ECONOMIC REPORT
SECOND QUARTER 2017


CENTRAL BANK OF NIGERIA


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

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

Contents


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Economic Report Second Quarter


Text Tables

Appendix Tables


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Economic Report Second Quarter

Figures


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Economic Report Second Quarter

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

Economic Report Second Quarter

1.0 Summary1
The fall in domestic credit (net), on quarter-on-quarter basis, led to
the decline in key monetary aggregates in the second quarter of
2017. Consequently, broad money supply (M2) and narrow money
supply (M1) fell by 1.6 per cent and 0.7 per cent, respectively, below
the levels at end-March 2017. Over the level at end-December 2016,
broad money supply (M2) fell by 7.3 per cent, compared with the 5.8
per cent decline at the end of the preceding quarter. The
development reflected the 7.5 per cent and 10.5 per cent fall in
foreign assets (net) and other assets (net) of the banking system.
Similarly, narrow money supply (M1), fell by 10.7 per cent, compared
with 10.1 per cent decline at the end of the preceding quarter and
reflected the fall in its currency and demand deposit components.
The continued restrictive monetary policy stance of the Bank led to
the general increase in banks lending rates, while deposit rates
indicated mixed developments in the second quarter of 2017. The
margin between the average savings deposit and the maximum
lending rates widened to 26.46 percentage points. Similarly, the
spread between the weighted average term deposit and maximum
lending rates widened to 21.84 percentage points at the end of the
second quarter of 2017. The weighted average inter-bank call rate
rose significantly to 33.11 per cent, reflecting the liquidity surfeit in
the banking system.
The total value of money market assets outstanding at the end of
the second quarter of 2017 stood at N11,687.69 billion, reflecting a
decline of 0.56 per cent below the level at the end of the first
quarter of 2017. The development was due to the fall in FGN Bonds
and Bankers Acceptances outstanding in the review period.
Transactions on the Nigerian Stock Exchange (NSE) were bullish.
Federally-collected revenue, at N1,573.88 billion in the second
quarter of 2017, was lower than the quarterly budget estimate by
41.4 per cent, but was above the receipts in the first quarter of 2017
by 8.8 per cent. The development reflected the shortfall in receipts
from both oil and non-oil revenue in the review quarter. Federal
Government estimated retained revenue and total expenditure
were N674.07 billion and N914.91 billion, respectively, resulting in an
estimated deficit of N240.84 billion in the second quarter of 2017.
Due to the favourable weather condition across the country,
agricultural activities were dominated by harvesting of maize and

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


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

Economic Report Second Quarter

yam in the Southern States, while planting and off-season harvesting
dominated in the Northern States. In the livestock sub-sector, the
outbreak of Bird Flu in 7 states, including the FCT could hinder
production. The end-period inflation, on year-on-year and 12-month
moving average basis for the second quarter of 2017, were 16.1 per
cent and 17.6 per cent, respectively.
World crude oil demand and supply were estimated at 95.33 mbd
and 96.06 mbd, respectively, in the second quarter of 2017. Nigeria’s
crude oil production, including condensates and natural gas liquids,
was estimated at an average of 1.66 million barrels per day (mbd) or
151.06 million barrels (mb) for the second quarter of 2017. Crude oil
export was estimated at 1.21 mbd, while deliveries to the refineries
for domestic consumption stood at 0.45 mbd or 40.95 million barrels
in the review quarter. The average price of Nigeria’s reference
crude, the Bonny Light (370 API), was US$50.21 per barrel in the
review quarter, compared with US$54.17 per barrel at end-March
2017.
Foreign exchange inflow and outflow through the CBN amounted to
US$8.40 billion and US$7.72 billion, respectively, resulting in a net
inflow of US$0.68 billion. Foreign exchange sales by the CBN to the
authorised dealers amounted to US$6.40 billion. The average
exchange rate of the naira vis-à-vis the US dollar at the inter-bank
market depreciated to N305.76/US$ from N305.64/US$ in the
preceding quarter. The external reserves increased by 1.0 per cent
to US$30.30 billion at the end–June 2017.
Other major international economic developments and meetings of
importance to the domestic economy in the review period included:
The 2017 Association of African Central Banks (AACB) continental
seminar held in Accra, Ghana from May 3 – 5, 2017; the Mid-Year
Statutory meeting of the Economic Community of West African
states (ECOWAS) held at Monrovia, Liberia from May 25 – June 4,
2017; and the 2017 Spring Meetings of the Board of Governors of the
World Bank Group (WBG) and the International Monetary Fund (IMF)
held in Washington D. C., USA from April 17 – 23, 2017. A sideline
meeting of the Inter-Governmental Group of Twenty-Four (G-24) on
International Monetary Affairs and Developments was also held
along with the Brettonwood institutions meetings; and the African
Development Bank held its 2017 Annual Meetings in Ahmedabad,
India from May 22 – 27, 2017.


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Economic Report Second Quarter

2.0 Financial Sector Developments
On quarter-on-quarter basis, broad money supply (M2) fell by 1.6 per
cent below the level at end-June 2017 and reflected, wholly, the fall
in domestic credit (net). Banks’ lending rates trended upward due to
tight liquidity condition in the market, while deposit rates showed
mixed developments. The value of money market assets outstanding
fell, due, largely, to the decline in FGN Bonds and Bankers
Acceptances. Developments on the Nigerian Stock Exchange (NSE)
were mixed.
2.1 Monetary and Credit Developments
The Bank maintained a restrictive monetary policy stance and
sustained its open market operations to mop-up excess
liquidity in the system in the second quarter of 2017. The
development
generally
constrained
aggregate
credit
expansion leading to deceleration in the growth of money
supply. On quarter-on-quarter basis, broad money supply (M2),
at N21,674.21 billion, fell by 1.6 per cent at the end of the
review quarter, compared with the decline of 5.8 per cent at
the end of the preceding quarter. This, however, contrasted
with the growth of 7.9 per cent recorded at the end of the
corresponding period of 2016. The development relative to
the preceding quarter, reflected, the 1.7 per cent decline in
domestic credit (net) which more than offset the 11.0 and 5.6
per cent growth in net foreign assets and other asset (net) of
the banking system, respectively.
Narrow money supply (M1), at N9,883.82 billion, fell by 0.7 per
cent at the end of the second quarter of 2017, compared with
the decline of 10.1 per cent at the end of the preceding
quarter. The fall in M1 relative to the preceding quarter,
reflected, wholly, the significant decline of 11.1 per cent in
currency outside banks.
Over the level at end-December 2016, broad money supply
(M2) fell by 7.3 per cent, compared with the 5.8 per cent
decline
at
the
end
of
the
preceding
quarter.
The
development reflected the 7.5 per cent and 10.5 per cent fall
in foreign assets (net) and other assets (net) of the banking
system. Similarly, narrow money supply (M1), fell by 10.7 per
cent, compared with 10.1 per cent decline at the end of the
preceding quarter and reflected the fall in its currency and
demand deposit components.
Key monetary
aggregates fell during
Q2 of 2017.


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Economic Report Second Quarter

Quasi-money, at N11,790.39 billion, fell by 2.3 per cent in the
review quarter, compared with the decline of 2.0 per cent in
the preceding quarter. This, however, contrasted with the 9.9
per cent growth in the corresponding period of 2016. The
development relative to the preceding quarter was due to
the fall in time and savings deposits of banks. Over the level at
end-December 2016, quasi money fell by 4.3 per cent,
compared with the decline of 2.0 per cent at the end of the
preceding quarter (Fig. 1, Table 1).
Figure 1: Growth Rate of Narrow Money (M1) and Broad Money (M2)2

Source: CBN
Aggregate credit (net) to the economy, at N26,921.03 billion,
declined by 1.7 per cent at the end of the review quarter, in
contrast to the respective growth of 0.9 per cent and 8.6 per
cent at end-march 2017 and end-December 2016. The
development relative to the preceding quarter reflected the
decline in net claims on the Federal Government and the
private sector. Over the level at end-December 2016,
aggregate credit (net) grew by 1.0 per cent due, wholly, to
expansion in credit to the Federal Government.

