CENTRAL BANK OF NIGERIA
CENTRAL BANK OF NIGERIA
Economic Report
For the
First Half of 2018
Economic Report
For the
First Half of 2018
CBN Economic Report for the First Half of 2018
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
Contact Centre
Tel:
+234 (0) 700 225 5226
© 2018 Central Bank of Nigeria
ISSN 1597 - 2976
iii
CBN Economic Report for the First Half of 2018
v
Vision

e THE MODEL CENTRAL BANK
“B
delivering PRICE and FINANCIAL SYSTEM STABILITY and
promoting SUSTAINABLE ECONOMIC DEVELOPMENT.”
Mission
“To be proactive in providing a stable framework for the economic development
of Nigeria, through the effective, efficient and transparent implementation of
monetary and exchange rate policy, and management of the financial sector.”
CBN Economic Report for the First Half of 2018
vi
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:
Ÿ
ensure monetary and price stability;
Ÿ
issue legal tender currency in Nigeria;
Ÿ
maintain external reserves to safeguard the international value of the legal
tender currency;
Ÿ
promote a sound financial system in Nigeria; and
Ÿ
act as banker and provide economic and financial advice to the Federal
Government of Nigeria.
CBN Economic Report for the First Half of 2018
MEMBERS OF THE COMMITTEE OF GOVERNORS OF
THE BANK AS AT JUNE 30, 2018
1.
Godwin I. Emefiele, CON
-
Governor (Chairman)
2.
Edward L. Adamu

-
Deputy Governor (Corporate Services)
3.
Okwu J. Nnanna

-
Deputy Governor (Economic Policy)
4.
Aishah Ahmad

-
Deputy Governor (Financial System Stability)
5.
Adebayo A. Adelabu

-
Deputy Governor (Operations)

Alice Karau*


-
Secretary

* Assumed duty on March 23, 2018
MEMBERS OF THE MONETARY POLICY COMMITTEE (MPC)
AS AT JUNE 30, 2018
1.
Godwin I. Emefiele, CON
- Governor (Chairman)
2.
Edward L. Adamu

- Deputy Governor (Corporate Services)
3.
Okwu J. Nnanna

- Deputy Governor (Economic Policy)
4.
Aishah Ahmad

- Deputy Governor (Financial System Stability)
5.
Adebayo A. Adelabu

- Deputy Governor (Operations)
6.
Festus A. Adenikinju

- Member
7.
Aliyu R. Sanusi
- Member
8.
Robert C. Asogwa

- Member
9.
Dahiru H. Balami

- Member
10.
Mahmud Isa-Dutse

- Member


Moses K. Tule


- Secretary
vii
CBN Economic Report for the First Half of 2018
DEPARTMENTAL DIRECTORS
1.
Dipo T. Fatokun

-
Banking & Payments System
2.
Ahmad Abdullahi

-
Banking Supervision
3.
Jubrin Nda*


-
Branch Operations
4.
Chizoba V. Mojekwu (Ms.)
-
Capacity Development
5.
T. Y. Ahmed*


-
Consumer Protection
6.
Isaac A. Okorafor*

-
Corporate Communications
7.
Alice Karau*


-
Corporate Secretariat
8.
Prescilia Eleje*

-
Currency Operations
9.
Mudashir A. Olaitan

-
Development Finance
10.
Dayo M. Arowosegbe

-
Finance
11.
Alvan E. Ikoku

-
Financial Markets
12.
Kevin N. Amugo

-
Financial Policy and Regulation
13.
Dabai M. Suleyman

-
FSS 2020
14.
Anthony C. Ifechikwu

-
Governors' Department
15.
Umma Dutse (Haj.)

-
Human Resources
16.
John I. Ayoh


-
Information Technology
17.
Vivian I. Agu (Mrs.)

-
Internal Audit
18.
Johnson O. Akinkunmi

-
Legal Services
19.
Faozat A. O. Bello (Mrs.)
-
Medical Services
20.
Moses K. Tule


-
Monetary Policy
21.
Agnes O. Martins (Mrs.)
-
Other Financial Institutions


Supervision
22.
Lazarus M. Agbor

-
Procurement & Support Services
23.
Uwatt B. Uwatt

-
Research
24.
Salihi Abba


-
Reserve Management
25.
Oluwafolakemi J. Fatogbe (Ms.) -
Risk Management
26.
Ibitayo O. Amu

-
Security Services
27.
Mohammed Tumala M.
-
Statistics
28.
Mu'azu Ibrahim

-
Strategy Management
29.
Francisca O. Okonji*

-
Trade & Exchange
30.
Eunice N. Egbuna**

-
Secondment to WAMI

* Overseeing the Department
**On secondment
viii
CBN Economic Report for the First Half of 2018
BRANCH CONTROLLERS/CURRENCY OFFICERS
1.
Obiageli A. Obiekwe (Mrs.)
-
Abakaliki
2.
Ibidunni F.Ola-Agbeja

-
Abeokuta
3.
Elizabeth. O. Agu (Mrs.)
-
Abuja
4.
Babatunde A. Amao

-
Ado-Ekiti
5.
Fatai A. Yusuf


-
Akure
6.
Hyacinth C. Ikeghagu

-
Asaba
7.
Monday C. Sokari

-
Awka
8.
Ahmed B. Umar

-
Bauchi
9.
Renner D. Jumbo

-
Benin
10.
Asma'u N. Babah (Mrs.)
-
Birnin-Kebbi
11.
Samson Isuwa


-
Calabar
12.
Ibrahim A. Dibola

-
Damaturu
13.
Tijjani I. Zakirai

-
Dutse
14.
Emmanuel C. Okonjo

-
Enugu
15.
Shehu A. Goringo

-
Gombe
16.
Ibrahim B. Abba

-
Gusau
17.
Musibau F. Olatinwo

-
Ibadan
18.
Ekanem N. Akpan

-
Ilorin
19.
Mohammed S. Abdullahi
-
Jalingo
20.
Satu J. Jatau


-
Jos
21.
Yargoje S. Saleh

-
Kaduna
22.
Amina P. Abubakar (Mrs.)
-
Kano
23.
Abubakar H. Joda

-
Katsina
24.
Ateh B. Ghasarah

-
Lafia
25.
James O. Iyari


-
Lagos
26.
Ahmed S. Isa*


-
Lokoja
27.
Umar I. Biu


-
Maiduguri
28.
Alphonsus E. Achebe

-
Makurdi
29.
Mas'ud T. Ibrahim

-
Minna
30.
Anita E. Ocheje

-
Osogbo
31.
Georgina Nwankwo

-
Owerri
32.
Adekunle K. Alaka

-
Port Harcourt
33.
Yusuf Wali


-
Sokoto
34.
Veronica E. Aqua

-
Umuahia
35.
Cletus O. Nwokoro

-
Uyo
36.
Itohan M. Ogbomon-Paul
-
Yenagoa
37.
Shuaibu Hussein

-
Yola
* Acting
ix
CBN Economic Report for the First Half of 2018
TABLE OF CONTENTS


PAGE
Summary

.. xxiii
1.0
INTRODUCTION


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

2.1 Liquidity Management ..


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

2.3
Developments in the Payments system


2.3.1
Payments System Initiatives


2.3.1.1 The Bank Verification Number (BVN) Scheme ..
..

2.3.1.2 Nigeria Electronic Fraud Forum (NeFF)
..
..

2.3.1.3 Regulatory Framework for Unstructured


Supplementary service Date (USSD) ..
..
..

2.3.1.4 Licensing of Payments System Service Providers
..

2.3.1.5 Payments System Vision 2020 (PSV 2020)
..
..

2.3.2
Retail Payments System..


2.3.2.1 Electronic Payments ..


2.3.2.2 Cheque


2.3.2.3 e-Money Products


2.3.2.3.1 ATM Transactions


2.3.2.3.2 Web Transactions


2.3.2.3.3 Point of Sale (PoS) Transactions
..
..

2.3.2.3.4 Mobile Payments


2.3.3
Wholesale Payments System ..


2.3.3.1 Real Time Gross Settlement (RTGS) System
..
..
1 3


2.3.3.2 Nigeria Inter-bank Settlement System Instant


Payment (NIP) ..


2.3.3.3 Nigeria Inter-bank Settlement System Electronic


Fund Transfer (NEFT)


2.3.4
Currency Operations ..


2.3.4.1 Issuance of the Legal Tender ..
..
..

2.3.4.2 Currency-in-Circulation (CIC) ..
..
..

2.4
Financial Sector Surveillance ..


2.4.1
Banking Supervision


2.4.2
Routine/Target Examination


2.4.3
Special/ Foreign Exchange Examinations ..
..
..
..

2.4.4
Banking Sector Soundness


2.4.5
Banks' Compliance with the Code of Corporate

Governance for Banks ..


2.4.6
Financial Crimes Surveillance/Anti-Money Laundering


/Combating the Financing of Terrorism (AML/CFT)..
..
..

2.4.7
Cross Border Activities ..


xi
CBN Economic Report for the First Half of 2018
xii


2.4.8
Update on Basel II/III Implementation ..
..
..
..

2.4.9
Fraud and Forgeries.. ..


2.4.10 Consumer Protection ..


2.4.11 Financial Literacy


2.4.12 Examination of Other Financial Institutions
..
..
..

2.5
Foreign Exchange Market and Management ..
..
..
..

2.5.1
Spot Segment of the Foreign Exchange Market
..
..

2.5.2
Forwards and Swaps Transactions


2.5.3
Exchange Rate Movements


2.5.3.1 Spot Exchange Rates


2.5.4
Foreign Exchange Flows


2.5.5
Sectoral Utilisation of Foreign Exchange
..
..
..

2.5.6
Nominal Effective Exchange Rate (NEER) and Real


Effective Exchange Rate (REER) Indices
..
..
..

2.6
Development Finance Operations


2.6.1 Agricultural Credit Guarantee Scheme


Fund (ACGS)


2.6.2
Interest Drawback Programme (IDP) ..
..
..
..

2.6.3
Commercial Agriculture Credit Scheme (CACS)
..
..

2.6.4
Paddy Aggregate Scheme (PAS)


2.6.5 MSME Development Fund (MSMEDF)


2.6.6 Anchor Borrowers' Programme (ABP) ..
..
..
..

2.6.7
Presidential Fertilizer Initiative ..


2.6.8
National Food Security Programme (NFSP)
..
..
..

2.6.9
National Collateral Registry (NCR)


2.6.10 SME Credit Guarantee Scheme (SMECGS)
..
..
..

2.6.11 Small and Medium Enterprises Restructuring and Refinancing


Facility ..


2.6.12 Real Sector Support Facility (RSSF)


2.6.13 Textile Sector Intervention Fund (TSIF) ..
..
..
..

2.6.14 Power and Airline Intervention Fund (PAIF)
..
..
..

2.6.15 Nigeria Electricity Market Stabilisation Facility (NEMSF) ..
..

2.6.16 Nigeria Bulk Electricity Trading Payment Assurance Facility


(NECT-PAF)


2.6.17 Non-oil Export Stimulation Facility (NESF)
..
..
..

2.6.18 Export Development Facility (EDF)


2.6.19 Financial Inclusion


2.6.19.1 Number of Savings Account and Biometric


Verification Number (BVN) Enrolment ..
..
..

2.6.19.2 Shared Agent Network Expansion Facility (SANEF)
..

2.6.20 Entrepreneurship Development Centres (EDCs)
..
..

2.6.21 Youth Entrepreneurship Development Programme (YEDP)
..

2.6.22 Agri-business/Small and Medium Enterprises Investment


Scheme


CBN Economic Report for the First Half of 2018
xiii
ECONOMIC REPORT


3.0
GLOBAL ECONOMIC DEVELOPMENTS


3.1
Global Output ..


3.2
Global Commodity Prices


3.3
Global Inflation..


3.4
International Financial Markets


3.5
World Economic Outlook for the Rest of 2017 ..
..
..
..

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

4.1
Monetary and Credit Developments ..


4.1.1
Reserve Money


4.1.2 Broad Money (M )


4.1.3
Narrow Money (M ) .. ..


4.1.4
Quasi Money (QM) ..


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

4.1.6
Currency Outside Bank (COB) ..


4.1.7
Drivers of Growth in Monetary Supply ..
..
..
..

4.1.7.1 Net Foreign Assets (NFA) ..


4.1.7.2 Net Domestic Credit (NDC) ..


4.1.7.2.1 Net Credit to the Government (NCG) ..
..

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

4.1.7.3 Other Assets (Net) (OAN)


4.1.8 Sectoral Distribution of Credit ..


4.1.9
Maturity Structure of DMBs' Outstanding


Loans and Advances, and Deposit Liabilities ..
..
..

4.1.10 Market Structure of the Banking Industry
..
..
..

4.1.11 Consumer Credit


4.1.12 Money Market Developments..


4.1.12.1 Money Market Assets Outstanding..
..
..
..

4.1.12.2 Primary Market..


4.1.12.3 Federal Government of Nigeria Bonds ..
..
..

4.1.12.4 Open Market Operations (OMO)..
..
..
..

4.1.12.5 OMO Auctions ..


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

4.1.12.7 Tenor Repurchase Transactions..
..
..
..

4.1.12.8 Discount Window Operations ..
..
..
..

4.1.12.9 Central Bank of Nigeria (CBN) Standing Facilities..
..

4.1.12.9.1 Standing Lending Facility (SLF).
..
..

4.1.12.9.2 Standing Deposit Facility (SDF).
..
..

4.1.12.10 Inter-Bank Funds Market


4.1.13 Interest Rates Developments.. ..


4.1.13.1 Money Market Rates.. ..


4.1.13.1.1 Deposit Rates..


CBN Economic Report for the First Half of 2018
xiv


4.1.13.1.2 Lending Rates..


4.1.14 Institutional Savings


4.1.15 Other Financial Institutions


4.1.15.1 Development Finance Institutions..
..
..
..

4.1.15.2 Microfinance Banks (MFBs).. ..
..
..
..

4.1.15.3 Finance Companies (FCs)


4.1.15.4 Primary Mortgage Banks (PMBs) ..
..
..
..

4.1.15.5 Bureaux-De-Change (BDCs) ..
..
..
..

4.1.16 Capital Market Developments..


4.1.16.1 Institutional Developments.. ..
..
..
..

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

4.1.16.3 The New Issues Market ..


4.1.16.4 The Secondary Market..


4.1.16.5 All-Share Index and Aggregate Market


Capitalisation ..


4.2 Fiscal Operations


4.2.1
Federally Collected Revenue ..


4.2.1.1 Federation Account Distribution
..
..
..

4.2.1.2 VAT Pool Account


4.2.1.3 Cumulative Distribution ..


4.2.2
Federal Government Finances


4.2.2.1 Federal Government Fiscal Balance ..
..
..

4.2.2.2 Federal Government Retained Revenue
..
..

4.2.2.3 Federal Government Expenditure
..
..
..

4.2.3
State Government Finances


4.2.4
Local Government Finances ..


4.2.5
Public Debt


4.2.5.1 Consolidated Government Debt
..
..
..

4.2.5.2 Domestic Debt..


4.2.5.3 External Debt.. ..


4.2.5.4 Total Debt Service


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 Policy and Institutional Support ..
..
..
..

4.3.3.2 Crude Oil Production and Demand
..
..
..

4.3.3.3 Crude Oil Prices..


CBN Economic Report for the First Half of 2018
xv


4.3.4
Refining Utilisation


4.3.5
Gas


4.3.5.1 Policy and Institutional Support
..
..
..

4.3.6
Solid Minerals ..


4.3.6.1 Policy and Institutional Support
..
..
..

4.3.6.2 Solid Mineral Production


4.3.7
Electricity Generation ..


4.3.8
Electricity Consumption


4.3.9
Industrial Financing.. ..


4.3.9.1 The Bank of Industry (BOI)


4.3.9.2 The Nigerian Export-Import Bank (NEXIM)
..
..

4.3.10 Consumer Prices


4.3.10.1 Headline Inflation


4.3.10.2 Core Inflation.. ..


4.3.10.3 Food Inflation..


4.3.10.4 Urban and Rural Consumer Price Indices and


Inflation Rates ..


4.3.11 Communication


4.3.12 Transportation ..


4.3.12.1 Aviation Services


4.3.12.1.1 Domestic Operations
..
..
..

4.3.12.1.2 International Operations..
..
..
..

4.3.12.2 Railway Services


4.3.12.3 Maritime Services


4.3.13 Social Sector Development.. ..


4.3.13.1 Health ..


4.3.13.2 Education


4.3.13.3 Environment ..


4.3.13.4 Housing and Urban Development
..
..
..

4.4
External Sector Developments ..


4.4.1
Current Account


4.4.1.1 Trade ..


4.4.1.2 Services ..


4.4.1.3 Income ..


4.4.1.4 Current Transfers..


4.4.2
Capital and Financial Accounts


4.4.2.1 Foreign Direct Investment


4.4.2.2 Portfolio Investment


4.4.2.3 Other Investment


4.4.3
Capital Importation and Capital Outflow
..
..
..

4.4.4
External Reserve


4.4.5
External Debt ..


CBN Economic Report for the First Half of 2018
xvi
5.0
INTERNATIONAL ECONOMIC RELATIONS


5.1
Global Institutions


5.1.1
International Monetary Fund (IMF)/World Bank Spring


Annual Meetings


5.2
Regional Institutions


5.2.1
The 5th Meeting of the Presidential Task Force on the


ECOWAS Single Currency


5.2.2
The 36th Meeting of the Committee of Governors of the


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

5.2.3
The 34th Board of Governors Meeting of the West African


Institute for Financial and Economic Management (WAIFEM) ..

5.2.4
The 51st Meeting of the Committee of Governors of ECOWAS


Member Central Banks


5.2.5
The 39th Meeting of the Convergence Council of Ministers


and Governors of Central Banks of the WAMZ ..
..
..

5.2.6
The Economic Commission for Africa (ECA) and the Annual


Conference of African Ministers of Finance, Planning and


Economic Development


5.2.7
The Continental Seminar of the Association of the African


Central Banks (AACB) Held in N'djamena, Chad
..
..

5.2.8
Regional Meeting of Monetary and Exchange Rate Policy


Experts on the Choice of A Single Monetary Policy Framework


and Exchange Rate Regime for the Future ECOWAS Monetary


Zone Held in Abuja, Nigeria


6.0
OUTLOOK FOR THE SECOND HALF OF 2018


CBN Economic Report for the First Half of 2018
TABLES
Selected Macroeconomic and Social Indicators

.. xxxiii

Monetary Policy Benchmarks and Outcomes ..


Monetary Policy Committee Decision During the First Half of 2017
..
..

Licensed Payments System Service Providers ..


Volume and Value of Electronic Payments


Structure of the CIC


Nominal and the Real Effective Exchange Rate Indices
..
..
..

Summary of MSMEDF Activities ..


Number of Value of Financing Statement in the National

Collateral Registry


Summary of Projects Financed Under PAIF


Indices of Selected International Stock Markets


Exchange Rates of Selected Countries


Sources and Uses of Reserve Money


Growth in Monetary Aggregates


Share of Credit to the Core Private Sector..


Maturity Structure of Banks Assets and Liabilities..


Money Market Rates.. ..


DMBs Deposit and Lending Rates.


Key Finance Companies Financial Highlights ..


Key Financial Indicators for Primary Mortgage Banks ..
..
..
..

DMBs' Credit to Core Private Sector


Money Market Rates ..


Selected Interest Rates


Open Market Operations (OMO) Sessions


Treasury Bills: Issues and Allotments


Monetary and Credit Developments.. ..


Value of Money Market Assets ..


Selected Interest Rates


Federation Account Operations


Federally Collected Revenue Distribution


Summary of Federal Government Finances


Functional Classification of Federal Government Recurrent and

Capital Expenditure. ..


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

Allocation to Local Government From the Federation and VAT Pool Accounts ..

Domestic Debt of the Federal Government


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

External Public Debt Outstanding


External Debt Service Payments


38a
Consolidated Debt of the Federal Government


38b
Consolidated Debt Payments ..


Gross Domestic Product at 2010 Constant Basic Prices ..
..
..
..

xvii
CBN Economic Report for the First Half of 2018
xviii

Gross Domestic Product at Current Basic Prices


Selected Real Sector Indicators..


Composite Consumer Price Index ..


Urban and Rural Consumer Price Index ..


Balance of Payments Analytic Presentation (US$)..


Balance of Payments Analytic Presentation (Naira)


Foreign Exchange Flows Through the Economy..


Nigeria's Gross External Reserves..


Nigeria's Foreign Exchange Cross Rates..


Monthly Average Exchange Rate Movement..


Supply of Foreign Exchange


Sectoral Utilization of Foreign Exchange ..


Total External Assets of Financial Institutions.. ..


CBN Economic Report for the First Half of 2018
FIGURES

Volume of Cheques Cleared ..


Value of Cheques Cleared..


Classification of E-Payment by Volume


Volume of Electronic Payments


Value of Electronic Payments ..


Volume of ATM Transactions


Value of ATM Transactions


Volume of Web Transactions ..


Value of Web Transactions


Volume of PoS Transactions


Value of PoS Transactions


Volume of Mobile Transactions


Value of Mobile Transactions ..


Volume of RTGS Transactions ..


Value of RTGS Transactions


Volume of NIP Transactions


Value of NIP Transactions


Volume of NEFT Transactions ..


Value of NEFT Transactions


Credit Risk Management System (CRMS) Statistics
..
..
..

Supply of Foreign Exchange


Exchange Rate Movements


Interbank/Bureau-de-Change Foreign Exchange (N/US$) Premium ..

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

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

Sectoral Utilisation of Foreign Exchange


27a
Sectoral Utilisation of Foreign Exchange (Visibles)
..
..
..

27b
Sectoral Utilisation of Foreign Exchange (Invisibles)
..
..
..

Nominal Effective Exchange Rate (NEER) and Real Effective

Exchange Rate (REER) ..


Distribution of ACGSF Loans (By Purpose)


Performance of the Naira against Major Currencies
..
..
..

Performance of the Naira against Regional Currencies
..
..

32 (a) Reserve Money and its Components: Sources
..
..
..

32 (b) Reserve Money and its Components: Uses


Ratio of Currency Outside Bank to Broad Money Supply
..
..

Growth in Money Supply


Distribution of Aggregate Credit to the Economy
..
..
..

xix
CBN Economic Report for the First Half of 2018

Distribution of Bank Loans and Advances by Maturity ..
..
..

Maturity Structure of Banks Deposits


38 (a) Market Concentration Ratios of Banks (Assets and Deposits) ..
..

38 (b) Measures of Competition in Banks: Herfindahl-Hirschman Index
..

Consumer Credit and Ratio of Claims on Core Private Sector ..
..

Money Market Assets Outstanding


Nigerian Treasury Bills Outstanding


Distribution of FGN Bonds


Money Market Rates ..


Complaints Received and Resolved ..


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

Structure of Gross Federation Revenue


Composition of Oil Revenue


Composition of Non-Oil Revenue


Composition of Federally-Collected Revenue (Net) ..
..
..

Cumulative Distribution to the tiers of Government and 13%

Derivation Fund


Federal Government (FGN) Fiscal Balance


Composition of Federal Government Retained Revenue
..
..

Composition of Federal Government Expenditure
..
..
..

Economic Classification of Federal Government Recurrent

Expenditure..


Composition of Total Allocation to State Governments
..
..

Composition of Statutory Allocation to Local Governments ..
..

Composition of Federal Government Consolidated Debt
..
..

Breakdown of External Debt Stock


Breakdown of Extenal Debt Service


GDP Growth Rate


Industrial Production Index


Average Manufacturing Capacity Utilisation ..
..
..
..

Crude Oil Production and Exports


Average Spot Prices of Selected Crudes


Sectoral Disbursement of BOI Loans


Consumer Price Indices..


Inflation Rate ..


Urban and Rural Consumer Price Indices..


Total Active Lines and Tele-density


Exports, Imports and Trade Balance


Foreign Exchange Utilisation ..


CBN Economic Report for the First Half of 2018
xxi

Non-Oil Exports by Products


Non-Oil Exports to the ECOWAS Sub-Region


Share of Services Out Payments..


Private Home Remittances


Foreign Capital Inflows


Capital Importation by Sector ..


Capital Outflows and Outward Transfers


External Reserves Stock and Months of Import Commitments ..
..

CBN Economic Report for the First Half of 2018
The Central Bank of Nigeria (CBN) maintained a nonexpansionary monetary policy stance in the first half of 2018,
to sustain the downward trend in inflation and ensure price
stability. The monetary policy rate (MPR) was kept at 14.0 per
cent, with asymmetric corridor of +200/-500 basis points
throughout the review period. Similarly, cash reserve and
liquidity ratios were retained at their respective levels of 22.5
per cent and 30.0 per cent. Open market operations (OMO)
remained the primary instrument for liquidity management,
complemented by repo transactions, standing facilities,
discount window operations and interventions in the foreign
exchange market. The Bank also sustained its supervision and
surveillance of the banking system to preserve the health of
financial institutions and promote financial system stability.
The CBN intensified the implementation of its development
finance initiatives, including: the Anchor Borrowers'
Programme (ABP); Commercial Agriculture Credit Scheme
(CACS) and the associated Paddy Aggregation Scheme;
Micro, Small and Medium Enterprises Development Fund
(MSMEDF); National Food Security Programme; Power and
Airline Intervention Fund (PAIF); Textile Sector Intervention
Fund (TSIF); and the Nigeria Electricity Market Stabilisation
Facility (NEMSF). Significant progress was recorded in
operations under the National Collateral Registry (NCR),
Entrepreneurship Development Centres (EDCs) and
implementation of Financial Inclusion Programmes.
Liquidity in the review period was buoyed by injections from
statutory fiscal disbursements, and maturing Central Bank of
Nigeria (CBN) and Federal Government of Nigeria (FGN)
securities, but was moderated by withdrawals, due to
provisioning and settlement for purchases of foreign
exchange, CBN bills and FGN securities. The Bank conducted
open market operations (OMO), as the main tool for liquidity
management, complemented mainly, by repurchase
agreements and the discount windows. Operations at the
special windows were also continued, to sustain liquidity in the
foreign exchange market.
xxiii
POLICY FRAMEWORK
SUMMARY
CBN OPERATIONS:
Developmental
Initiatives
Liquidity
Management
CBN Economic Report for the First Half of 2018
xxiv
Pursuant to the objective of ensuring a credible, reliable and
efficient payments system, the CBN, in the first half of 2018,
created the Payments System Management Department, to
strengthen the regulation and supervision of payments
service providers. Also, the Bank approved the Regulatory
Framework for BVN Operations and Watch-list for the Nigerian
Banking Industry to address incidences of fraud and
engender public confidence in the banking industry. Under
the BVN scheme, 46.1 million out of the 71.7 million active
accounts had been linked, at end-June 2018, compared with
40.7 million, out of the 62.6 million active accounts linked in the
corresponding period of 2017. The Bank also: continued its
oversight of the operations of service providers; issued the
regulatory framework for the use of USSD in the Nigerian
Financial Services Industry; and intensified the
implementation of the initiatives under the Payments System
Vision 2020.
The CBN continued to accord priority to the safety and
soundness of institutions. In that regard, a CBN/NDIC Joint Riskbased assessment of banks was conducted to ascertain the
quality of risk assets and adequacy of loan loss provisions. Also,
Risk-Based examinations of specialised institutions including,
the Asset Management Corporation of Nigeria (AMCON) and
three credit bureaux were carried out. In addition, special
examinations were carried out on the foreign exchange
operations of 26 banks to determine the level of compliance
with extant regulations. In collaboration with host supervisors,
joint routine and target examinations of some Nigerian banks'
foreign subsidiaries were conducted in the review period.
Furthermore, AML/CFT risk management and compliance
examinations were conducted to determine the adequacy
of risk management practices, as well as, level of compliance
with AML/CFT laws and related directives. The oversight of
corporate governance regime, in banks, continued in the
review period, to ensure compliance with the provisions of the
Corporate Governance Framework.
The industry average capital adequacy ratio (CAR) improved
to 12.18 per cent, from 10.2 per cent at end-June 2017. The
regulatory threshold remained at 15.0 per cent for banks with
international authorisation and 10.0 per cent for both those
with national and regional authorisation. The industry ratio of
non-performing loans (NPLs) to total loans also improved to
12.4 per cent at end-June 2018, from 15.0 per cent at endPayments
&
Clearing System
Financial Sector
Surveillance
CBN Economic Report for the First Half of 2018
xxv
June 2017, but remained above the regulatory threshold of
5.0 per cent. The industry liquidity ratio was 46.1 per cent at
end-June 2018, compared with 45.8 per cent at end-June
2017 and the regulatory minimum of 30.0, 20.0 and 10.0 per
cent for commercial, merchant and non-interest banks,
respectively.
In the Other Financial Institutions (OFIs) sub-sector, routine riskbased examination of the six (6) reporting development
finance institutions (DFIs) revealed that the composite risk
rating (CRR) of four (4) institutions was “High”, one (1) “Above
Average” and one (1) “Low”. Similarly, routine risk-based
examination of 224 microfinance banks (MFBs) and on-site
examination of 89 Bureaux-de-Change (BDCs) were
conducted in the first half of 2018.
A total of 1,439 and 2,451 complaints against banks and other
financial institutions were received and resolved,
respectively, in the first half of 2018, compared with 1,141 and
1,270 received and resolved in the corresponding period of
2017. A compliance examination of 21 banks revealed 100.0
per cent compliance in respect of outward telegraph/SWIFT,
savings account and current account maintenance charges,
and validation of refunds. Lower levels of compliance were,
however, recorded on implementation of directives issued
after the last examination, adherence to interest rate on
executed offer letters, application of SMS charges and
treatment of outstanding complaints.
The CBN sustained its intervention at the inter-bank and BDC
segments of the foreign exchange market, including
increased frequency of sales to BDCs to ensure liquidity and
stability in the market. It also abolished commission charges
on invisible foreign exchange transactions. To boost liquidity
and facilitate trade and investment, the Bank signed a 3-year
bilateral currency swap agreement with the Peoples' Bank of
China (PBoC), worth 15 billion yuan (₦720 billion), equivalent
to US$2.5 billion. Average exchange rate of the naira to the US
dollar, at the inter-bank and BDC segments, appreciated by
0.03 and 0.5 per cent, respectively, to ₦305.79/US$ and
₦362.25/US$, relative to the levels in the second half of 2017.
The average exchange rate at the Investors' & Exporters'
Window was ₦360.61/US$ in the first half of 2018.
Foreign Exchange
Management
Financial Sector
Surveillance
CBN Economic Report for the First Half of 2018
xxvi
Broad money supply (M ) grew by 2.8 per cent to ₦24,814.00

billion at end-June 2018, annualised to 5.6 per cent,
compared with the benchmark of 10.8 per cent for fiscal 2018.
The growth in M reflected, mainly, the significant rise in net

foreign assets, which more than offset the contraction in other
assets (net) and domestic credit (net) of the banking system.
Reserve money, at ₦6,360.47 billion, fell by 1.9 per cent,
compared with the 6.3 per cent decline at end-June 2017.
Narrow money supply (M ) fell by 4.2 per cent to ₦10,701.10

billion at end-June 2018, on account of the 14.7 per cent and
2.3 per cent decline in currency outside banks and demand
deposits, respectively. Currency-in-circulation fell by 12.0 per
cent to ₦1,900.67 billion at the end of the first half of 2018.
Net domestic credit (NDC) fell by 1.4 per cent to ₦25,561.40
billion at end-June 2018, in contrast to 1.4 per cent growth at
end-June 2017. Net claims on government declined by 9.7
per cent, reflecting a fall in holdings of government securities,
especially treasury bills, by the banking system. As in the
corresponding period of 2017, the Federal Government
remained a net lender to the banking system in the review
period. Credit to the private sector, fell marginally by 0.1 per
cent to ₦22,275.10 billion at end-June 2018, in contrast to the
0.02 per cent growth in the corresponding period of 2017.
Banks' deposit rates generally trended upwards, while
developments in lending rates were mixed in the first half of
2018. The average term deposit rate rose by 1.38 percentage
points to 8.79 per cent, above the level in the corresponding
period of 2017. The average rate for deposits of various
maturities exhibited similar trend. The weighted average
maximum lending rate rose by 1.34 percentage points to
31.39 per cent, while the average prime lending rate fell
marginally by 0.10 percentage point to 17.25 per cent.
Consequently, the spread between average term deposits
and maximum lending rates narrowed to 22.60 percentage
points. Movements in money market rates reflected the
liquidity conditions in the banking system in the review period
and were generally, lower than the levels in the
corresponding period of 2017. The monthly weighted
average inter-bank and average Open-Buy-Back rates were
14.64 and 12.45 per cent, respectively, compared with 22.94
and 26.66 per cent in the corresponding period of 2017. The
weighted average Nigeria Inter-bank Offered Rate (NIBOR)
for the 30-day tenor was 14.23 per cent, compared with the
THE FINANCIAL
SECTOR
CBN Economic Report for the First Half of 2018
xxvii
29.26 per cent in the corresponding half of 2017. With the yearon-year inflation at 11.23 per cent at end-June 2017, all
deposit rates were negative in real terms.
Despite the slowdown in the momentum of rebound in the
capital market, due to waning investors' confidence, the
market closed bullish at the end of the first half of 2018, relative
to the position of activities in the corresponding period of
2017. There were ten (10) new issues in the review period,
comprising six (6) equity and four (4) corporate bonds listings
worth ₦60.36 billion and ₦33.33 billion, respectively, in the
primary segment. Aggregate volume and value of traded
securities rose by 52.0 per cent and 70.0 per cent,
respectively, relative to the levels in the corresponding period
of 2017. The aggregate market capitalisation and All-Share
Index (ASI) rose by 15.6 and 26.1 per cent to ₦23.99 trillion and
38,278.55, respectively, at end-June 2018, over the levels at
end-June 2017.
Gross federally-collected revenue, at ₦4,401.91 billion or 7.7
per cent of GDP in the first half of 2018, was below the
proportionate budget estimate by 33.7 per cent, reflecting a
shortfall in both oil and non-oil components. At that level, it
exceeded the level in the corresponding period of 2017 by
47.1 per cent.
The Federal Government retained revenue, at ₦1,799.38
billion or 3.2 per cent of GDP, was 52.9 per cent below the
proportionate budget estimate, but was 24.0 per cent above
the level in the corresponding period of 2017. At ₦2,586.13
billion or 4.5 per cent of GDP, the aggregate expenditure of
the Federal Government was 46.1 and 21.3 per cent below
the proportionate budget estimate and the level in the
corresponding period of 2017, respectively. The shortfall,
relative to the proportionate budget estimate, was attributed,
largely, to the late passage of the 2018 Appropriation Act.
Recurrent and capital expenditure constituted 82.3 and 13.3
per cent of total expenditure, respectively, while statutory
transfers accounted for the balance of 4.4 per cent. The fiscal
operations of the Federal Government in the first half of 2018
resulted in an estimated overall deficit of ₦786.75 billion or 1.4
per cent of GDP, compared with the proportionate budget
estimate of ₦921.13 billion and the level in the corresponding
THE FISCAL
SECTOR
THE FINANCIAL
SECTOR
CBN Economic Report for the First Half of 2018
xxviii
period of 2017, at ₦921.13 billion. The deficit was financed
from domestic sources.
The Federal Government consolidated debt stock at endJune 2018 was estimated at ₦18,902.34 billion or 15.8 per cent
of GDP, representing an increase of 32.9 per cent, over the
level at end-December 2017. Domestic debt accounted for
₦12,151.43 billion or 64.3 per cent, while the external debt
amounted to ₦6,750.91 billion (US$22.08 billion) or 35.7 per
cent of the total. The external debt of US$22.08 billion or 5.7 per
cent of GDP remained within the sustainable threshold of 40.0
per cent of GDP.
The real sector witnessed modest growth during the first half of
2018 as the tempo of activities picked up in both the oil and
non-oil sectors of the economy. Available data from the NBS
indicated that Gross Domestic Product (GDP), at 2010
constant basic prices, grew by 1.73 per cent in the first half of
2018, relative to 0.09 per cent contraction in the
corresponding period of 2017. The development was
attributed to increased crude oil receipts leading to
increased fiscal expenditures, sustained reforms to improve
the business environment and relative stability in the foreign
exchange market. The agricultural sector continued to
record improved performance in the first half of 2018 following
the commitment of government to achieve food sufficiency
and diversification. Among the major initiatives to increase
productivity in the sector were: the execution of
Memorandum of Understanding between the Fund for
African Private Sector Assistance (FAPA) and African Fertilizer
and Agribusiness Partnership (AFAP) to support domestic
production and utilisation of fertilizer in Nigeria; and
integration of the agricultural commodity value chain into the
broader supply chain, linking the country with the global
industry. In the industrial sector, modest growth was recorded,
supported by capacity enhancing initiatives including:
completion of 1.5 million metric tons per annum cement plant
along with a 32 megawatts multi-fuel capacity power plant
and a coal mill by the BUA Group; commissioning of N50
billion Sunti Golden Sugar Estate in Mokwa, Niger state;
initiation of 422 new electrification projects across the six
geopolitical zones, as well as, inauguration of the Power
Capacitor Bank Project to improve the voltage of electricity
supply to selected locations across the country.
THE REAL
SECTOR
THE FISCAL
SECTOR
CBN Economic Report for the First Half of 2018
xxix
The relative stability in the Nigerian oil and gas industry from
the second half of 2017 continued in the review period.
Consequently, average daily crude oil production increased
by 0.27 mbd or 16.6 per cent to 1.90 million barrels per day
(mbd) or 343.9 million barrels (mb), above the level in the
corresponding half of 2017. The average spot price of
Nigeria's reference crude, the Bonny Light was US$71.99 per
barrel at end-June 2018, indicating 37.9 per cent increase
above the level in the first half of 2017. The price increase was
attributed, mainly, to continued geopolitical tension in the
Middle East and Korean Peninsula, uncertainties around the
possible US withdrawal from the Iran nuclear deal and the
lingering effect of the trade dispute between the US and
China.
Inflation maintained a downward trend throughout the first
half of 2018, on account of persisting moderation in food and
non-food prices. The all-items composite Consumer Price
Index (CPI) stood at 260.5 (November 2009=100), compared
with 246.4 and 234.2 at end-December and end-June 2017,
respectively. Consequently, headline inflation, on year-onyear and 12-month moving average bases declined steadily
throughout the review period to 11.2 per cent and 14.4 per
cent, respectively, at end-June 2018, from 15.1 per cent and
16.5 per cent at end-December 2017.
The external sector improved in the first half of 2018, reflecting
a higher overall balance of payments position of ₦2,382.61
billion (4.0 per cent of GDP), on account of accretion to
external reserves. The current account also recorded higher
surplus, occasioned by increased trade and current transfer
surpluses. The capital and financial account recorded a net
financial liability equivalent to 0.9 per cent of GDP, in contrast
to financial asset equivalent to 13.9 per cent of GDP in the
corresponding period in 2017. The stock of external reserves
rose to US$47.16 billion at end-June 2018 and could finance
15.3 months of current level of import of goods or 8.9 months of
goods and services.
Global growth was projected to improve to 3.9 per cent
apiece in 2018 and 2019 (WEO, July 2018), compared with 3.7
per cent in 2017. In the advanced economies, output growth
was projected to stabilise at 2.4 per cent in 2018, reflecting
uneven outcomes among countries in the region. Inflation
outcomes were lifted by increase in fuel prices, generally
THE
EXTERNAL
SECTOR
OUTLOOK
FOR THE REST
OF 2018
THE REAL
SECTOR
CBN Economic Report for the First Half of 2018
xxx
breaching central banks' targets in most advanced
economies. In the euro area, growth was projected at 2.2 per
cent in 2018, compared with 2.4 per cent in 2017. The IMF's
projections for other advanced countries such as Japan and
Canada also indicated reduced optimism for 2018. The
dismal outlook for 2018 reflected the impact of the ongoing
trade tensions between the United States and China, the
lingering uncertainty relating to Brexit negotiations, coupled
with increasing tendencies towards inward-looking policies
and aggressive protectionism.
In the emerging market and developing economies (EMDEs),
growth was projected to rise to 4.9 per cent in 2018 above 4.7
per cent in 2017, reflecting the presence of strong crosswinds,
namely rising crude oil prices, higher yields in the United States
paired with dollar appreciation and the US-China trade
tensions. In general, the outlook for individual economies in
the region varies, depending on the interaction of these
global shocks with domestic idiosyncratic factors. The
Chinese economy was projected to grow by 6.6 per cent in
2018, compared with 6.9 per cent in 2017. Growth in the Indian
economy was projected at 7.3 per cent in 2018, compared
with 6.7 per cent in 2017, as drags from the currency
exchange initiative and the introduction of the goods and
services tax wane. In Brazil, growth was projected to rise to 1.8
per cent in 2018, from 1.0 per cent in 2017, on the back of the
upturn in commodity prices, despite lingering effects of strikes
and political uncertainty.
In sub-Saharan Africa, growth was projected at 3.4 per cent in
2018 above 2.8 per cent in 2017. The recovery in the region
was set to continue, supported by the rise in commodity
prices. The upbeat outlook for the region reflected improved
prospects for Nigeria's economy, which was set to growth by
2.1 per cent in 2018 from 0.8 per cent in 2017. The South African
economy was projected to grow by 1.5 per cent in 2018 from
1.3 per cent in 2017.
The outlook for Nigeria's economy for the rest of the year is
optimistic. Growth in the near-term is expected to witness
expansion, premised on favourable oil price and output level,
stability in the foreign exchange market and continued
intervention of the Central Bank of Nigeria in the real
economy.
OUTLOOK
FOR THE REST
OF 2018
CBN Economic Report for the First Half of 2018
xxxi
The real sector remains critical, with sustained government
spending on infrastructure, and moderation in headline, core
and food inflation. Government policy interventions,
particularly, the Anchor Borrowers' Programme (ABP) would
continue to impact positively on the economy. However, a
number of headwinds remain, including a general sense of
insecurity and the envisaged 2019 pre-election spending
activities. Nevertheless, the improvement in monetary and
fiscal policies coordination, and the sustenance of CBN
interventions in growth-stimulating and labour intensive
sectors, such as, the manufacturing, agriculture and the
Micro, Small and Medium Enterprises (MSMEs), among others,
are expected to moderate the effects of these risks.
The external sector is expected to remain viable given
favourable current account balance, driven largely by the
improvement in oil receipts and stability in the foreign
exchange market. On the other hand, there are
uncertainties, arising from trade disputes between the United
States (US) and China; increasing geopolitical tensions,
particularly in the Middle East; the risk of capital reversal; and
rising external debt.
In the fiscal sector, there is high prospect for government
revenue, as crude oil price is expected to remain above the
budget benchmark of US$51.0 per barrel. This optimism drives
the growth momentum in most advanced and emerging
economies. Similarly, the diversification of the economy and
the expansion of the tax base through reforms are expected
to further strengthen government revenue. In addition, the
passage of the 2018 budget would enhance capital releases
with positive impact on economic growth. However, there is a
likelihood of bunching of capital releases towards the last
quarter of the year.
The financial sector would remain resilient in the second half of
2018, as all the major prudential indicators are strong. Also, the
continued implementation of payments system initiatives are
expected to sustain improved efficiency, safety and
confidence in the Nigerian payments system. However, rising
interest rate in the United States remains a major threat to the
retention of portfolio investments in the country. Nonetheless,
effective surveillance and prompt regulatory actions by the
Bank are expected to mitigate any unintended effects on the
financial system, and ensure improvement in the health and
safety of banks for the rest of the year.
OUTLOOK
FOR THE REST
OF 2018
CBN Economic Report for the First Half of 2018
xxxiii

