36,769.65

September
62,081.86

43,343.33

34,589.01

October
58,534.15

43,054.77

33,597.02

November
57,480.50

43,024.68

33,059.30

December
53,000.36

42,382.49

32,339.25

Source: Central Bank of Nigeria
Table 30
Nigeria's Gross External Reserves
(US$ Million)


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

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 31
Nigeria Foreign Exchange Cross Rates
Naira per Unit of Foreign Currency (Monthly Average)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011

WDAS
Interbank
BDC
Jan
145.78
146.59
149.88
Feb
147.14
149.12*
156.93
Mar
147.72
174.32
Apr
147.23
180.27
May
147.84
180.63
Jun
148.20
148.54
166.14
1st Half
147.32
147.56
168.03
End-Period
148.22
148.35
158.00
Jul
148.59
149.88
155.13
Aug
151.86
155.23
158.95
Sep
152.30
153.25
158.00
Oct
149.36
150.22
153.05
Nov
150.85
151.03
152.95
Dec
149.69
149.80
153.48
2nd Half
150.44
151.57
155.26
End-Period
149.58
149.67
155.00

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
151.62
152.57
156.08
Feb
151.96
152.75
155.11
Mar
152.55
155.21
157.09
Apr
153.97
154.60
157.05
May
154.79
156.17
158.05
Jun
154.45
155.65
158.32
1st Half
153.23
154.49
156.95
End-Period
153.31
153.70
159.00
Source: Central Bank of Nigeria
* There was no trading at the Inter-bank Foreign Exchange Market (IFEM) from
Mid-February to May, 2009
Table 32
(N/US$ 1.00)
Monthly Average Exchange Rate Movements

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
Year/Month
WDAS
BDC
WDAS
BDC
Demand
Demand
Demand
Demand
January

February

March

April

May

June

First Half

July

August

September

October

November

December

Second Half

Source: Central Bank of Nigeria
1/ Total demand and supply figures include BDC since April 2006
Total supply figures exclude interbank sale and swaps

Table 33
Demand and Supply of Foreign Exchange
(US$' Million)
WDAS
Sales
BDC
Sales
Total
Supply
Total
Demand
WDAS
Sales
BDC
Sales
Total
Supply
Total
Demand
WDAS
Forward
Demand
Forward
(Disbursment
on Maturity)


CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011
(1)
(2)
(3)
(1) & (3)
(2) & (3)
(1) & (3)
(2) & (3)
A. Imports

Industrial Sector

Food Products

Manufactured Products
2,828,125,742.16
2,569,845,961.06
2,340,376,386.57
‐487,749,355.59
‐229,469,574.49
‐17.25
‐8.93
Transport Sector

Agricultural Sector

Minerals

Oil Sector

B. Invisibles

Business Services
753,319,043.42
654,839,443.76
590,292,587.41
‐163,026,456.01
‐64,546,856.35
‐21.64
‐9.86
Communication Services
114,800,443.61
173,155,220.96
92,616,618.24
‐22,183,825.37
‐80,538,602.72
‐19.32
‐46.51
Construction and Engineering
39,449,159.39
89,794,676.19
37,275,484.70
‐2,173,674.69
‐52,519,191.49
‐5.51
‐58.49
Distribution Services
26,041,875.22
36,531,404.22
17,171,139.37
‐8,870,735.85
‐19,360,264.85
‐34.06
‐53.00
Educational Services
58,228,406.28
104,763,251.89
58,194,597.41
‐33,808.87
‐46,568,654.48
‐0.06
‐44.45
Environmental Services
81,409.89
26,267.87
0.00
‐81,409.89
‐26,267.87
‐100.00
‐100.00
Financial Services

‐717,347,580.45
9.42
‐18.71
Health Related and Social Services
7,918,770.46
365,734.38
500,066.00
‐7,418,704.46
134,331.62
‐93.69
36.73
Tourism and Travel Related Services
32,623,301.46
20,269,169.68
19,849,334.39
‐12,773,967.07
‐419,835.29
‐39.16
‐2.07
Recreational, Cultural and Sporting
46,300.00
116,839.00
0.00
‐46,300.00
‐116,839.00
‐100.00
‐100.00
Transport Services

‐53,462,260.13
2.06
‐12.61
Others Services not Included

Total (A + B)

Source: Central Bank of Nigeria
/1 Revised
/2 Provisional
Absolute Change
Percentage Change
Table 34
Sectoral Utilization of Foreign Exchange
US Dollar
1st Half 2010 /1
SECTORS
2nd Half 2010 /1
1st Half 2011 /2


1ST HALF 2010 1/
1ST HALF 2011 2/
1. Monetary Authorities
5,764,789.3

5,004,384.4

FOREIGN ASSETS
5,764,789.3

5,004,384.4

Gold
19.0

19.0

IMF Reserve Tranche
22.6

22.6

Foreign Currencies
108,468.8

37,535.5

Demand Deposits at Foreign Banks
5,262,495.3

4,561,201.4

Of which: Domicillary Account s
405,568.2

444,396.4

Treasury Bills of Foreign Governments
60,410.8

1.0

SDR Holdings
333,372.8

405,604.8

2. Semi Official Institutions
-

-

i) BOI
-

-

ii) Others
-

-

3. Deposit Money Banks (NET)
1,083,737.9

1,531,063.6

TOTAL ASSETS
6,848,527.2

6,535,448.0

TOTAL ASSETS (US$ Million)
45,661.41

42,629.56

Exchange Rate (End-period)
149.9850
153.3079
1/ Revised
2/ Provisional
Source: Statistics Department. Monetary Survey
Table 35
Total External Assets of Financial Institutions
(Naira Million)

CBN ECONOMIC REPORT FOR THE FIRST HALF OF 2011