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

-15
-10
-5

-20
-10

Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q4-16
Q1-17
Q2-17
Quarterly (%)
Cumulative (%)
QM1 (RHS)
QM2 (RHS)
CM1 (LHS)
CM2 (LHS)


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Economic Report Second Quarter

Banking system‟s net claims on the Federal Government, at
the end of the second quarter of 2017 stood at N4,942.46
billion. This indicated 6.2 per cent and 16.1 per cent decline
below the levels in the preceding quarter and the
corresponding period of 2016, respectively. The development
was attributed, largely, to the fall in banks‟ holding of
government securities. It, however, contrasted with the 3.7 per
cent growth at the end of the preceding quarter. Over the
level at end-December 2016, claims on the Federal
Government rose by 5.9 per cent, reflecting increase in banks‟
holdings of government securities.
At N21,978.57 billion, banking system‟s credit to the private
sector, contracted marginally by 0.6 per cent, at the end of
the second quarter of 2017, in contrast to the 0.3 and 13.6 per
cent growth at the end of the preceding quarter and
corresponding period of 2016, respectively. The development
relative
to
the
preceding
quarter,
reflected
banks‟
conservative approach towards lending, as credit to the core
private sector fell by 1.1 per cent during the review quarter
(Fig. 2, Table 1).
Figure 2: Growth Rate of Aggregate Domestic Credit to the Economy3

Source: CBN


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

-20
-10

-20

Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Quarterly (%)
Cumulative (%)
QCP (RHS)
QCG (RHS)
QAC (RHS)
CCP (LHS)
CCG (LHS)
CAC (LHS)
Banking system’s credit
to the Federal
Government fell by 6.2
per cent at end-June
2017.


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Economic Report Second Quarter

Interventions by the Bank continued to sustain stability in the
foreign exchange market. Consequently, foreign assets (net)
of the banking system, at N8,468.08 billion, rose by 11.0 per
cent, on quarter-on-quarter basis, in contrast to the decline of
16.6 per cent at the end of the preceding quarter. The
development was attributed to the rise in monetary authority
and banks‟ holdings of foreign assets. Over the level at endDecember 2016, foreign assets (net) of the banking system fell
by 7.5 per cent, compared with 16.6 per cent decline at the
end of the preceding quarter.
Other assets (net) of the banking system, on quarter-onquarter basis, declined by 5.6 per cent to negative N13,714.90
billion at end-June 2017, compared with the fall of 4.7 per
cent and 24.6 per cent at end-March 2017 and the
corresponding period of 2016, respectively. The development
relative to the level at end-March 2017 was attributed to the
increase in unclassified assets of the DMBs in the review
period. Over the level at end-December 2016, other assets
(net) of the banking system fell by 10.5 per cent, compared
with the decline of 4.7 per cent at the end of the preceding
quarter.
Table 1: Growth in Monetary and Credit Aggregates (Per cent) Over
Preceding Quarter
Sep-15
Dec-15
Mar-16
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Domestic Credit (Net)

Claims on Federal Government (Net)

Claims on Private Sector

Claims on Other Private Sector

Foreign Assets (Net)

Other Assets (Net)

Broad Money Supply (M2)

Quasi-Money

Narrow Money Supply (M1)

Memorandum Items:
Reserve Money (RM)

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

At N1,873.54 billion, currency-in-circulation fell by 5.5 per cent
below the level in the first quarter of 2017. The development
was due, largely, to the decline in its currency outside banks
component.

Foreign assets (net) of
the banking system
increased at the end
of the review quarter.


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Economic Report Second Quarter

Total deposits at the CBN amounted to N11,508.23 billion,
indicating a 0.4 per cent increase above the level at the end
of the first quarter of 2017. The development reflected, mainly,
the 5.9 per cent rise in the private sector deposits in the review
quarter. Of the total deposits at CBN, the shares of the Federal
Government, Banks and „‟Others‟‟ were N5,624.69 (48.9 per
cent), N3,616.09 billion (31.4 per cent) and N2,267.45 billion
(19.7 per cent), respectively.
Reserve money (RM) fell marginally by 2.8 per cent, below the
level at end-March 2017, to N5,489.64 billion at the end of the
second quarter of 2017. This was as a result of a decline in
DMBs‟ reserves with the CBN.
2.3
Money Market Developments
Developments in the domestic money market were mixed in
the review quarter as inflow from fiscal injections and maturing
CBN bills boosted liquidity, while withdrawals arose from CBN
interventions in the market via Open Market Operations
(OMO) to mop-up excess liquidity in the system. Also, banking
system
liquidity
was
impacted
by
interventions
and
settlements for foreign exchange sales. Consequently, the
financial market was stable in the second quarter of 2017.
To meet their short-term liquidity and funding needs, banks
continued to access the intra-day liquidity facility for
temporary credit requirements. As in the preceding quarter,
the request for the Standing Lending Facility (SLF) exceeded
the Standing Deposit Facility (SDF). The short-term inter-bank
call and Open-Buy-Back (OBB) rates moved in tandem with
the level of liquidity, mostly closing well above the Monetary
Policy Rate (MPR).
Total value of money market assets outstanding declined by
0.56 per cent to N11,687.69 billion at end-June 2017, in
contrast to the 8.04 per cent increase in the preceding
quarter. The development was attributed to the respective fall
of 4.93 per cent and 2.04 per cent in Bankers Acceptances
and FGN Bonds outstsanding.


The financial market
was relatively stable
during the review
period .
Reserve money (RM) fell
at the end of the second
quarter of 2017.


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Economic Report Second Quarter

2.3.1
Interest Rate Developments
Banks‟ deposit rates indicated mixed developments, while
lending rates generally trended upward in the second quarter
of 2017. With the exception of the 7-day deposit and average
savings rates, which declined by 0.19 and 0.09 percentage
point to 4.21 per cent and 4.13 per cent, respectively, all
other deposit rates of various maturites rose from a range of
8.20 – 10.57 per cent to 8.20 – 11.85 per cent. At 8.82 per cent,
the average term deposit rate increased by 0.30 percentage
point above the level in the first quarter of 2017. The average
prime and maximum lending rates rose by 0.38 and 1.23
percentage points to 17.54 and 30.67 per cent, respectively.
Consequently, the spread between the weighted average
term deposit and maximum lending rates widened by 0.92
percentage point to 21.84 percentage points at the end of
the second quarter of 2017. Similarly, the margin between the
average savings and the maximum lending rates widened by
1.42 percentage points to 26.46 percentage points. With
headline inflation at 16.10 per cent at end-June 2017, all
deposit rates were negative in real terms, while lending rates
were positive in real terms.
At the inter-bank funds segment, the weighted average interbank call rate, which stood at 12.95 per cent at the end of the
first quarter of 2017, rose by 20.16 percentage points to 33.11
per cent in the second quarter of 2017. The development
reflected the tight liquidity condition in the banking system.
There were, however, no transactions for most part of the
review period. The Nigeria inter-bank offered rate (NIBOR) for
the 30-day tenor rose from 16.88 per cent in the first quarter of
2017 to 38.93 per cent in the second quarter of 2017. Similarly,
the weighted average rate at the Open-Buy-Back (OBB)
segment rose by 17.30 percentage points to 39.97 per cent
(Fig. 3, Table 2).

Interbank call rate
rose in Q2 2017.

Banks’ deposit rates
showed mixed
developments while
lending rates trended
upward in the second
quarter of 2017.


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Economic Report Second Quarter

Figure 3: Selected DMBs Interest Rates (Average)

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

Prime Lending

Interbank

Maximum Lending

Source: CBN
2.3.2
Commercial Paper (CP)
Commercial Paper (CP) outstanding held by banks stood at
N0.50 billion at the end of the second quarter of 2017,
indicating a rise of 4.2 per cent over the level in the preceding
quarter. The development was due to the rise in investment in
CP by the banks in the review period. Thus, CP constituted
0.004 per cent of the total value of money market assets
outstanding during the review period.
2.3.3
Bankers’ Acceptances (BAs)
Bankers‟ Acceptances (BAs), which stood at N41.04 billion at
end-June 2017, fell by 4.9 per cent below the N43.17 billion
recorded at the end of the preceding quarter. The
development was attributed to the declined investment in
BAs by banks in the review quarter. Consequently, BAs
accounted for 0.35 per cent of the total value of money
market assets outstanding at end-June 2017, compared with
0.37 per cent at the end of the preceding quarter

Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17
Percent per Annum
Percent per Annum
Prime
Interbank
Maximum
Average Term Deposits (RHS)
DMBs’ holdings of
BAs decreased in Q2
of 2017.