Indicator
Jun-14
Jun-15
Jun-16
Jun-17 1/
Jun-18 2/
Domestic Output and Prices
GDP at Current Mkt Prices (₦ billion)

GDP at Current Mkt Prices (US$ billion)

GDP per Capita (₦)

GDP per Capita (US$)

Real GDP Growth (%) 3/

Oil Sector

Non-oil Sector

Sectoral Classication GDP Growth (%) 3/
Agriculture

Industry

Construction

Trade

Services

Oil Production (mbd)

Manufacturing Capacity Utilisation (%)

Ination Rate (%) (Year-over-Year)

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

Core Ination Rate (%) (Year-over-Year) 4/

Core Ination Rate (%) (12-month moving average) 4/

Food Ination Rate (%) (Year-over-Year)

Food Ination Rate (%) (12-month moving average)

Federal Government Finance (% of GDP) 5/
Retained Revenue

Total Expenditure

Recurrent Expenditure

Of which: Interest Payments

Foreign

Domestic

Capital Expenditure and Net Lending

Transfers

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

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

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

Financing

Foreign

Domestic

Banking System

Non-Bank Public

Others

Consolidated Government Debt Stock 6/

External

Domestic

Selected Macroeconomic and Social Indicators
CBN Economic Report for the First Half of 2018
xxxiv

Indicator
Jun-14
Jun-15
Jun-16
Jun-17 1/
Jun-18 2/
Money and Credit (Growth Rate %)
Reserve Money

Narrow Money (M 1)

Broad Money (M 2)

Net Foreign Assets

Net Domestic Assets

Net Domestic Credit

Net Credit to Government

Credit to Private Sector

Money Multiplier for M2

Income Velocity of M2

Interest Rates (% per annum)
Monetary Policy Rate (MPR) (end period) 7/

Repurchase Rate (Average)
Reverse Repurchase Rate (Average)
Treasury Bill Rate (Average)
91-day

Inter-bank Call Rate (end-period)

Deposit Rates (end-period)
Savings Rate

3-months Fixed

6-months Fixed

12-months Fixed

Prime Lending Rate (end period)

Maximum Lending Rate (end period)

External Sector
Current Account Balance (% of GDP) 5/

Goods Account

Services Account (net)

Income Account (net)

Current Transfers

Capital and Financial Account Balance (% of GDP) 5/

Overall Balance (% of GDP) 5/

External Reserves (US$ million)

Number of Months of Import Equivalent

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

Average Ofcial Rate (₦/US$)

End of Period Ofcial Rate (₦/US$)

Average Bureau de Change Exchange Rate (₦/US$)

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

Capital Market
All Share Value Index (1984=100)

Value of Stocks Traded (₦ billion)

Market Capitalization (₦ Trillion)

Social Indicators
Population (million)

Population Growth Rate (%)

Life Expectancy at Birth (Years)

Adult Literacy Rate (%)

Incidence of Poverty

1/ Revised
2/ Provisional
3/ Based on GDP measured at basic prices.
4/ Core Ination is measured as the rate of change of allitem Consumer Price Index (CPI) less farm produce.
5/ Computations are based on GDP at Current Market Prices.
6/ Includes State Government Debts
7/ MPR replaced MRR with effect from December 11, 2006.
Sources: Central Bank of Nigeria (CBN), Federal Ministry of Finance (FMF), National Bureau of Statistics (NBS), National Population Commission (NPOPC)
Nigeria National Petroleum Corporation (NNPC), Nigerian Stock Exchange (NSE)
Selected Macroeconomic and Social Indicators ConƟnued
CBN Economic Report for the First Half of 2018
CENTRAL BANK OF NIGERIA
REPORT FOR THE FIRST HALF OF 2018
1.0
INTRODUCTION
In the first half of 2018, the domestic economy was affected by a number of
developments, including interest rate hike in the United States of America,
paired with dollar appreciation and rising inflation concern in the advanced
economies. Others were the US – China trade dispute, the Brexit 'no deal' threat
and higher crude oil receipts, which boosted external reserves. Consequently,
excess liquidity persisted in the banking system, thereby impacting domestic
prices and economic activity. Accordingly, the Bank retained a nonexpansionary monetary policy stance to rein-in inflation, moderate demand
pressure in the foreign exchange market and stimulate capital inflow. The Bank
also sustained its intervention in the foreign exchange market, and retained
the special Investors' and Exporters' (I&E) window to boost foreign exchange
supply from autonomous sources and stabilise the domestic currency. The
framework for monetary management remained monetary targeting, with the
monetary policy rate (MPR) as the anchor for short-term money market rates.
Open Market Operations (OMO) remained the major instrument of liquidity
management, complemented by cash reserve ratio (CRR), standing facilities
window, discount window operations, as well as interventions in the foreign
exchange market.

CBN Economic Report for the First Half of 2018

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

Dec 2016

Jun 2017

Dec 2017

Jun 2018


Benchmark
Outcome
Benchmark
Outcome
Benchmark
Outcome
Benchmark
Outcome
Broad Money (M 2)

11.0

17.78

10.3

-6.83

10.3

2.33

10.48

2.79

Narrow Money (M 1)

11.3

31.5

11.0

-9.59

11.07

-0.85

8.04

-4.25

Base Money (Reserve)

13.2

0.61

11.4

-6.29

11.4

10.88

9.69

-1.91

Aggregate credit to the domestic
economy (Net)

17.9

24.27

17.9

1.41

17.93

-3.45

12.45

-1.43

Credit to Government (Net)

47.43

68.58

33.1

7.69

32.9

-
25.32

54.25

-9.74

Credit to the private sector

13.4

17.42

14.9

0.02

14.9

1.4

5.75

-0.07

Ination rate

11.9

18.6

10.7

16.1

10.7

15.37

13.00

11.23

Real

GDP

3.6

-1.3

4.1

0.55

4.09

2.11

2.50

1.5


CBN Economic Report for the First Half of 2018

2.0
OPERATIONS OF THE CENTRAL BANK OF NIGERIA
2.1
Liquidity Management
In the first half of 2018, excess liquidity in the banking system remained a key
challenge in the domestic economy, stoked by increased fiscal disbursements.
In addition, injection from maturing CBN bills and the redemption of FGN Bonds
and Nigerian Treasury Bills (NTBs) exacerbated the liquidity situation. Therefore,
monetary policy in the review period focused on liquidity management to
achieve the Bank's mandate of monetary and price stability conducive to
sustainable economic growth. The Bank sustained its non-expansionary
monetary policy stance, along with a combination of policy measures to
promote efficient financial market, attract foreign capital inflow, stabilise the
exchange rate and rein-in inflationary pressure. Open Market Operations
(OMO) remained the Bank's key liquidity management instrument,
complemented by reserve requirements, repurchase agreements, standing
facilities and discount window operations.
The MPR was retained at 14.0 per cent, with an asymmetric corridor of +200/-
500 basis points for the standing lending facility (SLF) and standing deposit
facility (SDF), respectively, at the April and May 2018 MPC meetings. The Cash
Reserve Ratio (CRR) and Liquidity Ratio (LR) were also retained at 22.5 and 30.0
per cent, respectively. Consequently, reserve money stood at ₦6,360.47 billion
at end-June 2018, indicating a decline of 1.9 per cent below its level in the
preceding period of 2017, but was 6.3 per cent above the corresponding
period of 2017. The Bank also sustained its intervention in the foreign exchange
market, and retained the Investors' and Exporters' (I&E) window to boost
foreign exchange supply from autonomous sources and stabilise the domestic
currency.
2.2 Monetary Policy Committee (MPC) Decisions
In the first half of 2018, the Monetary Policy Committee (MPC) held two (2) out
of the three (3) regular meetings. One of the meetings did not hold because
the MPC was yet to be re-constituted. A summary of the key decisions of the
Committee were as follows:
CBN Economic Report for the First Half of 2018

Table 2
Monetary Policy Committee Decisions During the First Half of 2018
Source: Central Bank of Nigeria MPC Communiqués
2.3 Developments in the Payments System
During the review period, the Bank created the Payments System
Management Department out of the former Banking and Payment Systems
Department, to strengthen the supervision and regulation of payments service
providers. This was meant to facilitate effective supervision, early identification
of emerging risks in the payments system and boost public confidence in the
banking industry.
2.3.1 Payments System Initiatives
2.3.1.1 The Bank Verification Number (BVN) Scheme
The Bank approved the Regulatory Framework for BVN Operations and Watchlist for the Nigerian Banking Industry, to address incidences of fraud. The
objectives of the Framework included to:
Ÿ
Clearly define the roles and responsibilities of stakeholders;
Ÿ
Clearly define the operations of the Bank Verification Number (BVN) in
Ÿ
Nigeria;
Ÿ
Define access, usage and management of the BVN information,
requirements and conditions;
Ÿ
Provide a database of watch-listed individuals;
Ÿ
Outline the process and operations of the Watch-List; and
Ÿ
Deter fraud incidences in the Nigerian Banking Industry.


Decisions


·
Retained the MPR at 14.0 per cent;

·
Retained the CRR at 22.5 per cent;

·
Retained the LR at 30.0 per cent; and

·
Retained the asymmetric corridor at
+200/
– 500 basis points around the MPR.


May 21 and 22,

Regular

·
Retained the MPR at 14.0 per cent;

·
Retained the CRR at 22.5 per cent;

·
Retained the LR at 30.0 per cent; and

·

Retained the asymmetric corridor at
+200/
–

500 basis points around the MPR.


Date of
Meeting
Type of
Meeting
April 03 and 04,

Regular
CBN Economic Report for the First Half of 2018

At end-June 2018, out of 71.8 million active customer accounts, 46.1 million
accounts had been linked with BVN under the Scheme.
2.3.1.2 Nigeria Electronic Fraud Forum (NeFF)
The 2017 Annual Report of the NeFF, titled, “Tightening the BELT of E-fraud
Prevention: A 4-sided Approach”, was realised in June 2018. The Report
stressed the importance of providing secure payments system, while ensuring
public confidence in electronic means of payment. The Forum also partnered
with the Nigerian Communications Commission (NCC) to conduct an industry
stakeholder's workshop on cybercrime. The workshop proposed automated
system (a shared infrastructure) for real-time exchange of information
between the banks and Mobile Network Operators (MNOs) to curb the rising
incidences of fraud, due to, unauthorized SIM swaps & recycling in the country.
Based on the recommendation of the Forum, the Bank issued circular, directing
mobile money operators and other payments service providers to comply with
the statutory provision for the collection and remittance of the levy on all
electronic transactions for the National Cyber-security Fund.

2.3.1.3 Regulatory Framework for Unstructured Supplementary Service

Data (USSD)
The vulnerabilities in the USSD technology and the ever growing threats of its
application to financial services, particularly in the absence of a common
standard for multiple USSD channels led the Bank to approve the Regulatory
Framework for the use of USSD in the Nigerian Financial Services.
2.3.1.4 Licensing of Payments System Service Providers
The CBN continued to conduct oversight functions on payments service
providers. At the end of the review period, 77 payments system participants
had valid licences to operate in the different segments of the payments
system, compared with 68 providers at-end December 2017.
CBN Economic Report for the First Half of 2018

Table 3: Licensed Payments System Service Providers

Source: CBN
2.3.1.5 Payments System Vision 2020 (PSV 2020)
In continuation of the implementation of the PSV 2020, through the Payments
Scheme Boards and Initiative Working Groups, the CBN:
Ÿ
Ceaselessly worked on the implementation of the proposed riskbased collateral management model that would address liquidity
and credit risk associated with the Deferred Net Settlement Systems;
Ÿ
·Produced an exposure draft of the Nigerian Payments System Risk
and Information Security Management Framework to set out
standards regarding the management of risks that the payment
systems presents to the Nigerian financial system; and
Ÿ
Issued both the Regulation of Bills Payments and Direct Debit Schemes
in Nigeria.
2.3.2 Retail Payments
2.3.2.1 Electronic Payments
The volume and value of electronic payments increased to 953,176,045 and
₦62, 815.57 billion at end-June 2018, respectively, compared with 829,422,069
and ₦52, 650.19 billion at end-December 2017, representing an increase of
14.92 and 19.31 per cent, respectively. The rise reflected public confidence in
the electronic payments system.
License -Type

Number

Dec 2017

June 2018
Card Schemes

Mobile Money Operators

2 5

Payment Solution Service Providers

Payment Terminal Service Providers

Transaction Switching Companies

Third Party Processors

Accredited Cheque Printers

Total

CBN Economic Report for the First Half of 2018

Payment
Channel

Number of
Terminals

Number of
Transactions

%
Change
(Volume)

Value
N ’ Billion

%
Change
(Value)

Jun

Dec

Dec-17
(Million)
Jun-18

(Million)


Dec-17


Jun-18

ATMs

18,052

17,712
433.8

429.8

0.9
3,391.31

3,172.12

6.5

POS


39.1

799.7

1,018.36

27.3

Mobile


23.7
27.6

16.9
546.17

594.91

8.9

Internet
(Web)


17.7
17.7

1.9

100.93

109.54

8.5

NEFT


18.2
19.0

4.9
7,896.14

7,448.97

5.7

NIP


220.4

308.4

39.9
29,674.48

36,892.99

24.3

e-Bills
Pay


0.4
0.5

34.8

258.32

256.65

0.7

REMITA


21.0
20.3

3.1
6,610.61

9,319.06

41.0

NAPS


7.8
8.9

13.9
3,372.53

4,003.67

18.7

Total


829.2

953.0


52,650.19

62,816.25


Table 4: Volume and Value of Electronic Payments
Source: CBN
2.3.2.2 Cheque
The volume and value of cheques decreased to 4.7 million and ₦2,600.43
billion in the first half of 2018, compared with 5.3 million and ₦2,781.50 billion in
the corresponding period of 2017, reflecting decline of 11.3 and 6.5 per cent,
respectively. The decrease was attributed to consumers' preference for the
use of other modes of payment.
Figure 1
Volume of Cheques Cleared
(Million)
Source: CBN
CBN Economic Report for the First Half of 2018

Figure 2
Value of Cheques Cleared
(₦' Billion)
Source: CBN
2.3.2.3 e-Money Products
During the review period, the volume and value of electronic payments
(comprising ATM, PoS, Mobile payments and Internet) increased to 596.0
million and ₦4,894.90 billion in the first half of 2018 from 461.8 million and
₦4,295.90 billion in the corresponding period of 2017, representing an increase
of 29.1 and 13.9 per cent, respectively.
A breakdown of e-payment channels for the review period indicated that ATM
remained the most patronised, accounting for 72.1 per cent, followed by PoS
and mobile payments, with 20.3 and 4.6 per cent, respectively. The web
(internet) was the least patronised, accounting for 3.0 per cent of the total. In
terms of value, ATM accounted for 64.8 per cent; PoS, 20.8 per cent; mobile
payments, 12.2 per cent and the web (Internet) accounted for 2.2 per cent.
Figure 3
Classification of Electronic Payments by Volume, First Half 2018
(Per cent)

Source: CBN
CBN Economic Report for the First Half of 2018

Figure 4
Volume of Electronic Payments
(Million)
Source: CBN
Figure 5
Value of Electronic Payments
(₦'Billion)
Source: CBN
2.3.2.3.1
ATM Transactions
The number of ATMs at end-June 2018 stood at 18,052, with
increasedtransactions, both in volume and value by 17.2 and 4.1 per cent to
429.8 million and ₦3,172.1 billion, respectively, above 366.8 million and ₦3,046.3
billion in the corresponding period of 2017.
CBN Economic Report for the First Half of 2018

Figure 6
Volume of ATM Transactions
(Million)
Source: CBN
Figure 7
Value of ATM Transactions
(₦' Billion)
Source: CBN
2.3.2.3.2
Web Transactions
The volume and value of internet transactions increased in the first half of 2018
by 54.8 and 30.8 per cent to 17.8 million and ₦109.5 billion, compared with 11.5
million and ₦83.7 billion, respectively, in the corresponding period of 2017. The
rise was as a result of increased awareness and acceptance of internet
payment.
CBN Economic Report for the First Half of 2018

Figure 8
Volume of Web Transactions
(Million)
Source: CBN
Figure 9
Value of Web Transactions
(₦'Billion)
Source: CBN
2.3.2.3.3
Point of Sale (PoS) Transactions
The number of PoS terminals deployed at end-June 2018 was 185,026. The
volume and value of transactions rose by 103.4 and 66.9 per cent to 120.8
million and ₦1,018.4 billion, respectively, in the first half of 2018, above the 59.4
million and ₦610.1 billion in the corresponding period of 2017. The rise in usage
of PoS terminals was on account of increasing public confidence in the
channel.
CBN Economic Report for the First Half of 2018

Figure 10
Volume of PoS Transactions
(Million)
Source: CBN
Figure 11
Value of PoS Transactions
(₦'Billion)
Source: CBN
2.3.2.3.4
Mobile Payments
The volume and value of mobile payments increased by 14.0 and 7.0 per cent
to 27.6 million and ₦594.9 billion, respectively, in the first half of 2018 above 24.2
million and ₦555.8 billion in the corresponding period of 2017. The rise was due
to increased acceptance of mobile payments as an easier alternative.
CBN Economic Report for the First Half of 2018

Figure 12
Volume of Mobile Transactions
(Million)
Source: CBN
Figure 13
Value of Mobile Transactions
(₦' Billion)
Source: CBN
2.3.3 Wholesale Payments System
2.3.3.1 Real Time Gross Settlement (RTGS) System
The volume and value of inter-bank transfers through the RTGS System (CBN
Inter-bank Funds Transfer System - CIFTS) decreased to 530,121 and ₦179,748.0
billion, respectively, in the first half of 2018, compared with 625,788 and
₦202,664.0 billion in the corresponding period of 2017. This represented
decrease of 15.3 and 11.3 per cent in volume and value, respectively.
CBN Economic Report for the First Half of 2018

Figure 14
Volume of RTGS Transactions
(Million)
Source: CBN
Figure 15
Value of RTGS Transactions
(₦' Billion)
Source: CBN
2.3.3.2 Nigeria Inter-bank Settlement System Instant Payment (NIP)
The volume and value of the NIBSS Instant Payment transactions increased to
308.4 million and ₦36,893.0 billion in the first half 2018, from 150.5 million and
₦24,491.2 billion, respectively, in the corresponding period of 2017. This
indicated respective increase of 104.9 and 50.6 per cent, and was attributed to
users' preference on account of its advantage of instant value.
CBN Economic Report for the First Half of 2018

Figure 16
Volume of NIP Transactions
(Million)
Source: CBN
Figure 17
Value of NIP Transactions
(₦'Billion)
Source: CBN
2.3.3.3 NIBSS Electronic Fund Transfer (NEFT)
During the review period, the volume and value of NIBSS Electronic Fund
Transfer increased to 19.0 million and ₦7,449.0 billion, compared with 12.9
million and ₦7,050.3 billion, respectively, in the first half of 2017. This represented
respective increase of 47.3 and 5.7 per cent. The increase in the NEFT
transactions was attributed to the convenience which the platform provides
relative to others.
CBN Economic Report for the First Half of 2018

Figure 18
Volume of NEFT Transactions
(Million)
Source: CBN
Figure 19
Value of NEFT Transactions
(₦'Billion)
Source: CBN
2.3.4 CURRENCY OPERATIONS
2.3.4.1 Issuance of the Legal Tender
An aggregate indent of 3,351.34 million pieces of various denomination of
banknotes was approved by the Bank to meet the currency needs of the
economy for 2018, during the review period. This indicated an increase of
1,272.31 million pieces or 61.2 per cent, above the 2,079.03 million pieces of
banknotes ordered in the preceding year. The entire indent was awarded to
the Nigerian Security Printing and Minting (NSPM) Plc out of which 1,019.20
CBN Economic Report for the First Half of 2018

million pieces or 30.4 per cent of the total order was delivered by the Company
in the first half of 2018. The number delivered was higher than that in the
corresponding period of 2017 by 987.17 million pieces or 3.2 per cent. In
addition, the Crane Currency, Sweden, delivered 22.89 million pieces, out of
the outstanding one billion ₦100 centenary commemorative banknotes
awarded to it in 2014. This brought the total delivery of the centenary
commemorative banknotes to 992.54 million pieces or 99.2 per cent, with an
outstanding of 7.46 million pieces or 0.8 per cent.
The Bank, in line with its clean note policy, sustained the implementation of
efficient stock management by reducing the timeline for processing DMBs'
deposits from six (6) to three (3) months with increased throughputs. This was
achieved through the adoption of first-in-first-out (FIFO) processing of DMBs'
deposits, as well as, the authentication of the integrity and quality of banknotes
in circulation. Consequently, a total of 134,550 currency boxes, valued at
₦795.87 billion, were processed. The Bank also identified unfit banknotes and
issued various denominations of clean ones, valued at ₦400.19 billion and
₦858.33 billion, respectively. In addition, the Bank discovered 59,244 pieces of
counterfeit banknotes, valued at ₦45.97 billion during the period, compared
with 61,752 pieces, valued at ₦49.08 billion, in the corresponding period of
2017. In the first half of 2018, the Bank issued the “Banknote Fitness Standards
and Clean Note Policy”, which would be officially launched in the third quarter
of 2018. The Policy sets out the industry benchmark and reference guide for
acceptable quality standard and creation of industry efficiency to maintain
clean currency notes in circulation for use by the DMBs, other cash handlers
and the general public. To incentivise the DMBs to deposit lower denomination
banknotes for processing and curb the circulation of dirty notes, a 3-month
window, was approved for processing at reduced fee effective January 02,
2018. During the period, the penal fee was reduced from ₦12,000 to ₦1,000 per
box, but was raised slightly to ₦2,000 per box after expiration.
In addition, the Bank sustained publicity campaign to create awareness on
proper handling, consequences of abuse and sale, as well as, the basic
security features of the banknotes to deter counterfeiting.
As a short term measure to ensure a balanced denominational mix and
enhance the ease of accessibility by end users, the Bank undertook direct
CBN Economic Report for the First Half of 2018

disbursement of ₦200, ₦100, ₦50, ₦20 and ₦5 banknotes to market associations,
retailers, merchants and toll gate points, among others. The implementation
framework required DMBs to withdraw the banknotes “at no extra cost” for the
identified beneficiaries, once their accounts were funded with the full cover for
the exchange. Spot checks were carried out to ensure effective dispensing
and judicious utilisation. The special exchange scheme, which kicked-off in
Abuja, had been extended to Lagos, Kano, Enugu, Yola, Gombe, Ibadan,
Onitsha and Jos at end-June 2018.
In furtherance of its effort to sustain industrialised cash management in Nigeria,
the Bank registered three (3) additional CIT companies, Messrs. Technocrime
Nigeria Limited, Utobras Nigeria Limited and YSY Limited during the review
period. This brought the number of registered CIT and sorting companies in the
Bank to eight (8) and one (1), respectively.
To ensure proper disposal of banknote waste in compliance with the
Sustainable Banking Principles and Best Practice, the Bank maintained its
recycling strategy for the disposal of the polymer banknote waste. A pilot run of
recycling polymer waste to reusable products, such as plastic products, was
carried out in some reputable cyclers' factories. The initiative would reduce the
Bank's carbon foot prints. In addition, to address the concern of the public, the
NSPM Plc confirmed that material used for the production of polymer
banknotes were safe for both humans and the environment.
2.3.4.2 Currency-in-Circulation (CIC)
Currency-in-circulation stood at ₦1,900.67 billion at end-June 2018, comprising
5,597.60 million pieces of banknotes and 2,317.03 million pieces of coins,
valued at ₦1,899.07 billion and ₦1.60 billion, respectively. This represented an
increase of 1.4 per cent over the level in the corresponding period of 2017. The
growth in CIC reflected increased economic activities and the expansionary
fiscal policy of the government. In value term, banknotes, increased by 1.4 per
cent, compared with the level in the first half of 2017, while coins remain
unchanged.
In terms of composition, the combined volume of ₦5, ₦10, ₦20 and ₦50
banknotes, as share of total currency in circulation in the first half of 2018,
decreased to 27.0 per cent, from 30.4 per cent in the first half of 2017. Similarly,
the value dropped to 1.8 per cent, from 2.0 per cent in the corresponding
CBN Economic Report for the First Half of 2018

period of 2017. At end-June 2018, the value of ₦200, ₦100, ₦20 and ₦10
banknotes in circulation rose by 7.2, 70.8, 6.8 and 9.1 per cent, respectively. The
value of ₦1,000, ₦500, ₦50 and ₦5 denominations, however, declined by 0.2,
0.8, 24.5 and 39.8 per cent, respectively, compared with the levels in the first
half of 2017. The ₦1,000 and ₦500 banknotes remained dominant with shares of
60.7 and 28.1 per cent, respectively, in value terms in the first half of 2018.
Table 5
Structure of CIC June 2014 - June 2018
Source: CBN
2.4 Financial Sector Surveillance
2.4.1 Banking Supervision
The CBN sustained its supervision and surveillance of the banking system in the
first half of 2018, to further strengthen the safety and soundness of financial
institutions. Activities of the Bank in this regard included regular off-site review of
banks' returns and periodic on-site examination (special investigations and
spot checks) to establish the level of compliance with the provisions of extant
laws, regulations and guidelines.

June-2014
Volume
Value
Volume
Value
Volume
Value
Volume
Value
Volume
Value
(million)
(N billion)
(million)
(N billion)
(million)
(N billion)
(million)
(N billion)
(million)
(N billion)
N2

N 1

50k

25k

10k

1k

Sub

Total

Notes
N1000

N500

N200

N100

N50

N20

N10

N5

Sub-Total

Total

Jun-18
Jun-17
Jun-16
Jun-15
Coins
CBN Economic Report for the First Half of 2018

The Bank also resolved the technical and business-related challenges, arising
from the deployment and use of the redesigned Credit Risk Management
System (CRMS). Following the progress made in the usage of the System, the
Bank commenced offsite/desk review of the compliance status by banks,
based on the revised guidelines.
Patronage of the CRMS improved significantly in the review period, due to
increased compliance by banks on account of stricter supervision/surveillance
and wider coverage, including backfilling of hitherto unreported facilities, as
well as, admittance of initially-excluded investment securities. Consequently,
there were 1,561,869 borrowers with outstanding facilities at end-June 2018,
made up of 1,463,314 individuals and 98,555 corporates, compared with
1,418,081 and 1,105,671 borrowers, at end-December 2017 and end-June
2017, respectively. Also, the total number of credit facilities reported on the
database rose to 3,530,495 at end-June 2018, compared with 2,692,403 and
1,905,997 at end-December 2017 and end-June 2017, respectively. The
number comprised facilities granted to 3,064,977 individuals and 465,518
corporate borrowers.
Figure 20

Credit Risk Management System (CRMS) Statistics
(End-June 2018)
Source: CBN
1 Figures include borrower(s) with multiple loans and/or credit lines.
CBN Economic Report for the First Half of 2018

The three (3) private credit bureaux (PCB) continued to complement the CRMS
in credit administration and risk management process in the industry.
2.4.2 Routine/Target Examination
The CBN and NDIC Joint Risk Asset Assessment (Target) Examination was
conducted on 26 banks in the review period. The exercise was carried to
ascertain the quality of risk assets and the adequacy of loan loss provisioning,
as a prerequisite for the approval of the publication of 2017 annual financial
statements. The examination also sought to determine the reasonableness of
banks' reported profit for the 2017 financial year. The examination revealed an
increase in the non-performing loans (NPLs) ratio and a marginal decline in
capital adequacy ratio (CAR), due to deterioration of asset quality. The
industry average CAR, however, remained above the regulatory minimum of
10.0 and 15.0 per cent for banks with national and international authorisation,
respectively.
A risk-based examination of the three credit bureaux and monitoring
examination of the Asset Management Corporation of Nigeria (AMCON) were
also conducted in the review period. In addition, the Bank carried out
monitoring/follow-up exercise on the implementation of major observations
from the previous risk-based examination for banks with 'High' and 'Above
Average' composite risk ratings.
2.4.3 Special/Foreign Exchange Examinations
The Bank conducted a review of foreign exchange operations of 26 banks (22
commercial and 4 merchant) in April 2018 to ascertain the level of compliance
with extant foreign exchange regulations. The review covered foreign
exchange activities for the period, April 1, 2017 to March 31, 2018. Major
infractions observed included: non-repatriation of export proceeds within the
stipulated time; dealing in high value foreign exchange transactions with
multiple corporate customers yet to be on-boarded on the FMDQ Advised
Trading and Surveillance System; and rendition of inaccurate returns. Others
were non-compliance with approved net foreign currency trading position,
foreign trade documentation lapses and general failure to comply with
regulations.
CBN Economic Report for the First Half of 2018

2.4.4 Banking Sector Soundness
The health of banks improved in the review period, following the sustained
recovery in macroeconomic conditions, including declining inflation, stable
exchange rate and gradual upswing in the real economy. At end-June 2018,
the industry average capital adequacy ratio (CAR) was 12.08 per cent,
compared with 10.23 per cent and 11.51 per cent at end-December 2017 and
end-June 2017, respectively. The development reflected the increase in banks'
total qualifying capital. The industry threshold, however, remained at 15.0 per
cent for banks with international authorisation and 10.0 per cent for banks with
either national or regional authorisation.
Asset quality of the banking industry, measured by the ratio of non-performing
loans to total loans (NPL ratio) fell to 12.45 per cent at end-June 2018,
compared with 14.80 per cent and 15.02 per cent at end-December 2017 and
end-June 2017, respectively. At this level, the ratio, remained above the
regulatory threshold of 5.0 per cent. The decrease in the NPL ratio reflected the
effect of the favourable macroeconomic conditions and stricter prudential
regulation. To further consolidate on the improvement, the CBN directed
banks to intensify efforts at debt recovery, realisation of collateral for lost
facilities and strengthening their risk management processes. Loan loss
provision was 75.74 per cent at end-June 2018, as against 80.4 per cent in the
corresponding period of 2017.
The industry liquidity ratio increased to 46.09 per cent at the end of the first half
of 2018, from 45.8 per cent at end-June 2017, reflecting the rise in the stock of
liquid assets held by banks. With the exception of three (3) commercial banks,
all others met the minimum regulatory liquidity ratios of: 30.0 per cent for
commercial banks; 20.0 per cent for merchant banks; and 10.0 per cent for
non-interest banks, at end-June 2018.
2.4.5 Banks' Compliance with the Code of Corporate Governance
The CBN continued its oversight of the corporate governance regime in
Nigerian banks in the review period, to ensure compliance with the provisions
of the Corporate Governance Framework. To that end, a pilot on-site
corporate governance examination, based on a scorecard developed by the
CBN, was scheduled for the second half of 2018.
CBN Economic Report for the First Half of 2018

2.4.6 Financial Crimes Surveillance/Anti- Money Laundering/Combating
the Financing of Terrorism (AML/CFT)
The Bank conducted an AML/CFT risk management examination of all
reporting banks in the first half of 2018. The exercise, which covered the period
May 1, 2017 to March 31, 2018, was carried out at the Head offices of the banks,
while spot checks were conducted on two selected Lagos branches of the
banks. The examination focused on determining the appropriateness and
adequacy of the banks' AML/CFT risk management practices, regarding
suspicious and foreign transactions reporting, transactions involving politicallyexposed persons, as well as, employee training and enhanced due diligence,
among others. Overall, there was a general improvement in the AML/CFT
regime in many banks, particularly the process for independent verification of
identification through interface with the relevant issuing agencies. Certain
deficiencies, however, existed across banks in the following specific areas:
Ÿ
Non-conduct or inadequacy of enhanced due diligence (EDD) on
high risk customers, though improvement in the conduct of due
diligence in the review period was observed;
Ÿ
Non-automation of collation and reporting of foreign currency,
suspicious transactions, and non-subjection of the AML/CFT software
in some banks to independent testing to determine their efficacy;
Ÿ
The rise of AML/CFT Manuals in some banks, which did not highlight
policies to address specific issues, such as virtual currencies, among
others;
Ÿ
Inadequate internal control oversight over compliance, as
recommended by the Financial Action Task Force (FATF) and
required by the CBN AML/CFT regulations; and
Ÿ
Existence of AML/CFT knowledge gap in many banks, as well as the
inability of some banks to provide satisfactory evidence of
conducting the required training.
In the review period, the CBN issued the AML/CFT Administrative Sanctions
Regulation 2018, to provide administrative sanctions and penalties for
contravention of AML/CFT laws, regulations and internal policies of financial
institutions. To facilitate understanding of the provisions therein, particularly
infractions and penalties, as well as, examiners' expectations, a workshop was
organised by the Association of Chief Compliance Officers of Nigerian Banks.
CBN Economic Report for the First Half of 2018

Furthermore, as part of effort to enhance the AML/CFT Risk-Based Supervision
(RBS) process, the Bank conducted a training session for on-site examiners and
organised a sensitisation workshop for staff of banks on the newly developed
AML/CFT RBS template.
2.4.7 Cross-Border Activities
Following the divestment by the Diamond Bank Nigeria Plc. from the Diamond
Bank UK Limited, the number of approved foreign subsidiaries of Nigerian banks
fell to 54 in the first half of 2018, from 55 at end-December 2017. The number of
representative offices of Nigerian banks abroad remain unchanged at six (6),
while, the two (2) representative offices of foreign banks in Nigeria (HSBC and
UBS) were closed, bringing the number of representative offices of foreign
banks to eight (8) at end-June 2018.
A joint examination of one (1) offshore bank subsidiary was carried out in the
first half of 2018, in collaboration with the Bank of The Gambia. Also, the Bank, in
collaboration with the host supervisors, conducted the routine examination of
some Nigerian banks' foreign subsidiaries. Furthermore, on-site target
examination was conducted on three other offshore bank subsidiaries. There
was, however, no solo on-site examination of Nigerian bank subsidiary in the
review period. Reports of the examinations were being finalised.
The CBN attended the conference of the Community of African Banking
Supervisors (CABS), held at Cape Town, South Africa, from June 25 -26, 2018.
The Conference, jointly organised by CABS, the Technical Group of the
Association of African Central Banks (AACB) and the Partnership for Making
Finance Work for Africa (MFW4A), focused on strengthening the regulatory
and supervisory framework for banks in Africa.
In addition, a seminar on risk-based supervision and Basel II/III for the
Committee of Banking Supervisors of West & Central Africa (CBSWCA) was
hosted by the CBN from May 7 – 18, 2018. The Seminar was organised to
facilitate the harmonisation of supervisory practices, including RBS
methodology and assessment of the transition to Basel II and III by membercountries. Similarly, pursuant to a subsisting memorandum of understanding,
supervisors from the Bank of Uganda were hosted to understudy the AML/CFT
supervisory process in the CBN. The exercise was also organised within the
CBN Economic Report for the First Half of 2018

purview of international cooperation as recommendation by the Financial
Action Task Force (FATF). Highlights of the sessions included: review of the CBN's
regulations, policies and surveillance procedures; presentations on the CBN's
initiatives for the advancement of the AML/CFT regime in banks; on-site
examination of the branches of a Nigerian bank; and a review of the report
writing process.
2.4.8 Update on Basel II/III Implementation
In the review period, the Bank sustained the implementation of various
initiatives to facilitate and ensure successful adoption of Basel II/III standards.
The initiatives included the:
Ÿ
Review of banks' regulatory capital assessment (Internal Capital
Adequacy Assessment Process - ICAAP) to ensure that computation
of the reported minimum regulatory capital by banks was done in a
consistent manner;
Ÿ
Regular assessment of banks' strategies for taking on risk and review of
the sufficiency of capital;
Ÿ
Implementation of guidelines on interest rate, concentration and
reputational risks in banks' books, business models and stress testing,
to ensure that pillar 2 risks capital assessment was carried out in a
robust and comprehensive manner, and improve the overall quality
of the ICAAP; and
Ÿ
Monitoring regular qualitative and quantitative disclosure by banks
on core activities, risk profile and methodologies to ensure market
discipline.
2.4.9 Fraud and Forgery
There were 20,768 reported cases of fraud and forgery (attempted and
successful), valued at ₦19.77 billion in the review period, compared with 16,762
cases, involving ₦5.52 billion and US$ 0.12 million in the corresponding period of
2017. The actual loss by banks to fraud and forgery, however, amounted to
₦12.06 billion, compared with the ₦0.78 billion and US$0.03 million, suffered in
the first half of 2017. The reported fraud and forgery incidences were
perpetrated by both bank staff and non-bank culprits. The cases involved
armed robbery attacks, fraudulent ATM withdrawals, defalcation, illegal funds
transfer, pilfering of cash, stealing, suppression and conversion of customers'
deposits.
CBN Economic Report for the First Half of 2018

2.4.10 Consumer Protection
The Bank received 1,439 complaints from consumers of financial services in the
first half of 2018, compared with the 1,141 in the corresponding period of 2017.
The complaints were, mainly, in respect of excess charges, frauds, dishonoured
guarantees and unauthorised deductions/ transfers, among others. A total of
2,451 complaints, including those outstanding from 2017, were resolved in the
review period, compared with 1,270 complaints resolved in the corresponding
period of 2017.
Total claims in the review period in local and foreign currencies amounted to
₦20.5 billion, US$163,479.00, £2,889.98 and €32.82, compared with ₦14.72
billion, US$2.42 million and €6,940.00, in the corresponding period of 2017. The
sum of ₦6.80 billion, US$119,349, £2,889.98 and €32.82 were refunded by
financial institutions to their customers, compared with the sum of ₦7.21 billion,
US$2.40 million and €6,940.00, refunded in the corresponding period of 2017.
Compliance examination was conducted on 21 banks in the first half of 2018,
to ascertain their level of compliance with consumer protection regulations
particularly the Guide to Charges by Banks and Other Financial Institutions
(GCBOFI). The exercise revealed 100.0 per cent compliance in the areas of
outward telegraph/SWIFT and related charges of 0.5 per cent, current
account maintenance fee charges on savings account and validation of
refunds. Compliance levels in other areas were: interest rate on executed offer
letters (95.3%); directives issued after the last examination and other directives
(90.0%); application of SMS charges (52.4%); and outstanding complaints
(22.6%). Overall, the examination revealed improvement in the compliance
level in most areas, while the CBN directed banks to implement specific
remedial actions, including refunds to customers, where applicable, in areas of
non-compliance.
As part of effort to further improve market conduct, the Bank developed and
exposed the Guidelines on Complaints Management to stakeholders in the
review period. Comments and recommendations were being implemented,
following which the Guidelines would be finalised. In a related development,
the World Bank conducted a 2-week workshop for staff of the CBN on market
conduct supervision and complaints handling, as part of its Technical
Assistance Programme on the implementation of the Consumer Protection
Framework.
CBN Economic Report for the First Half of 2018