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Economic Report Second Quarter

2.3.4 Open Market Operations
The Bank intervened through Open Market Operations (OMO)
to mop up excess liquidity. The tenors of the instruments (NTBs)
ranged from 154 to 362 days. Total amount offered,
subscribed to and allotted were N1,599.99 billion, N1,792.58
billion, and N1,721.64 billion, respectively. The bid rates ranged
from 16.0000 to 20.0000 per cent, while the stop rates ranged
from 16.0000 to 18.6000 per cent. Repayment and maturity of
CBN bills was N1,150.92 billion, translating to a net withdrawal
of N21.72 billion.
2.3.5
Primary Market
At the Government securities market, NTBs with tenors of 91-,
182- and 364-day and long-term (FGN Bonds) were issued on
behalf of the Debt Management Office (DMO). The amount
of Treasury Bills offered was N1,115.02 billion, while N1,508.13
billion and N1,153.12 billion were subscribed to and allotted,
respectively, in the second quarter of 2017.
Total subcription and allotment, respectively, were: N234.14
billion and N229.14 billion for 91-day tenor; N208.19 billion and
N193.82 billion for 182-day tenor; and N1,062.93 billion and
N812.15 billion for 364-day tenor. The stop rates ranged from:
13.4000 to 13.6000 per cent for the 91-day tenor; 17.1390 to
17.5000 per cent for the 182-day tenor; and 18.6500 to 18.9800
per cent for the 364-day tenor. On all maturities, the stop rates
ranged from 13.4000 to 18.9800 per cent. A total of N646.71
billion was sold on non-competitive basis.
2.3.6
Bonds Market
Tranches of the 5-, 10- and 20-year FGN Bonds were offered
for sale in the review period. The term to maturity of the bonds
ranged from 4 years, 1 month to 19 years 9 months. Total
amount offered, subscribed to and allotted were N415.00
billion, N462.77 billion and N324.58 billion, respectively. There
was no allotment on non-competitive basis and no maturity in
the review period. The bid rate ranged from 15.9855 to 16.3000
per cent, while the marginal rates for the 5-, 10-, and 20-year
bond ranged from 15.9855 to 16.3000 per cent. The bid to
cover ratio was 1.43.
2.3.7
CBN Standing Facilities
Developments at the CBN standing facilities window in the
review quarter indicated higher patronage at the Standing
Subscription for FGN
Bonds of various
maturities were
reopened during the
second quarter of 2017.


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Economic Report Second Quarter

Lending Facility (SLF) window than at the Standing Deposit
Facility (SDF) window. Total request for Standing Lending
Facility (inclusive of Intra-day lending facilities (ILF) that was
converted to overnight repo), was N12,648.46 billion with daily
average of N218.08 billion in the review quarter, compared
with N12,250.18 billion in the preceding quarter. Daily request
ranged from N121.16 billion to N1,721.84 and total interest
earned was N13.77 billion, compared with the total interest of
N9.30 billion in the preceding quarter.
Total standing deposit facility (SDF) granted during the review
quarter was N1,223.56 billion, with a daily average of N25.49
billion, compared with N3,355.10 billion and daily average of
N57.50 billion in the first quarter of 2017. The cost incurred on
SDF in the review quarter was N1.12 billion, compared with
N1.74 billion in the preceding quarter.
2.4
Deposit Money Banks’ Activities
The total assets and liabilities of the commercial banks stood
at N32,875.34 billion at the end of the second quarter of 2017,
representing a 1.4 per cent increase above the level at endMarch 2017. The funds were sourced, mainly, from increased
unclassified liabilities and sale of foreign assets. The funds were
used, mainly, to extend credit to the government and shore
up capital. At N21,311.33 billion, banks‟ credit to the
domestic economy, fell by 1.8 per cent, relative to the level at
end-March 2017. The development reflected the fall in claims
on the Federal Government and the private sector in the
review quarter.
Central Bank‟s credit to the commercial banks rose by 2.6 per
cent to N1,025.95 billion, at the end of the review quarter.
Total specified liquid assets of the banks stood at N7,466.21
billion, representing 40.8 per cent of their total current
liabilities. At that level, the liquidity ratio expanded by 2.97
percentage point above the level at the end of the
preceding quarter and was 10.8 percentage points above the
stipulated minimum ratio of 30.0 per cent. The loans-to-deposit
ratio, at 82.01 per cent, was 3.68 percentage points, above
the level at the end of the preceding quarter and 2.01
percentage points above the prescribed maximum of 80.0 per
cent.
Liquidity ratio in Q2
2017 was above the
stipulated minimum,
and the Loan-todeposit ratio was
above the prescribed
maximum.


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Economic Report Second Quarter

2.5
Capital Market Developments
2.5.1
Secondary Market
Developments in the Nigerian capital market in the second
quarter of 2017 were bullish, reflecting increased investor‟s
confidence in the domestic economy. The continued rally in
the market was predicated on improved certainty in the
direction
of
domestic
economic
policy,

sustained
implementation of polices to ease the demand-supply
imbalance in the foreign exchange market. Consequently,
the major market indicators trended upward in the review
quarter. The aggregate volume and value of traded securities
rose by 23.5 per cent and 5.6 per cent, respectively, to 24.4
billion shares valued at N240.0 billion in 266,373 deals,
compared with 19.8 billion valued at N227.2 billion in 182,764
deals, in the first quarter of 2017.
The Financial Services Industry (measured by volume) led the
activity chart with 19.6 billion shares valued at N148.3 billion,
traded in 156,471 deals, thus contributing 80.3 per cent and
62.0 per cent of the total equity turnover volume and value,
respectively, compared with 17.0 billion shares worth N66.5
billion, traded in 106,994 deals, in the first quarter of 2017.
There were no Over-the-Counter (OTC) transactions in the
review month.
Figure 4: Volume and Value of Traded Securities

Source: NSE

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


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Economic Report Second Quarter

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


Value (N Billion)

Source: NSE
2.5.2
New Issues Market/Supplementary Listings
There were ten (10) supplementary equity listings in the review period.
Table 4: New and Supplementary Listing on the Nigerian Stock Exchange
S/N Company
Additional Shares (Units)
Reasons
Listing
1 FBN Holdings Plc
3.263 billion shares
Bonus Issue
Supplementary
2 Glaxo Smithkline Consumer Nig. Plc
239.175 million shares
Bonus Issue
Supplementary
3 Nigeria Aviation Handling Company Plc
147.656 millkon shares
Bonus Issue
Supplementary
4 Vitafoam Nigeria Plc
163.8 million shares
Bonus Issue
Supplementary
5 Sye Bank Plc
660.966 million
Bonus Issue
Supplementary
6 Pharma Deko Plc
116.819 million
Rights Issue
Supplementary
7 Prestige Assurance Plc
3.01 billion shares
Rights Issue
Supplementary
8 Champion Brewries Plc
629.496 million shares
Placing
Supplementary
9 Portland Paints and Product Nigeria Plc
393.41 million ordinary shares
Rights Issue
Supplementary
10 Lafarge Africa Plc
15.85 million ordinary shares
Consideration of AshakaCem Supplementary

Source: NSE
2.5.3
Market Capitalisation
The relative macroeconomic stability and improved investors‟
confidence in the review quarter impacted positively on the
value of quoted stocks as investors‟ risk appetite continued to
rise. Consequently, the aggregate market capitalisation for all
listed securities (Equities and Debts) rose by 15.3 per cent to
N19.0 trillion at end-June, 2017 from N16.5 trillion at the end of
the first quarter of 2017. The development reflected, mainly,
the increase in the market capitalisation of equities, which
more than offset the decline in market capitalisation of debt
securities. Market capitalisation for the equities segment rose
by 29.7 per cent to N11.5 trillion and constituted 60.3 per cent
of the aggregate market capitalisation, compared with N8.8
trillion and 53.5 per cent at end-March 2017.


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

Economic Report Second Quarter

2.5.4 NSE All-Share Index
The All-Share Index, which opened at 25,516.34 at end-March
2017, rose by 29.8 per cent to close at 33,117.48 in the second
quarter of 2017. Similarly, with the exception of the NSE-AseM,
which fell by 1.7 per cent to 1,174.61 at end-June 2017, all
other sectoral indices rose above their levels in the first quarter
of 2017. The NSE-Banking, NSE-Pension and NSE-Premium
indices rose by 45.1 per cent, 45.0 per cent and 36.1 per cent,
to close at 397.97, 1,157.67 and 2,223.63, respectively, at endJune 2017. Similarly, the NSE-Consumer Goods, NSE-Industrial
Goods, NSE-Lotus Islamic, NSE-Insurance and NSE-Oil and Gas
indices rose by 26.7 per cent, 21.0 per cent, 19.9 per cent, 11.3
per cent and 10.5 per cent, to close at 795.40, 1,932.20,
2,046.92, 137.86 and 323.16, respectively, at end-June 2017.
Figure 5: Market Capitalisation and All-Share Index

Source: NSE

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

All-Share Index (Equities)
33,456.86

31,217.77

26,871.24

27,385.69

29,597.79

28,335.40

26,874.62

25,516.34

33,117.48

Source: NSE


14.5

15.5

16.5

17.5

18.5

19.5
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Index
N billion
Market Capitalization (LHS)
All-Share Index (RHS)


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

Economic Report Second Quarter

3.0
Fiscal Operations
Federally collected revenue in the second quarter of 2017 fell below
the provisional quarterly budget estimate by 41.4 per cent, but was
8.8 per cent higher than the receipts in the first quarter of 2017.
Federal Government provisional retained revenue for the review
quarter was N674.07 billion, while total provisional expenditure was
N914.91 billion, resulting in estimated deficit of N240.84 billion.

3.1
Federation Account Operations

At N1,573.88 billion, federally-collected revenue in the second
quarter of 2017, was lower than the proportionate quarterly
budget estimate of N2,683.64 billion by 41.4 per cent. It,
however, exceeded the receipts in the preceding quarter by
8.8 per cent. The decline in federally-collected revenue
(gross) relative to the proportionate quarterly budget
estimate4 was attributed to the shortfall in receipts from both
oil and non-oil revenue during the review quarter (Fig. 1, Table
1).
Figure 6: Components of Gross Federally Collected Revenue

Table 6: Gross Federation Account Revenue (N Billion)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Federally-collected revenue (Gross)
1,397.21

1,911.71

1,547.96

1,276.38

1,118.56

1,848.52

1,434.49

1,446.14

1,573.88

Oil Revenue
839.02

949.45

830.81

666.13

537.19

817.48

673.10

817.48

795.55

Non-Oil Revenue
558.19

962.25

717.15

610.25

581.37

1,031.04

761.39

628.66

778.33

Source:Federal Ministry of Finance


4 The proportionate quarterly budget estimate is the 2017 approved budget.

Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Non-Oil Revenue
Oil Revenue Gross
Gross federally -
collected revenue
rose by 8.8 per
cent
above
the
level in the first
quarter of 2017.


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

Economic Report Second Quarter

At N795.55 billion or 50.5 per cent of the total revenue, gross oil
receipt was lower than both the proportionate quarterly
budget estimate and the receipts in the preceding quarter by
41.0 and 2.7 per cent, respectively. The decline in oil revenue
relative to the proportionate quarterly budget estimate was
attributed to the decline in receipts from crude oil/gas export,
owing to the drop in the price of crude oil in the international
market. Leakages, Force Majeure and shut-ins and shut-downs
at some NNPC terminals also affected revenue during the
period (Fig. 7, Table 7).

Figure 7: Gross Oil Revenue and Its Components

Table 7: Components of Gross Oil Revenue (N Billion)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Oil Revenue Gross
839.02

949.45

830.81

666.13

537.19

817.48

673.10

817.48

795.55

Crude oil/Gas Sales
215.40

196.29

212.86

82.43

112.54

115.95

78.63

101.33

111.84

PPT/Royalties
325.03

495.39

388.66

314.04

212.78

392.38

273.13

325.38

320.49

Others
298.59

257.78

229.28

269.66

211.86

309.15

321.34

390.78

363.22


Source: Federal Ministry of Finance
At N778.33 billion or 49.5 per cent of the total, non-oil receipts
(gross) fell below the proportionate quarterly budget estimate
of N1,334.78 billion by 41.7 per cent. It was, however, above
the level in the preceding quarter by 23.8 per cent. The lower
non-oil revenue relative to the proportionate quarterly budget
estimate was due to the decline in most components of nonoil revenue except Customs Special Levies (Federation
Account component), during the review quarter (Fig. 8, Table
8).
-

1,000
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
N billion
Others
PPT/Royalties
Crude oil/Gas Sales


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

Economic Report Second Quarter

Figure 8: Gross Non-Oil Revenue and its Components

Table 8: Components of Gross Non-Oil Revenue (N Billion)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Non-Oil Revenue
558.19

962.25

717.15

610.25

581.37

1,031.04

761.39

628.66

778.33

Value-Added Tax (VAT)
203.18

202.11

177.78

196.57

194.61

210.35

209.47

222.00

243.31

Companies Income Tax & Other Taxes
159.36

415.67

279.13

176.26

171.71

453.74

186.73

158.95

206.38

Customs & Excise Duties
127.59

138.83

141.67

135.51

106.54

150.15

156.62

144.17

150.67

Others/1
68.06

205.64

118.57

101.91

108.51

216.80

208.58

103.54

177.98


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

A net sum of N843.96 billion was retained in the Federation
Account from the gross federally-collected revenue after total
statutory deductions of N318.36 billion and transfers of N411.56
billion. Of the N843.96 billion, the Federal Government
received
N408.63
billion,
while
the
State
and
Local
governments got N207.26 billion and N159.79 billion,
respectively. The balance of N68.27 billion was allocated to
the 13.0% Derivation Fund for distribution among the oilproducing states.
In addition, the Federal Government received N35.04 billion,
while the State and Local governments received N116.79
billion and N81.75 billion, respectively, from the VAT Pool
Account.
Table 8b: Summary of Federally-Collected Revenue Deductions and Transfers (Naira Billion)
Q2 2016
Q1 2017
Quarterly
B udget
Q2 2017
T o tal D eductio ns 1/
157.55

393.37

128.07

318.36

Oil Revenue Deductions
135.40

361.22

76.25

270.38

Non-Oil Revenue Deductions
22.16

32.16

51.82

47.98

T o tal T ransfers
295.34

372.46

699.74

359.23

Federal Govt. Ind. Revenue
59.10

77.71

201.89

72.33

VA T P ool A ccount
186.83

213.12

432.00

233.58

Others 2/
49.41

81.62

65.85

53.32

1/ R ef er t o T ab le 1 f o r b r eakd o wn o f d ed uct io ns
2 / Includ es F ed er at io n and N o n- F ed er at io n Sp ecial Levies, Ed ucat io n T ax & N IT D EF
Source: Office of the Accountant General of the Federation (OAGF) and Federal Ministry of Finance
-

1,000
1,200
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
N billion
Others
Customs & Excise Duties
Companies Income Tax & Other Taxes
Value-Added Tax (VAT)
The sum of N843.96
billion of the gross
federally collected
revenue was
distributed among the
three tiers of
government and the
13.0% Derivation Fund
for oil producing
states.


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

Economic Report Second Quarter

In addition, the sum of N170.30 billion was distributed as
Exchange Gain as follows: Federal Government, N79.85 billion;
state governments, N40.50 billion; local governments, N31.22
billion; and 13% Derivation Fund, N18.72 billion. Similarly, the
sum of N42.68 billion was drawn-down from the Excess
Crude&PPT Account and distributed as follows: Federal
Government, N19.56 billion; state governments, N9.92 billion;
local governments, N7.65 billion; and 13% Derivation Fund,
N5.55 billion.
Finally, the sum of N6.33 billion was received by the Federal
Government in April 2017 being the last instalment refund of
NNPC‟s indebtedness to the Federal Governmnt.
Thus, the total statutory and VAT revenue allocation to the
three tiers of government in the second quarter of 2017
amounted
to
N1,296.85
billion,
compared
with
the
proportionate quarterly budget estimate of N2,350.72 billion
and the sum of N1,233.57 billion received in the preceding
quarter.
3.2
The Fiscal Operations of the Three Tiers of
Government

3.2.1
The Federal Government

Provisional data on Federal Government finances indicated
that the Federal Government retained revenue for the second
quarter of 2017 amounted to N674.07 billion. This was below
the proportionate quarterly budget estimate by 50.0 per cent.
It was, however, above the receipts in the preceding quarter
by 22.1 per cent. Of the total revenue, Federation Account
accounted for 60.6 per cent, while Federal Government
Independent Revenue, Exchange Gain, VAT, Excess Crude,
and NNPC Refund accounted for 18.5, 11.8, 5.2 2.9, and 1.0
per cent, respectively (Fig. 9).
At N674.07 billion, the
estimated
FGN
retained revenue was
lower
than
the
proportionate
quarterly budget
estimate by 50.0 per
cent.