2.4.11 Financial Literacy
The Bank, in collaboration with the German Agency for International
Development (GIZ) and the Federal Ministry of Youths and Sports, carried out
an evaluation of the NYSC Peer Educator Programme in the review period. The
exercise focused on identifying the successes, challenges and lessons, as well
as, eliciting feedback on the programme. Following the exercise, the Bank
initiated a review of the model to leverage on the gains, address highlighted
implementation challenges and improve the overall effectiveness of the
programme. A questionnaire was subsequently developed for the evaluation
of the next phase. Similarly, the Bank collaborated with the GIZ to review the
status of all the financial literacy initiatives. Consequently, the relevant nextsteps were articulated on the implementation of the national financial literacy
and targeted financial education programmes, and the financial education
curriculum for basic and senior secondary schools.
In addition, a targeted financial literacy education programme was
conducted for micro, small and medium enterprises (MSMEs) and farmers in
four (4) states, namely; Delta, Ebonyi, Niger and Osun. The objective of the
exercise was to make participants “master trainers” to ensure quicker and
deeper penetration of financial literacy initiatives. A total of 136 participants
were trained across different groups in the states.
The Bank, in conjunction with other stakeholders, coordinated activities to
commemorate the 2018 Global Money Week. The event, with the theme
“Money Matters”, was marked with a school outreach and mentoring
programme held in Akwa-Ibom, Ebonyi, Jigawa, Kogi, Osun and Taraba states,
as well as, the Federal Capital Territory. A total of 729 children, from 8 public
schools, were engaged during the exercise. Also, the Bank collaborated with
the Bankers' Committee sub-committee on the implementation of the School
Mentoring Programme in the 36 states of the Federation.
Other activities by the Bank, in furtherance of the financial literacy objectives,
included:
Ÿ
Train-the-trainer session for 35 academic staff of the Bayero University,
Kano, supported by the International Institute of Islamic Banking and
Finance, and aimed at facilitating achievement of the objectives of
the National Financial Literacy Framework (NFLF) on MSMEs and
farmers;
CBN Economic Report for the First Half of 2018

Ÿ
Delivery of 62,000 copies of consumer protection and financial
education materials to CBN branches in Awka, Bauchi, Yola, Ibadan,
Calabar and Port Harcourt, for onward distribution to customers and
the general public; and
Ÿ
Collaboration with the Nigeria Educational Research and
Development Council (NERDC) to train teachers for the pilot phase of
the programme on the Teaching of the Financial Education
Curriculum to students in Primary and Secondary Schools.
2.4.12 Examination of Other Financial Institutions
The Bank conducted routine examinations of 319 Other Financial Institutions
(OFIs) in the first half of 2018. Examination of six (6), out of the seven (7) licensed
development finance institutions (DFIs), revealed that the Composite Risk
Rating for four (4) institutions was “High”, one (1), “Above Average” and one
(1), “Low”. Similarly, routine risk-based examination of 224 microfinance banks
(MFBs) was conducted in the review period. The report showed that: 182 MFBs
met the required 20.0 per cent minimum liquidity ratio; 124 MFBs met the
required capital adequacy ratio of 10.0 per cent; and 24 MFBs satisfied the 5.0
per cent stipulated maximum for portfolio-at-risk. Some of the regulatory
interventions to address the challenges identified included:
Ÿ
Stipulation of deadline for the recovery of non-performing insiderrelated credit;
Ÿ
Directive for injection of fresh capital;
Ÿ
Interim prohibition on opening of new branches; and
Ÿ
Implementation of CBN's zero tolerance for infractions, through closer
and intense supervision, to instill market discipline.
In addition, on-site examination of 89 Bureaux-de-Change (BDCs) during the
review period revealed the following lapses:
Ÿ
Failure to maintain basic accounting records for the preparation of
financial statements;
Ÿ
Non-submission of annual audited accounts to the CBN;
Ÿ
Poor AML/CFT regime and low compliance;
Ÿ
Failure to maintain proper records of purchases and sales of foreign
exchange;
Ÿ
Non-rendition of periodic returns to the CBN;
CBN Economic Report for the First Half of 2018

Ÿ
Relocation of business address without approval; and
Ÿ
Use of the same international passport number and visa by two or
more customers.
Various sanctions and monetary penalties were imposed on erring operators
for the infractions.
The Bank held a meeting with the Association of Bureaux-De-Change
Operators of Nigeria (ABCON) to discuss issues highlighted in the report of spot
checks on selected BDCs by the NFIU in February 2018 and to ascertain their
compliance level with AML/CFT laws. In addition, the Bank issued a letter to all
BDCs directing them to submit audited annual accounts as required by the
regulation.
2.5 Foreign Exchange Market and Management
In the first half of 2018, the Bank sustained its intervention at the interbank and
BDC segments, to engender stability in the foreign exchange market. The Bank,
in agreement with the Banker's Committee, abolished commission charges on
invisible foreign exchange transactions such as Business Travel Allowance
(BTA), Personal Travel Allowance (PTA), and medical & school fees. The Bank
also increased the frequency of foreign exchange cash sales to BDCs from
twice to thrice per week, and adjusted the selling rate, downward to
₦357.00/US$. To boost liquidity and facilitate trade and investment, the Bank on
April 27, 2018, signed a 3-year bilateral currency swap agreement with the
Peoples Bank of China (PBoC) worth Chinese Yuan (CNY) 15.0 billon -
equivalent to ₦720.0 billon or US$2.5 billion.
2.5.1 Spot Transactions in the Foreign Exchange Market
Aggregate foreign exchange supply by the Bank to the inter-bank and BDC
segments amounted to US$3.20 billion and US$3.17 billion in the review period,
respectively, compared with US$4.01 billion and US$1.20 billion, in the
corresponding period of 2017. This showed a decrease of 20.2 per cent in total
sales to the interbank, but an increase of 163.4 per cent to the BDC segment,
relative to the levels in the corresponding period of 2017. The significant
increase in BDC sales, reflected the Bank's policy to increase the supply of
foreign exchange to small end-user.
CBN Economic Report for the First Half of 2018

2.5.2 Forwards and Swaps Transactions
In the first half of 2018, the Bank undertook swaps transactions valued at
US$2.33 billion, relative to US$0.19 billion and US$0.20 billion in the second and
first halves of 2017, respectively. This accounted for 15.1 per cent of total supply
of foreign exchange. Forwards contracts disbursed at maturity amounted to
US$6.77 billion, and accounted for 43.8 per cent of the total, compared with
US$4.43 billion and US$2.80 billion in the second and first halves of 2017,
respectively.
Figure 21
Supply of Foreign Exchange
(US$' Billion)
Source: CBN
2.5.3 Exchange Rate Movements
The exchange rate of the naira to the US dollar in the first half of 2018 remained
stable at the inter-bank and BDC segments of the foreign exchange market.
The development was attributed to increased intervention by the Bank and
activities at the Investors' & Exporters' (I&E) window, which boosted liquidity,
dampened demand pressure and enhanced confidence in the market.
2.5.3.1 Spot Exchange Rates
The average exchange rate of the naira to the US dollar at the inter-bank
segment was ₦305.79/US$, indicating an appreciation of 0.03 per cent, above
the level in the preceding period, but a depreciation of 0.03 per cent,
compared with the level in the first half of 2017. At the BDC segment, the
average exchange rate of the naira appreciated by 0.5 per cent to
₦362.25/US$, compared with 17.5 per cent in the corresponding period of 2017.
At the I&E window, the average exchange rate was ₦360.61/US$, showing an
CBN Economic Report for the First Half of 2018

appreciation of 0.2 and 4.5 per cent, respectively, above the levels in the
preceding and corresponding period of 2017. Consequently, the premium
between the average interbank and BDC rates narrowed to 18.5 per cent, in
the first half of 2018, from 19.0 per cent in the second half of 2017. Similarly, the
premium between the average I&E and the BDC rates narrowed to 0.5 per
cent in the first half of 2018, from 0.7 per cent in the second half of 2017.
The end-period exchange rate of the naira to the US dollar at the inter-bank
segment was ₦305.75/US$, compared with ₦306.00/US$ at end-December
2017 and ₦305.90/US$ at end-June 2017. At the BDC segment, the naira closed
at ₦360.50/US$, relative to ₦363.00/US$ at end-December 2017 and
₦366.00/US$ at end-June 2017, following the Bank's downward adjustment of
the selling rate to BDCs. At the I&E window, the exchange rate was
₦361.32/US$ at end-June 2018, compared with ₦360.33/US$ at end-December
2017 and ₦366.44/US$ at end-June 2017.
Figure 22
Exchange Rate Movements
(First Half 2017 – First Half 2018)
(N/US$)
Source: CBN
CBN Economic Report for the First Half of 2018

Figure 23
Interbank/Bureau-de-Change Foreign Exchange (₦/US$) Premium
(Per cent)
Source: CBN
2.5.4 Foreign Exchange Flows
Aggregate foreign exchange inflow into the economy in the first half of 2018
was US$65.84 billion, indicating an increase of 15.4 and 87.9 per cent above the
levels in the second and first halves of 2017, respectively. Of the total, inflow
through autonomous sources accounted for 53.6 per cent, while that through
the CBN accounted for 46.4 per cent. Foreign exchange inflow through
autonomous sources, at US$35.30 billion in the first half of 2018, increased by
14.5 and 85.7 per cent, compared with US$30.84 billion and US$19.01 billion,
respectively, in the second and first halves of 2017. The increase was driven,
largely, by improvement in non-oil export receipts and invisible purchases,
above their levels in the preceding and corresponding period of 2017.
A disaggregation of the inflow through autonomous sources showed that:
invisible purchases was US$33.19 billion; non-oil export receipts, US$2.08 billion;
and external account purchases, US$0.02 billion. Of the invisible purchases,
ordinary domiciliary accounts amounted to US$9.55 billion, and total over-thecounter (OTC) purchase was US$23.64 billion. A further breakdown of the OTC
purchases revealed that: capital importation was US$11.71 billion; purchases
by banks from oil companies, US$0.04 billion; home remittances, US$0.91 billion;
and other purchases, US$10.91 billion.
CBN Economic Report for the First Half of 2018

Foreign exchange inflow through the CBN amounted to US$30.54 billion, an
increase of 16.4 and 90.6 per cent, above the levels in the second and first
halves of 2017. A further analysis of foreign exchange inflow through the Bank,
indicated that crude oil receipts, at US$7.13 billion, rose by 20.0 and 60.7 per
cent, respectively, over the levels in the second and first halves of 2017. Non-oil
receipts through the Bank increased by 15.4 and 102.0 per cent to US$23.41
billion, above the respective levels in the preceding and the corresponding
period of 2017. The development was due, largely, to: increase in proceeds
from government debt instruments at US$2.50 billion; interbank swaps, US$3.33
billion; and foreign exchange purchases, US$7.16 billion. A further breakdown
of non-oil inflow through the CBN indicated that the TSA and third party
receipts amounted to US$4.19 billion; other official receipts, US$1.62 billion; and
DMBs cash receipts, US$1.55 billion. Others were: unutilised funds, US$1.03
billion; returned payments (Wired/Cash), US$0.91 billion; unutilised IMTO
receipts, US$0.81 billion; and interest on reserves and investments, US$0.32
billion.
Aggregate foreign exchange outflow from the economy rose by 28.8 and 79.9
per cent to US$24.90 billion, above the levels in the second and first halves of
2017, respectively. Aggregate outflow through autonomous sources was
US$1.99 billion, driven, mainly, by invisible import at US$1.79 billion, while visible
import amounted to US$0.20 billion. These accounted for 89.9 and 10.1 per
cent, respectively, of total outflow through autonomous sources. Foreign
exchange outflow through the CBN at US$22.94 billion, showed an increase of
29.5 and 79.9 per cent, above the levels in the second and first halves of 2017,
respectively. This was attributed majorly to increased interventions in the
interbank and BDC segments of the foreign exchange market.
A disaggregation of the total outflow through the Bank indicated that,
interbank utilisation amounted to US$15.47 billion or 67.4 per cent; other official
payments, US$4.13 billion; and outflow through 3rd party MDA transfers,
US$2.26 billion. External debt service was US$0.41 billion; drawings on letters of
credit (L/Cs), US$0.19 billion; foreign exchange special payment, US$0.21
billion; and funds returned to remitter, US$0.25 billion. Bank and SDR charges
amounted to US$0.01 billion, while national priority projects stood at US$0.01
billion.
CBN Economic Report for the First Half of 2018

Foreign exchange market utilisation comprised: foreign exchange forwards,
US$6.77 billion (29.5%); inter-bank sales, US$3.20 billion (14.0%); BDC sales,
US$3.17 billion (13.8%); and swaps, US$2.33 billion (10.2%). Outflow, in respect of
'Other' official payments, at US$4.13 billion, rose by 4.2 and 180.2 per cent
above the respective levels in the preceding and corresponding period of
2017. It comprised Joint Venture Cash (JVC) calls, US$1.38 billion; estacodes,
US$0.14 billion; and miscellaneous, US$2.62 billion.
Figure 24
Foreign Exchange Disbursements through the CBN
(First Half 2018)
Source: CBN
Foreign exchange flows through the Bank recorded a net inflow of US$7.60
billion in the first half of 2018, relative to US$8.52 billion and US$3.27 billion, in the
second and first halves of 2017, respectively. Foreign exchange transactions
through autonomous sources also registered a net inflow of US$33.31 billion in
the review period, above the levels in the preceding and corresponding
period of 2017. Overall, foreign exchange flows recorded a higher net inflow of
US$40.91 billion, compared with US$37.72 billion and US$21.18 billion, in the
second and first halves of 2017, respectively.
CBN Economic Report for the First Half of 2018

Figure 25
Foreign Exchange Transactions through the CBN
(First Half 2018, US$' Billion)
Source: CBN
2.5.5. Sectoral Utilisation of Foreign Exchange
Aggregate sectoral utilisation of foreign exchange in the first half of 2018 at
US$17.64 billion, showed an improvement of 15.6 and 46.3 per cent, compared
with the levels in the preceding and corresponding period of 2017,
respectively. A disaggregation showed that, visible import contracted, slightly,
by 1.4 per cent to US$7.59 billion, relative to the level in the second half of 2017.
It, however, rose by 3.1 per cent, compared with the corresponding period of
2017. Foreign exchange utilised for invisible import increased by 33.0 and 114.0
per cent, to US$10.05 billion, relative to the levels in the second and first halves
of 2017, respectively. Invisible import accounted for 57.0 per cent of total, while
visible import accounted for the balance.
Analysis of foreign exchange utilised for visible import showed that the industrial
sector import was US$3.32 billion, a decline of 8.3 per cent below its level in the
preceding period. Food products, manufactured products, transport and
minerals sub-sectors accounted for US$1.06 billion, US$1.87 billion, US$0.25
billion and US$0.07 billion, and represented increase of 24.0, 60.5, 28.9 and 61.8
per cent, above the levels in the preceding period of 2017, respectively.
However, foreign exchange utilised in the agricultural and oil sectors declined
by 21.4 and 46.0 per cent to US$0.13 billion and US$0.89 billion, below their levels
in the second half of 2017, respectively. In terms of contribution, the share of the
CBN Economic Report for the First Half of 2018

industrial sector was 18.8 per cent, followed by manufacturing sector and food
products with 10.6 and 6.0 per cent, respectively. Oil and transport sectors
constituted 5.1 and 1.4 per cent, respectively, in the review period.
A breakdown of foreign exchange utilised for invisibles showed that business,
education, financial, and transport services rose by 46.3, 0.4, 44.7, and 27.4 per
cent to US$0.99 billion, US$0.29 billion, US$7.83 billion, and US$0.71 billion,
respectively, compared with the levels in the second half of 2017. Foreign
exchange utilised on communications decreased by 15.3 per cent to US$0.09
billion, relative to the preceding period. Distribution and “other services” also
decreased by 73.1 and 71.4 per cent to US$0.01 billion, apiece, relative to the
preceding period. In terms of contribution, the share of financial services was
highest at 44.4 per cent, followed by business services, 5.6 per cent; transport
services, 4.0 per cent; education services, 1.6 per cent; and communication
services 0.5 per cent.
Figure 26
Sectoral Utilisation of Foreign Exchange
(First Half 2018)
Source: CBN
CBN Economic Report for the First Half of 2018

Figure 27a
Sectoral Utilisation of Foreign Exchange (Visibles)
(First Half 2018)
Source: CBN
Figure 27b
Sectoral Utilisation of Foreign Exchange (Invisibles)
(First Half 2018)
Source: CBN
2.5.6 Nominal Effective Exchange Rate (NEER) and Real Effective Exchange
Rate (REER) Indices
The average 13-currency Nominal Effective Exchange Rate (NEER) index in the
review period was 163.68, an increase of 1.8 and 5.4 per cent, relative to the
levels in the second and first halves of 2017. This implied that the naira
weakened against the currencies of major trading partners. The average Real
CBN Economic Report for the First Half of 2018

Nominal Effective
Exchange Rate (NEER)

Real Effective
Exchange Rate (REER)

Jan

153.29

88.75

Feb

153.33

87.71

Mar

154.54

87.03

Apr

155.84

86.62

May

156.95

85.71

Jun

157.92

84.95

Jul

160.61

85.56

Aug

161.37

85.42

Sep

160.32

84.33

Oct

159.05

83.23

Nov

160.9

83.73

Dec

162.74

84.39

Jan

167.13

86.12

Feb

165.02

85.31

Mar
165.35
84.12
Apr
162.03
81.93
May
158.85
79.56
Jun
153.29**
88.75 **

Effective Exchange Rate (REER) index, which measures external
competitiveness, was 83.41; a decline of 1.2 and 3.9 per cent, compared with
the respective levels in the preceding and corresponding period of 2017. This
signified a deterioration in Nigeria's external trade competiveness on account
of high domestic inflation relative to that of major trading partners.
Figure 28
Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate
(REER) January 2017 – May 2018
Source: CBN
Table 6
Nominal and the Real Effective Exchange Rate Indices
(November 2009=100)
Source: CBN
Note: **= Values for June 2018 are provisional.
CBN Economic Report for the First Half of 2018

2.6 Development Finance Operations
2.6.1 Agricultural Credit Guarantee Scheme (ACGS)
In the first half of 2018, a total of 10,420 loans valued at ₦1.75 billion were
guaranteed under the ACGS, compared with 21,073 loan valued at ₦3.07
billion in the corresponding period of 2017. This indicated 50.6 and 43.0 per cent
decline in volume and value guaranteed, respectively. An analysis of the loans
guaranteed by purpose showed that: food crops accounted for 7,104 (68.2 %);
livestock, 1,051 (10.1%); mixed crops, 383 (3.7%); cash crops, 1,230 (11.8%);
fisheries, 445 (4.3%); and 'others', 207 (2.0%). An analysis by category of
borrower showed that: individuals accounted for ₦1.71 billion, (97.3%); informal
groups, ₦26.02 million (1.5%); cooperatives, ₦11.61 million (0.7%); and
companies, ₦9.75 million (0.6%), compared with ₦2.98 billion (98.5%) for
individuals; informal groups, ₦7.88 million (0.3%); cooperatives, ₦22.50 million
(0.7%); and companies, ₦13.90 million (0.5%) in the corresponding period of
2017. The cumulative number of loans guaranteed from inception of the
Scheme in 1978 to end-June 2018 was 1.11 million, valued at ₦111.62 billion.
The sum of ₦3.05 billion, guaranteed to 17,977 projects, was fully repaid in the
review period, compared with ₦1.84 billion for 11,354 projects, in the
corresponding period of 2017. The cumulative repayment from inception to
end-June 2018 was ₦84.52 billion for 876,873 loans.
During the review period, there were no default claims settled, same as in the
corresponding period of 2017. Consequently, the cumulative number of
settled claims remained at 17,216, valued at ₦648.63 million at end-June 2018.
CBN Economic Report for the First Half of 2018

Figure 29
Distribution of ACGSF Loans (By Purpose)
(First Half 2018)
Source: CBN
2.6.2 Interest Drawback Programme (IDP)
A total of 5,929 IDP rebate claims valued at ₦89.31 million were settled in the first
half of 2018, compared with 10,522 rebate claims valued at ₦98.81 million
settled in the corresponding period of 2017. The total number of IDP rebates
settled since inception, in 2003, to end-June 2018 were 325,832, valued at ₦4.25
billion. The Scheme was introduced in 2003 to reduce the cost of borrowing for
farmers. Those who repaid as and when due, were entitled to a rebate of 40.0
per cent of the market interest rate at which they borrowed.
2.6.3 Commercial Agriculture Credit Scheme (CACS)
In the review period, the sum of ₦39.34 billion was disbursed to 16 projects,
compared with ₦50.59 billion released to 11 banks for 34 projects in the half
year 2017. The cumulative amount disbursed under the CACS since inception
in 2009 to end-June 2018 was ₦560.91 billion to finance 557 projects.
In the first half of 2018, the sum of ₦17.01 billion was repaid by fourteen (14)
participating banks in respect of 51 projects, compared with ₦28.83 billion for
191 projects in the corresponding period of 2017. This brought the cumulative
repayment from inception to ₦273.62 billion at end-June 2018.
CBN Economic Report for the First Half of 2018

2.6.4 Paddy Aggregation Scheme (PAS)
In the first half of 2018, the sum of ₦4.25 billion was released to three (3) banks for
disbursement to three (3) projects. This brought the total disbursement under
the Scheme to ₦30.38 billion at end-June 2018. Also, in the review period, the
sum of ₦13.37 billion was repaid under the Scheme.
2.6.5 Micro, Small and Medium Enterprises Development Fund (MSMEDF)
The implementation of the MSMEDF continued with the disbursement of ₦4.77
billion in the review period, compared with ₦1.59 billion in the corresponding
period of 2017. The participants in the Programme were seven (7) banks, one
(1) MFB, one (1) non-governmental organisation microfinance institution
(NGO-MFI), as well as, two (2) state governments.
The total sum disbursed, from inception in 2013 to date, was ₦81.64 billion, with
₦56.61 billion (69.3%) to state governments, while the MSMEs collectively
accessed ₦25.03 billion (44.2%). The sum of ₦4.04 billion was repaid in the
review period, bringing the cumulative repayment to ₦17.42 billion, since
inception, to end-June 2018.
Table 7
Summary of MSMEDF Activities as at June 30, 2018

Source: CBN
Activity

From
Inception to
Dec 31, 2017

Jan-Jun

Cumulative

(N ’billion)

(N ’billion)
(N ’billion)

Disbursement to MSMEs

2 3. 86

1 .17

2 5 .0 3

Disbursements to State
Governments

53.12

3.49

56.61

Total Disbursements

76.98

4.66

81.64

Undisbursed Funds

0.00

0.00

0.00

Repayments Received

13.38

4.04

17.42


CBN Economic Report for the First Half of 2018

2.6.6 Anchor Borrowers' Programme (ABP)
The implementation of the Anchor Borrowers' Programme continued in the
review period with the disbursement of ₦36.37 billion to 155,732 farmers,
compared with ₦12.57 billion to 27 farmers in the first half of 2017. This brought
the cumulative disbursements, since inception, to ₦91.90 billion, with 412,037
small-holder farmers as beneficiaries. The Programme was being implemented
in 36 states and the Federal Capital Territory through thirteen (13) state
government anchors and one hundred and twenty-seven (127) private-led
anchor
In the review period, the sum of ₦1.57 billion was repaid, bringing the
cumulative repayment since inception to ₦12.19 billion. The commodities
being financed under the Scheme included: rice, maize, wheat, soya beans,
cotton, cassava, groundnut, fish and poultry. The Scheme has created over
500,000 jobs and added 2.0 million metric tons to domestic rice supply.
2.6.7 Presidential Fertilizer Initiative
In the review period, a total of ₦20.0 billion was released to a single obligor
under the initiative of the Nigeria Sovereign Investment Authority (NSIA). The
NSIA manages the Fund through its special purpose vehicle, the NSIA
Agricultural Investment Company-Nitrogen Phosphorous Potassium Limited
(NAIC-NPK). The cumulative amount released under the Scheme at end-June
2018 was ₦25.0 billion.
2.6.8 National Food Security Programme (NFSP)
The sum of ₦4.04 billion was disbursed to two (2) banks for three (3) projects
under the NFSP during the review period. This brought the cumulative
disbursement to ₦43.99 billion for 11 projects, since inception in 2007. The sum of
₦2.19 billion was repaid by two (2) banks in respect of three (3) projects in the
first half of 2018, bringing the total repayment to ₦2.38 billion, since inception in
2017.
2.6.9 National Collateral Registry (NCR)
In the first half of 2018, the Registry enrolled 344 financial institutions, comprising
three hundred and forty (340) microfinance banks, one (1) finance house and
three (3) non-bank financial institutions on its portal. At end-June 2018, the
CBN Economic Report for the First Half of 2018

number of financial institutions registered on the NCR portal rose to five
hundred and seventeen (517), made up of twenty-one (21) commercial
banks, four hundred and eighty-one (481) microfinance banks, four (4)
merchant banks, four (4) development finance institutions, one (1) finance
company, one (1) non-interest bank and five (5) non-bank financial institutions.
In addition, a total of 7,621 financing statements, in respect of 23.953
borrowers, valued at ₦113.34 billion and US$13.38 million in movable assets, was
recorded on the NCR portal by the financial institutions in the period under
review. Cumulatively, 30,365 financial statements in respect of 130,595
borrowers, detailing priority interest in movable assets, valued at ₦624.71 billion,
US$33.38 million and €6.06 million had been registered, since inception to endJune 2018.
Table 8
Number and Value of Financing Statement on the National Collateral
Registry at end-June 2018
Source: CBN
Borrower
Type


No. of borrowers


Number of nancing
statements

Currency

Value of nancing
statements

Cumulative

Jan-Jun

Cumulative

Jan-Jun

Cumulative

Individual

23,445

123,242

7,126

25,522

₦

62.70bn

100.79bn

US$

-

-

€

-

-

Large
Business

₦

40.84bn

307.69bn

US$

13.06m

33.06m

€

-

6.06m

Medium
Business

1,886

1,878

₦

6.48bn

193.72bn

US$

0.29m

0.29m

€

-

-

Micro
Business

3,318

₦

0.32bn

4.94bn

US$

-

-

€

-

-

Small
Business

1.576

1,460

₦

3.00bn

17.56bn

US$

0.03m

0.03m

€

-

-

Total

23,953

130,595

7,621

30,365

₦

113.34bn

624.71bn

US $

13.38m

33.38bn

€

-

6.06m


Jan-Jun
CBN Economic Report for the First Half of 2018

2.6.10
SME Credit Guarantee Scheme (SMECGS)
In the first half of 2018, no application was received under the SMECGS. Thus,
the number and value of projects guaranteed from inception to date
remained at 88 and ₦4.25 billion, respectively.
2.6.11 Small and Medium Enterprises Restructuring and Refinancing Facility

(SMERRF)
The SMERRF, which was introduced to revive ailing manufacturing companies
by restructuring and refinancing their credit facilities with deposit money
banks, was discontinued in December 2014 and replaced with the Real Sector
Support Facility (RSSF). However, repayment under the erstwhile Scheme
continued, with ₦12.6 billion repaid during the review period, bringing the total
repayment at end-June 2018 to ₦113.26 billion.
2.6.12 Real Sector Support Facility (RSSF)
The Real Sector Support Facility was introduced to provide long-term low
interest financing facilities to SME/Manufacturers and start-ups.
In the review period, the sum of ₦23.91 billion was disbursed to five (5) projects.
Since inception to end-June 2018, a total of ₦75.92 billion has been disbursed to
nineteen (19) projects. Repayment during the period was ₦960.16 million,
bringing the cumulative payment to ₦1.76 billion at end-June 2018.
2.6.13 Textile Sector Intervention Fund (TSIF)
The TSIF was set-up to revive cotton, textile and garment industries, stimulate
local production and create employment. In the first half of 2018, the sum of
₦19.1 billion was released for two (2) projects, compared with ₦10.29 billion for
seventeen (17) projects in the first half of 2017. Cumulatively, the sum of ₦45.45
billion had been disbursed for thirty-three (33) projects since inception.
2.6.14 Power and Airline Intervention Fund (PAIF)
The sum of ₦18.74 billion was disbursed to four (4) power projects in the first half
of 2018, compared with ₦4.76 billion to one (1) power project in the first half of
2017. The cumulative disbursement since inception of the Fund to end-June
2018 was ₦298.12 billion for 69 projects, comprising 45 power projects, valued
at ₦177.36 billion and 24 airline projects, valued at ₦120.76 billion.
CBN Economic Report for the First Half of 2018

The sum of ₦12.35 billion was repaid in the first half of 2018, compared with
₦13.01 billion in the same period in 2017. The total repayment received under
the PAIF since inception to end-June 2018 was ₦132.18 billion.
Table 9
Summary of projects financed under PAIF up to June 30, 2018
Source: CBN
2.6.15 Nigeria Electricity Market Stabilisation Facility (NEMSF)
The Nigeria Electricity Market Stabilisation Facility (NEMSF) was aimed at
providing liquidity to the Nigerian Electricity Supply Industry and put it on a path
to economic viability and sustainability. The NEMSF would facilitate the
settlement of shortfall in revenue and legacy gas debt obligations, due to
market participants (Gascos, Gencos, TCN, Discos, service providers and
others, along the value chain) that accrued during the Interim Rules Period (IRP
Debts).
In the first half of 2018, the sum of ₦38.53 billion was disbursed to one (1)
distribution company (DisCo), seventeen (17) generation companies
(GenCos), six (6) gas companies (GasCos) and five (5) service providers.
Cumulatively, ₦158.74 billion at end-June 2018 had been disbursed to the
Nigeria Electricity Supply Industry Stabilisation Strategy (NESISS) Ltd to refinance
thirty-seven (37) eligible electricity market participants. The sum of ₦4.99 billion
principal repayment was received in the period under review, bringing the
total repayment, since inception to ₦20.56 billion.
2.6.16 Nigeria Bulk Electricity Trading Payment Assurance Facility (NBET-PAF)
The NBET-PAF was introduced in 2017 as a bridging facility to enable the Nigeria
Bulk Electricity Trading (NBET) Plc. provide at least 80.0 per cent payment to the
Gencos to sustain power generation. During the review period, the sum of
Projects
( N ’billion)

( N ’billion)

Airline

120.76

40.5

65.60

Power

177.36

59.5

66.58


Total

298.12

100.0

132.18


S/No

Type

No. of
Amount

%
Repayments

CBN Economic Report for the First Half of 2018

₦248.4 billion was disbursed to the NBET Plc. Cumulatively, the amount
disbursed under the programme stood at N358.09 billion at end-June 2018.
2.6.17 Non-oil Export Stimulation Facility (NESF)
The Initiative, which commenced in the review period, was aimed at improving
access to finance by exporters to stimulate export and diversify the non-oil
export basket. In the first half of 2018, the sum of N19.04 billion was disbursed to
finance six (6) projects, while N5.04 billion was repaid within the period.
2.6.18 Export Development Facility (EDF)
The EDF was introduced in 2018 to finance investment in export-oriented
projects. The Bank underwrote the N50.0 billion debenture, issued by the
Nigerian Export Import Bank (NEXIM), the manager of the Facility, to finance
the Scheme.
2.6.19 Financial Inclusion
2.6.19.1 Number of Savings Account and Biometric Verification Number (BVN)

Enrolment
The “ownership” indicators under the Payments and Savings in the banking
sector, recorded significant improvement during the review period. The total
number of savings account of deposit money banks at end-June 2018 stood at
84,199,113, indicating 13.8 per cent increase above the level in the
corresponding period of 2017.
Similarly, the number of BVN enrolment increased to 33.5 million in the first half
of 2018 from 29.5 million at end-June 2017, representing an increase of 13.6 per
cent.
2.6.19.2 Shared Agent Network Expansion Facilities (SANEF)
The Shared Agent Network Expansion Facilities (SANEF) was introduced during
the review period as a medium-term facility for CBN-licensed Super Agents and
Mobile Money Operators (MMOs). It was established to enhance the capacity
of the Super Agents and MMOs to roll out 500,000 agent networks across the
country in 2018, in a bid to improve financial inclusion. The sum of ₦3.75 billion
was disbursed to eight (8) projects during the review period.
CBN Economic Report for the First Half of 2018

2.6.20 Entrepreneurship Development Centres (EDCs)
The number of participants trained by the South-East EDC, located in Umuahia,
Abia State, during the review period, was 1,012, surpassing the target of 1,000.
A total of 675 (66.7%) of the participants were males and 337 (33.3%) were
females. Since inception, the Centre had trained 4,859 participants as, against
the target of 4,000 participants. A total of ₦244.32 million had been accessed
through banks and other financial institutions by 614 graduates of the Centre.
The South-South EDC in Agbor, Delta State, commenced operation in May
2018. A total of 692 participants were undergoing training at end June 2018.
2.6.21 Youth Entrepreneurship Development Programme (YEDP)
There was no disbursement under YEDP in the review period. Cumulatively,
disbursement from inception in 2016 to end-June 2018 remained ₦209.33
million for 82 projects.
2.6.22 Agri-business/ Small and Medium Enterprises Investment Scheme

(AGSMEIS)
The AGSMEIS, which commenced in 2018, is a voluntary initiative of the Bankers'
Committee to support government's policy for the promotion of agricultural
businesses and MSMEs as vehicles for sustainable economic development and
employment generation.
In the first half of 2018, the sum of ₦111.81 million was disbursed to 355
entrepreneurs. There were no repayments as the loans were under moratorium.
CBN Economic Report for the First Half of 2018
ECONOMIC REPORT
3.0
GLOBAL ECONOMIC DEVELOPMENTS
3.1 Global Output
The global economic recovery observed towards the end of 2017, persisted
into the first half of 2018. The International Monetary Fund (IMF) estimated
global output growth at 3.7 per cent for 2017, and marked up forecasts to 3.9
per cent apiece for 2018 and 2019 (WEO, July 2018). The growth projection was
influenced by a number of key developments, including the cyclical upswing
in economic activity, supported by strong global trade and a pick-up in
investment, particularly among advanced economies. Others were the
expected impact of the U.S. tax policy reforms, increased manufacturing
output in Asia and strong consumer confidence.
In the advanced economies, growth remained robust, despite negative
surprises earlier in 2018, reflecting buoyed economic activity, particularly in the
euro area, the United Kingdom, the United States, and Japan. Growth in the
advanced economies is expected to remain at 2.4 per cent in 2018, similar to
2017, before easing to 2.2 per cent in 2019.
In the United States, real gross domestic product (GDP) increased by 4.1 per
cent in the second quarter of 2018, compared with an increase of 2.2 per cent
in the first quarter of 2018. According to the US Bureau of Economic Statistics,
the increase in real GDP in the second quarter reflected positive contributions
from personal consumption expenditures (PCE), exports, and federal
government spending. Growth in the euro area remained solid and broadbased, across countries and sectors, despite recent weaker-than-expected
outcomes. Year-on-year GDP stood at 2.5 per cent in the first quarter of 2018,
compared with 2.8 per cent in the fourth quarter of 2017. The moderation,
reflected effects of uncertainty and temporary supply-side factors, as well as,
weaker external trade.
The UK economy grew by 0.4 per cent and 0.2 per cent in the first and second
quarters of 2018, respectively. The IMF, however, revised UK growth downward
to 1.4 per cent and 1.7 per cent for 2017 and 2018, respectively, reflecting

CBN Economic Report for the First Half of 2018

negative sentiment surrounding the Brexit negotiations between the United
Kingdom and the European Union (EU) and its impact on investment, prices
and confidence.
The Japanese economy grew by 1.9 per cent in the second quarter of 2018, in
contrast to negative 0.9 per cent in the first quarter, boosted primarily by a
pickup in domestic demand, thereby avoiding a technical recession. The
economy is expected to strengthen over the remainder of the year and into
2019, on the back of stronger investment, external demand and private
consumption.
Growth in emerging market and developing economies was mixed, projected
to 4.9 per cent in 2018, above 4.7 per cent in 2017. This was against the
backdrop of rising oil prices, escalating trade tensions, and market pressures on
the currencies of some economies. Growth projections was revised down for
selected countries, including Argentina, Brazil, and India, while the outlook for
some oil exporters has strengthened. In China, growth moderated slightly from
6.8 per cent in the first quarter to 6.7 per cent in the second quarter of 2018,
surpassing market expectations as regulatory tightening of the financial sector
takes hold and external demand softens. Growth was 6.9 per cent in 2017, and
projected to 6.6 per cent in 2018, for the Chinese economy, owing to the
escalating trade tensions with the U.S.
The Russian economy grew by 1.9 per cent in the second quarter, compared
with 1.3 per cent in the first quarter of 2018, representing the seventh straight
quarter of growth after two years of contraction. The performance was driven
by growth in transport, restaurant and hotel sectors, arising from the FIFA World
Cup tournament.
Sub-Saharan Africa's (SSA) economy witnessed some growth at the start of
2018, with regional GDP year-on-year expected to increase by 3.0 per cent in
the first quarter of 2018, above the 2.7 per cent increase in the fourth quarter of
2017. Growth recovery was expected to continue, as higher commodity prices
and strong domestic demands are expected to drive regional growth,
although activity was subdued overall in the first quarter amid slowdowns in
Nigeria and South Africa.
CBN Economic Report for the First Half of 2018

The improved outlook for the region reflected favourable prospects for
Nigeria's economy, as its growth was expected to increase from 0.8 per cent in
2017 to 2.1 per cent in 2018. In South Africa, the economy was expected to
recover over the remainder of 2018 and into 2019, as improved market
optimism associated with the new leadership strengthens private investment.
3.2 Global Commodity Prices
Global commodity prices resumed an upward trend, stimulated by economic
expansions in the advanced and emerging market economies. In particular,
crude oil prices were lifted by weather events in the United States, extension of
the OPEC-plus agreement to limit production and geopolitical tensions in the
Middle East. Therefore, global crude oil prices increased by 16.0 per cent
between February 2018 and early June 2018, reflecting, largely, supply
shortfalls. Prices of agricultural commodities also increased marginally on the
back of diminishing excess supply.
The Food and Agriculture Organisation (FAO) Food Price Index (FFPI),
averaged 175.3 points in June 2018, an increase of 6.3 points (3.7%) over 169.1
at end-December, 2017, generally taking-on a stronger-than-expected rise,
despite the rising tensions in international trade relations. The FAO Cereal Price
Index averaged 166.8 points in June 2018, an increase of 14.4 points (9.5%)
above 152.4 points at end-December 2017, and 12.6 points (8.2%) above the
154.3 points in the corresponding period of 2017. The FAO Dairy Price Index
averaged 213.2 points in June 2018, representing an increase of 28.8 points
(15.6%) above its level in end-December 2017 and 4.2 points (2.0 %) over its
level in the corresponding period of 2017. The increase, reflected generally,
export availabilities in the United States and the EU. The FAO Meat Price Index
averaged 174.0 points in June 2018, representing an increase of 4.3 points
(2.6%) above the 169.7 points at end-December 2017, but lower by 1.6 points
(0.9%), compared with 175.6 points at the corresponding period of 2017. The
increase was driven, largely, by an upswing in ovine meat values, as well as, a
marginal rise in pork prices.
The FAO Oil Price Index averaged 146.1 points in June 2018, representing a
decrease of 16.50 points (10.2%), lower than 162.6 points at end-December
CBN Economic Report for the First Half of 2018

2017, marking its sixth consecutive fall. This also represented 16.1 points (9.9%)
decrease, compared with 162.1 points in the corresponding period of last year.
The drop was driven, mainly, by low quotations for palm, soybean and
sunflower oils. In addition, further soy oil stock accumulation in several countries
also weighed on prices, while sunflower oil quotations declined on higher-thanexpected output.
The FAO Sugar Price Index averaged 177.4 points in June 2018, representing a
decrease of 26.7 points (13.1%) lower than the 204.1 points at end-December
2017 and 19.9 points (10.1%) lower, compared with the levels in the
corresponding period of 2017. The decrease in international sugar prices was
generally due to supply-related challenges.
3.3 Global Inflation
Global consumer prices generally increased in the advanced, emerging
market and developing economies.
In the advanced economies, inflation continued its upward trajectory, and
was expected to rise to 1.9 per cent in 2018, above 1.7 per cent in 2017,
reflecting the robust global economic recovery and increase in commodity
prices. In general, it edged above central banks' targets, justifying the
monetary tightening stance adopted by a number of central banks in the
region.
In the euro area, inflation was projected at 2.0 per cent for end-June 2018 over
1.3 per cent for end-January 2018. Inflation, however, moderated in the UK to
2.4 per cent for end-May 2018, lower than 3.0 per cent for end-January 2018.
In the United States, inflation maintained upward trend to 2.9 per cent at endJune 2018 above 2.1 per cent at end-January 2018, after breaching the Fed's
target of 2.0 per cent at end-May 2018. The development reflected the impact
of rising raw material costs, due, in part, to the tariffs imposed by the U.S.
administration, the rebound in fuel prices, and tightened labour market
conditions.
CBN Economic Report for the First Half of 2018

In the emerging market and developing economies, inflation was mixed in the
first half of 2018. Consumer prices increased by 4.1 per cent in 2017, and were
expected to rise by 4.5 per cent in 2018, as effects of past currency
depreciation and higher fuel prices.
In China, inflation increased to 1.9 per cent at end-June 2018, from 1.5 per cent
at end-January 2018, as food prices rose at a faster pace. The reverse was the
case for Japan, as inflation decreased to 0.7 per cent at end-June, lower than
1.4 per cent at end-January, 2018. In Brazil, inflation also ticked up to 4.4 per
cent at end-June 2018, above 2.9 per cent at end-January 2018.
In sub-Saharan Africa (SSA), inflation was estimated to decrease to 9.5 per cent
at end-2018, from 11.0 per cent at end-2017, due to modest gains from
currency appreciation. While in Ghana, inflation declined from 10.3 per cent at
end-January 2018 to 10.0 per cent at end-June 2018, South Africa recorded
marginal increase in inflation to 4.6 per cent at end-June 2018, from 4.4 per
cent at end-January 2018. In Nigeria, inflation moderated to 11.2 per cent at
end-June 2018 from 15.1 per cent at end-January 2018, reflecting primarily, the
effectiveness of the CBN monetary policy measures, supported by the robust
external reserves.
3.4 International Financial Markets
The global financial market performance varied, across regions, and was
influenced by a combination of factors. These included: the ongoing trade war
between the United States and China; uncertainty relating to the Brexit
negotiations, especially the possibility of a no-deal; and the accelerated
monetary policy normalisation in the advanced economies, in response to
inflation surprises. Others were the expected impact of the US fiscal stimulus,
involving tax changes, geopolitical tensions, notably in the Middle East, as well
as, the increasing tendencies towards protectionism and inward-looking
policies. Consequently, central banks in the advanced economies raised
policy rates to check inflation surprises during the review period. Emerging
market and developing economies also kept rates unchanged generally for
inflation and growth considerations.
CBN Economic Report for the First Half of 2018

Accordingly, the performance of global stock markets was mixed. In North
America, the US S&P 500 and the Canadian S&P/TSX Composite indices
increased by 1.7 and 0.4 per cent, respectively, while the Mexican Bolsa index
decreased by 3.4 per cent. In South America, the Brazilian Bovespa and the
Argentine Merval indices decreased by 4.8 and 13.4 per cent, respectively,
while the Colombian COLCAP index increased by 4.2 per cent. In Europe, the
FTSE 100 and the German DAX indices decreased by 0.7 and 4.7 per cent,
respectively, while the French CAC 40 index increased marginally by 0.2 per
cent.

In Asia, Japan's Nikkei 225 and China's Shanghai Stock Exchange-A indices
decreased by 2.0 and 13.9 per cent, respectively, while India's BSE Sensex index
increased by 4.0 per cent.
In Africa, the Nigerian NSE ASI, the Egyptian EGX CASE 30 and the Ghanaian
GSE indices increased by 0.1, 8.9 and 11.6 per cent, respectively, while the
South African JSE All-Share and the Kenyan Nairobi NSE 20 indices decreased
by 3.2 and 11.5 per cent, respectively. The Nigerian equities market was
supported by rising crude oil prices, thereby boosting external reserves and
strengthening the domestic currency.
Figure 30
Performance of the Naira against Major Currencies
Source: CBN
CBN Economic Report for the First Half of 2018

Country
Index
End-June, 2017
End-Dec, 2017
End-June, 2018

% Change
Jun 2017-Jun

% Change Dec
2017-Jun

AFRICA
Nigeria
ASI

South Africa
Egypt
JSE African AS
EGX CSE 30

Kenya
Nairobi NSE 20

Ghana
GSE All Share

NORTH AMERICA
US
S&P 500

Canada
S&P/TSX Composite

Mexico
Mexico Bolsa (IPC)

SOUTH AMERICA
Brazil
Bovespa Stock

Argentina
Merval

Colombia
COLCAP

EUROPE
UK
FTSE 100

France
CAC 40

Germany
DAX

ASIA
Japan
NIKKEI 225

China
Shanghai SE A

India
BSE Sensex

Source: Bloomberg
Figure 31
Performance of the Naira against Regional Currencies
Source: CBN
Table 10
Indices of Selected International Stock Markets
(As at End-June 2018)
CBN Economic Report for the First Half of 2018

Major global currencies depreciated against the U.S. dollar in the first half of
2018, due to a number of global developments. These included: improved
treasury yields, supported by the increase in US Fed policy rate; ongoing trade
disputes between the US and China, lingering uncertainty surrounding the
Brexit negotiations between the UK and the EU, as well as, geopolitical tensions,
especially in the Middle East.
In advanced economies, all major currencies depreciated against the U.S.
dollar. Major European currencies, namely the British pound, the euro and the
Russian ruble depreciated against the US dollar by 2.70, 3.61 and 8.87 per cent,
respectively. In Asia, the Japanese yen, appreciated against the US dollar by
5.30 per cent. In North America, the Canadian dollar depreciated against the
US dollar by 3.97 per cent.
In emerging market and developing economies, most currencies also
depreciated against the US dollar. In Asia, the Chinese yuan and the Indian
rupee depreciated by 5.25 and 5.05 per cent, respectively. In South America,
the Brazilian real and Argentine peso depreciated by 17.22 and 55.37 per cent,
respectively, while the Colombian peso appreciated by 1.89 per cent against
the US dollar. In North America, the Mexican peso appreciated by 12.59 per
cent against the US dollar.
In sub-Saharan Africa, the South African rand, the Egyptian pound and
Ghanaian cedi, all depreciated against the US dollar by 10.90, 0.62 and 4.88
per cent, respectively. The Nigerian naira and the Kenyan shilling appreciated
against the US dollar by 0.08 and 2.10 per cent, respectively.
Overall, the naira was the least appreciated among the currencies surveyed,
while the Argentine peso witnessed the most depreciation in the review period.
CBN Economic Report for the First Half of 2018

Table 11
Exchange Rates of Selected Countries
(Value in Currency Units to US$)
Source: Bloomberg
MTM = Month to Month
YTD = Year to Date
3.5 Global Economic Outlook for the Rest of 2018
Global growth was projected to improve to 3.9 per cent apiece in 2018 and
2019 (WEO, July 2018), compared with 3.7 per cent in 2017. In the advanced
economies, output growth was projected to stabilise at 2.4 per cent in 2018,
reflecting uneven outcomes among countries in the region. Inflation outcomes
were lifted by increase in fuel prices, generally breaching central banks'
targets in most advanced economies. In the euro area, growth was projected
at 2.2 per cent in 2018, compared with 2.4 per cent in 2017. The IMF's projections

Currency
31-Dec-16
31-Dec-17
30-Jun-18
Dec 31, 2016 -
Dec 31, 2017
%App/Dep
YTD % Change
App/Dep
AFRICA
Nigeria
Naira

South Africa
Rand

Kenya
Shilling

Egypt
Pound

Ghana
Cedi

Canada
Dollar

Mexico
Peso

Brazil
Real

Argentina
Peso

Colombia
Peso
3,002.00
2,986.84

2,930.50
0.50
1.89
EUROPE
UK
Pound

Euro Area
Euro

Russia
Ruble

ASIA
Japan
Yen

China
Yuan

India
Rupee

SOUTH AMERICA
NORTH AMERICA
CBN Economic Report for the First Half of 2018

for other advanced countries, such as Japan and Canada also indicated
reduced optimism for 2018. The dismal outlook for 2018, reflected the impact of
the ongoing trade tensions between the United States and China, the lingering
uncertainty from the Brexit negotiations, coupled with increasing tendencies
towards inward-looking policies and aggressive protectionism.
In the emerging market and developing economies (EMDEs), growth was
projected to rise to 4.9 per cent in 2018, above the 4.7 per cent in 2017,
reflecting the presence of strong crosswinds, namely rising crude oil prices,
higher yields in the United States, in addition to dollar appreciation and the USChina trade tensions. In general, the outlook for individual economies, in the
region varies, depending on the interaction of these global shocks with
domestic idiosyncratic factors. The Chinese economy was projected to grow
by 6.6 per cent in 2018, compared with 6.9 per cent in 2017. Growth in the
Indian economy was projected to be 7.3 per cent in 2018, compared with 6.7
per cent in 2017, as drags from the currency exchange initiative and the
introduction of the goods and services tax wane. In Brazil, growth was
projected to rise to 1.8 per cent in 2018, from 1.0 per cent in 2017, arising from
the upturn in commodity prices, despite lingering effects of strikes and political
uncertainty.
In sub-Saharan Africa, growth was projected to 3.4 per cent in 2018, above the
2.8 per cent in 2017. The recovery in the region was set to continue, supported
by the rise in commodity prices. The upbeat outlook for the region reflected
improved prospects for Nigeria's economy, which was set to grow at 2.1 per
cent in 2018 from 0.8 per cent in 2017. The South African economy was
projected to grow by 1.5 per cent in 2018, from 1.3 per cent in 2017.
CBN Economic Report for the First Half of 2018
4.0
DEVELOPMENTS IN THE DOMESTIC ECONOMY
4.1 Monetary and Credit Developments
Global and domestic developments influenced the monetary policy stance in
the first half of 2018. The tempo of global economic activities remained broadly
sustained, with outcomes shaped by issues ranging from easing geo-political
tensions on the Korean Peninsula, withdrawal of the United States from the 2015
Iranian Nuclear Deal, easy financing conditions in the Euro Area, the UK and
Japan, to difficulties associated with the Brexit negotiations. On the domestic
front, economic indicators remained stable, with the real GDP growth at 1.73
per cent, in the first half of 2018, as against the contraction of 0.09 per cent in
the corresponding period of 2017. A steady decline in inflation, sustained
exchange rate stability and improvement in crude oil prices were observed
during the review period. Consequently, the Bank maintained a nonexpansionary monetary policy stance, all through the period, with the policy
rate retained at 14.0 per cent, cash reserve ratio at 22.5 per cent, liquidity ratio
at 30.0 per cent and the asymmetric corridor of +200/-500 basis points around
the MPR for the standing lending and deposit facilities, respectively. The main
instrument for liquidity management was open market operations (OMO),
complemented by cash reserve requirements, repurchase transactions and
interventions in the interbank foreign exchange market.
4.1.1 Reserve Money
At ₦6,360.47 billion, reserve money fell by 1.9 per cent below its level at endDecember 2018, compared with 6.3 per cent at the end of the corresponding
period of 2017. The development reflected the decline of 40.5 per cent and
16.3 per cent in net domestic assets and other items (net) of the CBN,
respectively. The corresponding decrease in the uses of reserve money
resulted from the decrease of 11.9 per cent in currency-in-circulation.
Aggregate credit (net) to the domestic economy fell by 1.4 per cent at endJune 2018, driven by the decline in net claims on the Federal Government and
credit to the private sector. Growth in consumer credit fell in tandem with the
decline in credit to the private sector.

CBN Economic Report for the First Half of 2018

Table 12
Sources and Uses of Reserve Money
Source: CBN
Figure 32 (a)
Reserve Money and its Components: Sources
( ' Billion)
₦
Source: CBN

Dec 15
Jun 16
Dec 16
Jun 17
Dec 17
Jun 18
Foreing assets (net)
5,545.3


6,840.4


8,790.7


8,378.9


15,134.6


17,729.3


Foreign Assets
5,624.7

8,022.1

9,248.6

9,449.9

15,313.3

18,090.0

Foreign Liabilities
79.4


1,181.7

458.0


1,071.0

178.6


360.7


Net Domestic Assets
1,091.0

794.6

(1,854.0)

(2,103.0)

(5,413.9)

(7,604.7)

Net credit to Government
(1,653.1)

(1,185.8)

109.2

232.8

(353.6)


23.4


Net Claims on Private Sector
1,518.8


685.0


(3,595.3)


(4,021.1)


(6,729.6)


(9,403.8)


Claims on Banks
1,225.2


1,295.3


1,632.1


1,685.3


1,669.2


1,775.7


Other Assets
(823.5)


(2,263.1)


(1,088.7)


(795.7)


(3,236.4)


(3,764.1)


RESERVE MONEY
5,812.7

5,371.9

5,847.9

5,480.2

6,484.3

6,360.5

Currency in Circulation
1,857.9

1,684.6

2,179.2

1,873.5

2,157.2

1,900.7

Banks Reserves
3,954.8


3,687.3


3,668.7


3,606.7


4,327.1


4,459.8


Reserve Money
5,812.7

5,371.9

5,847.9

5,480.2

6,484.3

6,360.5

CBN Economic Report for the First Half of 2018

Figure 32 (b)
Reserve Money and its Components: Uses
( ' Billion)
₦
Source: CBN
4.1.2 Broad Money (M )

Broad measure of money supply, M , grew by 2.8 per cent to 24,814.00 billion

₦
at end-June 2018, translating to an annualised growth of 5.6 per cent, in
contrast to the decline of 6.8 per cent at end-June 2017. This was lower than the
benchmark of 11.0 per cent for the fiscal 2018. The development resulted,
wholly, from the growth in net foreign assets of the banking system, arising from
significant growth in foreign currency holdings of the CBN (74.2 per cent),
commercial banks (93.7 per cent) and merchant banks (669.3 per cent).
4.1.3 Narrow Money (M )

Narrow money supply (M ) fell by 4.3 per cent to 10,701.1 billion at end-June

₦
2018, compared with the decline of 9.6 per cent at the end of the
corresponding period of 2017. The development was due to the respective
decline of 14.7 per cent and 2.3 per cent in currency outside banks and
demand deposits.
CBN Economic Report for the First Half of 2018

4.1.4 Quasi Money (QM)
Quasi money grew by 8.9 per cent to 14,112.9 billion at end-June 2018, in
₦
contrast to a decline of 4.3 per cent at the end of the corresponding period of
2017. This was due to the growth in savings and time deposits, particularly
foreign currency deposits, which grew by 10.4 per cent.
4.1.5 Currency-in–Circulation (CIC) and Deposits at the CBN
Currency-in-circulation with the CBN fell by 12.0 per cent to 1,900.7 billion,
₦
compared with the decline of 14.0 per cent at the end of June 2017. Bank
reserves with CBN grew by 3.1 per cent to 4,459.8 billion, in contrast to the
₦
decline of 1.7 per cent at the end of the first half of 2017. As a proportion of
reserve money, CIC and bank deposits constituted 29.9 and 70.1 per cent,
respectively.
4.1.6 Currency Outside Banks (COB)
Currency outside banks fell by 14.7 per cent to 1,519.9 billion at end-June
₦
2018, compared with the decline of 18.9 per cent at end-June 2017. This
reflected increased use of electronic payments channels during the review
period. As a percentage of broad money, COB constituted 6.1 per cent,
compared with 6.7 per cent at the end of 2017.
CBN Economic Report for the First Half of 2018

Figure 33
Ratio of Currency Outside Bank to Broad Money Supply
Source: CBN
Figure 34
Growth in Money Supply
(Per cent)
Source: CBN
4.1.7 Drivers of Growth in Money Supply
4.1.7.1 Net Foreign Assets (NFA)
Net foreign assets of the banking system grew by 17.4 per cent to 18,222.7
₦
billion at the end of the review period, in contrast to the decline of 7.5 per cent
at end-June 2017. As a percentage of M , NFA constituted 73.4 per cent,

compared with the 38.5 per cent at the end of the corresponding period of
2017. Also, the contribution of NFA to the growth of M was 11.2 percentage

points, in contrast to the negative contribution of 2.9 percentage points at endJune 2017.
4.1.7.2 Net Domestic Credit (NDC)
Net domestic credit (NDC) fell by 1.4 per cent to 25,561.4 billion at end-June
₦
2018, in contrast to an increase of 1.4 per cent at the end of the corresponding
CBN Economic Report for the First Half of 2018

period of 2017. This resulted from the decline of 9.7 per cent in net claims on the
Federal Government and the 0.1 per cent decline in private sector credit.
Consequently, NDC contributed negative 1.5 percentage points to the growth
in broad money supply, in contrast to the positive contribution of 1.6
percentage points at end-June 2017.
Figure 35
Distribution of Aggregate Credit to the Economy
( ' Billion)
₦
Source: CBN
4.1.7.2.1 Net Credit to the Government (NCG)
As a result of the Government's effort to reduce its domestic debt, net claims on
the Federal Government declined by 9.7 per cent to 3,286.3 billion at the end
₦
of the first half of 2018, in contrast to the growth of 7.7 per cent at the end of the
corresponding half of 2017. This was due to the reduction in holdings of
government securities, especially treasury bills by 106.6 and 18.3 per cent, by
the CBN and banks, respectively. Consequently, the contribution of net claims
on the Federal Government was negative 1.5 percentage points to the growth
of total monetary assets, in contrast to a positive contribution of 1.6
percentage points at end-June 2017.
4.1.7.2.2
Credit to the Private Sector (CP)
Credit to the private sector declined by 0.1 per cent to 22, 275.1 billion at end-
₦
June 2018, in contrast to an increase of 0.02 per cent at the end of the
corresponding period of 2017. The development owed, wholly, to the decline
of 1.1 per cent in claims on the core private sector. The contribution of claims
CBN Economic Report for the First Half of 2018

Dec ‘15
Jun ‘16
Dec ‘16
Jun ‘17
Dec ‘17

Jun ‘18

Domestic Credit (Net)

12.1 3

1 3 .93

2 4 .27

1. 41

(3 .45)

(1. 43)

Claims on Federal
Government (Net)

151 .98

9.66

68 .59

7.69

(25 .32)

(9.74)

Claims on Private Sector

3.28

14.59

17.42

0.02

1.40

(0.07)

Foreign Assets (Net)

(18 .75 )

25.69

61.85

(7.45)

69.63

17.41


Other Assets (Net)

1.12

(33 .38 )

(71 .58 )

(10.54)

(39 .43 )

(9.58)


Total Monetary Assets (M2)

5.9 0

10 .2 3

17 .78

(6 .83)

2 .33

2 .79


Quasi-Money

(4.58 )

9.61

7.52

(4 .30)

5.23

8 .85


Money Supply (M1)

24.14

11 .05

31.50

(9.59)

(0.85)

(4.25)


Total Monetary Assets (M2)
5.90

10 .2 3

17 .78

(6 .83)

2 .33

2 .79


on the private sector to the growth of total monetary assets was negative 0.1
percentage point, in contrast to the positive contribution of 0.02 percentage
point in the second half of 2017.
4.1.7.3 Other Assets (net) (OAN)
Other assets (net) of the banking system fell by 9.6 per cent at end-June 2018,
compared with 10.5 per cent at the end of the corresponding period of 2017.
This was caused by the decline in other assets (net) of the CBN. The contribution
of other assets (net) of the banking system to the growth of broad money was
negative 6.9 percentage points at the end of the review period, compared
with 5.6 percentage points at the end of the corresponding period of 2017.
Table 13
Growth in Monetary Aggregates Over Preceding December (Per cent)
Source: CBN
4.1.8 Sectoral Distribution of Credit
Of the total banks' claims on the core private sector, credit to the priority
sectors (agriculture, industry and construction, constituted 3.4, 38.6 and 4.0 per
cent respectively, of the total in June 2018, compared with 3.2, 39.6 and 4.0 per
cent, in June 2017. As in the corresponding half year, oil & gas accounted for
CBN Economic Report for the First Half of 2018

the largest share of the industrial sector with 22.67 per cent, while mining and
quarrying accounted for the least share of 0.1 per cent. In the industrial sector,
manufacturing, and power & energy sub-sectors accounted for 13.2 and 2.7
per cent respectively, of the total credit at end-June 2018,
Table 14
Share of Credit to the Core Private Sector, 2017 – 2018 (per cent)
Source: CBN
4.1.9 Maturity Structure of DMBs' Outstanding Loans and Advances, and
Deposit Liabilities
Analysis of the structure of bank's credit in the first half of 2018 indicated that
credit of short-term maturities remained dominant. Credit maturing within one
year accounted for 44.1 per cent, compared with 43.7 per cent at end-June
2017. The medium-term (greater or equal to 1yr but less than 3yrs) and long-


Jun18


N Billion

Billion

Agriculture

501.09

523.08

3.19

3.42


4.39

Industry

6.222.42

5,899.92

39.61

38.59


(5.18)

Mining & Quarrying

11.42

10.18

0.07

0.07


(10.87)

Manufacturing

2,216.75

2,018.97

14.11

13.20


(8.92)

Oi l & Gas

3,528.16

3,454.43

22.46

22.59


(2.09)

Power and Energy

466.09

416.34

2.97

2.72


(10.67)

Construction

630.68

612.85

4.01

4.01


(2.83)

Trade/General Commerce

960.05

1,044.36

6.11

6.83


8.78

Government

1,367.34

1,474.13

8.70

9.64


7.81

Services

6,029.00

5,786.60

38.38

37.85


(4.02)

Real Estate

794.60

744.56

5.06

4.87


(6.30)

Finance, Insurance and Capital Market

909.86

991.22

5.79

6.48


8.94

Education

75.07

71.85

0.48

0.47


(4.2 9)

Oil & Gas

1,090.55

1,235.66

6.94

8.08


13.31

Power and Energy

302.18

319.91

1.92

2.09


5.87

Others

2,856.72

2,423.40

18.18

15.85


(15.17)

of which:

i. General

1,282.42

942.68

8.16

6.17


(26.49)


ii. Info rmation & Communication

786.22

814.57

5.00

5.33


3.61


iii. Transportation & Storage

403.15

304.45

2.57

1.99


(24.48)

Total Private sector Credit

15,710.57

15,289.47

100.00

100.00


(2.68)


Jun17
Percentage
Share in Total
Jun 18
%Change
Between
1&2
Item
Jun 17
N
CBN Economic Report for the First Half of 2018

term (3yrs and above) maturities stood at 19.3 and 36.6 per cent, respectively,
compared with 18.4 and 37.9 per cent at the end of the corresponding period
of 2017.
Figure 36
Distribution of Bank Loans and Advances by Maturity
Source: CBN
Similarly, deposits of less than one-year maturity constituted 89.1 per cent (of
which 70.3 per cent had maturity of less than 30 days), compared with 96.1 per
cent at the end of the first half of 2017. Further analysis showed that the medium
and long-term deposits constituted 4.0 and 7.3 per cent, respectively,
compared with 1.0 and 3.0 per cent at end-June 2017. Consequently, loan to
deposit ratio rose to 96.2 per cent at end June 2018, compared with 79.0 per
cent at end-June 2017, and reflected significant holdings of government
securities by banks, as claims on the core private sector, also, fell.
Although marginal improvements were observed with the long-term deposit
and credit structure during the review period, the continued mis-match of
deposits and loans structure remained a constraint to banks and their ability to
create long-tenored assets.

Dec 15'
June 16
Dec 16
Jun '17
Dec 17
Jun' 18
Short term
Medium-term
Long-Term
per cent
CBN Economic Report for the First Half of 2018

Figure 37
Maturity Structure of Bank Deposits (per cent)
Source: CBN
Table 15
Maturity Structure of Banks Assets and Liabilities
Source: CBN

Dec 15'
Jun 16
Dec 16
Jun '17
Dec 17
May '18
Jun' 18
Short term
Medium Term
Long-Term(rhs)
per cent
Assets (Loans and Advances)

Dec 15
Jun 16

Dec 16
Jun 17

Dec 17

Jun 18

Tenor


0 -30 days
24.4
26.6
27.3

27.9

25.6

2 5.3

31 -90 days
8.6
7.1
6.8

6.6

7.8

6.8

91 -181 days
6.9
7.5
7.2

4.7

5.3

5.9

181 -365 days

7.2

4.7

5.1

4.4

5.0

6.1

Short -Term

47.1

46.0

46.4

43.7

43.65

44.06

Medium-Term (Above 1yr and
below 3yrs)

16.9

18.1

20.7

18.4

18.0

19.3

Long -Term (3 Years and Above)

36.0

35.9

32.9

37.9

38.4

36.6

Liabilities


0 -30 days

71.70

75.45

75.91

74.87

74.37

70.25

31 -90 days

15.04

12.69

11.83

12.88

12.92

12.42

91 -181 days

3.87

4.02

4.38

4.71

4.84

3.99

181 -365 days

4.78

3.16

3.51

3.61

3.7 1

2.41

Short -Term

95.40

95.32

95.62

96.07

95.85

89 .07

Medium
-Term (Above 1yr and
below 3yrs)

1.83

1.83

1.23

0.97

1.32

3.59

Long -Term (3 Years and Above)

2.77

2.85

3.15

2.95

2.83

7 .34

Total

CBN Economic Report for the First Half of 2018

4.1.10 Market Structure of the Banking Industry
Competition among market players remained weak, in the banking sector in
the first half of 2018. The market share of the largest bank, with respect to assets
and deposits, stood at 14.8 per cent and 12.6 per cent, respectively,
compared with 14.6 per cent and 13.3 per cent at the end of the first half of
2017. Nineteen banks had market shares, ranging from 0.01 to 5.5 per cent of
assets, and 0.02 to 5.2 per cent of deposits.
Concentration ratio of the top six banks (CR6) stood at 58.1 per cent
(HHI=3,375.61) in deposits and 61.0 per cent (HHI= 3,721) in assets, compared
with 52.9 per cent (HHI=2,798.41) and 55.1 per cent (HHI=3,036) in deposit and
assets, respectively at the end of the corresponding period of 2017. This implied
a trend towards oligopoly in the market.
Figure 38a
Market Concentration Ratios of Banks (Assets and Deposits)
Source: CBN
Figure 38b
Measures of Competition in Banks: Herfindahl- Hirschman Index
Source: CBN

Dec15
Jun 16
Dec 16
Jun17
Dec 17
Jun 18
HHI (Deposits)
HHI (Assets)
HHI
CBN Economic Report for the First Half of 2018

4.1.11 Consumer Credit
At 604.3 billion, consumer credit fell by 6.6 per cent at the end of the review
₦
period, compared with the decline of 3.3 per cent at the end of the
corresponding period of 2017. At that level, consumer loans constituted 3.0 per
cent of total credit to the core private sector, in the first half of 2018, compared
with 3.5 per cent at the end of the corresponding half of 2017. Thus, consumer
credit constituted low risk to commercial banks' exposure to the core private
sector.
Figure 39
Consumer Credit and Ratio of Claims on Core Private Sector
( ' Billion)
₦
Source: CBN
4.1.12 Money Market Developments
Activities in the money market, in the first half of 2018, reflected the liquidity
conditions in the banking system. Liquidity was influenced by operational
modalities of CRR, settlements of foreign exchange interventions and maturity
of CBN bills. Banking system liquidity was also influenced by the fiscal
operations of the three-tiers of government driven by the monetised proceeds
from sale of crude oil and distributed at the monthly Federation Accounts
Allocation Committee (FAAC) meetings. Open Market Operations (OMO)
remained the main instrument for influencing banking system's liquidity and the
movement in money market rates.
CBN Economic Report for the First Half of 2018

4.1.12.1 Money Market Assets Outstanding
Provisional data indicated that money market assets outstanding at the end of
the first half of 2018 was 12,126.87 billion, an increase of 4.0 per cent, above
₦
the level in the corresponding half of 2017. The development reflected, mainly,
the increase of 9.2 per cent in FGN Bonds outstanding.
A breakdown of the total money market assets outstanding, showed that 72.0
per cent was held in FGN Bonds, 24.4 per cent in NTBs, while Commercial Paper
and Bankers Acceptances accounted for the balance.
Figure 40
Money Market Assets Outstanding
(End-June 2018)
Source: CBN
4.1.12.2 Primary Market
Nigerian Treasury Bills worth 1,653.37 billion for 91-,182- and 365-day tenors
₦
were issued and allotted, while public subscription stood at 3,223.36 billion in
₦
the first half of 2018. At that level, NTBs declined by 1,255.88 billion or 43.6 per
₦
cent and the public subscription decreased by 18.7 per cent from the levels in
the corresponding period of 2017. The decline in NTBs reflected fewer issues,
4%
24%
72%
CBN Economic Report for the First Half of 2018

₦' Billion
increased OMO auctions and the redemption of bills worth N638.9 billion, while
the reduction in subscription, was traced to the liquidity condition, occasioned
by the actions of monetary authority around the period of auctions.
Successful bid rates ranged from 10.00 to12.55 per cent for the 91-day, 10.30 to
13.93 per cent for the 182-day and 10.70 to 14.30 per cent for the 364-day
tenors, compared with 13.40 to14.00 per cent for the 91-day, 17.14 to 17.50 per
cent for the 182-day and from 18.45 to 18.98 per cent for the 364-day tenors, in
the corresponding period of 2017. The decline in rates was due, largely, to
lower offers, fall in inflation rate, increased real returns and lower competitive
bid rates. Average bid-to-cover ratio stood at 1.94 for the various tenors.
Figure 41
Nigerian Treasury Bills Outstanding
( ' Billion)
₦
Source: CBN
4.1.12.3 Federal Government of Nigeria Bonds
In the review period, the total FGN Bonds offered was 500.00 billion, while
₦
public subscription and sale stood at
829.42 billion and
425.35 billion,
₦
₦
respectively. The amount offered comprised new issues and re-openings of
FGN Bonds series 1, 2, 3 and 6. In the corresponding period of 2017, FGN Bonds
issues, subscription and allotment amounted to 785.00 billion, 1,237.94 billion
₦
₦
and
849.53 billion, respectively. The decrease in issues, subscription and
₦
allotment was attributed to the Federal Government's policy of reducing
domestic borrowing in favour of the cheaper foreign debt.
Thus, the total value of FGN Bonds outstanding at end-June 2018 was 9,407.53
₦
billion, compared with
8,614.75 billion at end-June 2017, representing an
₦
increase of 9.2 per cent.
CBN Economic Report for the First Half of 2018

Figure 42
Distribution of FGN Bonds
(End-June 2018, per cent)
Source: CBN
4.1.12.4 Open Market Operations (OMO)
Open Market Operations remained the core instrument for liquidity
management during the review period.

4.1.12.5 OMO Auctions
Total amount of CBN bills worth 13,972.84 billion was issued in the first half of
₦
2018. Public subscription and sale amounted to
11,651.25 billion and
₦
₦
₦
9,743.76 billion, respectively. This compared with 3,702.96 billion issues and
₦
₦
4,593.89 billion and 3,874.27 billion subscribed to, and sold, in the first half of
2017. The high level of activity was attributed, largely, to the increased monthly
disbursements to the three-tiers of government, huge amount of CBN bills
maturities, and increased number of auctions during the period.
Consequently, the cost of liquidity management, in the review period, rose to
₦
₦
848.32 billion, compared with 577.46 billion in the corresponding period of
2017.
DMBs & MERCHANT
DMBs & MERCHANT
Non-Bank Pub
61%
DMBs & MERCHANT
39%
DMBs & MERCHANT
Non-Bank Pub
CBN Economic Report for the First Half of 2018

4.1.12.6 The Two-Way Quote Trading in NTBs
There was no transaction during the review period, same as in the
corresponding period in 2017. The absence of trading was due to the shift in the
Bank's operational strategy.
4.1.12.7 Tenored Repurchase Transactions
The market accessed the sum of 240.73 billion at the tenored repurchase
₦
window between January and June 2018. The tenors ranged from 4 to 90 days,
while total interest that accrued was N6.53 billion at rates, ranging from 18.50 to
19.50 per cent. In the corresponding period of 2017, the sum of 352.66 billion
₦
was accessed and the total interest earned was 10.30 billion for the same
₦
tenors. The low level of request, in the review period, was due to preference for
overnight facility instead of tenored funds.
4.1.12.8 Discount Window Operations
There were no requests for rediscounting of CBN Bills in the review period.
However, CBN Bills worth 5.29 billion with days to maturity ranging from 6 to 129
₦
were rediscounted at 18.00 to 19.10 per cent in the corresponding period of
2017. The absence of rediscounting transactions in the review period was due
to the contractionary monetary policy stance of the Bank.
4.1.12.9 Central Bank of Nigeria (CBN) Standing Facilities
The trend at the window showed less frequent recourse to the SLF in the first half
of 2018, compared with the corresponding period in 2017. Meanwhile, the
threshold for daily deposits per institution at the SDF remained 7.5 billion, in
₦
accordance with the Bank's quest to curtail unrestrained requests by market
participants and encourage lending to the real sector of the economy.
Applicable rates at the SLF and SDF windows were 16.00 per cent and 9.00 per
cent, respectively.
4.1.12.9.1 Standing Lending Facility (SLF)
The average request for SLF, inclusive of intra-day liquidity facility (ILF) in the first
half of 2018, amounted to 57.63 billion, in 123 transaction days, out of which ILF
₦
conversion was 45.54 billion, amounting to 75.4 per cent of the total requests.
₦
Total average daily interest charged was 44.40 million. In comparison with
₦
the first half of 2017, the average daily volume of SLF amounted to 227.52
₦
CBN Economic Report for the First Half of 2018

billion, in the 122 transaction days, out of which ILF conversion was 169.99
₦
billion and the average daily interest charged amounted to 175.34 million.
₦
4.1.12.9.2 Standing Deposit Facility (SDF)
The total value of SDF transaction in the review period declined to an average
daily amount of 41.90 billion for the 121 days, in the first half of 2018, from
₦
₦45.12 billion for the 121 days in the corresponding period of 2017. The
average daily interest payments on the deposit decreased to 14.86 million, in
₦
the review period, from 16.33 million in the corresponding period of 2017. The
₦
reduced volume of transaction was due to the tight monetary policy stance.
4.1.12.10 Inter-Bank Funds Market
The total value of funds traded in the market stood at 716.06 billion, in the first
₦
half of 2018, representing a decline of 17.21 per cent, compared with 864.93
₦
billion in the corresponding period of 2017. The value of unsecured call
transactions amounted to 30.45 billion or 4.25 per cent, while open-buy-back
₦
(OBB) transactions stood at 685.61 billion or 95.75 per cent. The lower level of
₦
transactions at the unsecured segment was attributed, largely, to higher risk
aversion by market participants.

4.1.13 Interest Rate Developments
4.1.13.1 Money Market Rates
The movement in money market rates was in tandem with the level of liquidity
in the banking system in the first half of 2018. The causative factors included: the
fiscal operations of government; effects of CRR maintenance periods; deposits
and settlement for foreign exchange wholesale and retail intervention sales;
and maturities of CBN bills. In this regard, the daily inter-bank call rates and OBB
rates ranged from 1.00 to 140.00 per cent and 1.85 to 131.04 per cent,
respectively. The weighted average monthly inter-bank rate and the OBB rate,
for the first half of 2018, were 14.64 per cent and 12.45 per cent, respectively,
compared with 22.94 per cent and 26.66 per cent in the corresponding half of
2017. The weighted average of the Nigeria Inter-Bank Offered Rate (NIBOR)
was 14.23 per cent, compared with 29.26 per cent in the corresponding half of
2017.
CBN Economic Report for the First Half of 2018

Table 16
Money Market Rates
(Per cent)
Source: CBN
Figure 43
Money Market Rates
(Per cent)
Source: CBN
4.1.13.1.1 Deposit Rates
Deposit rates also moved in tandem with the level of banking system liquidity
and generally, rose in the first half of 2018. The average term deposit rate
increased by 1.38 percentage points to 8.79 per cent, above its level in the
corresponding half of 2017. Average rates on deposits of various maturities rose
from a range of 8.51 to 9.10 per cent, in the first half of 2017, to a range of 8.54 to
9.23 per cent, at the end of the first half of 2018. With the year-on-year inflation
rate at 11.23 per cent in June 2018, all deposit rates were negative in real terms.
WEIGHTED AVERAGE

Month


OBB


Jan -18

14.00

14.72

10. 04

11. 24
Feb -18

14.00

23.54

18.40

19.91

Mar -18

14.00

16.06

13.92

15.97

Apr -18

14.00

3 .10
2.88

3.88

May -18

14.00

25.43

18.37

22.77

Jun -18

14.00

5.00

11.13

11. 65
Average 2017 First Half


14.00

22.94

26.66

29.26

Average 2018 First Half


14.00

14. 64

12. 45

14.23


NIBOR 30-days
Call Rate
MPR
CBN Economic Report for the First Half of 2018

4.1.13.1.2 Lending Rates
The weighted average prime lending rate fell by 0.10 percentage point to
17.25 per cent from 17.35 per cent, while the maximum lending rate rose by
1.34 percentage points to 31.39 per cent from 30.05 per cent in the first half of
2018. Consequently, the spread between the average term deposits and
maximum lending rates narrowed by 0.06 percentage point to 22.60 per cent.
Table 17
DMBs Deposits and Lending Rates
(Per cent)
Source: CBN
4.1.14 Institutional Savings
Aggregate financial savings declined by 4.4 per cent to 14,518.80 billion in the
₦
first half of 2018, compared with
12,380.00 billion at the end of the
₦
corresponding period of 2017. DMBs remained the dominant depository
institutions in the financial system, accounting for 95.3 per cent of the total
financial savings, compared with 95.2 per cent in the preceding half year.
Other saving institutions, namely PMBs, life insurance companies, pension fund
custodians, the Nigerian Social Insurance Trust Fund (NSITF), and MFBs
accounted for the balance.
Month

Savings

Average Term
Deposit Rates

Prime
Lending

Maximum
Lending

Spread

Jan -18

4.08

9.23

17.50

31.39

22.16

Feb -18

4.08

8.90

17.53

31.40

22.50

Mar -18
4.08
8.64

17.35

31.55

22.91

Apr -18
4.07
8.74

17.24

31.56

22.82

May -18
4.07
8.69

17.08

31.29

22.60

Jun - 18

4.07
8.54

16.78

31.17

22.63

Average 2017 First Half


4.18
8.67

17.35

30.05

21.38

Average 2018 First Half


4.07
8.79

17.25

31.39

22.60


(AVTD-MXLR)
CBN Economic Report for the First Half of 2018

4.1.15 Other Financial Institutions
4.1.15.1 Development Finance Institutions
Total assets of the seven (7) reporting development finance institutions (DFIs)
namely: Bank of Industry (BOI), Federal Mortgage Bank of Nigeria (FMBN),
Nigerian Export-Import Bank (NEXIM), Bank of Agriculture (BOA); The
Infrastructure Bank (TIB), Development Bank of Nigeria (DBN) and Nigeria
Mortgage Refinance Company (NMRC) increased by 35.5 per cent to
₦
₦
1,785.84 billion at end-June 2018, compared with 1,318.24 billion at endDecember 2017. Aggregate shareholders' funds rose by 36.7 per cent to
₦338.18 billion at end-June 2018, over the level at end-December 2017, due,
mainly, to increase in paid-up capital and reserves of the DBN. Total net loans
and advances and paid-up share capital of the sub-sector rose by 14.4 per
cent and 0.03 per cent to
793.53 billion and
237.05 billion, respectively,
₦
₦
relative to the levels at end-December 2017. A disaggregation of the total
assets by institution indicated that BOI, FMBN, DBN, NEXIM, BOA, NMRC and TIB
accounted for 57.8, 14.8, 13.5, 6.8, 3.8, 3.0 and 0.3 per cent, respectively, of the
total.
The DBN issued additional shares during the review period to raise its paid-up
capital to 100 billion at end-June 2018, from 20 billion at end-December
₦
₦
2017. Accordingly, the ownership structure among the shareholders changed
to: Ministry of Finance Incorporated, (59.8%); African Development Bank,
(18.0%); Sovereign Investment Authority, (15.0%); and European Investment
Bank, (7.2%). A World Bank Consultant was also commissioned to set up a
wholly owned subsidiary that will be operationally distinct but whose account
would be consolidated in DBN's books. Additionally, the BOI raised long term
debt of U$750 million from 16 international banks in the review period.
4.1.15.2 Microfinance Banks (MFBs)
There were 1,034 licensed microfinance banks (MFBs) at end-June 2018,
comprising eight (8) National MFBs, 132 State MFBs, and 894 Unit MFBs. The total
assets of the MFBs amounted to
379.59 billion at end-June 2018 and
₦
represented 7.7 per cent increase over the level at end-December 2017. The
shareholders' funds of MFBs increased by 13.6 per cent, to 94.21 billion at end-
₦
June 2018, from 82.97 billion at end-December 2017. The paid-up capital and
₦
reserves, at 66.48 billion and 27.72 billion at end-June 2018, showed increase
₦
₦
CBN Economic Report for the First Half of 2018

of 5.3 per cent and 39.6 per cent, respectively, over the levels at endDecember 2017, reflecting a modest capital injection and increased
operating profits. Total deposit liabilities was 194.28 billion at end-June 2018,
₦
compared with 162.47 billion at end-December 2017 and 185.11 billion at
₦
₦
end-June 2017, respectively. Net loans and advances, however, fell to 175.20
₦
billion at end-June 2018, from
193.16 billion at end-December 2017 and
₦
₦193.20 billion at end-June 2017.
Investible funds available to the sub-sector in the review period amounted to
₦
₦
64.14 billion. The funds were sourced from: mobilisation of deposit ( 31.81
billion); drawdown on reserves ( 7.87 billion); additional paid-up capital ( 3.37
₦
₦
billion); and liquidation of short-term investment ( 3.31 billion). The funds were
₦
used, mainly, for: increase in placement with banks ( 35.42 billion) and
₦
balances with banks ( 6.08 billion); settlement of other liabilities ( 11.69 billion);
₦
₦
acquisition of other assets ( 4.09 billion); reduction of placement from banks
₦
( 2.94 billion); and payment of matured long-term loans ( 1.18 billion).
₦
₦
The 18th and 19th Meetings of the Committee of Microfinance Banks in Nigeria
(COMBIN) were held in Lagos, Abuja and Owerri during the first half of 2018.
Deliberations at the meetings centered, mainly, on: improving credit
administration to reduce portfolio-at-risk (PAR) in the sub-sector; ensuring
timely rendition of returns and submission of audited annual financial
statements; and strengthening the AML/CFT measures. The meeting also
discussed sensitisation on Bank Verification Number (BVN), use of Credit
Bureaux and National Collateral Registry and connecting to the Uniform
Information Technology platform (NAMBUIT). Other major developments in the
sub-sector in the review period included:
Ÿ
On-boarding of 111 MFBs on the NAMBUIT platform;
Ÿ
Payment of subsidy by the CBN to the National Association of
Microfinance Banks for acquisition of 246 Data Capturing Machines
(DCM) for BVN enrolment of customers;
Ÿ
Training of Software Vendors and Compliance Officers of OFIs held in
three (3) zones in the country on Credit Bureaux operations ; and
Ÿ
Design and upload of forms to capture OFIs' compliance with
AML/CFT regulations.
CBN Economic Report for the First Half of 2018