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

Economic Report Second Quarter

Figure 9: Federal Government Retained Revenue

Table 9: Federal Government Fiscal Operations (N Billion)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Retained Revenue
538.60

1,044.92

802.63

587.92

722.37

1,000.03

977.38

552.29

674.07

Expenditure
1,024.55

1,176.17

1,538.46

1,140.24

1,381.51

1,301.02

1,658.21

924.67

914.91

Current Surplus(+)/Deficit(-)
(275.55)

31.20

(136.57)

(365.84)

(213.76)

(158.60)

(178.42)

(289.83)

(107.90)

Primary Surplus(+)/Deficit(-)
(246.25)

159.82

(522.58)

(187.51)

(414.43)

205.90

(412.31)

(119.88)

8.92

Overall Balance: Surplus(+)/Deficit(-)
(485.95)

(131.25)

(735.83)

(552.32)

(659.14)

(300.99)

(680.83)

(372.38)

(240.84)

Source: Fiscal Liquidity Assessment Committee (FLAC) & the Office of the Accountant General of the Federation
At N914.91 billion, the estimated Federal Government
expenditure for the second quarter of 2017 was below the
proportionate quarterly budget estimate of N1,937.98 billion
and the level in the preceding by 52.8 and 1.3 per cent,
respectively. The decline relative to the proportionate
quarterly budget estimate was attributed, mainly, to the fall in
recurrent
and
capital
expenditures in
the
period.
A
breakdown of the total expenditure showed that the recurrent
component accounted for 85.5 per cent, while capital and
statutory transfers accounted for 5.5 and 9.0 per cent,
repectively. A further breakdown of the recurrent expenditure
showed that the non-debt component accounted for 68.1
per cent, while debt service payments was 31.9 per cent.
Thus, the fiscal operations of the Federal Government resulted
in an estimated deficit of N240.84 billion, compared with the
the proportionate quarterly budget deficit of N589.19 billion.
Federation
Account
60.6%
VAT Pool
Account
5.2%
FGN Independent
Revenue
18.5%
Excess Crude
2.9%
NNPC Refund
1.0%
Exchange Gain
11.8%
Fiscal
operations
of the FG resulted
in an estimated
deficit of N240.84
billion in Q2 2017.


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

Economic Report Second Quarter

Figure 10: Federal Government Expenditure

Source: Fiscal Liquidity Assessment Committee (FLAC) & the Office of the Accountant General of the Federation
3.2.2
Statutory Allocations to State Governments

Total allocation to state governments from the Federation
Account, including 13.0% Derivation Fund and the VAT Pool
Account stood at N467.02 billion during the review quarter.
This was lower than the proportionate quarterly budget
estimate by 45.0 per cent. A breakdown showed that the
receipts from the Federation Account was N350.23 billion (75.0
per cent), while the share of VAT pool account stood at
N116.79 billion (25.0 per cent). The receipts from both the
Federation
and
VAT
Pool
Accounts
fell
below
the
proportionate budget estimate by 44.6 and 45.9 per cent,
respectively.
3.2.3
Statutory Allocations to Local Government Councils

Total allocations to local governments from the Federation
and VAT Pool Accounts in the second quarter of 2017 stood at
N280.42 billion. This was below the proportionate quarterly
budget estimate by 45.3 per cent. Of the total amount,
allocation from the Federation Account was N198.67 billion
(70.8 per cent), while the VAT Pool Account stood at N81.75
billion (29.2 per cent).


Recurrent,
85.5%
Capital,
5.5%
Transfers,
9.0%


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

Economic Report Second Quarter

4.0
Domestic Economic Conditions
Following the favourable weather conditions across the country,
agricultural activities in the Southern States were dominated by
harvesting of maize and yam, while planting and off-season
harvesting dominated in the Northern States. In the livestock subsector, farmers engaged in the breeding of poultry but the outbreak
of Bird Flu in seven (7) states, including the FCT hindered production.
4.1
Agricultural Sector
Analysis of the 3-month Standardised Precipitation Index (SPI)
indicated general improvements in the soil moisture condition
across the country in the second quarter of 2017. Favourable
weather conditions across the country resulted in conditions of
severe wetness in selected states in the North-East, NorthCentral as well as the South-South and South-Eastern States.
Different levels of rainfall in many other states resulted in mild
and mild-to-moderate dryness conditions. Consequently,
agricultural activities in the Southern States were dominated
by harvesting of maize and yam, while farmers in the Northern
States concentrated on planting and off-season harvesting.
Following the launch of the “export yam” campaign, 72
metric tonnes of yam was exported to United States and
Europe. The development is expected to enhance non-oil
export contribution to national output and improve foreign
exchange earnings of the country.
In the livestock sub-sector, farmers engaged in the breeding
of poultry but the outbreak of Bird Flu in seven (7) states,
including the FCT hindered production. Consequently, the
Federal
Government
embarked
on
decontamination,
quarantine of the infected birds and movement control to
contain the virus.
4.2
Agricultural Credit Guarantee Scheme
A total of N1,396.2 million was guaranteed to 10,763 farmers
under the Agricultural Credit Guarantee Scheme (ACGS) in
the second quarter of 2017. The amount represented a
decline of 30.0 per cent and 14.4 per cent below the levels in
the preceding quarter and the corresponding quarter of 2016,
respectively. Sub-sectoral analysis showed that food crops
obtained the largest share of N836.5 million (59.9 per cent)
guaranteed to 7,713 beneficiaries followed by livestock subsector, which got N203.0 million (14.5 per cent) guaranteed to


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

Economic Report Second Quarter

831 beneficiaries. The cash crop sub-sector received N137.4
million (9.8 per cent) guaranteed to 805 beneficiaries, while
fisheries got N108.9 million (7.8 per cent) guaranteed to 382
beneficiaries. The Mixed Crop sub-sector received N81.3
million (5.8 per cent) guaranteed to 824 beneficiaries, while
„Others‟ received a total of N29.1 million (2.2 per cent)
guaranteed to 208 beneficiaries.
Analysis by state showed that 34 states and the Federal
Capital Territory benefited from the scheme in the second
quarter of 2017. The highest and lowest sums of N136.7 million
(10.0 per cent) and N0.7 million (0.1 per cent) were
guaranteed to Ogun and Adamawa States, respectively,
At end-June 2017, total amount released by the CBN under
the Commercial Agriculture Credit Scheme (CACS) from
inception to the participating banks for disbursement stood at
N473.01 billion for 513 projects(Table 10).


Source: CBN

Table 10: Disbursement of Credit Under the Commercial Agriculture Credit Scheme (CACS)
S/N
Participating Banks
Amt Disbursed (N billion)
Number of Projects/State Governments

Access Bank Plc
25.63

Citibank Plc
3.00

Diamond Baqnk Plc
4.73

ECOBANK
6.38

FCMB Plc.
11.37

Fidelity Bank Plc
16.32

First Bank of Nigeria Plc
42.89

GTBank Plc
31.70

Heritage Bank Plc
6.82

Keystone Bank
4.05

Jaiz Bank Plc
0.00

Skye Bank Plc
13.77

Stanbic IBTC Bank
25.41

Sterling Bank Plc
58.68

Union Bank Nigeria PLC
24.24

United Bank for Africa (UBA) Plc
65.56

Unity Bank Plc
24.33

Wema Bank
2.12

Zenith Bank
104.16

Suntrust Bank Ltd
1.85

TOTAL
473.01

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

Economic Report Second Quarter

4.3
Industrial Production
Activities in the Industrial sector improved in the second
quarter of 2017. The development was attributed, largely, to
increased access to foreign exchange for importation of raw
materials and intermediate input. Furthermore, inflationary
pressures continued to ease, thereby softening input price.
At 103.8 (2010=100), the estimated index of industrial
production rose by 0.74 per cent above the level in the
preceding quarter, but showed a 6.2 per cent decline relative
to the level in the corresponding period of 2016. Increased
activities were noticed in all the subsectors.
The index of manufacturing production in the second quarter
of 2017, at 176.9 (2010=100), showed a marginal increase of
0.33 per cent, compared with the level in the preceding
quarter. It also indciated 1.71 per cent increase, relative to the
level in the corresponding period of 2016. The increase was
occasioned by improved power supply, increased new orders
and better supply of foreign exchange needed for import of
raw materials and intermediate input. The estimated capacity
utilisation remained at 53.7 per cent (Fig.11).
Figure11: Manufacturing Capacity Utilization Rate