4.1.15.3 Finance Companies (FCs)
The number of licensed finance companies (FCs) increased to 82 at end-June
2018, following the licensing of two (2) additional FCs. Thus, licensed FCs
comprised 61 active and 21 inactive institutions whose licenses were pending
revocation. The total assets and liabilities FCs increased by 14.4 per cent to
₦
₦
159.48 billion at end-June 2018, compared with
139.36 billion at endDecember 2017. The increase in total assets was attributed to the growth of
24.3 per cent and 16.6 per cent in borrowings, and loans and advances,
respectively, to 100.05 billion and 47.70 billion at end–June 2018. Similarly,
₦
₦
balances with banks, reserves, investments and fixed assets increased by 73.9
per cent, 27.5 per cent, 26.5 per cent and 8.6 per cent to 4.34 billion, 9.73
₦
₦
billion, 15.40 billion and 41.37 billion, respectively, at end-June 2018.
₦
₦
Investible funds available to the sub-sector in the review period amounted to
₦16.26 billion. The funds were sourced from additional long-term borrowing
( 13.34 billion), reduction in bank balances ( 1.54 billion) and draw-down on
₦
₦
reserves ( 1.37 billion). The funds were utilised to: reduce other liabilities ( 5.83
₦
₦
billion); increase investments ( 3.03 billion), cash balance ( 2.91 billion) and
₦
₦
placements ( 1.28 billion); and acquire other assets ( 1.22 billion) and fixed
₦
₦
assets ( 1.15 billion).
₦
Table 18
Key Finance Indicators of Finance Companies at end-June 2018
Source: CBN

June 2018


( N ’ billion)

% Change

Total Assets
159.48
139.36
14.44

Cash in Vault
4.39

1.45
2.94
Balances with Banks

4.34

2.5
1.84
Loans and Advances

47.70
40.9
6.80
Borrowings

100.05

80.47

19.58

Investments

15.40

12.17

3.23

Fixed Assets

41.37

38.08

3.29

Reserves

9.73

7.63


2.10

Paid
-up Capital

19.37

19.06

0.31


( N ’ billion)
December 2017
CBN Economic Report for the First Half of 2018

4.1.15.4 Primary Mortgage Banks (PMBs)
There were thirty-four (34) licensed PMBs in operation at end-June 2018,
comprising 11 national and 23 state PMBs, same as at end-December 2017.
Total assets of the PMBs decreased marginally by 1.0 per cent to 384.37 billion
₦
at end-June 2018, from 388.58 billion at end-December 2017 due, largely, to
₦
losses from loan impairments in the review period. Shareholders' funds
amounted to 109.74 billion at end-June 2018, compared with 132.35 billion
₦
₦
at end-December 2017, indicating 17.1 per cent decrease due, mainly, to
operating losses. Total loans and advances, placement with banks and
deposit liabilities decreased by 0.4 per cent, 0.4 per cent and 0.8 per cent,
respectively, to 177.17 billion, 36.52 billion and 108.83 billion at end-June
₦
₦
₦
2018, while other liabilities rose by 10.6 per cent to 98.17 billion.
₦
Investible funds available to the sub-sector amounted to 31.49 billion at end-
₦
June 2018. The funds were sourced, mainly, from: mobilisation of other liabilities
( 9.44 billion); long-term loans ( 4.33 billion); and increase paid-up capital
₦
₦
( 1.03 billion). Additional funds were also sourced from reduction in placement
₦
with banks ( 5.73 billion), disposal of non-current asset held for sale ( 7.63
₦
₦
billion) and sale of quoted investment in equities ( 2.67 billion). The funds were
₦
utilised for accretion to reserves ( 23.6 billion), increase in bank balances
₦
( 3.60 billion) and acquisition of other assets ( 2.65 billion).
₦
₦

Table 19
Key Financial Indicators for Primary Mortgage Banks at end-June 2018
Source: CBN

June 2018

(N ’ billion)

December 2017

(N ’ billion)

% Change

Total Assets

384.37

388.36

-1.03
Loans and Advances

177.17

177.81

-0.36

Placement with Banks

36.52

36.54

-0.40

Deposit Liabilities

108.83

109.73

-0.82

Other Liabilities

98.17

88.73

10.64

Shareholders’ funds

109.74

132.35

-17.07


CBN Economic Report for the First Half of 2018

4.1.15.5 Bureaux-De-Change (BDCs)
There were 4,106 BDCs in operation in the first half of 2018, compared with 3, 740
at end-December 2017. The increase was due to the licensing of 366 new
BDCs. In the review period the CBN approved an upward review of the trading
margin for BDCs to 3.0 from the previous 2.0, to incentivize this category of
₦
₦
market participants and increase liquidity in the market.
4.1.16 Capital Market Developments
4.1.16.1 Institutional Developments
Activities of the Securities and Exchange Commission (SEC) during the first half
of 2018 were focused on the sustained implementation of the initiatives under
the 10–year Capital Market Master Plan. In that regard, a market-wide
technical committee was set-up, in the review period, to examine the Nigerian
commodity eco-system in line with government's effort at economic
diversification. The Committee was mandated to come up with a framework
for an orderly, dynamic and efficient marketing system for the agricultural and
mining sectors. Consequently, a report and a draft framework were submitted
by the Committee.

The Commission also extended the deadline for the forbearance window to
September 2018. The extension was to further allow investors with shares in
multiple names consolidate their identities and shareholdings with the registrars
and the Central Securities Clearing System (CSCS) into one that bears their
official name. Similarly, the Commission commenced an impact assessment of
the e-Dividend Mandate System and data gathering on ownership structure in
the first half of 2018. The exercise covers ownership structure of Nigerian
companies, bonds and foreign capital flows. Other initiatives included:

Ÿ
Roadmap for enhancement of market liquidity;
Ÿ
Framework for encouraging new listings; implementation of the
financial literacy roadmap; and
Ÿ
Advocacy for development and adoption of non-interest financing
and capital market products.
CBN Economic Report for the First Half of 2018

With respect to investor protection, the Commission received 143 complaints
against capital market operators in the first half of 2018, compared with 164
complaints received in the corresponding half of 2017. A total of 91 cases were
resolved in the review period.
Figure 44
Complaints received and resolved, end-June 2018
Source: Securities and Exchange Commission (SEC)
4.1.16.2 The Nigerian Stock Exchange (NSE)
The Nigerian Stock Exchange, in the first half of 2018, generally continued with
the implementation of various initiatives to sustain the post-recession rebound
of investment activities. The Exchange implemented an amended Pricing
Methodology and Par Value Rules in the review period. The amendments were
aimed at improving liquidity, narrowing spreads and making the market more
efficient. The Rules specified revised price limit (price floor), price movements
(minimum pricing increments) and tick sizes (minimum quantity), that could
cause change in published price.
The Exchange also admitted four (4) more companies into the Premium Board
in the first half of 2018. The Premium Board is the listing segment for issuers that
meet the Exchange's most stringent corporate governance and listing
standards. It showcases the companies and provides them access to a global
pool of investors who are focused on firms managed in conformity with the
highest standards. Companies desirous of listing on the Board must attain a
minimum score of 70.0 per cent on the Corporate Governance Rating System
(CGRS), minimum market capitalisation of
200 billion as at date of
₦
application, and maintain a minimum free float of 20.0 per cent of their issued
share capital. At end-June 2018, there were seven (7) companies listed on the
Premium Board.
CBN Economic Report for the First Half of 2018

In addition, following the implementation of the Corporate Governance
Rating System (CGRS), the Exchange launched the corporate governance
index aimed at tracking the corporate governance practices of listed
companies. The index was expected to enhance transparency, provide
investors additional basis for making sound and informed decisions, as well as,
give listed companies more positive outlook when raising capital within or
outside their jurisdiction. The index would be reviewed on a bi-annual basis.
4.1.16.3 The New Issues Market
In the primary segment of the Nigerian capital market, there were twenty-six
(26) new issues worth 554.77 billion in the first half of 2018, compared with
₦
twenty-four (24) valued at 808.06 billion in the corresponding half year of 2017.
₦
Ten (10) new issues approved by the Commission in the review period
amounted to 93.36 billion, and comprised six (6) equities made up of: three (3)
₦
rights issues ( 54.36 billion); two (2) private placements ( 5.99 billion); one (1)
₦
₦
offer for sale ( 0.01 billion); and, four (4) corporate bonds ( 33.33 billion). In the
₦
₦
government segment of the primary market, sixteen (16) bonds, worth 461.08
₦
billion were issued and allotted by the Debt Management Office in the review
period, compared with sixteen (16) bonds, worth
829.42 billion in the
₦
corresponding half year of 2017.
4.1.16.4 The Secondary Market
Despite the general improvement in macro-economic conditions, rising
interest rates in the United States was a major threat to the retention of portfolio
investments, as investors contemplated diversification of portfolios to seek
higher returns. This weakened investors' confidence in the market and led to a
slowdown in the momentum of market rebound in the first half of 2018.
Notwithstanding these developments, the market closed slightly bullish.
The aggregate volume and value of traded securities rose by 52.0 per cent
and 70.0 per cent, respectively, to 67.04 billion shares and 797.08 billion in
₦
647,560 deals, compared with 44.0 billion shares, valued at 468.77 billion and
₦
traded in 565,948 deals in the corresponding period of 2017. The equities subsector maintained its dominance in the market, accounting for 99.9 per cent of
the aggregate volume and value of transactions, while the debt and
Exchange Traded Fund (ETF) market accounted for the balance. Sectoral
CBN Economic Report for the First Half of 2018

analysis of the developments in the market indicated that the financial services
sector (measured by volume of transactions), remained the most active,
accounting for 48.9 billion shares (73.0%), valued at 521.01 billion (65.4%), in
₦
389,926 deals, compared with 36.6 billion shares, valued at 214.7 billion in
₦
263,465 deals in the first half of 2017. This was followed by the conglomerates
and consumer goods sectors. The banking sub-sector was the most active on
the Exchange (measured by volume) with traded volume of 30.8 billion shares,
valued at 376.8 billion in 251,804 deals, compared with 23.7 billion shares,
₦
valued at 203.3 billion in 215,587 deals in the first half of 2017.
₦
Analysis of investors' activities in the market showed increased participation by
foreign investors relative to the first half of 2017. Domestic and foreign investors'
participation were 50.5 per cent and 49.5 per cent, as against 52.5 per cent
and 47.5 per cent, respectively, in the corresponding half year of 2017.
Figure 45
Volume and Value of Transactions at the NSE
Source: Securities and Exchange Commission (SEC)/Nigerian Stock Exchange (NSE)
4.1.16.5 All-Share Index and Aggregate Market Capitalisation
The NSE All-Share Index was 38,278.55 at end-June 2018, indicating 0.1 per cent
and 15.6 per cent increase, relative to 38,243.19 and 33,117.48 at endDecember 2017 and end-June 2017, respectively. Aggregate market
capitalisation of the 278 listed securities closed at 23.99 trillion, indicating an
₦
increase of 4.7 per cent and 26.1 per cent over the levels at end-December
2017 and the corresponding period of 2017, respectively. Listed equities
accounted for 57.8 per cent of the aggregate market capitalisation, while the
debt and ETF components accounted for the balance of 42.2 per cent. The
CBN Economic Report for the First Half of 2018

top-twenty (20) most capitalised companies on the Exchange accounted for
88.6 per cent ( 12.3 trillion) of the total equity capitalisation and 51.5 per cent
₦
of the aggregate (equity plus debt) market capitalisation.
Six (6) banks made the list of the top-twenty (20) most capitalised companies
and accounted for
3.18 trillion (22.9%) of the total equity market
₦
capitalisation, compared with eight banks and 16.8 per cent in the
corresponding period of 2017. As a percentage of nominal GDP, aggregate
market capitalisation stood at 40.5 per cent at end-June 2018, compared with
35.9 per cent in the corresponding period of 2017. The development indicated
that despite its slowed momentum, growth in the capital market activities
outpaced recovery of the real economy.
4.2 FISCAL OPERATIONS
4.2.1 Federation Account Operations

Provisional gross federally-collected revenue in the first half of 2018 stood at
₦4,401.91 billion or 7.7 per cent of GDP. The amount was lower than the
proportionate budget estimate by 33.7 per cent, but was above the level in the
corresponding period of 2017 by 47.1 per cent. The drop in federally-collected
revenue, relative to the budget estimate, was attributed to the shortfall in both
oil and non-oil revenue. Of the total revenue, oil constituted 61.0 per cent,
while non-oil accounted for the balance of 39.0 per cent.
Figure 46
Structure of Gross Federation Revenue, First Half 2014 - 2018
(Per cent)
Source: Computation based on data from The Office of Accountant General of the
Federation (OAGF) and The Federal Ministry of Finance (FMF)
2 Earnings lodged in the Federation Account by virtue of Section 161 of the Federal Republic of Nigeria Constitution 1999 as amended
CBN Economic Report for the First Half of 2018

At 2,686.12 billion or 4.5 per cent of GDP, gross oil revenue fell below the
₦
proportionate budget estimate by 30.1 per cent, but rose above the level in
the first half of 2017 by 66.5 per cent. The drop in oil revenue, relative to the
proportionate budget estimate, was attributed to the decline in the volume of
production and exports during the period. Relative to the budgeted
benchmark of 2.3 million barrels per day (mbd), crude oil production averaged
1.90 mbd. In addition, crude oil exports dropped below the proportionate
budget benchmark of N611.38 billion by 403.84 billion or 66.1 per cent. The
₦
gross oil revenue comprised: PPT/Royalties, 1,767.36 billion (65.8%); Domestic
₦
Crude Oil/Gas Sales, 706.31 billion (26.3%); Crude Oil and Gas Exports, 207.54
₦
₦
billion (7.7%); and “Others”, 4.91 billion (0.2%), respectively.
₦
Figure 47
Composition of Oil Revenue, First Half 2018
(Per cent)
Source: Computation based on data from the OAGF and the FMF
The sum of 282.72 billion and 22.19 billion from the gross oil revenue were
₦
₦
utilised for the Joint Venture Cash (JVC) calls and cost of collection by the
Department of Petroleum Resources (DPR), respectively, while 24.63 billion
₦

was transferred to “Others” . The balance of 2,356.58 billion was, however,
₦
retained in the Federation Account for distribution among the three tiers of
government and the 13% Derivation Fund.
3 Included Excess Crude Revenue, Excess PPT/Royalty & NNPC Refunds
CBN Economic Report for the First Half of 2018

4 Include Education Tax Fund; Customs Special Levies (Federation and Non-Federation); and National Information Technology
Development Fund (NITDF).
Gross revenue from non-oil sources, at 1,715.79 billion or 2.9 per cent of GDP,
₦
was below the proportionate budget estimate by 38.8 per cent, but was
above the level in the corresponding period of 2017 by 24.4 per cent. The
decline in non-oil revenue, relative to the budget estimate, was attributed to
the lull in economic activities and was reflected in most of its components. The
gross non-oil revenue comprised: Corporate Tax, 572.00 billion (33.3%); Value
₦
Added Tax (VAT), 541.26 billion (31.6%); Customs and Excise Duties, 328.02
₦
₦

billion (19.1%); FGN Independent Revenue, 77.67 billion (4.5%) and “Others” ,
₦
₦196.84 billion (11.5%).
Figure 48
Composition of Non-Oil Revenue, First Half 2018
(Per cent)
Source: Computation based on data from the OAGF and the FMF
The sum of 66.88 billion, 6.09 billion and 2.01 billion were deducted from the
₦
₦
₦
non-oil revenue, as combined cost of collection for the Federal Inland
Revenue Service (FIRS) and Nigeria Customs Service (NCS), FIRS Tax refunds
and NCS refunds, respectively, leaving a net distributable balance of 1,640.82
₦
billion.
Overall, of the 3,997.39 billion federally-collected revenue (net) from oil and
₦
non-oil sources, 519.89 billion (13.0%), 196.84 billion (5.0%) and 77.67 billion
₦
₦
₦
CBN Economic Report for the First Half of 2018

(1.9%), were transferred to the VAT Pool Account, Other Transfers and FG
Independent Revenue, respectively. The balance of 3,202.98 billion (80.1%)
₦
was retained in the Federation Account for distribution to the three-tiers of
government and the 13% Derivation Fund.
Figure 49
Composition of Federally Collected Revenue (Net), First Half 2018
(Per cent)
Source: Computation based on data from the OAGF and the FMF
4.2.1.1 Federally Collected Revenue Distribution

Distribution from the Federation Account to the three-tiers of government in
the first half of 2018 was as follows: Federal Government,
1,525.94 billion;
₦
states, 773.98 billion; and local governments, 596.71 billion. The balance of
₦
₦
₦306.35 billion was shared among the oil-producing states as 13% Derivation

Fund .
The sum of 62.53 billion was drawn-down on the Exchange Rate Differential
₦
Account to augment the shortfall in budgeted revenue and shared as
exchange gain as follows: the Federal Government,
28.66 billion; states,
₦
₦
₦
14.54 billion; local governments, 11.21 billion and the 13% Derivation Fund,
₦
₦
8.13 billion. Furthermore, the sum of 30.77 billion was shared from the Excess
Crude/PPT Account with the Federal Government receiving 14.10 billion. The
₦
5 Shared as follows: Federal, including Special Funds (52.68%); States (26.72%); and local governments (20.0%)
6 Fund set aside for the oil-producing state.
CBN Economic Report for the First Half of 2018

state and local governments received
7.15 billion, and
5.51 billion,
₦
₦
respectively, while the 13% Derivation Fund got 4.00 billion. Also, the sum of
₦
₦11.27 billion was shared as the Federation Revenue Augmentation with the
Federal Government getting 5.16 billion. The state and local governments got
₦
₦
₦
2.62 billion, and
2.02 billion, respectively, while the 13% Derivation Fund
received 1.46 billion. In addition, the sum of 2.59 billion was shared as non-oil
₦
₦

excess revenue as follows: the Federal Government, 1.37 billion; states, 0.69
₦
₦
billion and local governments, 0.53 billion.
₦

4.2.1.2 VAT Pool Account
A total of 512.70 billion accrued to the VAT Pool Account in the first half of
₦
2018, representing a decrease of 30.8 per cent below the proportionate
budget estimate for the fiscal year. The amount was distributed among the
three-tiers of government as follows: Federal Government, 76.90 billion; state
₦
governments, 256.35 billion; and local governments, 179.44 billion.
₦
₦
4.2.1.3 Cumulative Distribution
The total statutory revenue distributed to the three-tiers of government and the
13% Derivation Fund amounted to 3,822.84 billion in the first half of 2018. This
₦
was below the 2018 proportionate budget estimate of 5,804.56 billion by 34.1
₦
per cent, but above the 2,530.42 billion distributed in the first half of 2017 by
₦
51.1 per cent. A breakdown revealed that the Federal Government received
₦1,652.14 billion, while the state and local governments, as well as, the 13%
Derivation Fund got
1,055.33 billion,
795.42 billion and
319.95 billion,
₦
₦
₦
respectively.
7 Include Excess Bank Charges of ₦1.94 billion
8 Shared as follows: Federal (15.0%); States (50.0%); and local governments (35.0%)
CBN Economic Report for the First Half of 2018

Figure 50
Cummulative Distribution to the Three Tiers of Government and
13% Derivation Fund, First Half 2018
( ' Billion)
₦
Source: Computation based on data from the OAGF and the FMF
A further analysis showed that the amount distributed, comprised: the
Federation Account,
3,202.98 billion (83.8%); VAT Pool Account,
512.70
₦
₦
billion (13.4%); and other statutory revenue (including Exchange Gain, Excess
Crude/PPT, Federation Revenue Augmentation and Non-Oil Excess Revenue),
₦107.16 billion (2.8%).
4.2.2 Federal Government Finances
4.2.2.1 Federal Government Fiscal Balance
Provisional data showed that the fiscal operations of the Federal Government,
in the first half of 2018, resulted in an overall deficit of 786.75 billion or 1.3 per
₦
cent of GDP, compared with the proportionate budget estimate and the
corresponding period of 2017 at
977.23 billion and
921.13 billion,
₦
₦
respectively. The deficit was financed, mainly, from domestic sources with
Other Funds accounting for 83.8 per cent of the total.
CBN Economic Report for the First Half of 2018

Figure 51
FGN Fiscal Balance, First Half 2014 - 2018
(₦' Billion)
Source: Computation based on data from the OAGF and the FMF
4.2.2.2 Federal Government Retained Revenue
At 1,799.38 billion or 3.0 per cent of GDP, the provisional retained-revenue of
₦
the Federal Government was lower than the proportionate budget estimate
by 52.9 per cent. It was, however, higher than the level in the first half of 2017 by
24.0 per cent. The development, relative to the proportionate budget
estimate, was attributed to the drop in revenue from oil and non-oil sources. A
breakdown of the retained-revenue revealed that the share from the
Federation Account was
1,525.94 billion (84.8%); Federal Government
₦
Independent Revenue, 77.67 billion (4.3%); VAT Pool Account, 76.90 billion
₦
₦
(4.3%); Exchange Gain, 28.66 billion (1.5%); Excess Crude, 14.10 billion (0.8%);
₦
₦
Federation Revenue Augmentation,
5.16 billion (0.3%); Non-Oil Excess
₦

Revenue , 1.37 billion (0.1%)and 'Others', 69.57 billion (3.9%).
₦
₦
9 Include Excess Bank Charges of N1.02 billion
CBN Economic Report for the First Half of 2018

Figure 52
Composition of Federal Government Retained Revenue, First Half 2018
(Per cent)
Source: Computation based on data from the OAGF and the FMF
4.2.2.3 Federal Government Expenditure
Provisional data indicated that the aggregate expenditure of the Federal
Government in the first half of 2018 was 2,586.13 billion or 4.3 per cent of GDP.
₦
This was below both the proportionate budget estimate and the level in the
corresponding period of 2017 by 46.1 and 21.3 per cent, respectively. The
development, relative to the proportionate budget estimate, reflected,
largely, the low pace of capital releases, owing to the delay in the passage of
the 2018 budget and the need for MDAs to finalise their procurement
processes. Non-debt expenditure was below the proportionate budget
estimate by 63.6 per cent and constituted 52.0 per cent of total expenditure.
Total interest payments amounted to 1,240.52 billion, representing 68.9 and
₦
48.0 per cent of FGN retained revenue and total expenditure, respectively.
CBN Economic Report for the First Half of 2018

Figure 53
Composition of Federal Government Expenditure, First Half 2018
(Per cent)
Source: Computation based on data from the OAGF
At
2,127.98 billion, recurrent expenditure fell by 31.3 per cent below the
₦
proportionate budget estimate and accounted for 82.3 per cent of total
expenditure. As a percentage of GDP, recurrent expenditure was 3.6 per cent,
compared with 4.6 per cent in the first half of 2017. A breakdown of the
recurrent expenditure showed that the goods and services component, at
₦745.10 billion or 35.0 per cent of the total, fell below the proportionate budget
estimate by 57.6 per cent, owing to the decline in all its components. Further
analysis of the goods and services component showed that personnel cost
accounted for
348.80 billion (46.8%), while overhead cost and pension
₦
accounted for 366.84 billion (49.2%) and 29.46 billion (4.0%), respectively.
₦
₦

Interest payments , at 58.3 per cent of total recurrent expenditure or 2.1 per
cent of GDP, rose by 12.6 per cent to 1,240.52 billion, compared with the
₦
proportionate budget estimate of 1,101.92 billion. Of this amount, 1,181.59
₦
₦
billion (95.2%) was expended on domestic debt service, while the balance of
₦58.93 billion (4.8%) was for external debt service. Transfers to special funds
(FCT, Stabilisation Fund, Development of Natural Resources and Ecology Fund)
and “Others” accounted for 142.36 billion or 6.7 per cent of total recurrent
₦
expenditure.
10 Include interest payments on CBN Overdraft.
CBN Economic Report for the First Half of 2018

Figure 54
Economic Classification of FG Recurrent Expenditure, First Half 2018
(Per cent)
Source: Computation based on data from the OAGF
On a functional basis, outlay on Administration was
359.03 billion and
₦
constituted 16.9 per cent of total recurrent expenditure. Relative to the level in
the corresponding period of 2017, it fell by 39.4 per cent, due to the decrease in
the allocation to all the key sub-sectors. Similarly, expenditure on the Social and
Economic services sectors fell by 37.6 and 42.9 per cent to 250.13 billion and
₦
₦106.48 billion, and constituted 11.8 and 5.0 per cent of the total, respectively.
Transfers, however, rose by 13.5 per cent to 1,412.34 billion and accounted for
₦
66.3 per cent of the total.
Capital expenditure at 342.74 billion or 0.6 per cent of GDP and 13.3 per cent
₦
of total expenditure, was below the proportionate budget estimate by 76.1 per
cent, reflecting the slow pace of capital budget releases in the period. As a
proportion of Federal Government retained revenue, capital expenditure, at
19.0 per cent was below the stipulated minimum target of 20.0 per cent under
the revised WAMZ secondary convergence criteria.
Analysis of capital expenditure by function showed that outlay in the
Economic services sector was
141.41 billion or 41.3 per cent of the total.
₦
Administration accounted for 38.4 per cent, while public investments in Social
CBN Economic Report for the First Half of 2018

services, and Transfers constituted 15.9 and 4.4 per cent of the total,
respectively.
Statutory transfers, at 115.41 billion or 0.2 per cent of GDP, fell by 56.5 per cent,
₦
relative to the proportionate budget estimate and accounted for 4.4 per cent
of total expenditure.
4.2.3 State Government Finances
Provisional data on aggregate statutory allocation to state governments from
the Federation Account, Excess Crude/PPT, Federation Revenue

Augmentation, Exchange Gain , Non-Oil Excess revenue , and VAT Pool
Account, amounted to 1,375.28 billion in the first half of 2018. This was 35.3 per
₦
cent below the proportionate budget estimate, but 51.4 per cent above the
level in the corresponding period of 2017. A breakdown showed that
allocation from the Federation Account was 1,080.34 billion (78.6%); VAT Pool
₦
Account, 256.35 billion (18.6%); Exchange Gain, 22.66 billion (1.6%); Excess
₦
₦
Crude/PPT,
11.15 billion (0.8%); Federation Revenue Augmentation,
4.08
₦
₦
billion (0.3%); and Non-Oil Excess, 0.69 billion (0.1%).
₦
Figure 55
Composition of Total Allocations to State Governments, First Half 2018
(Per cent)
Source: Computation based on data from the FMF
11 All Distributions except Non-Oil Excess and VAT include allocation to the 13% Derivation Fund.
12 Include Excess Bank Charges of ₦0.52 billion
CBN Economic Report for the First Half of 2018

The sum of
180.36 billion was, however, deducted as state governments'
₦

contractual obligations from their share of the Federation Account, leaving a
net distributable balance of 899.97 billion. Of the net sum, 593.62 billion was
₦
₦
distributed to the 36 states of the Federation and the balance of 306.35 billion,
₦
being 13% Derivation Fund, was disbursed to the oil-producing states. In
addition, the state governments and the 13% Derivation Fund got 22.66 billion
₦
and 15.24 billion, respectively, from Exchange Gain, Excess Crude/ PPT and
₦
Federation Revenue Augmentation distributions. Also, the sum of
256.35
₦
billion and 0.69 billion were shared exclusively to the states as VAT and Non-Oil
₦
Excess revenue, respectively.
Overall, the net aggregate allocation to the states and 13% Derivation Fund
amounted to 1,194.92 billion. This represented an increase of 50.3 per cent
₦
above the level in the corresponding period of 2017. Further analysis of state
governments' aggregate allocation showed that Delta, Akwa Ibom and Rivers
were the top three recipients at 8.4, 7.8 and 6.8 per cent of the total,
respectively. Conversely, Ebonyi, Kwara and Ekiti states received the least at
approximately 1.7 per cent, each.
4.2.4 Local Government Finances
Provisional data indicated that aggregate statutory allocation to the 774 local
governments from the Federation Account, Exchange Gain, Excess

Crude/PPT, Federation Revenue Augmentation, Non-Oil Excess revenue and
VAT Pool Account was
795.42 billion in the first half of 2018, indicating a
₦
decrease of 32.4 per cent, relative to the proportionate budget estimate. A
breakdown revealed that allocation from the Federation Account was
₦
₦
596.71billion (75.0%); VAT Pool Account,
179.44 billion (22.5%); Exchange
Gain, 11.21 billion (1.4%); Excess Crude/PPT, 5.51 billion (0.7%); Federation
₦
₦
Revenue Augmentation, 2.02 billion (0.3%); and Non-Oil Excess, 0.53 billion
₦
₦
(0.1%). Total allocation to local governments, on state basis, indicated that
Lagos, Kano and Katsina were the top three recipients with 6.1, 5.6 and 4.2 per
cent of the total, respectively. Conversely, Ebonyi, Gombe and Bayelsa states
got the least with 1.6, 1.5 and 1.2 per cent, respectively.
13 Included contribution to external debt service fund, payments for fertilizer, State Agricultural Project, National
Fadama Project and the National Agricultural Technology Support Programme.
14 Include Excess Bank Charges of ₦0.40 billion
CBN Economic Report for the First Half of 2018

Figure 56
Composition of Statutory Allocations to Local Governments, First Half 2018
(Per cent)
Source: Computation based on data from the FMF
4.2.5 Public Debt
4.2.5.1 Consolidated Federal Government Debt
The consolidated debt stock of the Federal Government at end-June 2018,
stood at 18,902.34 billion or 15.8 per cent of GDP. This represented an increase
₦
of 17.6 per cent over the level at end-December 2017. Of the total debt stock,
domestic debt was
12,151.43 billion or 64.3 per cent, while external debt
₦
amounted to 6,750.91 billion (US$22.08 billion) or 35.7 per cent of the total.
₦
Figure 57
Composition of Federal Government Consolidated Debt, End-June 2018
(Per cent)
Source: Computation based on data from the Debt Management Office (DMO)
CBN Economic Report for the First Half of 2018

4.2.5.2 Domestic Debt
At
12,151.43 billion or 10.1 per cent of GDP, the Federal Government
₦
securitised domestic debt at end-June 2018 was below the level at endDecember 2017 by 3.5 per cent. The decrease was due to the redemption of
matured NTBs with external loans. This was in line with the Federal Government's
recent policy on debt-switching to reduce its financing cost through relatively
cheaper foreign loans. Consequently, the stock of NTBs decreased by 17.5 per
cent to 2,953.58 billion, below the level at end-December, 2017. The holdings
₦
of the total outstanding domestic debt instruments were: banking system,
including Sinking Fund (68.7%); and non-bank public (31.3%).
4.2.5.3 External Debt
The total external debt stock (Federal and states, including the Federal Capital
Territory) at end-June 2018 was US$22.08 billion or 5.7 per cent of GDP. This
represented an increase of 16.8 per cent above the level at end-December
2017, reflecting additional multilateral loan of US$0.64 billion and the Eurobond
of US$2.50 billion for infrastructural funding and redemption of matured
domestic securities. A decomposition by holders indicated that 49.3 and 39.8
per cent of the total debt stock were owed to the multilateral and commercial
creditors, respectively, while the balance of 10.9 per cent was for bilateral
creditors.
Figure 58
Breakdown of External Debt Stock, First Half 2014 - 2018
(US$ Billion)
Source: The Debt Management Office (DMO)
CBN Economic Report for the First Half of 2018

4.2.5.4 Total Debt Service
The consolidated debt service of the Federal Government at end-June 2018
stood at 1,678.13 billion or 2.9 per cent of GDP, representing an increase of
₦
120.9 and 101.0 per cent above the level at the first and second halves of 2017.
A breakdown showed that 1,579.90 billion or 94.1 per cent of the total was
₦
expended on domestic debt service, while external debt service accounted
for the balance of 98.23 billion or 5.9 per cent. Further analysis of the domestic
₦
component showed that
941.00 billion was for interest payment, while
₦
principal repayments amounted to 638.90 billion.
₦
Figure 59
Breakdown of External Debt Service, First Half 2014 - 2018
( ' Billion)
₦
Source: Computation based on data from the DMO
4.3 REAL SECTOR DEVELOPMENTS
The real sector witnessed modest growth during the first half of 2018, as growth
momentum picked up in both the oil and non-oil sectors of the economy.
Available data from the NBS indicated that, the gross domestic product (GDP),
at 2010 constant basic prices, grew by 1.73 per cent, in the first half of 2018,
relative to 0.09 per cent contraction in the corresponding period of 2017. Oil
and non-oil sector output grew by 4.99 and 1.41 per cent, respectively. On a
quarter-on-quarter basis, real GDP recorded a slower growth of 1.5 per cent in
the second quarter of 2018, compared with 1.95 per cent growth recorded in
the first quarter of the year. In the oil sector, growth was attributed to increased
crude oil output at an average of 1.9 mbd occasioned by relative peace in the
Niger Delta region. Increased fiscal expenditures buoyed by improved crude
oil receipts, relative stability in the foreign exchange market, improved business
CBN Economic Report for the First Half of 2018

1st Half 2017
environment, as well as, improvements in infrastructure and business
confidence were the drivers of growth in the non-oil sector in the period.
Figure 60
GDP Growth Rate
(Per cent)
Source: National Bureau of Statistics (NBS)
4.3.1 Agriculture
4.3.1.1 Agricultural Policies and Institutional Support
During the first half of 2018, the Federal Government continued the
implementation of the Agricultural Promotion Policy Framework towards
achieving economic diversification. There was effort at integrating the
agricultural commodity value chain into the broader supply chain to link the
country with the global industry, with a view to increasing job creation,
enhancing foreign exchange earnings from agricultural exports and
increasing the contribution of agriculture to GDP.
To promote the diversification of agricultural export basket, the Federal
Government engaged the United Nations Commission on Trade and
Development (UNCTAD) to streamline trade policies and facilitate trade
through reduction of trade barriers. The initiative would also assist in the
harmonisation, simplification and unification of trade processes into a single
framework.
CBN Economic Report for the First Half of 2018

During the review period, the Memorandum of Understanding (MoU) on
agricultural cooperation between Nigeria and Israel was reviewed. The scope
of the agreement covered areas, such as agricultural research, aid from
development partners, strengthening of the twenty two agricultural research
institutes, and capacity development in agriculture for the youth.
To boost mechanised farming, the Federal Ministry of Agriculture and Rural
Development (FMARD), entered into partnership with the Nigerian Agricultural
Mechanisation and Equipment Leasing Company (NAMEL) for the supply of
10,000 tractors to both small and large scale farmers. The Partnership aimed at
providing integrated mechanisation solutions to farmers in land preparation,
planting, weeding, harvest/threshing, farm transportation and simple irrigation
activities. About 9.5 million hectares of land was targeted to produce
additional 37.8 million metric tons of grains and create an estimated 150,000
jobs annually.
The Federal Government started a nationwide distribution of motorcycles to
extension agents in the 36 states and the FCT Agricultural Development
Programme (ADPs), to provide mobility for extension officers and enhance
access to farmers. In addition, the National Farmers Helpline Centre was
established to provide information to farmers in all areas of agriculture, receive
complaints and respond to enquiries.
Furthermore, to enhance affordability and accessibility to fertilizer by smallholder farmers, the Fund for African Private Sector Assistance (FAPA) and
African Fertilizer and Agribusiness Partnership (AFAP), signed a US$1.0 million
agreement to support domestic production and utilisation of fertilizer in
Nigeria. Similarly, the African Development Bank (AfDB) disbursed US$100
million loan to Nigeria's Indorama Eleme Fertilizer and Chemicals Limited to
increase fertilizer output.
The Nigerian Export Promotion Council (NEPC), in collaboration with the
International Institute for Tropical Agriculture (IITA) and the All Farmers
Association of Nigeria, trained 850 farmers in Cross River State on yam seed
multiplication technology for large scale yam production. The Programme,
CBN Economic Report for the First Half of 2018

which was a pilot scheme, was aimed at boosting the capacity of farmers in
the State to produce high quality yam to meet export standard.
The Federal Executive Council (FEC) approved disbursement of 10.7 billion for
₦
the construction of 10 new rice mills across the country, in the review period.
The mills would complement the existing ones in a bid to gradually eliminate
importation of the commodity. Also, the International Fund for Agricultural
Development-Assisted-Value Chain Development Programme (IFAD-VCDP),
distributed farm input to 1,500 rice and cassava farmers, towards the 2018
farming season. This would boost rice production and reduce its importation,
thereby conserving foreign exchange for other uses.
Furthermore, the Federal Government, developed the National Livestock
Transformation Plan (2018-2027), aimed at modernising livestock
management in the country. Under the Plan, 94 ranches would be established
in 10 frontline states, and funded through a public-private partnership. The
selected states for the pilot implementation were Adamawa, Benue, Ebonyi,
Edo, Kaduna, Nasarawa, Oyo, Plateau, Taraba and Zamfara.
4.3.1.2 Agricultural Production and Prices
Agricultural output recorded positive growth in the review period. At 134.2
(2010 = 100), the index of agricultural production grew by 2.1 percent. This
growth rate is however, lower than the 3.2 per cent recorded in the
corresponding period of 2017. The 2.1 per cent growth in the review period was
attributed to the growth in all the major sub-sections but livestock, due largely
to the favourable weather conditions and the supply of fertilizer and seedlings
to farmers.
Output of the crops-sub-section, which comprised staples and other crops,
grow by 2.4 per cent while that of the forestry sub-sector also recorded 3.5 per
cent favourable weather conditions a strong govt. support contributed to the
positive performance of the sub-sectors. However, the output of livestock
declined by 1.9 per cent compared with 2.0 per cent growth in the
corresponding period of 2017. The decline could be attributed to
farmers/herders rift experienced during the review period.
CBN Economic Report for the First Half of 2018

A domestic retail price survey of 12 selected agricultural commodities by the
Central Bank of Nigeria indicated that prices of 9 of the commodities
monitored, during the period, declined, compared with their levels in the first
half of 2017. The price decrease varied from 2.0 per cent for wheat, to 28.7 per
cent for sweet potatoes, attributed, largely, to the increased supply of the
commodities. However, the price of cashew nut, palm oil and yam increased
by 70.5, 16.4 and 3.2 per cent, respectively. The price of cashew nut increased
due to the higher cost of processing, while that of palm oil and yam were due
to seasonal factors.
Available data showed that all-commodities price index (dollar-based) of
Nigeria's major agricultural export commodities was estimated at 76.5
(2010=100), during the first half of 2018. This indicated an increase of 13.7 per
cent, above the level in the corresponding period of 2017. Prices of soya-bean,
cocoa, cotton and palm oil increased by 17.4, 16.7, 8.0 and 0.2 per cent,
respectively. This was attributed, largely, to decline in supply, occasioned by
unfavourable weather conditions. However, the price of copra and coffee
dropped by 31.1 and 15.7 per cent, respectively. The decline in the price of
Copra was as a result of increased supply of raw coconut. While the price of
Coffee fell as a result of increase supply in the market.
4.3.2 Industry
4.3.2.1 Industrial Policy and Institutional Support
The Federal Government and the Japanese International Cooperation
Agency (JICA) inaugurated the Power Capacitor Bank Project. It seeks to
improve the voltage of electricity supply to selected locations across the
country. The first, a 60MVAR power capacitor was commissioned to serve the
Federal Capital Territory and neighbouring states, while the second, located in
Keffi, would be commissioned in July 2018. The Project was being financed at
the cost of US$12.1 million.
The Nigerian Electricity Management Services Agency (NEMSA), during the
period, trained 229 senior electrical inspectors, to build expertise in standards
and installations of meters and other instruments. The trained personnel would
carry out inspection of all categories of electrical installations in generation,
transmission, and distribution value chain.
CBN Economic Report for the First Half of 2018

The African Development Bank approved a grant of US$1.5 million from the
Sustainable Energy Fund Africa (SEFA), to support the Federal Government's
implementation of Phase 1 of the Jigawa 1-GW Independent Power Producer
(IPP) Solar Procurement Programme. The Project would supply electricity to
unserved and underserved areas, particularly in the Northern parts of the
country.
Similarly, the Federal Government secured a grant commitment of US$500,000
from the World Bank to enhance the network of the distribution companies
(Discos). The World Bank also granted US$250,000 for technical support to the
Port Harcourt Electricity Distribution Company for the procurement, distribution
and installation of energy-saving bulbs.
In the same vein, the Lagos State Government and the Low Energy Designs
(LED) Ltd, United Kingdom, signed a 2.52 billion MoU to construct 10,000 LED
₦
street lights and a hybrid energy power assembly plant in Epe. The Firm would
also manage street light installations across the State. The Project would
provide employment for over 500 locals in Lagos State.
During the review period, the Rural Electrification Agency (REA) initiated 422
new electrification projects, across the six geopolitical zones, under the 2017
capital appropriation. Of these, 93 were sited in the North-Central, 77 in the
North-West, and 52 in the North-East geopolitical zones. The South-South,
South-East and South-West zones had 81, 76 and 43 projects, respectively.
Towards the actualisation of the National Sugar Master Plan (NSMP), the Flour
Mills of Nigeria, Plc, commissioned its N50 billion Sunti Golden Sugar Estate in
Mokwa, Niger state. The Estate has the capacity to produce one million metric
tons of sugarcane (approximately 100,000 metric tons of sugar) yearly and
would save the nation about US$100 million in foreign exchange every year. It is
situated on 16,000 hectares of irrigable farmland which has a sugar mill with
capacity to process 4,500 metric tons of sugarcane per day. The Project would
provide direct employment for about 10,000 people and up to 50,000 indirect
jobs yearly, including 3,000 small-scale out-growers, cultivating sugarcane to
feed the mill.
CBN Economic Report for the First Half of 2018

In the cement sub-sector, a 1.5 million metric tons per annum cement plant
was completed by the BUA Group. The Plant would provide at least 2,000 direct
and 10,000 indirect jobs. As part of the innovative approach to power the
factory, a 32 megawatts multi-fuel capacity power plant and a coal mill were
built.
4.3.2.2 Industrial Production
Provisional data indicated increased activities in the industrial sector in the first
half of 2018. At 110.1 (2010=100), the index of industrial production rose by 6.1
per cent, above the level in the corresponding period of 2017. The
development was attributed, largely, to improved performance of the
manufacturing and mining sub-sectors.
Figure 61
Industrial Production Index
(First Half 2016 - 2018, 2010=100)
Source: Computed based on data obtained from NBS and Manufacturing Association of Nigeria (MAN)
4.3.2.3 Manufacturing
At 182.7 (2010=100), the estimated index of manufacturing production in the
first half of 2018 rose by 4.1 per cent, above the level in the corresponding
period of 2017. Similarly, capacity utilisation, during the period, increased by
3.8 percentage points to 54.0 per cent, above its level in the first half of 2017.
The improvement was as a result of increase in new orders, expansion in export
businesses, and enhanced access to foreign exchange by manufacturers.
CBN Economic Report for the First Half of 2018

Figure 62
Average Manufacturing Capacity Utilisation
(First Half 2014-2016, Per cent)
Source: Computed based on data obtained from NBS and Manufacturing Association of Nigeria (MAN)
4.3.3 Crude Oil
The Department of Petroleum Resources (DPR) issued 13 additional licences for
the establishment of modular refineries during the first half of 2018, bringing the
total number of licensed companies to twenty-five (25). Three (3) licences were
issued for the construction of conventional stick-build plants, while 10 were for
modular units.
Also, in the first half of 2018, the operations of the Total Upstream Nigeria Limited
was boosted with the arrival of the US$3.3 billion Egina Floating Production
Storage and Offloading (FPSO) vessel from South Korea. The Egina FPSO has
the capacity of producing 200,000 barrels of crude oil per day. The Project,
which would be completed by end-2018, involves the development of local
content and a commitment to technology transfer in ship building and
offshore plant manufacturing technology. Consequently, six (6) major
components, out of the topside 18 modules of the Egina FPSO, were fabricated
in Nigeria.
CBN Economic Report for the First Half of 2018

4.3.3.2 Crude Oil Production and Demand
Aggregate crude oil production, including natural gas liquids (NGLs) and
condensates by the Organisation of Petroleum Exporting Countries (OPEC),
averaged 38.60 million barrels per day (mbd) in the first half of 2018. This
represented a marginal increase of 0.3 per cent, above the level in the
corresponding period of 2017, but a decrease of 0.8 per cent below the level in
the preceding half year. The inclusion of oil output from the Republic of Congo
in the OPEC production data and the easing of the OPEC production-cut
agreement, resulting in an increase in output, accounted for the slight rise in
OPEC production. Non-OPEC supply was estimated at an average of 59.15
mbd, indicating a 2.5 per cent increase over the corresponding period of 2017.
The development was due, mainly, to higher production in the US, Brazil,
Canada, Australia, and Kazakhstan. Total world supply averaged 97.75 mbd,
indicating a rise of 1.6 per cent above the level in the first half of 2017.
World crude oil demand was estimated at an average of 97.85 mbd in the
review period, compared with 95.35 mbd in the corresponding period of 2017.
This represented an increase of 2.6 per cent, compared with the level in the
corresponding period of 2017. Of this, demand from the Organisation for
Economic Co-operation and Development (OECD) countries averaged 47.55
mbd, while that of non-OECD was 50.30 mbd. The increase was driven, largely,
by the bullish demand for NGLs/LPG, diesel oil, residual fuel, gasoline and jet
fuel/kerosene by industries and the transportation sectors in the US, OECD
Europe and China.
At an average daily production of 1.90 mbd or 343.9 million barrels (mb),
Nigeria's crude oil output increased by 0.27 mbd or 16.6 per cent above the
level in the corresponding half of 2017. The development was due, mainly, to
the sustained stability in the Niger Delta region. Aggregate export of crude oil
was estimated at 1.45 mbd or 262.5 mb, compared with 1.8 mbd or 213.6 mb in
the corresponding period of 2017.
CBN Economic Report for the First Half of 2018

Figure 63
Crude Oil Production and Exports
Source: Nigerian National Petroleum Corporation (NNPC)
4.3.3.3 Crude Oil Prices
The average spot price of Nigeria's reference crude, the Bonny Light (37o API),
at US$71.99 per barrel, in the first half of 2018, increased by 37.9 per cent, above
its level in the first half of 2017. Similarly, the average prices of the Forcados, the
UK Brent and the West Texas Intermediate relative to the levels in the first half of
2017, rose by 39.2, 38.2 and 24.2 per cent, to US$72.03, US$70.79 and US$61.40
per barrel, respectively. Oil prices rose, mainly, on account of geopolitical
tension in the Middle East and the Korean Peninsula, and uncertainties on the
impact of the U.S. possible withdrawal from the Iran nuclear deal. Others
included production outages in Iran and Libya and the lingering effect of the
trade dispute between the US and China. The average price of the OPEC
basket of fourteen (14) crude streams was US$68.40 per barrel, representing an
increase of 36.2 per cent, compared with US$50.21 per barrel in the
corresponding period of 2017.
Figure 64
Average Spot Prices of Selected Crudes
Source: Reuters
CBN Economic Report for the First Half of 2018

4.3.4 Refinery Utilisation
The estimated average capacity utilisation of the three (3) refineries was 18.6
per cent in the first half of 2018, compared with below 20.9 per cent in the
corresponding period of 2017. A breakdown showed that the average
capacity utilisation of the Kaduna Refining and Petrochemical Company
(KRPC), the Warri Refining and Petrochemical Company (WRPC), and the Port
Harcourt Refining Company (PHRC) was 16.61, 22.95, and 17.01 per cent,
respectively.
Aggregate production of petroleum products from the refineries was
estimated at 3.9 million tonnes in the first half of 2018, compared with 3.7 million
metric tonnes recorded in the corresponding period of 2018. The development
was attributed to sustained seasonal maintenance, which began in 2016,
improved the efficiency of the refineries. Analysis of products by refinery
showed that the WRPC produced 0.70 million tonnes, while the PHRC and the
KRPC produced 0.86 and 0.53 million tonnes, respectively. Of the total, PMS
accounted for the largest share at 31.1 per cent, while the shares of
Automotive Gas Oil (AGO), fuel oil, Dual Purpose Kerosene (DPK), fuel and
losses, Liquefied Petroleum Gas (LPG), and Asphalt were 22.8, 21.6, 14.1, 6.3, 3.7
and 0.4 per cent, respectively.
4.3.5 Gas
In the review period, Nigeria signed an agreement with Morocco for the
construction of a 5,660 km long onshore and offshore gas pipeline. The Project
would connect Nigeria to other West African countries, extending to Morocco
and Europe. The construction of the pipeline would be phased and based on
the increasing needs of the countries for a period of 25 years.
The NNPC, in the first half of 2018, awarded two gas pipelines contracts worth
US$2.8 billion. The first contract awarded to Oando and OilServe covers 200 km
of the 614 km Ajaokuta-Kaduna-Kano pipeline to connect the Eastern, Western
and Northern parts of the country. The China Petroleum Pipeline Bureau and
Brentex were awarded the second contract that covers 200 km of pipeline
between the Kaduna and Kano Terminal Gas Stations. The contracts were
aimed at boosting gas production and supply.
CBN Economic Report for the First Half of 2018

4.3.6 Solid Minerals
The Federal Government inaugurated a new model for revenue generation
and collection in the mining sector during the review period. Under the model,
100 consultants were appointed to generate 32.0 billion from the solid mineral
₦
sector; aid the Federal Ministry of Mines and Steel Development (FMMSD) to
identify challenges and improve operations in the mining sector. The
arrangement, which was part of the Revenue Organisation and Verification
(ROV) project of the Ministry, would check leakages and ensure higher
remittances of royalties and taxes by operators in the industry.
4.3.6.2 Solid Minerals Production
Provisional data from the Federal Ministry of Mines and Steel Development
indicated that solid minerals production in the first half of 2018 increased by
44.2 per cent above the level in the corresponding period of 2018, to 22.83
million tonnes. The increase in production of principal minerals such as clay,
coal, lead/zinc and laterite accounted for the rise.
4.3.7 Electricity Generation
Average electricity generation, estimated at 3,847.37 MW/h, increased by 9.6
per cent, in the first half of 2018, compared with 3,511.62 MW/h in the first half of
2017. This was attributed to improvement in gas supply to thermal plants, better
water management and enhanced transmission infrastructure.
4.3.8 Electricity Consumption
Average electricity consumed, in the review period, was estimated at 3,363.98
MW/h. This represented a growth of 6.1 per cent, above the level in the
corresponding period of 2017. The increase in consumption was attributed to
the improvement in transmission and distribution infrastructure.
4.3.9 Industrial Financing
4.3.9.1 The Bank of Industry (BOI)
The total credit disbursed to the industrial sector under the Bank's various
facilities in the first half of 2018 fell by 8.1 per cent, to 113.54 billion, compared
₦
with 123.57 billion in the corresponding period of 2017.
₦
CBN Economic Report for the First Half of 2018

A sectoral breakdown of the disbursements showed that the agro-processing
sector received 30.25 billion, representing 26.6 per cent of the total, followed
₦
by the food processing sub-sector, with 25.76 billion, or 23.0 per cent. The sum
₦
of 18.74 billion, or 16.5 per cent was disbursed through intervention funds,
₦
while; engineering and technology, health care, solid minerals and metals and
creativity industry received 11.8 billion or 10.4 per cent, 11.37 billion or 10.0
₦
₦
per cent,
4.25 billion or 3.7 per cent and
4.05 billion or 3.6 per cent,
₦
₦
respectively, among others.
Of the total, large enterprises received 98.30 billion, representing 86.6 per
₦
cent, while small and medium enterprises accounted for
15.2 billion,
₦
representing 13.4 per cent of the total.
Figure 65
Sectoral Disbursement of BOI Loans, First Half 2018
Source: Bank of Industry (BOI)
CBN Economic Report for the First Half of 2018

4.3.9.2 The Nigerian Export-Import Bank (NEXIM)
The total funding support provided to the non-oil export sector, under various
facilities of NEXIM in the first half of 2018, was 37.29 million for one (1) project,
₦
compared with
94.54 million disbursed in 2017 for four (4) projects. The
₦
development was attributed to the ongoing restructuring of the Bank's funding
model. The Facility was, however, disbursed under the medium-term lending
facilities to the manufacturing sector.
4.3.10 Consumer Prices
Consumer prices declined, consistently throughout the period under review.
The all-items composite consumer price index (CPI) stood at 260.5 (November
2009=100) at end-June 2018, compared with 246.4 and 234.2 at endDecember and end-June 2017, respectively. The all-items-less-farm produce
CPI stood at 246.1 at end-June 2018, compared with 233.8 and 223.0 at endDecember and end-June 2017, respectively. The Food CPI stood at 278.2 at
end-June 2018, compared with 261.0 at end-December and 246.3 at endJune 2017.
Figure 66
Consumer Price Indices
(November 2009 = 100)
Source: NBS
CBN Economic Report for the First Half of 2018

4.3.10.1 Headline Inflation
The year-on-year headline inflation declined steadily throughout the first half of
2018, maintaining the trend observed throughout the second and first halves of
2017. It declined consistently to 11.2 per cent at end-June 2018, compared with
15.1 and 16.1 per cent at end-December and end-June 2017, respectively.
Similarly, the 12-month moving average inflation maintained a steady decline
throughout the review period, as it decreased to 14.4 per cent at end-June
2018, from 16.5 and 17.6 per cent at end-December and end-June 2017,
respectively. The persistent fall in headline inflation was attributed to the
decline in the core and food components.
4.3.10.2 Core Inflation
The year-on-year core inflation (all-items less farm produce) declined
consistently during the first half of 2018, exhibiting the same trend as in the
second and first halves of 2017. The rate stood at 10.4 per cent at end-June
2018, down from 12.1 and 12.5 per cent at end-December and end-June 2017,
respectively. Core inflation, on a 12-month moving average basis, also showed
a similar trend as it declined to 11.7 per cent at end-June 2018, compared with
13.5 per cent at end-December 2017 and 16.2 per cent at end-June 2017. The
persistent decline in core inflation over the period was attributed to the
moderation in exchange rate pass-through to domestic prices, due to
increased supply of foreign currency by the Bank.
4.3.10.3 Food Inflation
The year-on-year food inflation maintained a downward trend in the first half of
2018. It declined to 13.0 per cent at end-June 2018, compared with 19.4 and
19.9 per cent at end-December and end-June 2017, respectively. The 12month moving average food inflation recorded marginal decline during the
period, as the rate fell to 17.8 per cent at end-June 2018, compared with 17.9
and 19.6 per cent at end-December and end-June 2017, respectively. The
decline in food inflation, during the period, was attributed to increased output
arising from sustained interventions in the sector, such as the Anchor Borrowers
Programme (ABP) of the CBN and the implementation of the Growth
Enhancement Support Scheme (GESS), which improved input supply to
farmers.
CBN Economic Report for the First Half of 2018

Figure 67
Inflation Rate
(Year-on-Year, Per cent)
Source: NBS
4.3.10.4 Urban and Rural Consumer Price Indices and Inflation
The all-items Urban CPI increased to 263.8 at end-June 2018, compared with
249.3 and 236.2 at end-December and end-June 2017, respectively. The
development was attributed, majorly, to the increase in the prices of the urban
core and food components of the CPI. Accordingly, the year-on-year urban
inflation declined to 11.7 per cent at end-June 2018, compared with 15.8 and
16.2 per cent at end-December and end-June 2017, respectively.
Similarly, the all-items rural CPI rose to 257.8 at end-June 2018, compared with
244.1 at end-December 2017 and 232.6 at end-June 2017. The development
was attributed, largely, to the increase in the prices of the rural core and food
components of the CPI. Hence, the year-on-year rural inflation declined to 10.8
per cent at end-June 2018, compared with 15.0 and 16.0 per cent at endDecember and at end-June 2017, respectively. Urban headline inflation was
higher than the rural headline inflation by 0.9 percentage point in the period
under review.
CBN Economic Report for the First Half of 2018

Urban core inflation was 10.8 per cent at end-June 2018, compared with 13.1
per cent at end-December 2017 and 13.6 per cent at end-June 2017. Urban
food inflation was 13.7 per cent at end-June 2018, compared with 20.1 and
20.4 per cent at end-December and end-June 2017, respectively.
Rural core inflation fell to 10.0 per cent at end-June 2018, compared with 11.3
per cent at end-December 2017 and 11.5 per cent at end-June 2017. rural
food inflation at 12.3 per cent at end-June 2018, declined, compared with 18.6
and 19.4 per cent at end-December and end-June 2017, respectively.
Figure 68
Urban and Rural Consumer Price Indices
(November 2009 = 100)
Source: NBS
4.3.11 Communications
Digital mobile lines continued to drive growth in the communications sector
during the review period. Data from the Nigerian Communications
Commission (NCC) showed that the number of active telephone lines was
162.8 million at end-June 2018, compared with 145.1 million and 143.1 million at
end-December and end-June 2017, respectively. This represented increase of
12.2 and 13.8 per cent, relative to the preceding and corresponding periods of
2017, respectively. In addition, the number of internet users in the country
increased to 102.8 million at end-June 2018, compared with 91.6 million at endJune 2017. Teledensity, at 116.26 per 100 inhabitants at end-June 2018,
increased by 14.1 per cent, above the 102.2 per 100 inhabitants recorded at
end-June 2017. Teledensity in Nigeria remained above the International
Telecommunication Union (ITU) minimum standard of 1:100.
CBN Economic Report for the First Half of 2018

143.06
145.06
162.76
End-June 2017
End-Dec. 2017
End-June 2018
Figure 69
Total Active Lines and Teledensity
Source: Nigerian Communication Commission (NCC)
4.3.12 Transportation
The Federal Government during the review period, issued an executive order
stopping the levy of VAT on all forms of shared transportation. This would
stimulate, particularly, the domestic air transportation and reduce fares.
4.3.12.1 Aviation Services
4.3.12.1.1 Domestic Operations
A total of 6,003,642 passengers were airlifted by domestic airlines in the first half
of 2018. This represented a 33.1 per cent increase above the 4,511,811
passengers airlifted in the corresponding period of 2017. Total aircraft
movement for the first half of 2018 was 116,569 representing an increase of 17.3
per cent above the 99,358 recorded in the corresponding period of 2017.
4.3.12.1.2 International Operations
The number of passengers airlifted by airlines on international routes in the first
half of 2018 increased by 13.4 per cent to 2,048,299, compared with 1,805,580
in the first half of 2017. Aircraft movement also rose by 13.3 per cent to 20,894 in
the review period, compared with 18,439 in the corresponding period of the
preceding year.
Cargo movement at designated airports increased by 20.8 per cent to 83.1
million kg from 68.8 million kg recorded in the first half of 2017. Mail movement
also rose by 2.9 per cent to 20.1 million kg in the first half of 2018, compared with
19.5 million kg recorded in the corresponding period of 2017.
CBN Economic Report for the First Half of 2018

4.3.12.2 Railway Services
In the review period, the Nigeria Railway Corporation (NRC) commissioned ten
(10) additional Standard Gauge coaches for the Abuja-Kaduna rail service,
while seven (7) similar coaches were delivered at Agbor for the ItakpeAjaokuta-Warri line. The Federal Government, also signed an interim phase
agreement with General Electric (GE) led consortium as a prelude to possible
concessioning of the entire Narrow Gauge line.
A total of 1,478,634 passengers and 165,566 tonnes of freight were moved by
trains operated by the NRC compared with 2,593,744 passengers and 141,186
tonnes of freight moved during the year 2017.
4.3.12.3 Maritime Services
A total of 9,289 ocean going vessels berthed at Nigerian ports during the review
period, compared with 1,540 vessels in the corresponding period of 2017.
Cargo throughput stood at 96,603,396.94 metric tonnes in the first half of 2018,
compared with 73,628,546.62 metric tonnes in the corresponding period of
2017, representing an increase of 31.2 per cent.
4.3.13 Social Sector Developments
4.3.13.1 Health
During the review period, the Federal Government set aside
55.2 billion,
₦
representing 1.0 per cent of the Consolidated Revenue Fund (CRF), in the 2018
Appropriation Act, for the implementation of the Basic Healthcare Provision
Fund (BHCPF), as contained in the National Health Act (NHA 2014). A
breakdown showed that 50.0 per cent was allocated to the National Health
Insurance Scheme (NHIS); 45.0 per cent to the National Primary Health Care
Development Agency (NPHCDA); and 5 per cent to health care emergency.
The Federal Government launched the Second National Strategic Health
Development Plan (NSHDP II) to enhance healthcare service delivery. The
NSHDP II (2018-2022) was initiated after the first plan ended in 2015. The NSHDP II
has five strategic pillars, namely: providing the enabling environment for the
attainment of sector outcomes; increasing the utilisation of essential package
of health care services; strengthening the health system for efficient delivery;
protecting health emergencies and risks; and increasing sustainable financing
CBN Economic Report for the First Half of 2018

and risk protection. The Plan would serve as a vehicle for the attainment of the
universal health coverage, as contained in the ERGP. To further expand health
care services, the Federal Government also approved the establishment of the
Traditional and Alternative Medicine Department in the Federal Ministry of
Health.
The Federal Government and the United Nations Children's Fund (UNICEF)
signed an MoU for the procurement of Ready to Use Therapeutic Food (RUTF).
This was to address the high number of malnourished children under the age of
five, estimated at 2.5 million. During the review period, implementation
commenced in Adamawa, Bauchi, Borno, Jigawa, Kano, Katsina, Kaduna,
Sokoto, Yobe and Zamfara states, which were adjudged to have high
prevalence.
4.3.13.2
Education
The Federal Government flagged off the National School Enrolment Drive
Campaign to improve primary school enrolment and completion rates.
Consequently, a community-based early childcare centre was established in
16 states to reduce the incidence of out-of-school children. As part of the
campaign, 71,875 classrooms would be constructed annually across the
country to increase the carrying capacity of the schools. In addition, a
guideline to enhance teaching proficiency was developed, and 31,520
teachers were trained across 27 states.
The UNICEF, under its Cash Transfer Programme (CTP), expanded access to
quality education for out-of-school children in Kebbi, Sokoto, Katsina and
Zamfara states. The Programme entails direct transfer payments to victims of
humanitarian crises, who had limited access to employment, income, or
economic production. The overall goal of the CTP was expansion of access to
quality basic education to 501,749 out-of-school children by 2020, in the
beneficiary states.
4.3.13.3
Environment
In a bid to checkmate the deplorable situation of water supply, sanitation and
hygiene across the country, the Federal Executive Council (FEC) approved the
National Water Supply, Sanitation and Hygiene (WASH) Action Plan. The Action
CBN Economic Report for the First Half of 2018

Plan sets out a 13-year revitalisation strategy for WASH that included 18 months
emergency phase and 5 years recovery plan. The Plan would provide for
concrete actions to be taken by the Federal and state governments, as well as,
other stakeholders, under 5 strategic components, namely; governance,
sustainability, funding, financing and, monitoring and evaluation in achieving
cleaner water resources and the nation's environmental sustainability goals.
Also, during the first half of 2018, the FEC approved the construction of N3.7
billion potable water project in Jigawa State. The Project included the
construction of water treatment and distribution plants, which would be
completed within 2 years. The plants were estimated to supply 2,000 litres of
water per day to Kazaure Local Government Area of Jigawa State and its
environs.
4.3.13.4 Housing and Urban Development
The housing sector received a boost during the review period, as the Federal
Ministry of Power, Works and Housing commenced the National Housing Pilot
Programme in 34 states of the Federation. The Programme, aimed at delivering
2,736 housing units, would provide affordable housing.
The management of Federal Mortgage Bank of Nigeria (FMBN) sought for an
approval from the Government to increase the capital base of the Bank to
₦
₦
500.0 billion, from the current
2.5 billion. The Bank proposed to grant
exemption of a zero per cent equity for loans not exceeding 5.0 million and a
₦
reduction of equity from 20 to 10 per cent for loans of 6.0 to 15.0 million.
₦
₦
Furthermore, participation in the National Housing Fund (NHF) was to be
extended to private sector employees, in the review period.
CBN Economic Report for the First Half of 2018

4.4 EXTERNAL SECTOR DEVELOPMENTS
Provisional data showed a significant improvement in the external sector with
an overall balance of payments surplus of 4.0 per cent of gross domestic
product (GDP) compared with 1.9 per cent of GDP in the corresponding
period of 2017. The sector remained viable, owing, largely, to higher earnings
from crude oil exports occasioned by the sustained increase in crude oil prices
in the global market, improved domestic production, and stability in the
foreign exchange market. In the same vein, the current account recorded a
surplus of 2,826.55 billion or 4.7 per cent of GDP, compared with 1,455.29
₦
₦
billion or 2.7 per cent of GDP in the corresponding period. The capital and
financial account recorded a net financial liability of 824.80 billion or 1.4 per
₦
cent of GDP in the review period, compared with 998.37 billion in the first half
₦
of 2018. The stock of external reserves at end-June 2018 increased by 19.8 per
cent to US$47.16 billion and could finance 17.9 months of goods or 10.0 months
of goods and services import. The stock of external debt increased by 16.8 per
cent to US$22.08 billion or 11.3 per cent of GDP at end-June 2018, and
remained within the sustainable threshold of 40.0 per cent of GDP. In the
foreign exchange market, the naira remained stable owing to sustained
intervention by the Bank and increased activities in the I&E window which
boosted confidence and attracted private foreign capital inflow. The
average exchange rate of the naira at the Inter-bank and bureau de change
segments of the market were 305.79/US$1 and 362.25/US$1, respectively,
₦
₦
while it exchanged at 360.61/US$1 at the I&E window.
₦
4.4.1 Current Account
Estimated data showed that the current account recorded a higher surplus of
₦
₦
2,826.55 billion or 4.7 per cent of GDP, relative to 1,719.24 billion or 2.8 per
cent of GDP and 1,455.29 billion or 2.7 per cent of GDP, respectively, in the
₦
preceding and corresponding halves of 2017. The development was
attributed to the higher surpluses recorded in the goods and current transfers'
accounts, induced by the improvement in crude oil export receipts and
increased inflow of home remittance, respectively.
4.4.1.1 Trade
Estimated aggregate external trade increased to 14,032.57 billion or 23.5 per
₦
cent of GDP in the first half of 2018, above the 12,578.88 billion or 20.5 per cent
₦
CBN Economic Report for the First Half of 2018

of GDP and
11,382.55 billion or 21.2 per cent of GDP recorded in the
₦
preceding and the corresponding periods of 2017, respectively. A
disaggregation showed that export at
9,194.49 billion increased from
₦
₦
₦
7,646.68 billion and 6,341.25 billion in the second and first halves of 2017,
respectively. Further analysis revealed that crude oil and gas component
which constituted 90.8 per cent of total export increased to 8,352.53 billion in
₦
the review period, above
7,166.36 billion and
5,746.76 billion in the
₦
₦
preceding and corresponding periods of 2017, respectively. The development
was as a result of improved crude oil export proceeds occasioned by the
increase in the average price of Nigeria's reference crude (Bonny Light) to
US$71.93 per barrel from US$57.78 per barrel and US$52.29 per barrel in the first
and second halves of 2017, respectively. Similarly, non-oil component which
constituted the remaining 9.2 per cent of total export grew significantly by 75.3
per cent to 841.96 billion in the review period, relative to the 480.32 billion
₦
₦
and 594.48 billion in the second and first halves of 2017, respectively. This was
₦
attributed to increased export of manufactured goods and agricultural
produce, reflecting the steady progress in the implementation of the
Economic Recovery and Growth Plan (ERGP).
Aggregate imports decreased by 1.9 per cent to 4,838.08 billion in the first half
₦
of 2018, above the respective levels of 4,932.19 billion and 5,041.30 billion,
₦
₦
respectively, in the preceding and corresponding halves of 2017. This
development was largely due to decline in the importation of non-oil products.
Non-oil import which constituted 76.8 per cent of total declined by 3.6 per cent
to 3,717.12 billion or 6.2 per cent of GDP in the review period compared with
₦
₦3,857.46 billion in the second half of 2017. However, it rose by 2.5 per cent
relative to 3,626.53 billion in the corresponding period. Oil and gas import,
₦
representing 23.2 per cent of total import, increased by 4.3 per cent to
₦1,120.96 billion or 1.9 per cent of GDP above its level in the preceding half of
2017. Nevertheless, it decreased by 20.8 per cent relative to 1,414.77 billion in
₦
the corresponding period. Overall, the goods account registered a trade
surplus of 4,356.41 billion in the review period relative to 2,714.49 billion and
₦
₦
₦1,299.95 billion, respectively, in the preceding and corresponding periods of
2017.
CBN Economic Report for the First Half of 2018

₦' Billion
Figure 70
Exports, Imports and Trade Balance
( ' Billion)
₦
Source: CBN
A breakdown of visible import by sector using data on sectoral utilisation of
foreign exchange by commercial banks indicated that industrial sector import
accounted for the largest share of 43.9 per cent followed by manufactured
products with a share of 23.3 per cent. Food products accounted for 13.8 per
cent, oil sector, 12.0 per cent; transport, 3.3 per cent; agriculture, 1.8 per cent
and mineral products, 0.9 per cent of total import.
Figure 71
Foreign Exchange Utilisation in the First Half 2018
(Per cent)
Source: CBN
CBN Economic Report for the First Half of 2018

A disaggregation of non-oil export by products revealed that agricultural,
other products, semi-manufactured, manufactured and mineral products
accounted for 43.9, 26.4, 14.8, 13.3 and 1.6 per cent of total, respectively.
Figure 72
Non-Oil Export by Products
(First Half 2018, Per cent)
Source: CBN
Analysis of non-oil export to the Economic Community of West African States
(ECOWAS) sub-region showed a total value of US$246.14 million in the first half
of 2018. Among member-countries, export to Togo remained the highest at
US$81.04 million or 32.9 per cent of total. This was followed by Ghana, US$64.54
million (26.2%); Niger, US$37.79 million (15.4 %); and Cote d'Ivoire, US$21.12
million (8.6%). Export to Senegal was US$13.92 million (5.7%); Benin, US$13.28
million (5.4%); Guinea, US$6.32 million (2.6%); and “Others” accounted for the
balance. The dominant export commodity to the sub-region remained instant
noodles, detergents, tobacco, plastics, dairy products, soya beans meal, and
carbonated soft drink.
CBN Economic Report for the First Half of 2018

Figure 73
Non-oil Export to the ECOWAS sub-Region in the First Half of 2018
(Per cent)
Source: CBN
Foreign Exchange Receipts by Top Hundred (100) Exporters
Available data showed that aggregate value of export proceeds of the top
one hundred exporters in the first half of 2018 was US$1,138.99 million, an
increase of 56.3 per cent above the level in the corresponding period of 2017.
Analysis of the activities of the “Top 100 Non-oil Exporters” showed that Olam
Nigeria Limited topped the list with value of US$170.37 million or 15.0 per cent of
the total from export of cocoa beans, cashew nuts, and sesame seeds to
Turkey and China. The second major non-oil exporter was Nigerian National
Petroleum Corporation/the Pipeline and Products Marketing Company
(NNPC/PPMC) with a value of US$144.01 million (12.6%) from the export of
NAPHTHA, a petroleum by-product to the USA. The third major non-oil exporter
was Indorama Eleme Fertilizer and Chemicals Limited at US$100.52 million
(10.9%) realised form the export of urea, fertilizers and agronomy services to
Turkey and China. M + Azeezco International Limited, MRS Continental
Concept Limited and Presco PLC ranked 98th, 99th and 100th, with export
earnings of US$1.26 million, US$1.23 million, US$1.21 million, respectively. Their
major export products were cocoa beans, baobab, and crude palm kernel oil
to Malaysia, Saudi Arabia, and the Netherlands, respectively.
CBN Economic Report for the First Half of 2018

1.0%
1.0%
4.4.1.2 Services
The net deficit in the services account widened significantly to 3,227.92 billion
₦
or 5.4 per cent of GDP, from 2,731.23 billion or 4.4 per cent of GDP and
₦
₦1,309.47 billion or 1.7 per cent of GDP, respectively, in the preceding and
corresponding periods of 2017. This was due, mainly, to increased net
payments in the major components of the account. A disaggregation of
service payments showed that other business services constituted the bulk at
₦
₦
1,425.71 billion or 37.4 per cent of total payments. Travel services at 1,098.02
billion or 28.8 per cent of the total decreased by 8.9 per cent below its level in
the preceding period in 2017, as a result of decreased payment in respect of
personal travels (mainly education and health related). However, payments in
respect of transportation services increased to 1,011.76 billion, accounting for
₦
26.5 per cent of the total, due largely to increased payments of passenger
fares. Payments in respect of insurance services, financial services, royalties &
license fees, computer and information services and communication services,
decreased to
78.20 billion,
56.33 billion,
38.59 billion,
35.16 billion and
₦
₦
₦
₦
₦28.62 billion and accounted for 2.1, 1.5, 1.0, 0.9 and 0.8 per cent, respectively,
of the total. Others accounted for the balance.
Figure 74
Share of Services Out-Payments
(First Half 2018, Per cent)
Source: CBN
CBN Economic Report for the First Half of 2018

4.4.1.3 Income
Provisional data showed that transactions in the income account resulted in a
higher net deficit of 2,156.09 billion or 3.6 per cent of GDP, compared with
₦
₦
₦
1,822.16 billion or 3.0 per cent of GDP and 1,692.15 billion or 2.9 per cent of
GDP, respectively, in the first and second halves of 2017. This was attributable to
increased payment of dividends and distributed branch profits as most
companies (particularly banks and servicing) declared their profit during the
period. In addition, interest payments to portfolio investors increased,
reflecting strengthened financial market activities in the review period. The
deficit in the investment income sub-account widened by 17.9 and 27.1 per
cent to
2,192.30 billion, above the
1,858.78 billion and
1,725.41 billion,
₦
₦
₦
respectively, in the preceding and corresponding periods of 2017. On the
contrary, compensation of employees' sub-account maintained a net surplus
balance of 36.21 billion in the review period, relative to the levels of 36.62
₦
₦
billion and 33.26 billion in the second and first halves of 2017, respectively.
₦
4.4.1.4 Current Transfers
The net surplus in the current transfers account rose to 3,854.15 billion or 6.5
₦
per cent of GDP, above the
3,558.14 billion (5.8% of GDP) and
3,156.96
₦
₦
billion, (4.4% of GDP), respectively, in the second and first halves of 2017. This
was influenced largely by the 2.9 and 14.1 per cent increases in the inflow of
home remittances compared with the previous and corresponding halves of
2017, respectively. Personal home remittances continued to drive the surplus in
the current transfers account, constituting 92.3 per cent of the total inflow. The
general government transfers (comprising payments to foreign embassies and
international organisations) recorded a higher net surplus of 288.40 billion in
₦
the first half of 2018, above the levels in the preceding and corresponding
periods of 2017.
CBN Economic Report for the First Half of 2018

₦' Billion
Figure 75
Private Home Remittances
( ' Billion)
₦
Source: CBN
4.4.2 Capital and Financial Account
The capital and financial account recorded a net financial liability of 824.80
₦
billion or 1.4 per cent of GDP compared with 998.37 billion or 1.9 per cent of
₦
GDP in the corresponding half of 2017. This was in contrast to a net financial
asset of 2,320.35 billion or 3.8 per cent of GDP in the preceding half of 2017.
₦
Further analysis showed that aggregate financial assets in form of financial
outflows increased to 5,906.12 billion in the review period compared with the
₦
₦
₦
5,284.47 billion and
1,508.07 billion, respectively, in the second and first
halves of 2017. This was majorly driven by accretion to external reserves and
increased foreign currency holdings by the private sector. Similarly, aggregate
foreign liabilities representing financial inflows into the economy maintained
an upward trend increasing to 6,730.92 billion, above the 2,964.13 billion and
₦
₦
₦2,506.45 billion, respectively, in the preceding and corresponding halves of
2017. The development was as a result of higher inflow of foreign portfolio
investments and additional drawdown of fresh multilateral loans as well as the
issuance of Euro bonds by the federal government.
4.4.2.1 Foreign Direct Investment
Inflow of FDI into the economy decreased to 379.84 billion equivalent to 0.6
₦
per cent of GDP in the first half of 2018, relative to 536.80 billion and 532.63
₦
₦
billion, respectively, in the second and first halves of 2017. This was as a result of
decreased inflow of fresh equity capital during the review period. In terms of
CBN Economic Report for the First Half of 2018

share in total inflow, FDI accounted for 5.6 per cent. Outward direct investment
increased by 7.2 and 7.5 per cent to 210.73 billion or 2.4 per cent above the
₦
levels in the second and first halves of 2017, respectively. This was attributable
to the favourable global investment conditions particularly in the United States.
4.4.2.2 Portfolio Investment
Portfolio investment inflow comprising equity and debt securities rose to
₦
₦
₦
2,862.17 billion or 5.3 per cent of GDP, above the 2,170.56 billion and 434.27
billion, respectively, in the preceding and corresponding halves of 2017. This
was largely due to increased investment in equity and money market
instruments occasioned by the bullish performance of Nigeria's capital market
and attractive returns on investment, respectively. The share of portfolio
investment inflow in total capital inflow was 42.5 per cent of total. A further
analysis showed that the Greenspan-Guidotti measure of external reserve
adequacy as measured by the ratio of portfolio investment to external reserves
remained adequate at 503.0 per cent, above the 100.0 per cent international
benchmark. Portfolio investment outflow stood at 0.19 billion in the review
₦
period which was below the 1.70 billion recorded in the preceding half of
₦
2017.
4.4.2.3 'Other' Investment
Other investment inflow largely driven by loans, and currency & deposits
increased to 3,488.91 billion (5.8% of GDP) in the review period relative to
₦
₦
₦
256.77 billion and
1,539.55 billion in the second and first halves of 2017,
respectively. The development was largely, due to fresh loans drawn by the
general government, banks and the private sector, as well as increased nonresidents placement of currency & deposits in Nigerian banks. Other
investment inflow accounted for the bulk share of 42.5 per cent of total
financial liabilities in the review period. The other investment asset sub-account
similarly rose to 3,305.95 billion from 2,347.60 billion and 312.16 billion in the
₦
₦
₦
preceding and corresponding periods of 2017. This was largely attributed to
increased foreign currency holdings of the private sector. Other investment
asset also constituted the highest share of 72.7 per cent of total financial assets
in the review period.
CBN Economic Report for the First Half of 2018

₦’ Billion
Figure 76
Foreign Capital Inflows
(₦' Billion)
Source: CBN
4.4.3 Capital Importation and Capital Outflow
Provisional data showed that new capital imported into the economy as
reported by banks, amounted to US$11.82 billion in the review period,
compared with US$2.71 billion in the first half of 2017. A disaggregation of
capital imported by sectors showed that 66.7 per cent of the total new capital
was for purchase of shares, while investment in banking accounted for 12.5 per
cent. The servicing, financing, production/manufacturing, agriculture, and oil
& gas sectors accounted for 6.8, 5.4, 3.0, 2.0 and 0.9 per cent, respectively, of
the total. Other sectors accounted for the balance.
A further breakdown showed that in terms of the type of investment, portfolio
investment remained dominant accounting for 73.5 per cent of the total,
followed by other investments with 22.2 per cent, while FDI inflow accounted
for the remaining 4.3 per cent. By country of origin, the United Kingdom
remained the highest source of inflow accounting for 34.1 per cent of the total,
followed by the United States with 21.0 per cent. South Africa, United Arab
Emirates and Belgium accounted for 7.5, 6.1 and 5.8 per cent, respectively,
while 'other' countries accounted for the balance.
In the review period, aggregate capital outflow stood at US$6.03 billion
compared with US$2.27 billion in the first half of 2017. A disaggregation showed
that outflow in form of capital reversal constituted 63.3 per cent of total
outflows, followed by payment of dividends to non-resident investors which
accounted for 22.1 per cent. Repayment of loans represented 13.9 per cent of
CBN Economic Report for the First Half of 2018

the total while 'others' accounted for the balance. In terms of capital outflow
by sectors, servicing sector was 61.6 per cent of total outflow, followed by the
banking sector which constituted 22.3 per cent of the total. Oil and gas,
production/manufacturing, and telecommunication sectors accounted for
7.2, 6.3 and 1.6 per cent, respectively, of total outflows. Other sectors
accounted for the balance.
Figure 77
Capital Importation by Sector
(First Half 2018, Per cent)
Source: CBN
Figure 78
Capital Outflow and Outward Transfers
(First Half 2018, Per cent)
Source: CBN
CBN Economic Report for the First Half of 2018