Source: Staff Estimate


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


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

Economic Report Second Quarter

At 73.5 (1990=100), the index of mining production in the
second quarter of 2017 rose by 1.1 per cent above the level in
the preceding quarter. It, however, represented a 13.1 per
cent decline below the level in the corresponding period of
2016. The improved mining production in the review quarter
was attributed to increased crude oil and gas production.
Estimated average electricity generation in the second
quarter of 2017 rose by 1.7 per cent to 3,556 MW/h, compared
with 3,496 MW/h attained in the preceding quarter. The
increase was attributed to the rising level of water supply in
the hydro stations.
At 3,102 MW/h, average estimated electricity consumed also
rose by 3.4 per cent, compared with the level in the
preceding
quarter.
The
increase
was
attributed
to
improvement in generation and transmission (Figure 12, Table
11).
Figure 12: Index of Industrial Production (2010=100) 5

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

Source: Staff Estimate


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


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

Economic Report Second Quarter

Table 11: Index of Industrial Production and Manufacturing Capacity Utilisation Rate
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
All Sectors (1990=100)

Manufacturing

Mining
87.4
83.1
94.5


Capacity Utilisation (%)


Source: Saff Estimate
4.4
Petroleum Sector
Nigeria‟s crude oil production, including condensates and
natural gas liquids, averaged 1.66 mbd or 151.06 million barrels
(mb) in the review quarter. This represented an increase of
0.07 mbd or 4.4 per cent, compared with 1.59 mbd or 143.10
mb recorded in the preceeding quarter.
Crude oil export stood at 1.21 mbd or 110.11 mb, representing
6.1 per cent increase, compared with 1.14 mbd or 102.6 mb
in the preceding quarter. The development was due, mainly,
to recovery in production as a result of ceasation of attacks
by the Niger Delta militants which crippled production in 2016.
Also, loading of forcados resumed and Shell Petroleum
Development Company of Nigeria lifted its force majeure
condition in the review period. Allocation of crude oil for
domestic consumption was maintained at 0.45 mbd or 40.95
million barrels in the review quarter.
The oil market witnessed a sell-off of product amidst significant
bearish sentiment ignited by excess oil supply and still-high oil
inventories, despite ongoing agreement by OPEC and nonOPEC participating producers. Oil prices continued to be
weighed down by the slow pace of inventory drawdown
globally amidst a rebound in global oil supplies, especially
from the US. The developments led to a 7.3 per cent fall in the
price of Nigeria‟s reference crude, the Bonny Light (37o API)
from US$54.17/b per barrel in the first quarter of 2017 to
US$50.21/b per barrel recorded in the review quarter. The
average prices of other competing crudes, namely the UK
Brent at US$49.13/b, the WTI at US$47.29 and the Forcados at
US$49.68/b exhibited a similar trend as the Bonny Light.
The average price of OPEC basket of 14 selected crude
Crude oil and natural
gas production
increased in the second
quarter of 2017.
Crude oil export
increased in Q2
2017.
Average crude oil
prices, including
Nigeria’s Bonny Light
(37o API) fell in the
international crude oil
market in Q2 2017.


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

Economic Report Second Quarter

streams was US$48.47/b in the second quarter of 2017. This
represented a decline of 6.7 per cent and 14.4 per cent
below the US$51.95/b and US$42.38/b recorded in the
preceding quarter and the corresponding quarter of 2016,
respectively (Figure 13, Table 12).
Figure13: Trends in Crude Oil Prices

Source: Reuters

Table 12: Average Crude Oil Prices in the International Oil Market
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Bonny Light

OPEC Basket


Source: Reuters

4.5
Consumer Prices6
Sustained implementation of the general and sector-specific
measures by the government continued to support the
positive expectations that the Nigerian economy may be
exiting recession soon. Accordingly, inflationary pressures
maintained the downward trend in the second quarter of

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

Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
US$ per barrel
Bonny Light
OPEC Basket
The general price level
declined in Q2 2017,
compared with the level
in the first quarter of
2017.


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Economic Report Second Quarter

2017 due, mainly, to moderated exchange rate pass-through.
Consequently, the all-items composite Consumer Price Index
(CPI), at end-June 2017, was 234.2 (November 2009=100),
representing an increase of 5.2 per cent and 16.1 per cent,
above the levels in the preceding quarter and the
corresponding quarter of 2016, respectively. The development
was driven, largely, by the increase in the prices of: solid and
liquid fuels; potatoes, yam and other tubers; bread and
cereals; meat and fish; and clothing materials, garments and
other articles of clothing.
The urban all-items CPI at the end of the second quarter of
2017 was 236.2 (November 2009=100), indicating an increase
of 1.6 per cent and 16.2 per cent, respectively, above the
levels in the preceding quarter and the corresponding period
of 2016. Similarly, the rural all-items CPI, at 232.6 (November
2009=100), represented increase of 1.6 per cent and 16.0 per
cent, respectively, above the levels in the preceding quarter
and the corresponding period of 2016 (Figure 14, Table 13).
The composite food index (with a weight of 50.7 per cent) was
246.3 per cent, representing an increase of 2.0 per cent,
compared with the 230.8 per cent at the end of the
preceding quarter. The rise in the index was driven, mainly, by
increased prices of bread and cereals; meat and fish; and
potatoes, yam and other tubers.
Figure 14: Consumer Price Index

Source: NBS

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


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

Economic Report Second Quarter

Table 13: Consumer Price Index (November 2009=100)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Composite


213.6
222.7
234.2
Urban

Rural

Sustained implementation of measures to address foreign
exchange
demand-supply
bottlenecks
has
moderated
exchange rate volatility and reduced pass-through to
domestic prices. Inflationary pressure, therefore, eased further
in the second quarter of 2017. Consequently, headline
inflation, at the end of the review quarter, on year-on-year
basis, declined to 16.1 per cent, compared with 17.3 per cent
and 16.5 per cent in the preceding quarter and the
corresponding period of 2016, respectively. On a twelvemonth moving average basis, inflation rose to 17.6 per cent in
the second quarter of 2017, compared with 17.3 and 11.4 per
cent
recorded
in
the
preceding
quarter
and
the
corresponding period of 2016, respectively (Figure 15, Table
14).
Figure 15: Inflation Rate

Source: NBS
Table 14: Headline Inflation Rate (%)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
12-Month Moving Average

Year-on-Year


Source: NBS

Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Percent
12-Month Average
Year-on-Year
The headline
inflation (y-o-y)
stood at 16.1 per
cent in Q2 2017.


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Economic Report Second Quarter

5.0
External Sector Developments7
Foreign exchange inflow and outflow through the CBN in the second
quarter of 2017 rose by 25.9 per cent and 115.6 per cent,
respectively, over the levels in the preceding quarter and the
corresponding period of 2016. Total non-oil export receipts declined
by 59.3 per cent, relative to the level in the first quarter of 2017. The
average exchange rate at the inter-bank segment was N305.76/US$,
compared with N305.64/US$ at the end of the first quarter of 2017.
At US$30.30 billion, the gross external reserves rose by 1.0 per cent,
compared with the level at end-March 2017.
5.1
Foreign Exchange Flows
The
external
sector
benefited
from
relatively
stable
international crude oil price in the review period due to
production cut by the Organisation of Petroleum Exporting
Countries (OPEC) and decline in shale oil production by the
United States. Also, ceasation of hostilities by militants in the oilrich Niger-Delta region, which hitherto distrupted production
activities, positively impacted revenue from crude oil sales.
The developments resulted in improvements in the sector
despite the decline in average crude oil price from US$54.26
per barrel in the first quarter of 2017 to US$50.31 per barrel in
the second quarter of 2017. Inflow increased by 25.9 per cent
and 31.0 per cent above the levels at the end of the first
quarter of 2017 and the corresponding period of 2016,
respectively. Also, following increased inter-bank utilisation
and other official payments, outflow rose significantly by 115.6
per cent above the level in the preceding quarter.
Consequently, foreign exchange inflow and ouflow through
the CBN in the second quarter of 2017 were US$8.40 billion
and US$7.73 billion, respectively. This resulted in a net inflow of
US$0.67 billion, compared with the net inflow of US$3.09 billion
in the first quarter of 2017(Figure 16, Table 15).


7 Data on foreign exchange flows through the CBN and the Economy are provisional and subject
to change
Foreign exchange inflow
and outflow through the
CBN rose by 25.9 and
115.7 per cent,
respectively, and
resulted in a net inflow
of US$0.68 billion in Q2
of 2017.