4.4.4 External Reserves
Gross external reserves at end-June 2018 stood at US$47.16 billion, compared
with US$39.35 billion and US$30.34 billion, respectively, at end-December and
end-June 2017. The increase in external reserves was attributed mainly to
crude oil-related receipts and Eurobond proceeds. The external reserves
position could cover 10.0 months of import of goods and services or 17.9
months of import of goods only. A breakdown of the external reserves by
ownership showed that Federation was US$2.63 billion (5.6%); Federal
Government, US$6.35 billion (13.4%); and the CBN, US$38.18 billion (81.0%) of
the total. In terms of the currency composition of external reserves, the US dollar
of US$42.46 billion constituted 90.1 per cent of total; special drawing rights,
US$2.11 billion (4.5%); Chinese yuan, US$2.06 billion (4.4%); and “others”, the
balance.
Figure 79
External Reserves Stock and Months of Import Commitments
Source: CBN
4.4.5 External Debt
External debt stock at end-June 2018 was US$22.08 billion (11.8% of GDP) an
increase of 16.7 and 46.8 per cent relative to the US$18.91billion and US$15.05
billion, respectively, at end-December 2017 and end-June 2017. Further
breakdown showed that loan from multilateral sources, mainly the World Bank
and African Development Bank Groups was US$10.93 billion (49.5% of total).
Loan from commercial sources in the form of Eurobond was US$8.80 billion
(39.9% of total); while that from bilateral sources, mainly the China EXIM Bank
accounted for the remaining US$2.35 billion (10.6% of the total).
CBN Economic Report for the First Half of 2018
5.0 INTERNATIONAL ECONOMIC RELATIONS
5.1 Global Institutions
5.1.1 The International Monetary Fund (IMF)/World Bank Spring and Annual

Meetings
The 2018 Spring and Annual Meetings of the Board of Governors of the World
Bank Group (WBG), the International Monetary Fund (IMF) and the InterGovernmental Group of Twenty-Four (G-24) on International Monetary Affairs
and Developments, were held in Washington D. C., USA, from April 16 – 22,
2018. The sideline meetings of the Ministers of the Inter-Governmental Group of
24, the International Monetary and Finance Committee (IMFC) and the
Development Committee were also held.
The G-24 Ministers:
Ÿ
Welcomed the recovery of global growth, driven by strong
investment and trade. They noted that while growth prospects were
firming up for emerging market and developing economies (EMDEs),
the growth outlook for several countries, mostly commodity exporters
and small and fragile states, would improve more gradually. They,
however, observed that downside risk may arise from a potential
sharp tightening of financial conditions, further rise in protectionism,
and geopolitical tensions. Against this background, they advocated
sustaining inclusive growth, while prioritising economies' resilience;
Ÿ
Noted that digitalisation and technological change would further
create opportunities but with challenges. They urged international
financial institutions (IFIs) to strengthen their cooperation on policy
responses, so that countries can seize such opportunities and manage
the associated risks. They encouraged the IMF, other IFIs and financial
standard-setters, to assess the implications of technological
advances on the financial system, including crypto-assets and cybersecurity, and support multilateral responses; and
Ÿ
Urged the IMF and the WBG to continue to strengthen their assistance
to improve domestic resource mobilisation. They stressed the
importance of international tax cooperation to develop fair rules,
avert harmful tax practices and competition, and enhance tax
transparency. They welcomed the progress to date of the Automatic

CBN Economic Report for the First Half of 2018

Exchange of Information Initiative and encouraged EMDEs to commit
to the international standards on tax transparency.
Ÿ
The IMFC:
Ÿ
Urged that structural reforms should aim to lift productivity, potential
growth and employment, while effectively assisting those bearing the
cost of adjustment. The Committee stressed the importance of timely,
full and consistent implementation and finalisation of the financial
sector reform agenda, to further strengthen financial sector resilience;
Ÿ
Noted that strong fundamentals, sound policies and a resilient
international monetary system (IMS) were essential to the stability of
exchange rates, contributing to strong and sustainable growth and
investment. Flexible exchange rates, where feasible, could serve as a
shock absorber. They recognised that excessive volatility or disorderly
movements in exchange rates could have adverse implications for
economic and financial stability, and pledged to refrain from
competitive devaluations; and
Ÿ
Reaffirmed its commitment to a strong, quota-based and adequately
resourced IMF to preserve its role at the center of the Global Financial
Safety Net (GFSN). It expressed its commitment to complete the 15th
General Review of Quotas and agree on a new quota formula, as a
basis for a rearrangement of quota shares. This would result in
increased shares for developing economies in line with their relative
positions in the world economy, thereby increasing the share of
emerging market and developing countries, as a whole, while
protecting the voice and representation of the poorest members.
The Development Committee welcomed:
Ÿ
The fundamental reforms that were negotiated as part of the
proposed capital package that would allow the World Bank Group
(WBG) to more effectively deliver development results in a financiallysustainable manner; and
Ÿ
The successful conclusion of the negotiations on the financial and
policy package, contained in the Sustainable Financing for
Sustainable Development report. The financial package included a
US$13.0 billion paid-in capital increase, consisting of US$7.5 billion for
CBN Economic Report for the First Half of 2018

the International Bank for Reconstruction and Development (IBRD)
and US$5.5 billion for the International Finance Corporation (IFC), via
general and selective capital increases. In addition, there would be a
callable capital increase for IBRD.
5.2
REGIONAL INSTITUTIONS
5.2.1 The 5th Meeting of the Presidential Task Force on the ECOWAS Single
Currency
The 5th Meeting of the Presidential Task Force on the ECOWAS Single Currency
Programme was held in Accra, Ghana from February 17 - 21, 2018. The Meeting
was a follow-up to the 4th Meeting of the Presidential Task Force, which
directed the Ministerial Committee to revise the new roadmap and propose
measures to fast-track the process of creating the ECOWAS Single Currency by
2020. The Meetings were held as follows:
Ÿ
Technical Committee Meeting
–
February 17 – 18, 2018
Ÿ
Ministerial and Governors Meeting –
February 19, 2018
Ÿ
Presidential Task Force Meeting
–
February 21, 2018
The Presidential Task Force Meeting was chaired by His Excellency, Nana Addo
Dankwa AKUFO-ADDO, President of the Republic of Ghana. Other dignitaries
present at the meeting included: President Issoufou MAHAMADOU of the
Republic of Niger; President Alassane QUATTARA of the Republic of Cote
d'Ivoire; President Faure Essozimna GNASSINGBE of the Republic of Togo; and
the current President of the Conference of Heads of State and Government of
ECOWAS; His Excellency Professor Alpha CONDE, President of the Republic of
Guinea; and Mr. Godwin I. EMEFIELE, Governor Central Bank of Nigeria, who
represented the President of the Federal Republic of Nigeria.
The purpose of the Meeting was to review the revised draft roadmap for the
ECOWAS Single Currency Programme, as well as, the status of the
implementation of the roadmap activities for the Programme and to propose
measures that would fast-track the process.

CBN Economic Report for the First Half of 2018

The Presidential Task Force on the ECOWAS Single Currency Programme took
the following decisions:
Ÿ
That Member Countries of the Presidential Task Force on the ECOWAS
Single Currency Programme should hold quarterly meetings to assess
the progress made in the implementation of planned activities in the
roadmap. The Heads of State also directed the ECOWAS Commission
to submit detailed reports on progress and challenges in the
implementation of the Programme, as well as, measures adopted for
ensuring compliance with the 2020 deadline to the Authority of Heads
of State and Government during its biannual sessions;
Ÿ
The Ministerial Committee should hold a meeting within three months
to draft a proposal on the creation of a special fund to ensure
adequate funding for the implementation of the activities under the
roadmap, as well as, modalities for its replenishment. In addition, the
Committee would also prepare clear proposals on the measures to
be adopted to strengthen the technical capacities of WAMA; and
Ÿ
The next meeting of the Presidential Task Force would be held in
Niamey, Republic of Niger in May 2018.
5.2.2 36th Meeting of the Committee of Governors of the West African
Monetary Zone (WAMZ)
The 36th Meeting of the Committee of Governors of the West African Monetary
Zone (WAMZ) was held in The Gambia on February 8, 2018, to deliberate on the
status of the implementation of the WAMZ Work Programme. The Report of the
42nd Meeting of the Technical Committee of the WAMZ formed the basis for
the deliberations. The Meeting was chaired by the Governor of the Central
Bank of The Gambia, Mr. Bakary Jammeh.
The Committee of Governors:
Ÿ
Noted the report on macroeconomic developments and
convergence in the WAMZ as at end-June 2017 and urged member
states to do more to improve on their performance on the
convergence criteria;
Ÿ
Urged Member States, in collaboration with the WAMI, to make
greater effort towards statistical harmonisation for improved data
quality;
CBN Economic Report for the First Half of 2018

Ÿ
Directed WAMI to coordinate the interlinking of the Payments System
Project and convene a meeting of the Zonal Payments System
Committee to determine its terms of reference and framework. Also,
WAMI, in collaboration with the member states, should endeavour to
revive the National Payments System Committees;
Ÿ
Directed WAMI to review and update the Exchange Rate Mechanism
(ERM), in view of the operationalisation of the Scheme on quoting and
trading in the Zone and submit it at the next WAMZ statutory meetings;
Ÿ
Directed WAMI to strengthen efforts and encourage member
countries to quote and trade in the WAMZ member states' currencies;
Ÿ
Urged the West African Securities Regulators Association (WASRA) to
approve phases I and II documents to facilitate the integration of the
capital markets in ECOWAS;
Ÿ
Approved and adopted the Internal Audit Charter of the WAMI as the
framework for conducting internal audit in WAMI and the submission
of report to the Chairman of the Committee of Governors semiannually; and
Ÿ
Considered and approved WAMI's Work Programme and Budget for
2018.
5.2.3 34th Board Of Governors Meeting of the West African Institute

for Financial and Economic Management (WAIFEM)
The 34th Board of Governors Meeting of the West African Institute for Financial
and Economic Management (WAIFEM) was held in the Gambia on February 8,
2018. The Meeting was preceded by the 37th Meeting of the Technical
Committee held on February 4, 2018. The Meeting was chaired by the Deputy
Governor, Central Bank of Liberia and Chairman, Board of Governors of
WAIFEM. The Report of the Technical Committee formed the basis for the Board
of Governors' deliberations.
The Governors:
Ÿ
Approved the Budget for the Year 2018 and noted the Progress
Report on the Implementation of the WAIFEM's Strategic Plan; and
Ÿ
Noted the Status Report on the WAIFEM as an ECOWAS Training
Institute.
CBN Economic Report for the First Half of 2018

5.2.4 51st Meeting of the Committee of Governors of ECOWAS Member

Central Banks
The 51st Ordinary Meeting of the Committee of Governors (COG) of Central
Banks of ECOWAS member states was held in The Gambia on February 9, 2018.
The Meeting was preceded by the 32nd Meeting of the Technical Committee
held from February 1 - 3, 2018. The Meeting was chaired by Mr. Bakary Jammeh,
Governor, Central Bank of The Gambia. The COG meeting reviewed and
discussed the report of the 32nd Meeting of the Technical Committee.
The COG endorsed:
Ÿ
The recommendations of the Report on the ECOWAS Monetary
Cooperation Programme for the First Half of 2017;
Ÿ
The recommendation of the Report on the Development of a
Composite Index of Financial Stability in ECOWAS member states;
Ÿ
The report on Construction of a Macroeconomic Convergence Index
for ECOWAS member states (an updated version) with a proviso that it
was not a replacement for the convergence criteria;
Ÿ
The recommendations of the Technical Committee on the study on
“Estimation of Optimal Inflation Threshold for ECOWAS Member
Countries”;
Ÿ
The WAMA Information Technology Policies and Procedures; and
Ÿ
The 2018 WAMA Work Programme and Budget.
th
5.2.5 39 Meeting of the Convergence Council of Ministers and Governors of
Central Banks of the Wamz
The 39th Meeting of the Convergence Council of Ministers and Governors of
the Central Banks of the West African Monetary Zone (WAMZ) was held in The
Gambia, on February 9, 2018, to deliberate on the status of implementation of
the WAMZ Work Programme. The Report of the 36th Meeting of the Committee
of Governors formed the basis for the deliberations. In a unanimous decision,
the Governor of the Republic of The Gambia was elected Chair of the
Convergence Council. The Meeting was chaired by the Minister of Finance of
The Gambia. The Report of the Meeting of the Committee of Governors of the
WAMZ was presented to the Convergence Council of Ministers for
consideration and approval. Following the Council's deliberations, all the
recommendations of the Committee of Governors of the WAMZ were
approved, as earlier indicated in the COG Report.
CBN Economic Report for the First Half of 2018

5.2.6 The Economic Commission for Africa (ECA) and the Annual Conference
of African Ministers of Finance, Planning and Economic Development
The 51st Session of the Economic Commission for Africa and the Annual
Conference of African Ministers of Finance, Planning and Economic
Development was held in Addis Ababa, Ethiopia from May 11-15, 2018. The
Session was preceded by the meeting of the Committee of Experts, which held
on May 11-12, 2018. The theme of the Conference was “African Continental
Free Trade Area (AfCFTA) and Fiscal Space for Jobs and Economic
Diversification”, which took into account the launch of the AfCFTA and the
opportunities it presented for economic growth and job creation in Africa.
The Economic Commission for Africa (ECA):
Ÿ
Endorsed the revised strategic framework for 2018-2019 by the 51st
Session of the Conference of African Ministers of Finance, Planning
and Economic Development. The Framework summarised the
outcome of recent ECA reforms and articulated its vision, overall
objectives and programmatic focus.
Ÿ
The Institution would concentrate on five strategic areas:
Ÿ
Advancing ECA's position as a premier knowledge institution
that builds on its unique position and privilege to bring global
solutions to the continent;
Ÿ
Building sustainable development solutions to accelerate
Africa's economic diversification and industrialisation;
Ÿ
Creating innovative solutions to finance sustainable
infrastructure, human, physical and social development for
transforming Africa;
Ÿ
Contributing solutions to trans-boundary issues, with a focus on
social inclusion; and
Ÿ
Developing regional solutions, as a contribution to global
governance issues, and building knowledge to advocate and
manage Africa's next-generation challenges.
CBN Economic Report for the First Half of 2018

5.2.7 The Continental Seminar of the Association of the African Central Banks
(AACB) Held in N'Djamena, Chad
The 2018 AACB Continental Seminar was hosted by the Banque des Etats de
l'Afrique Centrale (BEAC) in N'Djamena, Chad from May 14 - 16, 2018. The
theme of the Seminar was 'Financial Technology Innovations, Cybercrime:
Challenges for Central Banks'. Fifty delegates from twenty-one member
central banks and five (5) regional and international institutions attended the
Seminar, including representatives of the Central Bank of Nigeria.
The Seminar featured a plenary session with three lead papers. The first paper
focused on the Role of Mobile Money and Socio-Economic Development in
Africa. The second paper addressed Opportunities and Challenges of FinTech
for African Central Banks; while the third paper analysed The Implications of
Cybersecurity for Supervisory Practices. The plenary session ended with sharing
of experiences on the seminar theme by ten AACB central banks.
Three break-out sessions were held simultaneously focusing on the Implications
of Financial Technologies (including digital currencies and block chain
technologies) on Monetary Policy and Financial Stability in Africa; Mobile
Financial Services (MFS): Overview - Potential Risks and Roles of African Central
Banks; and Cybersecurity and Financial Stability: Challenges for African
Central Banks.
The Seminar recommended that:
Ÿ
Central banks should strengthen collaborations and exchange ideas
on FinTech innovations to increase public awareness on FinTech,
especially cryptocurrency and review of regulatory frameworks to
accommodate emerging FinTech innovations;
Ÿ
Each member central bank should develop specific national
strategies to promote mobile financial services; and
Ÿ
Central banks to set up robust internal capability units and establish
cross-departmental cybersecurity working group.
CBN Economic Report for the First Half of 2018

5.2.8 Regional Meeting of Monetary and Exchange Rate Policy Experts on the
Choice of a Single Monetary Policy Framework and Exchange Rate
Regime for the Future ECOWAS Monetary Zone Held in Abuja, Nigeria
The regional meeting of Monetary and Exchange Rate Policy Experts on the
choice of a single monetary policy framework and exchange rate regime for
the future ECOWAS monetary zone was held in Abuja, Nigeria, from June 4-7,
2018. The purpose of the Experts Meeting was to continue the process of finding
a common ground on the choice of a single exchange rate regime and
monetary policy framework for the proposed ECOWAS monetary zone.
The various organisations, present at the Meeting, made presentations on the
following themes:
Ÿ
Review of Monetary Policy Objectives, Instruments, and Frameworks
(WAIFEM);
Ÿ
Review of Exchange Rate Regimes (WAMA);
Ÿ
Experience Sharing on Monetary, Exchange Rate and Fiscal Policy
Management Coordination (ECOWAS) by:
o
BCEAO (Central Bank of West African States)
o
BCRG (Central Bank of the Republic of Guinea)
o
Central Bank of Liberia
o
Central Bank of Nigeria
o
Bank of Ghana
o
Bank of Sierra-Leone
o
Central Bank of The Gambia
Ÿ
Common Exchange Rate Regime For the ECOWAS (WAMA); and
Ÿ
Common Monetary Policy Framework for the Future ECOWAS
Monetary Union (WAMA).
CBN Economic Report for the First Half of 2018
6.0
OUTLOOK FOR THE SECOND HALF OF 2018
The outlook for Nigeria's economy for the rest of the year is optimistic. Growth in
the near-term is expected to witness expansion, premised on favourable oil
price and production, sustained stability in the foreign exchange market and
continued intervention in the real economy.
The real sector remained robust, with sustained government spending on
infrastructure, and the moderation in headline, core and food inflation.
Government policy interventions, particularly the Anchor Borrowers'
Programme (ABP) would continue to impact positively on the economy.
However, a number of headwinds remain, including a general sense of
insecurity and the envisaged 2019 pre-election spending activities.
Nevertheless, the improvement in monetary and fiscal policies coordination,
and the sustenance of CBN interventions in growth-stimulating and labourintensive sectors, such as, the manufacturing, agriculture and the Micro, Small
and Medium Enterprises (MSMEs), among others, are expected to moderate
the effects of these risks.
The external sector is expected to remain strong through the rest of the year in
anticipation of stronger terms of trade gains occasioned by the improvement
in crude oil prices at the international market and the sustained recovery in oil
production as well as growth in non-oil export; increased foreign exchange
availability; and attractive returns on investment. However, downside risks to
the external sector include rising trade tensions particularly between the US
and China; increasing geopolitical tensions particularly in the Middle East; risk
of capital reversal; rising external debt, and uncertainty surrounding the
political environment, typical of an election period.
In the fiscal sector, there is high prospect for government revenue, as crude oil
price is expected to remain above the budget benchmark of US$51.0 per
barrel. This optimism reflects the growth momentum in most advanced and
emerging economies. Similarly, the diversification of the economy and the
expansion of the tax base. through tax reform measures are expected to
further strengthen government revenue. In addition, the passage of the 2018
Budget would enhance capital releases with positive impact for economic

CBN Economic Report for the First Half of 2018

growth. However, there is a likelihood of bunching of capital releases towards
the last quarter of the year.
The financial sector would remain resilient in the second half of 2018, as all the
major prudential indicators are strong. Also, the continued implementation of
payments system initiatives are expected to sustain improved efficiency,
safety and confidence in the Nigerian payments system. However, rising
interest rate in the United States remains a major threat to the retention of
portfolio investments in the country. Nonetheless, effective surveillance and
prompt regulatory actions by the Bank are expected to mitigate any
unintended effects to the financial system, and ensure improvement in the
health and safety of banks for the rest of the year.
CBN Economic Report for the First Half of 2018

Table 20
DMBs' Credit to the Core Private Sector: (Percentage Share)
Source: Central Bank of Nigeria
CBN Economic Report for the First Half of 2018

Table 21
Money Market Rates: First Half 2018
(Per cent)
Table 22
Selected Interest Rates: First Half 2018
(Per cent)

Month
MPR
Interbank Call
Rate
OBB
NIBOR: Call
NIBOR: 30 Days
NIBOR: 90 Days
Jan - 18

Feb - 18

Mar - 18

Apr - 18

May - 18

Jun - 18

1st Half 2018 Average

1st Half 2017 Average

Sources: Central Bank of Nigeria and Financial Markets Dealers AssociaƟon
WEIGHTED AVERAGE

Month
Savings
Average
Term Deposit
Prime
Lending
Maximum
Lending
Jan - 18

Feb - 18

Mar - 18

Apr - 18

May - 18

Jun - 18

1st Half 2018 Average

1st Half 2017 Average

Source: Central Bank of Nigeria
CBN Economic Report for the First Half of 2018

Table 23
Open Market Operations (OMO) Sessions

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

January
1,271,958.85
1,091,488.65

12.47
February
405,786.77
307,403.51

13.17
March
836,869.23
714,571.36

13.76
April
359,329.93
285,940.65

12.87
May
1,229,507.61
905,994.13

11.29
June
1,351,007.15
1,179,539.92

11.20
Total
5,454,459.54
4,484,938.22
Average
909,076.59
747,489.70

12.46
July
812,923.19
810,924.19

11.23
August
654,527.07
654,527.07

11.24
September
1,070,421.99
989,578.88

11.25
October
800,935.02
652,505.59

11.52
November
1,012,679.55
830,230.89

11.81
December
0.00
0.00

0.00
Total
4,351,486.82
3,937,766.62
Average
870,297.36
787,553.32

11.41

January
1,637,224.91
1,295,880.94

15.29
February
279,283.49
217,327.54

16.09
March
586,859.44
543,859.44

16.09
April
1,027,454.90
933,744.73

16.44
May
657,106.07
524,540.43

15.24
June
979,350.37
746,365.40

14.55
Total
5,167,279.18
4,261,718.48
Average
861,213.20
710,286.41

15.61
July
963,380.00
771,823.00

15.34
August
226,718.00
73,269.00

16.14
September

October

November

December
736,952.00
482,153.00

8.57
Total
2,329,855.00
1,327,245.00
Average
582,463.75
442,415.00

13.35

January
913,260.00
698,420.00

8.15
February
630,890.00
509,230.00

8.08
March
706,990.00
394,630.00

8.81
April
710,300.00
363,720.00

9.72
May
367,700.00
64,630.00

10.56
June
540,800.00
299,120.00

12.93
Total
3,869,940.00
2,329,750.00
Average
644,990.00
388,291.67

9.71
July
909,780.00
695,210.00

19.38
August
2,248,650.00
1,728,150.00

17.87
September
1,067,340.00
1,057,950.00

20.64
October
832,900.00
807,020.00

20.67
November
732,660.00
665,570.00

17.25
December
633,140.00
575,970.00

21.12
Total
6,424,470.00
5,529,870.00
Average
1,070,745.00
921,645.00

19.49

January
1,237,870.00
700,520.00

20.89
February
621,146.00
619,140.00

21.06
March
418,192.00
391,160.00

20.93
April
376,660.00
316,090.00

21.11
May
585,900.00
580,080.00

21.03
June
1,354,120.00
1,267,280.00

19.65
Total
4,593,888.00
3,874,270.00
Average
765,648.00
645,711.67

20.78
July
1,546,700.00
1,517,530.00

21.00
August
1,175,660.00
1,104,570.00

19.86
September
787,080.00
741,850.00

19.25
October
1,204,690.00
1,179,200.00

16.49
November
1,568,350.00
1,461,130.00

16.41
December
1,468,530.00
1,467,930.00

15.61
Total
7,751,010.00
7,472,210.00
Average
1,291,835.00
1,245,368.33

18.11

January
2,132,608.00
2,132,608.00

14.71
February
919,310.30
845,282.70

14.46
March
1,599,250.20
1,561,378.30

14.42
April
3,423,078.00
2,084,455.30

13.43
May
2,484,392.20
2,033,421.30

13.52
June
1,092,612.10
1,086,612.10

12.51
Total
11,651,250.80
9,743,757.70
Average
1,941,875.13
1,623,959.62

13.84
Source: Central Bank of Nigeria
Period
CBN Economic Report for the First Half of 2018

Table 24
Treasury Bills: Issues and Allotments
( ' Million)
₦

Deposit Money
Banks
Non-Bank
Public

June

December

Annual Total

Annual Average


June

December

Annual Total

Annual Average


June

December

Annual Total

Annual Average


June

December

Annual Total

Annual Average


January

February

March

April

May

June

Half Year Total

Half Year Average

Source: Central Bank of Nigeria
Period
Issues
Central
Bank
Allotment to Subscriber
CBN Economic Report for the First Half of 2018

Table 25
Monetary and Credit Developments 3/
( ' Million)
₦

Item
Jun 2014
Dec 2014
Jun 2015
Dec 2015
Jun 2016
Dec 2016
Jun 2017
Dec 2017
Jun 2018 /4
(1) DomesƟc Credit (Net)

(a) Claims on Federal Government (Net)

By Central Bank

By Commecial Banks

By Merchant Banks

By Non Interest Banks

(b) Claims on Private Sector

By Central Bank

By Commercial Banks

By Merchant Banks

By Non Interest Banks

(i) Claims on State and Local Govts

By Central Bank

By Commercial Banks

By Merchant Banks

By Non Interest Banks

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

By Central Bank

By Commercial Banks

By Merchant Banks

By Non Interest Banks

(iii) Claims on Other Private Sector

By Central Bank

By Commercial Banks

By Merchant Banks

By Non Interest Banks

(2) Foreign Assets (Net)

By Central Bank

By Commecial Banks

By Merchant Banks

By Non Interest Banks

(3) Other Assets (Net)

Total Monetary Assets

Quasi-Money /1


12,965,060.24

14,112,894.51

Money Supply


11,175,573.96

10,701,110.00

Currency Outside Banks


1,782,664.58

1,519,902.32

Demand Deposits /2


9,392,909.39

9,181,207.68

Total Monetary LiabiliƟes

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

Credit to the Private Sector

Claims on Federal Government (Net)

By Central Bank

Claims on State and Local Governments

Claims on Non-Financial Public Enterprises

Claims on Other Private Sector

Foreign Assets (Net)

Quasi-Money

Money Supply (M1)

Broad Money (M2)

Other Assets (Net)

Source: Central Bank of Nigeria
/1 Quasi-Money consists of Time, Savings and Foreign Currency Deposits of Deposit Money Banks excluding takings from Discount Houses.
/2 Demand Deposits consist of state and local government as well as parastatals deposits at the CBN on the one hand; and state and local government and private sector deposits as well as demand deposits of non-financial public
enterprises at the Deposit Money Banks, on the other.
/3 AdopƟon of InternaƟonal Financial ReporƟng Standard (IFRS) and bank returns in compliance with the IFRS commenced in March 2015.
/4 Provisional
CBN Economic Report for the First Half of 2018

Table 26
Value of Money Market Assets 1/
( ' Million)
₦

2018 /2
June
Dec
June
Dec
June
Dec
June
Dec
June
Treasury Bills


3,579,799.14
2,953,580.70

CerƟficates of Deposits

Commercial Papers

Bankers' Acceptances

FGN Bonds


FGN Savings Bonds /3
4,754.08

7,197.33
8,521.32

FGN Sukuk /3
100,000.00
100,000.00

FGN Green Bond /3
10,690.00
10,690.00

Total

Treasury Bills

CerƟficates of Deposits

Commercial Papers

Bankers' Acceptances

FGN Bonds

FGN Savings Bonds /3
18.40
FGN Sukuk /3
0.00
FGN Green Bond /3
0.00
Percentage Change of Total

Source: Central Bank of Nigeria
/1 Revised
/2 Provisional
/3 FGN Savings Bond, FGN Sukuk and FGN Green Bond were introduced by the Debt Management Office in March, September and December 2017, respecƟvely.
Percentage Change Over Preceding December
Instrument

CBN Economic Report for the First Half of 2018

Table 27
Selected Interest Rates /1
(End-Period Rate)

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

Treasury Bills Issue Rate

Weighted Average Rates
Inter-bank Call Rate

NIBOR Call Rate

NIBOR 30-days

NIBOR 90-days

Open Buy Back (OBB)

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

Time Deposit Rate (3 months)

Prime Lending Rate

Maximum Lending Rate

Sources: Financial Market Dealers AssociaƟon (FMDA) and Central Bank of Nigeria
/1 Revised

CBN Economic Report for the First Half of 2018

2017 1/
2018 2/

1st Half
1st Half
1st Half
1st Half
1st Half
Half Year
Budget
Total Revenue (Gross)
5,109.04

3,452.84

2,395.44

2,992.83

4,401.91

6,642.72

Oil Revenue (Gross)
3,604.39

2,049.78

1,203.32

1,613.02

2,686.12

3,841.25

Crude oil and Gas Exports
1,094.04

489.49

194.98

213.17

207.54

611.38

PPT and RoyalƟes etc.
1,713.36

898.33

526.82

645.86

1,767.36

2,757.99

DomesƟc Crude Oil / Gas Sales
748.21

607.21

440.37

723.25

706.31

126.05

Other Oil Revenue
48.78

54.76

41.15

30.74

4.91

313.62

Dividend by NLNG


Less:
DeducƟons
1,124.72

450.66

241.04

631.60

329.54

267.91


Oil Revenue (Net)
2,479.67

1,599.12

962.28

981.43

2,356.58

3,573.33

Non-oil Revenue
1,504.64

1,403.06

1,192.12

1,379.80

1,715.79

2,801.47

Corporate Tax
582.31

334.30

347.97

365.33

572.00

865.90

Customs & Excise DuƟes
257.91

265.67

242.05

294.84

328.02

360.11

Value-Added Tax (VAT)
407.95

398.84

391.18

465.31

541.26

772.00

Independent Revenue of Fed. Govt.
134.01

290.93

106.62

119.38

77.67

423.97

EducaƟon Tax
18.57

16.38

25.39

41.17

32.95

105.25

Customs Special Levies (FederaƟon Account)
44.93

36.32

23.11

30.09

93.39

64.15

NaƟonal InformaƟon Technology Development Fund (NITDF)
2.04

2.70

3.95

0.72

3.31

21.27

Customs Special Levies (Non-FederaƟon Account)

Non-Regular Earning

Solid Minerals and Other Mining Revenue

Less:
Cost of CollecƟon
217.35

48.54

46.87

80.14

74.97

117.10

Non-Oil Revenue (Net)
1,287.29

1,354.52

1,145.53

1,299.67

1,640.82

2,684.37

Estmiated Balances in Special Accounts for the previous year

Federally-collected revenue (Net)
3,766.96

2,953.64

2,107.52

2,281.09

3,997.39

6,268.40

FederaƟon Account AllocaƟon:
3,766.96

2,953.64

2,107.52

2,281.09

3,997.39

6,268.40

Transfer to Federal Govt. Ind. Revenue
134.01

290.93

106.62

119.38

77.67

423.97

Transfer to VAT Pool Account
391.63

382.88

375.53

446.70

519.89

741.12

Other Tranfers 3/
122.46

113.32

104.30

134.94

196.84

304.09

Amount Distributed
3,118.87

2,166.51

1,521.07

1,580.07

3,202.98

4,799.21

Federal Government
1,473.20

1,031.80

735.40

765.17

1,525.94

2,285.71

State Government
747.23

523.34

373.00

388.10

773.98

1,159.34

Local Government
576.08

403.48

287.57

299.21

596.71

893.81

13% DerivaƟon
322.36

207.89

125.10

127.59

306.35

460.35

Vat Pool Account
391.63

382.88

375.53

446.70

512.70

741.12

FG
58.75

57.43

56.33

67.01

76.90

111.17

SG
195.82

191.44

187.77

223.35

256.35

370.56

LG
137.07

134.01

131.44

156.35

179.44

259.39

Special Funds (FGN)
116.89

81.87

58.30

60.71

121.08

181.36

Federal Capital Territory
27.97

19.59

13.91

14.52

28.97

43.39

Ecology
27.97

19.59

13.96

14.52

28.97

43.39

Statutory StabilizaƟon
13.98

9.79

6.98

7.26

14.48

21.69

Natural Resources
46.98

32.90

23.45

24.40

48.66

72.89

FCT VAT
3.92

3.83

3.76

4.47

5.13

7.41

Overall Balance

Memorandum Items
DeducƟons

JVC Cash calls

Excess Crude Proceeds

Excess PPT & Royalty

DomesƟc Subsidy

DPR Cost of CollecƟon

Others 4/

Total Non-Oil Revenue DeducƟons

Cost of CollecƟon

7% NCS

4% FIRS

VAT

Non Regular Earnings

Non-Oil Revenue (Excess)

FIRS Tax Refunds

NCS Refunds

13% DerivaƟon (Solid Mineral)

Source: Office of the Accountant-General of the FederaƟon (OAGF)
1/ Revised
2/ Provisional
3/ Includes EducaƟon Tax, Customs Levies and NITDF
4/ Includes NNPC Refunds in 2014-2017 and Transfer to Lagos State 13% DerivaƟon in 2018 (N0.13 billion)
Table 28
Federation Account Operations
( ' Billion)
₦
CBN Economic Report for the First Half of 2018

Table 29
Federally Collected Revenue Distribution
( ' Billion)
₦

2017 1/
2018 2/

1st Half
1st Half
1st Half
1st Half
1st Half
Half Year Budget
Statuory AllocaƟon


4,799.21

Federal Government


2,285.71

State Government


1,159.34

Local Government


893.81

13% DerivaƟon


460.35

Vat Pool Account


741.12

FG


111.17

SG


370.56

LG


259.39

DistribuƟon from Excess Crude/PPT

Federal Government

State Government

Local Government

13% DerivaƟon

Provisional Dist & Actual Budget (Diff)/Non-Oil Excess Revenue

Federal Government

State Government

Local Government

13% DerivaƟon

Exchange Rate Gain

Federal Government

State Government

Local Government

13% DerivaƟon

SURE-P/ Signature Bonus 6/

Federal Government

State Government

Local Government

13% DerivaƟon

NNPC Refund/Tax Amnesty Income

Federal Government

State Government

Local Government

13% DerivaƟon

FederaƟon Revenue AugmentaƟon/NNPC AddiƟonal Rev.

Federal Government

State Government

Local Government

13% DerivaƟon

Total Excluding VAT


5,019.52

Federal Government


2,347.79

State Government


1,293.31

Local Government


918.08

13% DerivaƟon


460.35

Total Statutory Revenue and VAT DistribuƟon 3/


5,804.56

Federal Government


2,502.88

State Government


1,663.87

Local Government


1,177.47

13% DerivaƟon


460.35

Source: Office of the Accountant-General of the FederaƟon (OAGF)
1/ Revised
2/Provisional
3/ Includes EducaƟon Tax, Customs Levies and NITDF
CBN Economic Report for the First Half of 2018

2017 1/
2018 2/

1st Half
1st Half
1st Half
1st Half
1st Half
Half Year Budget
Total Federal Government Retained Revenue

Share of FederaƟon Account (Gross)
1,473.20


Share of VAT Pool Account
58.75


Federal Government Independent Revenue
134.01


Share of Excess Crude Account (incl. Augment.)

Share from SURE-P DistribuƟon
97.76


Share from Excess Non-Oil 3/

NNPC Refund (Incl. AddiƟonal NNPC Share)

Subsidy

Exchange Gain

Others 4/

Total Expenditure

Recurrent Expenditure

Goods and Services

Personnel Cost
753.13


Pension
73.88


Overhead Cost

Interest Payments

Foreign
36.37


DomesƟc 5/
441.44


Transfers

Special Funds and others 6/
153.13


Capital Expenditure & Net Lending 7/

DomesƟc Financed Budgets

Budgetary

Subsidy

SURE-P/ Loan to Ex Dom Naira Account

Previous Year Capital

Transfers

NDDC

NJC

UBE

Refund of Signature Bonuses/Others

Balance Of Revenue And Expenditure
Primary Surplus (+)/Deficit (-)
230.14


Current Surplus (+)/Deficit (-)
270.84


Overall Surplus (+)/Deficit (-)
(247.66)


Financing:
247.66


Foreign (Net)

DomesƟc (Net)
247.66


Banking System

CBN

DMBs

Non Bank Public

PrivaƟzaƟon Proceeds

Loans from Special Accts

Excess Crude

Recoveries of Misappropriated Funds

Other Funds
(293.04)


424.84
Source: Office of the Accountant-General of the FederaƟon (OAGF)
1/ Revised
2/ Provisional
3/ Includes Excess Bank Charges of N1.02 billion in 2018
4/ Includes FGN balance of special accounts, transfers to CRF and payments to FGN and other statutory benefits
5/ Include Ways and Means Advances
6/ Includes FCT share of VAT
7/ Includes Net deducƟons for loans on lent to State,local governments and Federal parastatals/companies.
Table 30
Summary of Federal Government Finances
( ' Billion)
₦
CBN Economic Report for the First Half of 2018

Table 31
Functional Classification of Federal Government Recurrent
and Capital Expenditure
( ' Billion)
₦

Half - Year

Half - Year

Half - Year 1/

Half - Year 1/

Half - Year 2/
TOTAL EXPENDITURE

A. RECURRENT EXPENDITURE

A1. ADMINISTRATION

General AdministraƟon

Defence

Internal Security

A2. ECONOMIC SERVICES

Agriculture

Roads & ConstrucƟon

Transport & CommunicaƟons

Others

A3. SOCIAL & COMMUNITY SERVICES

EducaƟon

Health

Others

A4. TRANSFERS

Public Debt Charges (Int)

DomesƟc

Foreign

Pensions & GratuiƟes

FCT & Others

ConƟngencies (Others)
-

-

-

-

-

External ObligaƟons
-

-

-

-

-

Extra-Budgetary Expenditure
-

-

-

-

-

Deferred Customs DuƟes
-

-

-

-

-

Unspecified Expenditure
-

-

-

-

-

Others
-

-

-

-

-

B. CAPITAL EXPENDITURE

B1. ADMINISTRATION

General AdministraƟon

Defence

Internal Security

B2 ECONOMIC SERVICES

Agriculture & Natural Resources

Manuf., Mining & Quarrying

Transport & CommunicaƟons

Housing
-

-

-

-

-

Roads & ConstrucƟon

NaƟonal Priority Projects
-

-

-

-

-

JVC Calls/NNPC Priority Projects
-

-

-

-

-

PTF
-

-

-

-

-

Counterpart Funding
-

-

-

-

-

Others

B3 SOCIAL & COMMUNITY SERVICES

EducaƟon

Health

Others

B4 TRANSFERS

Financial ObligaƟons
-

-

-

-

-

Capital Repayments
-

-

-

-

-

DomesƟc
-

-

-

-

-

Foreign
-

-

-

-

-

External ObligaƟons
-

-

-

-

-

ConƟngencies
-

-

-

-

-

Capital SupplementaƟon

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

-

-

-

-

Grants to States
-

-

-

-

-

Others

C. STATUTORY TRANSFERS

NDDC


NJC


UBE

Others

Sources: Federal Ministry of Finance, Office of the Accountant-General of the FederaƟon and Central Bank of Nigeria
1/ Revised
2/ Provisional
CBN Economic Report for the First Half of 2018

Table 32
Summary of Statutory & VAT Revenue Allocation to State Governments: First Half 2018 I/
( ' Billion)
₦

Gross Stat. Alloc.
DeducƟons
13% DerivaƟon
Total Net Stat.
Alloc.
AugmentaƟon
Exchange Gain
Excess Crude 2/
NNPC Refund
SURE-P
VAT
Total Gross Alloc.
Total Net Alloc.
Gross Stat. Alloc.
DeducƟons
13% DerivaƟon
Total Net Stat.
Alloc.
AugmentaƟon
NNPC
Refund/AddiƟon
al Fund
Excess Crude 2/
Exchange Gain
VAT
Total Gross Alloc.
Total Net Alloc.
Gross Stat. Alloc.
DeducƟons
13% DerivaƟon
Total Net Stat.
Alloc.
Non-oil Excess
NNPC
Refund/AddiƟon
al Fund
Excess Crude 2/
Exchange Gain
VAT
Total Gross Alloc.
Total Net Alloc.