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Economic Report Second Quarter

Figure 16: Foreign Exchange Flows Through the CBN


Source: CBN
Table 15: Foreign Exchange Flows Through the CBN (US$ million)
Q2-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Inflow
11,111.00

7,135.41

3,942.89

5,875.18

5,613.01

6,726.01

6,597.73

8,404.37

Outflow
9,523.32

7,757.49

4,487.05

6,023.10

7,912.02

4,649.85

3,646.89

7,725.49

Netflow
1,587.68

(622.08)

(544.16)

(147.92)

(2,299.01)

2,076.16

2,950.84

678.88


Source: CBN

Aggregate foreign exchange inflow into the economy was
US$18.62 billion. This represented an increase of 23.4 per cent
and 31.0 per cent, over the levels in the preceding quarter
and the corresponding quarter of 2016, respectively. The
development reflected the respective rise of 25.9 per cent
and 21.3 per cent in inflow through the Bank and autonomous
sources in the review period. Oil sector receipts, which
accounted for 9.8 per cent of the total, stood at US$1.82
billion, compared with US$2.34 billion and US$1.90 billion,
recorded in the first quarter of 2017 and the corresponding
period of 2016, respectively.
Non-oil public sector inflow, at US$6.58 billion (35.3 per cent of
the total), rose by 51.7 per cent and 148.51 per cent, above
the levels at the end of the first quarter of 2017 and the
corresponding period of 2016, respectively. Autonomous
inflow, at US$10.2 billion, (accounting for 54.9 per cent of the
total), rose by 21.3 per cent and 5.7 per cent, above the levels
-4,000
-2,000


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


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Economic Report Second Quarter

in the preceding quarter and the corresponding period of
2016, respectively.
At US$8.20 billion, aggregate foreign exchange outflow from
the economy rose by 93.4 per cent and 20.8 per cent above
the levels in the first quarter of 2017 and the corresponding
period of 2016, respectively. The development was driven,
largely, by increase in inter-bank utilisation, other official
payments, external debt service, and bank charges which
amounted to US$6.40 billion, US$0.62 billion, US$0.10 billion and
US$0.0002 billion, respectively, in the second quarter of 2017.
Thus, foreign exchange flows through the economy resulted in
a net inflow of US$10.42 billion in the review quarter,
compared with US$10.86 billion and US$7.43 billion in the first
quarter of 2017 and the corresponding period of 2016,
respectively.
5.2
Non-Oil Export Earnings by Exporters
Total non-oil export earnings recieved through the banks, at
US$0.35 billion, significantly declined by 59.3 per cent and 38.6
per cent below the levels in the first quarter of 2017 and the
corresponding period of 2016, respectively. The development
was attributed, mainly, to the significant fall in receipts from all
the sectors. A breakdown by sectors showed that proceeds
from manufactured products, agricultural products, minerals,
industrial sector and food products stood at US$102.77 million,
US$100.43 million, US$98.35 million, US$30.2 million and
US$22.44 million, respectively. The transport sector recorded
no earnings in the review period.
The percentage shares of manufactured products, agricultural
products, minerals, industrial sector and food products in the
total non-oil export proceeds were 29.0, 28.4, 27.8, 8.5 and 6.3
respectively.
5.3
Sectoral Utilisation of Foreign Exchange

The
invisible
sector
accounted
for
the
bulk
(40.90
per cent) of total foreign exchange disbursed in the second
quarter of 2017, followed by the industrial sector (27.10 per
cent). The contributions of other sectors in a descending order
included:

minerals
and
oil
sector,
14.96
per
cent;
manufactured products, 9.00 per cent; food products, 5.24
.
The invisible sector
accounted for the
bulk of the total
foreign exchange
disbursed during Q2
2017.
Total non-oil export
earnings by exporters
declined during the
second quarter of
2017.


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

Economic Report Second Quarter

per cent; transport sector, 1.77 per cent; and agricultural
products, 1.03 per cent (Fig.17).
Figure17: Sectoral Utilisation of Foreign Exchange

Source: CBN

5.4
Foreign Exchange Market Developments8
A total of US$6.40 billion was sold by the CBN to authorised
dealers during the second quarter of 2017. This represented
190.9 per cent and 49.0 per cent increase over the levels in
the first quarter of 2017 and the corresponding period of 2016,
respectively. The development, relative to the preceding
quarter was attributed to the increased intervention by the
Bank with respect to foreign exchange forwards and interbank sales. Of the total, foreign exchange forwards disbursed
at maturity amounted to US$2.92 billion or 45.6 per cent of the
total, while interbank and BDC sales were US$3.07 billion (48.0
per cent) and US$0.27 billion (4.2 per cent), respectively. Swap
transactions reported in the review period was US$0.14 billion,
accounting for 2.2 per cent of the total (Figure 18, Table 16).


8 Market Closed (MC) - wDAS and rDAS window was closed in February 2015


Percent of Total
Q4-16
Q1-17
Q2-17
Supply for foreign
exchange by authorized
dealers rose during Q2
2017.


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Economic Report Second Quarter

Figure 18: Supply of Foreign Exchange


Source: CBN


Table 16: Demand for and Supply of Foreign Exchange (US$ billion)
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Forex Sales at rDAS/Interbank

Supply of Swaps

Supply of Forex to BDC

Total Forex Supply(BDC and rDAS)


Source: CBN

The average exchange rate at the inter-bank segment was
N305.76/US$, compared with N305.64/US$ at the end of the
first quarter of 2017. This reflected depreciation of 0.04 and
32.3 per cent relative to the rates in the preceding quarter
and the corresponding period of 2016, respectively (Figure 19,
Table 17).

Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
US$ billion
Forex Sales at rDAS/Interbank
Supply of Swaps
Supply of Forex to BDC
Total Forex Supply
The average naira
exchange rate vis-à-vis
the US dollar was
N305.76/US$ at the
interbank segment in Q2
2017.


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Economic Report Second Quarter

Figure 19: Average Exchange Rate Movements

Source: CBN

Table 17: Exchange Rate Movements and Exchange Rate Premium
Average Exchange Rate (N/US$)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
rDAS
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
BDC

Interbank

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


Source: CBN


Figure 20: Exchange Rate Premium

Source: CBN

Q1-15
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q4-16
Q1-17
Q2-17
N/US $
Average BDC
Average Interbank

Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
Per cent
Interbank/BDC
Interbank/BDC


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Economic Report Second Quarter

5.5
Gross Official External Reserves
Gross external reserves at the end of the second quarter of
2017 stood at US$30.30 billion, showing respective increase of
1.0 and 14.3 per cent, above the levels in the first quarter of
2017 and the corresponding period of 2016. The development,
relative to the preceding quarter reflected, mainly, the inflow
from the FGN Eurobond proceeds. A breakdown of the official
external reserves showed that CBN reserves stood at US$20.64
billion (68.1 per cent), Federation reserves, US$7.03 billion (23.2
per cent) and the Federal Government reserves, US$2.63
billion (8.7 per cent) (Figure 21, Table 18).

Figure 21: Gross Official External Reserves


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

Table 18: Gross Official External Reserves (US$ million)
Q2-15
Q3-15
Q4-15
Q1-16
Q2-16
Q3-16
Q4-16
Q1-17
Q2-17
External Reserves
28,335.2

29,880.2

28,284.8

27,336.4

26,505.4

23,806.5

26,986.2

29,994.4

30,302.3


Gross external
reserves rose during
the second quarter of
2017.


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

Economic Report Second Quarter

6.0 Global Economic Conditions
6.1 Global Output
The global economy showed strong growth prospects in the
second quarter of 2017 following healthy economic dynamics
recorded in both advanced and emerging market economies.
Advanced economies continued to benefit from accommodative
monetary policy conditions, tighter labour markets and the recent
decline in energy prices which increased consumers disposable
income. In the United States, economic activities regained
momentum following rebound in private consumption, soft
inflation and 16-year-low unemployment rate. Similarly, growth in
the euro area has become increasingly resilient and broadened
across sectors and countries. Although growth in emerging market
economies continued to benefit from strong global economic
conditions, wavering commodity prices and persisting economic
imbalances in some of the economies remained major risks to
more robust growth. Growth in sub-Saharan Africa was estimated
to pick up to 2.6 per cent in 2017 and 3.2 per cent in 2018,
predicated on moderately rising commodity prices and reforms to
tackle macroeconomic imbalances.

6.2 Global Inflation
Global inflation remained generally benign in the second
quarter of 2017. In the advanced economies, developments
in the general price level were mixed as some countries
experienced decelerating inflation, while inflation rose in
others. Inflation decelerated in the Eurozone and the United
States to 1.5 per cent and 2.0 per cent, but increased to 0.4
per cent in Japan in the second quarter of 2017. In the United
Kingdom, inflation rose to 2.8 per cent in the second quarter of
2017 due to weaker sterling.
In the major emerging markets, moderate energy prices along
with stable economic conditions and foreign exchange
markets exerted downward pressure on inflation. Inflation in
Brazil, Russia, China and India declined to 3.8 per cent, 4.1 per
cent, 1.35 per cent and 2.6 per cent in the second quarter of
2017 from 4.8 per cent, 4.6 per cent, 1.4 per cent and 3.5 per
cent, respectively, in the first quarter of 2017. Inflation in the
developing economies generally trended downward due,
largely, to stable foreign exchange markets.


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Economic Report Second Quarter

6.3 Global Commodity Demand and Prices
Global crude oil supply in the review quarter was estimated at
96.06 mbd, representing a decline of 0.2 per cent below the
level in the preceding quarter. Similarly, world crude oil
demand was estimated at 95.33 mbd, indicating a 0.06 per
cent decline below the level in the preceding quarter.
The average price of OPEC Reference Basket (ORB) of 14
selected crude streams was US$48.47 in the second quarter of
2017 and represented a 6.7 per cent decline relative to the
level in the preceding quarter. The development was
attributed, mainly, to the slow pace of inventory drawdown.
6.4

International Financial Markets
Developments in the international stock markets were mixed
during the review period. In North America, the Mexican Bolsa
and United States S&P 500 indices rose by 2.7 and 2.6 per
cent, respectively, while the Canadian S&P/TSX Composite
index fell by 2.4 per cent in the second quarter of 2017.
Similarly, in Europe, the DAX index rose marginally by 0.1 per
cent, while the MICEX, FTSE 100 and CAC 40 indices fell by 5.8,
0.1 and 0.04 per cent, respectively, in the review quarter.
In South America, the Argentine Merval and Colombian
COLCAP indices rose by 8.1 and 7.1 per cent, respectively,
while the Brazilian Bovespa index fell by 3.2 per cent. In Asia,
Japan‟s Nikkei 225 and India‟s BSE Sensex indices rose by 5.9
per cent and 4.4 per cent, respectively, while China‟s
Shanghai Stock Exchange-A index fell by 0.9 per cent.
In Africa, the Nigerian NSE All-Share, Kenyan Nairobi NSE 20,
Ghanaian GSE ASI and Egyptian EGX CASE 30 indices rose by
29.8 per cent, 15.9 per cent, 5.3 per cent and 4.5 per cent,
respectively, while the South African JSE All-Share index fell by
0.9 per cent in the second quarter of 2017.
Most currencies reviewed appreciated against the U.S. dollar
in the second quarter of 2017 due, largely, to the slowdown in
growth in the United States. In Africa, the South African rand,
Nigerian naira and Egyptian pound appreciated by 2.20 per
cent, 0.15 per cent and 0.22 per cent, respectively, while the
Ghanaian cedi and Kenyan shilling depreciated against the
U.S. Dollar by 2.04 per cent and 0.77 per cent, respectively.


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Economic Report Second Quarter

In North America, the Canadian dollar and the Mexican peso
appreciated against the U.S. dollar by 2.31 per cent and 3.31
per cent, respectively. In Europe, the British pound and euro
appreciated by 3.90 per cent and 6.82 per cent, while in
South America, the Brazilian real, Argentine and Colombian
pesos depreciated against the US dollar. The Chinese yuan
and Indian rupee appreciated against the U.S. dollar, while
the Russian ruble and Japanese yen depreciated by 4.55 per
cent and 0.89 per cent, respectively.
6.5 Other International Economic Developments
and Meetings
Other major international economic developments and
meetings of importance to the domestic economy during the
second quarter of 2017 included: The 2017 Association of
African Central Banks (AACB) continental Seminar held in
Accra, Ghana from May 3 – 5, 2017. The theme of the Seminar
was “Credible Communication Strategies for Central Banks in
the Framework of Monetary Policy and Financial Stability”. The
following recommendations were made at the Seminar to
guide communication by central banks:

Training of journalists and engagement of the media via
conferences to discuss implications and management of
emerging crisis;

Constitution and ready availability of a team of experts for
public engagement in times of crisis;

Communications should be well coordinated to advise
management on the implications of a chosen course of
action;

Central banks should have a full-fledged and functional
communications department with adequate budget
allocation to carry out their mandate; and

Central banks should use surveys and independent polls,
as tools to measure the effectiveness of monetary policy
communication, among others.
The Mid-Year Statutory meeting of the Economic Community
of West African states (ECOWAS) was held at Monrovia,


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Economic Report Second Quarter

Liberia from May 25 – June 4, 2017. The objectives of the
meeting were to highlight the major areas of concern with
respect to the implementation of the ECOWAS Monetary
Cooperation Programme (EMCP), assess the progress made,
and identify matters that require urgent attention towards the
2020 monetary integration. The major outcome of the meeting
was the adoption of Morocco as a member in principle.
Furthermore, the 2017 Spring Meetings of the Board of
Governors of the World Bank Group (WBG), and the
International Monetary Fund (IMF) were held in Washington D.
C., USA, from April 17 – 23, 2017. The meeting noted that the
emerging markets and developing countries (EMDCs) would
continue to contribute most to growth. It noted further that
strong fiscal frameworks were essestial to the mobilistaion of
resources to effectively support development efforts. It was
also agreed that the IMF had a key role to play in supporting
member countries to sustain recovery. A sideline meeting of
the Inter-Governmental Group of Twenty-Four (G-24) on
International Monetary Affairs and Developments was held
along with the Brettonwood institutions meetings.
Finally, the African Development Bank held its 2017 Annual
Meetings in Ahmedabad, India from May 22 – 27, 2017. The
theme of the meeting was “Transforming Agriculture for
Wealth Creation in Africa”. The meeting agreed on the
following:

Sustain its support to the private sector in its Regional
Member Countries (RMCs);

Work with other donor agencies to crowd in financial
resources, financing modalities and policy tools to unlock
the potentials, and fast-track the achievement of Africa‟s
agricultural transformation;

Engage with Regional Central Banks to address the
constraints in mobilising domestic resources as well as
seek ways to enhance the size and efficiency of
domestically mobilised resources; and

Attract more investment for youth in agriculture and the
implementation of the Bank Group‟s Jobs for Youth
Initiative.


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Economic Report Second Quarter

APPENDIX TABLES


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

Economic Report Second Quarter

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

Economic Report Second Quarter

Table A1: Money and Credit Aggregates


Source: CBN


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

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


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

Claims on Federal Government (Net)

Central Bank (Net)

Banks

Claims on Private Sector

Central Bank

Banks

Claims on Other Private Sector

Central Bank

Banks

Claims on State and Local Government

Central Bank

DMBs

Claims on Non-financial Public Enterprises

Central Bank

DMBs

Foreign Assets (Net)

Central Bank

DMBs and Non Interest Banks

Other Assets (Net)

Total Monetary Assets (M2)

Quasi-Money 1/

Money Supply (M1)

Currency Outside Banks

Demand Deposits 2/

Total Monetary Liabilities (M2)

Memorandum Items:
Reserve Money (RM)

Currency in Circulation (CIC)

Banks' Deposit with CBN

N billion


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Economic Report Second Quarter

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

Claims on Federal Government (Net)

Claims on Private Sector

Claims on Other Private Sector

Claims on State and Local Government

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

Other Assets (Net)

Total Monetary Assets (M2)

Quasi-Money 1/

Money Supply (M1)

Currency Outside Banks

Demand Deposits 2/

Total Monetary Liabilities (M2)

Memorandum Items:
Reserve Money (RM)

Currency in Circulation (CIC)

DMBs Demand Deposit with CBN

Domestic Credit (Net)

Claims on Federal Government (Net)

Claims on Private Sector

Claims on Other Private Sector

Claims on State and Local Governments

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

Other Asset (Net)

Total Monetary Assets (M2)

Quasi-Money 1/

Money Supply (M1)

Currency Outside Banks

Demand Deposits 2/

Total Monetary Liabilities (M2)

Memorandum Items:
Reserve Money (RM)

Currency in Circulation (CIC)

DMBs Demand Deposit with CBN

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


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

Federation Account

VAT Pool Account

FGN Independent Revenue

Excess Crude

Others/SURE-P

Expenditure

Recurrent

Capital

Transfers

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


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