Abia
18.45

0.87

3.81

21.39

0.37

1.20

4.07

27.90

27.03

12.92

0.77

2.25

14.41

0.11

0.11

1.52

3.98

20.90

20.13

9.21

2.09

1.15

8.28

0.01

0.19

0.13

3.84

14.54

12.45

Adamawa
19.63

0.46

-

19.17

0.41

1.33

4.16

25.53

25.07

13.75

0.93

-

12.82

0.09

0.10

1.29

4.15

19.37

18.44

9.80

2.10

-

7.70

0.01

0.21

0.12

4.02

14.15

12.05

Akwa Ibom
19.81

2.44

106.46

123.82

0.41

1.35

4.42

132.44

130.00

13.88

0.70

60.83

74.01

0.68

0.73

9.46

4.68

90.25

89.55

9.89

7.51

40.22

42.60

0.01

0.21

0.82

4.30

55.45

47.94

Anambra
19.59

0.58

-

19.02

0.41

1.35

4.74

26.09

25.52

13.72

0.23

-

13.49

0.09

0.10

1.28

4.55

19.74

19.50

9.78

0.87

-

8.91

0.01

0.21

0.12

4.44

14.56

13.69

Bauchi
23.57

2.71

-

20.86

0.46

1.56

4.82

30.42

27.71

16.51

3.47

13.03

0.11

0.11

1.54

4.75

23.02

19.55

11.77

3.31

-

8.45

0.01

0.25

0.14

4.60

16.77

13.45

Bayelsa
17.44

14.01

69.07

72.50

0.32

1.07

3.91

91.80

77.79

12.21

9.62

40.21

42.81

0.44

0.46

6.28

3.49

63.09

53.47

8.70

17.40

21.06

12.37

0.01

0.18

0.46

3.39

33.81

16.41

Benue
22.10

3.11

-

18.99

0.44

1.44

4.65

28.63

25.52

15.48

3.09

-

12.38

0.10

0.11

1.45

4.47

21.60

18.51

11.03

5.13

-

5.90

0.01

0.23

0.13

4.43

15.84

10.71

Borno
24.48

0.25

-

24.23

0.47

1.59

4.60

31.14

30.89

17.15

0.09

-

17.06

0.11

0.12

1.60

4.42

23.40

23.31

12.22

2.02

-

10.21

0.01

0.26

0.15

4.35

16.99

14.98

Cross River
19.82

1.52

0.29

18.59

0.38

1.25

4.19

25.93

24.41

13.88

3.52

-

10.36

0.09

0.10

1.30

4.13

19.49

15.97

9.89

8.67

-

1.23

0.01

0.21

0.12

3.85

14.08

5.42

Delta
20.01

8.80

74.20

85.40

0.41

1.35

4.90

100.86

92.06

14.01

8.40

49.94

55.55

0.53

0.56

7.93

4.90

77.88

69.48

9.99

14.45

30.03

25.56

0.01

0.21

0.64

4.78

45.66

31.21

Ebonyi
17.63

3.68

-

13.95

0.35

1.11

3.79

22.87

19.19

12.35

4.45

-

7.90

0.08

0.09

1.15

3.68

17.34

12.90

8.80

0.89

-

7.91

0.01

0.19

0.11

3.57

12.67

11.79

Edo
18.43

4.93

8.80

22.29

0.41

1.26

4.33

33.22

28.29

12.90

4.73

6.06

14.24

0.13

0.15

1.99

4.26

25.49

20.77

9.20

6.31

3.04

5.93

0.01

0.19

0.16

4.30

16.91

10.60

EkiƟ
17.62

3.63

-

13.99

0.35

1.12

3.79

22.87

19.23

12.34

3.45

-

8.89

0.08

0.09

1.15

3.72

17.38

13.93

8.80

6.12

-

2.67

0.01

0.19

0.11

3.67

12.76

6.64

Enugu
19.82

0.64

-

19.18

0.38

1.26

4.28

25.74

25.10

13.88

0.98

-

12.90

0.09

0.10

1.30

4.39

19.75

18.77

9.89

1.42

-

8.48

0.01

0.21

0.12

4.21

14.44

13.03

Gombe
18.56

3.16

-

15.40

0.35

1.18

3.76

23.85

20.69

13.00

4.02

-

8.98

0.08

0.09

1.22

3.77

18.16

14.15

9.27

4.86

-

4.41

0.01

0.20

0.11

3.68

13.27

8.41

Imo
20.49

2.98

3.54

21.05

0.40

1.34

4.49

30.26

27.29

14.35

2.74

2.14

13.74

0.11

0.12

1.62

4.38

22.72

19.98

10.23

4.38

1.13

6.97

0.01

0.22

0.14

4.30

16.03

11.65

Jigawa
22.04

0.65

-

21.39

0.45

1.48

4.93

28.89

28.24

15.43

0.13

-

15.30

0.10

0.11

1.44

4.65

21.74

21.60

11.00

0.72

-

10.28

0.01

0.23

0.13

4.48

15.86

15.13

Kaduna
25.82

3.10

-

22.72

0.50

1.68

5.54

33.54

30.44

18.08

3.21

-

14.88

0.12

0.13

1.69

5.40

25.41

22.21

12.89

2.36

-

10.53

0.01

0.27

0.16

5.30

18.63

16.27

Kano
31.26

1.34

-

29.92

0.61

2.11

7.44

41.42

40.08

21.89

0.42

-

21.47

0.14

0.15

2.05

7.26

31.49

31.07

15.60

2.09

-

13.51

0.02

0.33

0.19

7.16

23.30

21.20

Katsina
24.22

0.73

-

23.49

0.48

1.60

5.37

31.67

30.94

16.96

0.71

-

16.25

0.11

0.12

1.59

5.35

24.13

23.42

12.09

1.55

-

10.54

0.01

0.25

0.15

5.25

17.76

16.21

Kebbi
20.81

0.72

-

20.08

0.40

1.34

4.36

26.90

26.18

14.57

0.22

-

14.35

0.10

0.10

1.36

4.11

20.24

20.02

10.39

1.68

-

8.71

0.01

0.22

0.13

3.99

14.73

13.05

Kogi
21.78

1.37

-

20.41

0.40

1.34

4.21

27.73

26.35

15.25

1.62

-

13.64

0.10

0.11

1.43

4.11

21.00

19.38

10.87

1.92

-

8.95

0.01

0.23

0.13

4.02

15.26

13.35

Kwara
17.54

0.78

-

16.76

0.36

1.22

3.82

22.95

22.16

12.29

0.70

-

11.59

0.08

0.09

1.15

3.76

17.36

16.66

8.76

2.62

-

6.14

0.01

0.18

0.11

3.68

12.74

10.12

Lagos
26.40

14.54

-

11.85

0.58

1.90

37.44

66.32

51.78

18.49

13.93

-

4.56

0.12

0.13

1.73

36.74

57.21

43.27

13.18

14.22

-

(1.04)

0.01

0.28

0.16

36.48

50.11

35.90

Nasarawa
18.17

1.79

-

16.38

0.34

1.14

3.60

23.25

21.46

12.73

0.87

-

11.85

0.08

0.09

1.19

3.53

17.62

16.74

9.07

1.28

-

7.79

0.01

0.19

0.11

3.41

12.80

11.51

Niger
23.34

3.71

-

19.63

0.46

1.56

4.51

29.87

26.16

16.35

3.20

-

13.14

0.11

0.11

1.53

4.40

22.49

19.29

11.65

4.06

-

7.59

0.01

0.25

0.14

4.35

16.40

12.34

Ogun
18.31

0.47

-

17.83

0.39

1.30

4.44

24.44

23.97

12.82

0.99

-

11.83

0.08

0.09

1.20

4.49

18.68

17.70

9.14

7.47

-

1.67

0.01

0.19

0.11

4.26

13.71

6.24

Ondo
18.34

5.63

14.13

26.84

0.38

1.25

4.28

38.39

32.75

12.85

6.36

7.39

13.88

0.15

0.17

2.18

4.20

26.94

20.58

9.16

7.22

5.59

7.53

0.01

0.19

0.21

4.11

19.27

12.06

Osun
17.97

6.25

-

11.72

0.38

1.24

4.39

23.98

17.73

12.59

6.75

-

5.84

0.08

0.09

1.18

4.17

18.10

11.36

8.97

14.39

-

(5.42)

0.01

0.19

0.11

4.09

13.37

(1.02)

Oyo
22.10

1.25

-

20.85

0.47

1.56

5.41

29.54

28.29

15.48

1.69

-

13.79

0.10

0.11

1.45

5.60

22.73

21.04

11.03

3.82

-

7.21

0.01

0.23

0.13

5.86

17.27

13.45

Plateau
20.58

1.39

5.50

24.69

0.40

1.31

4.30

32.08

30.69

14.41

2.80

-

11.62

0.09

0.10

1.35

4.24

20.19

17.40

10.27

7.36

-

2.92

0.01

0.22

0.12

4.05

14.68

7.32

Rivers
21.25

7.68

68.21

81.79

0.44

1.46

6.56

97.93

90.25

14.88

8.36

39.07

45.60

0.46

0.48

6.46

5.90

67.26

58.90

10.61

11.64

22.87

21.84

0.01

0.22

0.52

6.05

40.28

28.64

Sokoto
21.72

0.91

-

20.80

0.42

1.39

4.56

28.09

27.18

15.21

0.25

-

14.96

0.10

0.11

1.42

4.27

21.11

20.86

10.84

1.23

-

9.61

0.01

0.23

0.13

4.23

15.44

14.21

Taraba
18.98

0.45

-

18.53

0.39

1.32

3.79

24.49

24.03

13.29

1.11

-

12.18

0.09

0.09

1.24

3.75

18.46

17.35

9.48

2.19

-

7.29

0.01

0.20

0.11

3.62

13.42

11.23

Yobe
19.57

0.25

-

19.32

0.38

1.31

3.80

25.06

24.81

13.70

0.11

-

13.59

0.09

0.10

1.28

3.68

18.85

18.74

9.77

0.79

-

8.98

0.01

0.21

0.12

3.63

13.73

12.94

Zamfara
19.61

0.65

-

18.96

0.40

1.31

4.19

25.51

24.86

13.73

2.41

-

11.32

0.09

0.10

1.28

4.10

19.30

16.89

9.79

5.58

-

4.21

0.01

0.21

0.12

4.01

14.14

8.56

Disputed Deriv.
-

0.06

0.04

(0.02)

-

-

-

0.04

(0.02)

Rivers/Akwa Disputed Fund
-

-

0.01

0.01

-

-

-

0.01

0.01

747.23

107.51

354.05

993.77

-

-

-

14.97

49.58

195.82

1,361.64

1,254.14

523.34

107.06

207.89

624.17

-

5.32

5.67

76.27

191.44

1,009.93

902.88

373.00

181.69

125.10

316.41

0.42

7.86

-

6.69

187.77

700.83

519.14

3/ Includes excess bank charges of N0.52 billion in 2018
1/ Provisional
2/ Includes the share of oil-producing states from the excess crude
Total
First Half 2015
First Half 2016
Source: FederaƟon Account AllocaƟon, Federal Ministry of Finance.
S/N
States
First Half 2014
CBN Economic Report for the First Half of 2018

Table 32 Contd.
Summary of Statutory & VAT Revenue Allocation to State Governments: First Half 2018 /I
( ' Billion)
₦

Gross Stat. Alloc.
DeducƟons
13% DerivaƟon
Total Net Stat.
Alloc.
Fed. Rev.
AugmentaƟon
NNPC
Refund/AddiƟon
al Fund
Excess Crude 2/
Exchange Gain
VAT
Total Gross Alloc.
Total Net Alloc.
Gross Stat. Alloc.
DeducƟons
13% DerivaƟon
Total Net Stat.
Alloc.
Non-oil Excess 3/
Fed. Rev.
AugmentaƟon
Excess Crude 2/
Exchange Gain
VAT
Total Gross Alloc.
Total Net Alloc.

Abia
9.58

1.63

1.46

9.41

-

-

1.22

2.24

4.58

19.07

17.44

19.11

2.38

4.04

20.77

0.02

0.09

0.22

0.47

5.31

29.27

26.89

Adamawa
10.20

1.52

-

8.68

-

-

1.02

1.95

4.79

17.95

16.43

20.33

2.77

-

17.57

0.02

0.07

0.19

0.38

5.49

26.48

23.71

Akwa Ibom
10.29

4.35

38.58

44.52

-

-

6.69

12.79

5.12

73.48

69.13

20.52

6.98

76.46

90.01

0.02

0.45

1.25

2.47

6.00

107.17

100.20

Anambra
10.18

0.59

-

9.58

-

-

1.02

1.94

5.37

18.50

17.91

20.29

0.76

-

19.53

0.02

0.07

0.19

0.38

6.23

27.18

26.42

Bauchi
12.24

3.60

-

8.64

-

-

1.22

2.34

5.47

21.27

17.66

24.41

5.82

-

18.59

0.02

0.08

0.23

0.46

6.21

31.41

25.59

Bayelsa
9.06

5.90

26.85

30.01

-

-

5.38

8.70

4.36

54.34

48.44

18.06

9.86

61.01

69.21

0.02

0.33

0.90

1.89

4.78

86.99

77.13

Benue
11.48

2.42

-

9.06

-

-

1.15

2.19

5.24

20.06

17.64

22.89

3.29

-

19.60

0.02

0.08

0.21

0.43

5.97

29.60

26.30

Borno
12.72

1.37

-

11.35

-

-

1.27

2.43

5.19

21.60

20.24

25.36

2.04

-

23.32

0.02

0.09

0.23

0.48

5.89

32.07

30.03

Cross River
10.29

6.09

-

4.20

-

-

1.03

1.96

4.66

17.94

11.86

20.52

9.34

0.00

11.19

0.02

0.07

0.19

0.39

5.27

26.46

17.12

Delta
10.39

9.37

24.48

25.50

-

-

5.45

8.78

5.47

54.58

45.20

20.72

13.81

83.38

90.30

0.02

0.49

1.32

2.65

6.40

114.99

101.18

Ebonyi
9.16

0.64

-

8.52

-

-

0.91

1.75

4.34

16.16

15.52

18.26

2.19

-

16.07

0.02

0.06

0.17

0.34

4.94

23.79

21.60

Edo
9.57

3.97

1.25

6.85

-

-

1.14

2.10

5.04

19.11

15.13

19.08

3.79

10.64

25.93

0.02

0.11

0.29

0.63

5.90

36.67

32.88

EkiƟ
9.15

4.07

-

5.08

-

-

0.91

1.75

4.35

16.16

12.08

18.25

5.92

-

12.33

0.02

0.06

0.17

0.34

5.00

23.84

17.91

Enugu
10.29

1.65

-

8.65

-

-

1.03

1.96

5.05

18.33

16.68

20.53

1.68

-

18.84

0.02

0.07

0.19

0.39

5.55

26.74

25.06

Gombe
9.64

2.71

-

6.93

-

-

0.96

1.84

4.36

16.81

14.10

19.23

4.15

-

15.08

0.02

0.07

0.18

0.36

4.94

24.78

20.63

Imo
10.64

3.51

1.53

8.66

-

-

1.38

2.43

5.15

21.13

17.62

21.22

5.22

2.67

18.67

0.02

0.08

0.23

0.48

5.90

30.60

25.38

Jigawa
11.45

0.47

-

10.97

-

-

1.14

2.18

5.41

20.18

19.71

22.83

1.14

-

21.69

0.02

0.08

0.21

0.43

6.32

29.88

28.75

Kaduna
13.41

1.69

-

11.72

-

-

1.34

2.56

6.59

23.89

22.20

26.74

2.34

-

24.41

0.02

0.09

0.25

0.50

7.59

35.19

32.86

Kano
16.23

2.14

-

14.09

-

-

1.62

3.10

10.42

31.37

29.23

32.37

3.21

-

29.16

0.03

0.11

0.30

0.61

9.67

43.09

39.88

Katsina
12.58

1.38

-

11.20

-

-

1.26

2.40

6.04

22.28

20.90

25.09

4.43

-

20.66

0.02

0.08

0.23

0.47

6.92

32.82

28.39

Kebbi
10.81

1.27

-

9.54

-

-

1.08

2.06

4.76

18.70

17.44

21.55

1.82

-

19.74

0.02

0.07

0.20

0.40

5.48

27.73

25.92

Kogi
11.31

1.85

-

9.46

-

-

1.13

2.16

4.81

19.41

17.56

22.56

3.62

-

18.94

0.02

0.08

0.21

0.42

5.51

28.79

25.17

Kwara
9.11

1.50

-

7.61

-

-

0.91

1.74

4.38

16.14

14.64

18.17

2.43

-

15.74

0.02

0.06

0.17

0.34

5.06

23.82

21.39

Lagos
13.71

8.83

-

4.88

-

-

1.37

2.62

38.29

55.99

47.15

27.34

17.04

-

10.30

0.02

0.09

0.25

0.51

48.20

76.43

59.38

Nasarawa
9.44

1.01

-

8.43

-

-

0.94

1.80

4.16

16.34

15.33

18.82

1.53

-

17.30

0.02

0.06

0.17

0.35

4.73

24.16

22.63

Niger
12.12

1.87

-

10.26

-

-

1.21

2.31

5.14

20.79

18.92

24.18

3.61

-

20.57

0.02

0.08

0.22

0.45

5.89

30.84

27.23

Ogun
9.51

4.85

-

4.66

-

-

0.95

1.81

5.17

17.44

12.59

18.96

7.22

-

11.74

0.02

0.06

0.18

0.36

6.44

26.01

18.79

Ondo
9.53

4.31

6.45

11.67

-

-

2.12

3.68

4.89

26.66

22.35

19.00

4.00

9.29

24.29

0.02

0.11

0.32

0.63

5.58

34.95

30.95

Osun
9.33

6.01

-

3.32

-

-

0.93

1.78

4.86

16.90

10.89

18.61

14.52

-

4.09

0.02

0.06

0.17

0.35

5.55

24.77

10.24

Oyo
11.48

2.67

-

8.81

-

-

1.15

2.19

7.67

22.48

19.81

22.89

3.73

-

19.16

0.02

0.08

0.21

0.43

8.25

31.88

28.16

Plateau
10.69

4.75

-

5.94

-

-

1.07

2.04

4.83

18.63

13.88

21.31

6.90

-

14.42

0.02

0.07

0.20

0.40

5.49

27.49

20.60

Rivers
11.04

7.39

26.98

30.62

-

-

6.27

9.22

8.95

62.45

55.07

22.01

7.93

58.86

72.94

0.02

0.35

0.93

1.89

8.88

92.94

85.01

Sokoto
11.28

0.87

-

10.41

-

-

1.13

2.15

4.96

19.52

18.65

22.49

3.65

-

18.84

0.02

0.08

0.21

0.42

5.65

28.87

25.22

Taraba
9.86

2.14

-

7.72

-

-

0.98

1.88

4.36

17.09

14.95

19.66

2.75

-

16.91

0.02

0.07

0.18

0.37

4.95

25.25

22.49

Yobe
10.16

0.50

-

9.66

-

-

1.01

1.94

4.35

17.47

16.96

20.27

0.74

-

19.53

0.02

0.07

0.19

0.38

5.00

25.92

25.18

Zamfara
10.18

4.02

-

6.16

-

-

1.02

1.94

4.74

17.88

13.86

20.31

7.75

-

12.57

0.02

0.07

0.19

0.38

5.42

26.39

18.64

Disputed Deriv.
-

-

-

Rivers/Akwa Disputed Fund
-

-

-

388.10

112.92

127.59

402.77

-

-

60.38

108.69

223.35

908.11

795.19

773.98

180.36

306.35

899.97

0.69

4.08

11.15

22.66

256.35

1,375.28

1,194.92

3/ Includes excess bank charges of N0.52 billion in 2018
1/ Provisional
2/ Includes the share of oil-producing states from the excess crude
Total
First Half 2017
First Half 2018 1/
Source: FederaƟon Account AllocaƟon, Federal Ministry of Finance.
S/N
States
CBN Economic Report for the First Half of 2018

Table 33
Allocation to Local Governments from the Federation and VAT Pools Accounts
( ' Billion)
₦

S/N
State
Fed. Acct.
Excess Crude
Fed. Rev.
AugmentaƟon
Exchange Gain
NNPC Refunds
SURE-P
VAT
Total
Fed. Acct.
Excess Crude
Fed. Rev.
AugmentaƟon
Exchange Gain
NNPC Refunds
SURE-P
AddiƟonal
Revenue
VAT
Total
Fed. Acct.
Excess Crude
Non-Oil Excess
3/
Fed. Rev.
AugmentaƟon
Exchange Gain
NNPC Refunds
NLNG Dividend
SURE-P
AddiƟonal
Revenue
VAT
Total
1 Abia
11.96

-

-

-

0.24

0.80

2.4
15.4
8.37

0.06

-

0.78

-

-

0.05

2.4
11.6
5.97

0.01

-

0.07

-

0.13

-

-

2.3
8.5
2 Adamawa
15.08

-

-

-

0.32

1.03

2.8
19.3
10.56

0.07

-

0.99

-

-

0.07

2.8
14.5
7.53

0.01

-

0.09

-

0.16

-

-

2.7
10.5
3 Akwa-Ibom
20.09

-

-

-

0.39

1.35

3.9
25.7
14.07

0.10

-

1.32

-

-

0.09

4.0
19.6
10.03

0.01

-

0.12

-

0.21

-

-

3.8
14.2
4 Anambra
15.16

-

-

-

0.33

1.02

3.2
19.7
10.62

0.07

-

0.99

-

-

0.07

3.1
14.9
7.57

0.01

-

0.09

-

0.16

-

-

3.0
10.9
5 Bauchi
17.21

-

-

-

0.33

1.18

3.2
21.9
12.06

0.08

-

1.13

-

-

0.08

3.2
16.5
8.59

0.01

-

0.10

-

0.18

-

-

3.1
11.9
6 Bayelsa
7.01

-

-

-

0.13

0.43

1.5
9.0
4.91

0.03

-

0.46

-

-

0.03

1.2
6.7
3.50

0.00

-

0.04

-

0.07

-

-

1.2
4.8
7 Benue
18.73

-

-

-

0.37

1.20

3.4
23.7
13.12

0.09

-

1.23

-

-

0.09

3.2
17.8
9.35

0.01

-

0.11

-

0.20

-

-

3.2
12.9
8 Borno
20.34

-

-

-

0.40

1.37

3.7
25.8
14.24

0.10

-

1.33

-

-

0.09

3.6
19.3
10.15

0.01

-

0.12

-

0.21

-

-

3.5
14.0
9 Cross-River
13.11

-

-

-

0.27

0.85

2.6
16.8
9.18

0.06

-

0.86

-

-

0.06

2.5
12.7
6.54

0.01

-

0.08

-

0.14

-

-

2.4
9.1
10 Delta
16.80

-

-

-

0.36

1.13

3.7
21.9
11.77

0.08

-

1.10

-

-

0.08

3.6
16.7
8.39

0.01

-

0.10

-

0.18

-

-

3.6
12.2
11 Ebonyi
9.70

-

-

-

0.18

0.61

1.9
12.4
6.79

0.05

-

0.63

-

-

0.04

1.8
9.3
4.84

0.01

-

0.06

-

0.10

-

-

1.8
6.8
12 Edo
12.85

-

-

-

0.29

0.85

2.7
16.7
9.00

0.06

-

0.84

-

-

0.06

2.6
12.6
6.42

0.01

-

0.08

-

0.14

-

-

2.6
9.3
13 EkiƟ
10.21

-

-

-

0.21

0.70

2.1
13.3
7.15

0.05

-

0.67

-

-

0.05

2.1
10.0
5.09

0.01

-

0.06

-

0.11

-

-

2.1
7.4
14 Enugu
13.06

-

-

-

0.24

0.82

2.6
16.7
9.15

0.06

-

0.85

-

-

0.06

2.6
12.7
6.52

0.01

-

0.08

-

0.14

-

-

2.5
9.3
15 Gombe
8.95

-

-

-

0.17

0.60

1.7
11.4
6.27

0.04

-

0.59

-

-

0.04

1.7
8.6
4.47

0.01

-

0.05

-

0.09

-

-

1.7
6.3
16 Imo
17.50

-

-

-

0.35

1.19

3.6
22.6
12.26

0.09

-

1.15

-

-

0.08

3.5
17.1
8.74

0.01

-

0.11

-

0.18

-

-

3.5
12.5
17 Jigawa
18.39

-

-

-

0.37

1.25

3.9
23.9
12.88

0.09

-

1.20

-

-

0.08

3.7
17.9
9.18

0.01

-

0.11

-

0.19

-

-

3.6
13.1
18 Kaduna
20.68

-

-

-

0.41

1.34

4.0
26.4
14.48

0.10

-

1.35

-

-

0.09

3.9
19.9
10.32

0.01

-

0.13

-

0.22

-

-

3.8
14.5
19 Kano
32.92

-

-

-

0.64

2.20

7.1
42.8
23.06

0.16

-

2.16

-

-

0.15

6.9
32.4
16.43

0.02

-

0.20

-

0.35

-

-

6.8
23.8
20 Katsina
25.06

-

-

-

0.48

1.61

4.8
32.0
17.55

0.12

-

1.64

-

-

0.11

4.8
24.2
12.51

0.01

-

0.15

-

0.26

-

-

4.7
17.6
21 Kebbi
15.82

-

-

-

0.30

1.00

3.0
20.1
11.08

0.08

-

1.04

-

-

0.07

2.8
15.1
7.90

0.01

-

0.10

-

0.17

-

-

2.7
10.9
22 Kogi
16.35

-

-

-

0.30

1.04

2.9
20.6
11.45

0.08

-

1.07

-

-

0.07

2.8
15.5
8.16

0.01

-

0.10

-

0.17

-

-

2.8
11.2
23 Kwara
11.57

-

-

-

0.25

0.80

2.2
14.8
8.10

0.06

-

0.76

-

-

0.05

2.1
11.1
5.78

0.01

-

0.07

-

0.12

-

-

2.1
8.1
24 Lagos
19.71

-

-

-

0.43

1.34

21.7
43.2
13.80

0.10

-

1.29

-

-

0.09

20.6
35.9
9.84

0.01

-

0.12

-

0.21

-

-

21.1
31.2
25 Nassarawa
10.32

-

-

-

0.19

0.64

1.7
12.9
7.23

0.05

-

0.68

-

-

0.05

1.7
9.7
5.15

0.01

-

0.06

-

0.11

-

-

1.7
7.0
26 Niger
19.10

-

-

-

0.39

1.29

3.4
24.2
13.38

0.09

-

1.25

-

-

0.09

3.4
18.2
9.54

0.01

-

0.12

-

0.20

-

-

3.3
13.2
27 Ogun
13.63

-

-

-

0.30

0.96

2.9
17.8
9.55

0.07

-

0.89

-

-

0.06

3.0
13.5
6.80

0.01

-

0.08

-

0.14

-

-

2.8
9.9
28 Ondo
13.02

-

-

-

0.27

0.88

2.7
16.8
9.12

0.06

-

0.85

-

-

0.06

2.6
12.7
6.50

0.01

-

0.08

-

0.14

-

-

2.6
9.3
29 Osun
17.63

-

-

-

0.39

1.20

3.8
23.0
12.35

0.09

-

1.15

-

-

0.08

3.6
17.3
8.80

0.01

-

0.11

-

0.19

-

-

3.6
12.7
30 Oyo
22.24

-

-

-

0.46

1.54

4.7
29.0
15.58

0.11

-

1.46

-

-

0.10

4.8
22.0
11.10

0.01

-

0.13

-

0.23

-

-

4.9
16.4
31 Plateau
13.94

-

-

-

0.26

0.88

2.6
17.7
9.76

0.07

-

0.91

-

-

0.06

2.5
13.3
6.96

0.01

-

0.08

-

0.15

-

-

2.4
9.6
32 Rivers
17.28

-

-

-

0.34

1.15

4.5
23.3
12.10

0.08

-

1.13

-

-

0.08

4.1
17.5
8.63

0.01

-

0.10

-

0.18

-

-

4.1
13.1
33 Sokoto
17.41

-

-

-

0.34

1.10

3.3
22.1
12.19

0.08

-

1.14

-

-

0.08

3.1
16.6
8.69

0.01

-

0.11

-

0.18

-

-

3.1
12.0
34 Taraba
13.05

-

-

-

0.26

0.88

2.1
16.3
9.14

0.06

-

0.85

-

-

0.06

2.1
12.2
6.51

0.01

-

0.08

-

0.14

-

-

2.0
8.8
35 Yobe
13.12

-

-

-

0.26

0.85

2.2
16.5
9.19

0.06

-

0.86

-

-

0.06

2.2
12.3
6.55

0.01

-

0.08

-

0.14

-

-

2.1
8.9
36 Zamfara
11.85

-

-

-

0.23

0.80

2.2
15.1
8.30

0.06

-

0.78

-

-

0.05

2.2
11.4
5.92

0.01

-

0.07

-

0.12

-

-

2.2
8.3
37 FCT Abuja
5.23

-

-

-

0.09

0.34

6.5
12.2
3.67

0.03

-

0.34

-

-

0.02

7.2
11.3
2.61

0.00

-

0.03

-

0.06

-

-

6.3
9.0
576.08

-

-

-

11.54

38.23

137.07

762.92

403.48

2.80

-

37.71

-

-

2.63

134.01

580.63

287.57

0.33

-

3.48

-

6.06

-

-

131.44

428.87

Source: FederaƟon Account AllocaƟon, Federal Ministry of Finance (FMF)
1/ Revised
2/ Provisional
3/ includes Excess Bank Charges of N0.40 billion in 2018
TOTAL
1st Half 2014 1/
1st Half 2015 1/
1st Half 2016 2/
CBN Economic Report for the First Half of 2018

Table 33 Contd.
Allocation to Local Governments from the Federation and VAT Pools Accounts
( ' Billion)
₦

S/N
State
Fed. Acct.
Excess Crude
Non-Oil Excess
Fed. Rev.
AugmentaƟon
Exchange Gain
NNPC Refunds
NLNG
Dividend
SURE-P
AddiƟonal
Revenue
VAT
Total
Fed. Acct.
Excess Crude
Non-Oil Excess
Fed. Rev.
AugmentaƟon 1/
Exchange Gain
NNPC Refunds
NLNG Dividend
SURE-P
AddiƟonal
Revenue
VAT
Total
1 Abia
6.21

0.62

-

1.18

-

-

2.7
10.7
12.39

0.11

0.01

0.04

0.23

-

-

3.2
15.95

2 Adamawa
7.83

0.78

-

1.49

-

-

3.3
13.4
15.62

0.14

0.01

0.05

0.29

-

-

3.7
19.87

3 Akwa-Ibom
10.43

1.04

-

1.99

-

-

4.5
18.0
20.81

0.19

0.02

0.07

0.39

-

-

5.2
26.73

4 Anambra
7.88

0.79

-

1.50

-

-

3.7
13.8
15.71

0.15

0.01

0.05

0.29

-

-

4.2
20.45

5 Bauchi
8.94

0.89

-

1.71

-

-

3.6
15.2
17.83

0.16

0.02

0.06

0.33

-

-

4.1
22.55

6 Bayelsa
3.64

0.36

-

0.69

-

-

1.6
6.3
7.26

0.07

0.01

0.02

0.14

-

-

1.7
9.23

7 Benue
9.73

0.97

-

1.86

-

-

3.8
16.3
19.40

0.18

0.02

0.07

0.36

-

-

4.3
24.35

8 Borno
10.56

1.05

-

2.02

-

-

4.2
17.8
21.06

0.19

0.02

0.07

0.40

-

-

4.7
26.49

9 Cross-River
6.81

0.68

-

1.30

-

-

2.9
11.7
13.58

0.13

0.01

0.05

0.26

-

-

3.3
17.28

10 Delta
8.73

0.87

-

1.66

-

-

4.1
15.4
17.40

0.16

0.02

0.06

0.33

-

-

4.8
22.75

11 Ebonyi
5.04

0.50

-

0.96

-

-

2.1
8.6
10.05

0.09

0.01

0.03

0.19

-

-

2.4
12.81

12 Edo
6.68

0.67

-

1.27

-

-

3.1
11.7
13.31

0.12

0.01

0.05

0.25

-

-

3.6
17.38

13 EkiƟ
5.30

0.53

-

1.01

-

-

2.5
9.3
10.57

0.10

0.01

0.04

0.20

-

-

2.8
13.75

14 Enugu
6.78

0.68

-

1.29

-

-

3.0
11.8
13.53

0.13

0.01

0.05

0.25

-

-

3.3
17.29

15 Gombe
4.65

0.46

-

0.89

-

-

2.0
8.0
9.27

0.09

0.01

0.03

0.17

-

-

2.2
11.79

16 Imo
9.09

0.91

-

1.73

-

-

4.1
15.9
18.13

0.17

0.02

0.06

0.34

-

-

4.7
23.44

17 Jigawa
9.55

0.95

-

1.82

-

-

4.3
16.6
19.05

0.18

0.02

0.06

0.36

-

-

5.0
24.66

18 Kaduna
10.74

1.07

-

2.05

-

-

4.7
18.5
21.42

0.20

0.02

0.07

0.40

-

-

5.4
27.48

19 Kano
17.10

1.71

-

3.26

-

-

9.1
31.2
34.10

0.32

0.03

0.12

0.64

-

-

9.2
44.41

20 Katsina
13.02

1.30

-

2.48

-

-

5.5
22.3
25.96

0.24

0.02

0.09

0.49

-

-

6.3
33.05

21 Kebbi
8.22

0.82

-

1.57

-

-

3.3
13.9
16.38

0.15

0.01

0.06

0.31

-

-

3.7
20.66

22 Kogi
8.49

0.85

-

1.62

-

-

3.3
14.2
16.94

0.16

0.02

0.06

0.32

-

-

3.8
21.25

23 Kwara
6.01

0.60

-

1.15

-

-

2.5
10.2
11.98

0.11

0.01

0.04

0.23

-

-

2.9
15.24

24 Lagos
10.24

1.02

-

1.95

-

-

22.3
35.5
20.41

0.19

0.02

0.07

0.38

-

-

27.8
48.87

25 Nassarawa
5.36

0.53

-

1.02

-

-

2.0
8.9
10.69

0.10

0.01

0.04

0.20

-

-

2.3
13.33

26 Niger
9.92

0.99

-

1.89

-

-

3.9
16.7
19.79

0.18

0.02

0.07

0.37

-

-

4.5
24.92

27 Ogun
7.08

0.71

-

1.35

-

-

3.4
12.6
14.12

0.13

0.01

0.05

0.27

-

-

4.2
18.77

28 Ondo
6.76

0.67

-

1.29

-

-

3.0
11.8
13.48

0.12

0.01

0.05

0.25

-

-

3.5
17.39

29 Osun
9.16

0.91

-

1.75

-

-

4.2
16.1
18.26

0.17

0.02

0.06

0.34

-

-

4.8
23.70

30 Oyo
11.55

1.15

-

2.20

-

-

6.2
21.2
23.04

0.21

0.02

0.08

0.43

-

-

6.9
30.64

31 Plateau
7.24

0.72

-

1.38

-

-

2.9
12.2
14.44

0.13

0.01

0.05

0.27

-

-

3.3
18.19

32 Rivers
8.98

0.90

-

1.71

-

-

5.9
17.5
17.90

0.17

0.02

0.06

0.34

-

-

6.0
24.49

33 Sokoto
9.04

0.90

-

1.72

-

-

3.6
15.3
18.03

0.17

0.02

0.06

0.34

-

-

4.1
22.72

34 Taraba
6.78

0.68

-

1.29

-

-

2.5
11.2
13.51

0.12

0.01

0.05

0.25

-

-

2.8
16.75

35 Yobe
6.81

0.68

-

1.30

-

-

2.6
11.4
13.59

0.13

0.01

0.05

0.26

-

-

2.9
16.97

36 Zamfara
6.16

0.61

-

1.17

-

-

2.5
10.5
12.28

0.11

0.01

0.04

0.23

-

-

2.9
15.58

37 FCT Abuja
2.72

0.27

-

0.52

-

-

7.4
10.9
5.42

0.05

0.00

0.02

0.10

-

-

8.7
14.25

299.21

29.85

-

57.08

-

-

-

156.35

542.49

596.71

5.51

0.53

2.02

11.21

-

-

-

-

179.44

795.42

Source: FederaƟon Account AllocaƟon, Federal Ministry of Finance (FMF)
1/ Revised
2/ Provisional
3/ includes Excess Bank Charges of N0.40 billion in 2018
1st Half 2018 2/
TOTAL
1st Half 2017 2/
CBN Economic Report for the First Half of 2018

Table 34
Domestic Debt of the Federal Government
( ' Billion)
₦

First Half 2014
First Half 2015
First Half 2016
First Half 2017 1/
Second Half 2017 2/
First Half 2018 2/
1. ComposiƟon of Debt
i Treasury Bills


3,579.80

2,953.58

ii Treasury Bonds


175.99

150.99

iii Development Stocks

iv FGN Bonds


8,715.81

8,927.66

v Promissory Note

vi FGN Savings Bond
4.75

7.20

8.52

vii FGN Sukuk
100.00

100.00

viii FGN Green Bond
10.69

10.69

Total

2. Holders
i Banking System

a. Central Bank


1,823.13
b. Deposit Money Banks /3


4,532.90
ii Non-Bank Public


5,694.86
iii Sinking Fund


100.55
Total Debt Outstanding

Source: Debt Management Office
1/ Revised
2/ Provisional
3/ Includes holdings of Discount Houses
CBN Economic Report for the First Half of 2018

Table 35
Domestic Debt Service Payment of the Federal Government by Instrument
( ' Billion)
₦

1st Half 2014
1st Half 2015
1st Half 2016
1st Half 2017
2nd Half 2017
1st Half 2018 1/
i Treasury Bills
173.08

191.04

219.93

201.57

243.56

1,018.40

ii Treasury Bonds
18.75

43.75

40.63

34.62

13.37

9.38

iii Development Stocks
-

-

-

-

-

-

iv FGN Bonds
247.35

293.74

381.13

473.19

509.47

542.73

v FGN Savings Bond
0.07

0.37

0.50

vi FGN Sukuk
8.17

vii FGN Green Bond
0.72

Total
439.18

528.54

641.68

709.45

766.77

1,579.90

Source: Debt Management Office
Note: Debt Service excludes sinking fund charges
₦638.90 Billion of Treasury Bills were redeemed during the first half of 2018.
1/ Provisional
CBN Economic Report for the First Half of 2018

Table 36
External Public Debt Outstanding

End-June

End-June

End-June

End-June

End-December

End-June
2018 1/
End-June

End-June

End-June

End-June

EndDecember

End-June
2018 1/
MULTILATERAL
6,730.45

7,232.86

7,991.00

9,673.99

10,241.44

10,883.70

1,048.13

1,424.51

2,261.45

2,959.27

3,133.88

3,327.15

IBRD
-

-

7.25

124.18

124.18

124.18

-

-

2.05

37.99

38.00

37.96

IDA
5,772.77

6,091.45

6,844.97

7,596.11

7,905.62

8,348.92

898.99

1,199.71

1,937.13

2,323.65

2,419.12

2,552.26

IFAD
91.57

94.80

103.01

121.21

148.26

159.44

14.26

18.67

29.15

37.08

45.37

48.74

ADB Group
748.24

946.53

938.91

1,740.70

1,971.05

2,163.40

116.52

186.42

265.71

532.48

603.14

661.35

ADB
150.00

350.00

400.73

1,002.33

1,186.60

1,319.93

23.36

68.93

113.41

306.61

363.10

403.50

ADF
598.24

596.53

538.18

738.37

784.45

843.47

93.16

117.49

152.30

225.87

240.04

257.85

Others 2/
117.87

100.08

96.86

91.79

92.33

87.76

18.36

19.71

27.41

28.08

28.25

26.83

BILATERAL
1,140.79

1,583.95

1,770.90

2,073.02

2,372.00

2,399.74

177.66

311.96

501.16

634.14

725.83

733.60

Exim Bank of China
1,031.84

1,388.87

1,495.85

1,768.95

1,930.98

1,913.07

160.69

273.54

423.33

541.12

590.88

584.83

French Devt. Agency (AFD)
108.95

140.25

182.95

218.25

274.98

274.98

16.97

27.62

51.77

66.76

84.14

84.06

Others 3/
-

54.83

92.10

85.82

166.04

211.69

-

10.80

26.06

26.25

50.81

64.71

COMMERCIAL
1,505.88

1,500.00

1,500.00

3,300.00

6,300.00

8,800.00

234.51

295.43

424.50

1,009.47

1,927.80

2,690.16

Euro Bond
1,500.00

1,500.00

1,500.00

3,000.00

6,000.00

8,500.00

233.60

295.43

424.50

917.70

1,836.00

2,598.45

Diaspora Bond
300.00

300.00

300.00

91.77

91.80

91.71

Other 4/
5.88

0.92

-

-

-

-

-

Total Debt Outstanding
9,377.12

10,316.81

11,261.90

15,047.01

18,913.44

22,083.44

1,460.30

2,031.90

3,187.12

4,602.88

5,787.51

6,750.91


Source: Debt Management Office
1/ Provisional
2/ Includes BADEA, IDB and EDF
3/ Japan (JICA), India (Exim Bank of India), Gernamy (KfW), Exim Bank of Korea and Nig. ICT Infrast. Backbone Project.
4/ Includes Papalanto & Omotosho, ZTE, Arcatel and SBI Holdings.
Holder
US$ Million
Naira Billion
CBN Economic Report for the First Half of 2018

Table 37
External Debt Service Payments

1st Half 2014 1st Half 2015 1st Half 2016 1st Half 2017
2nd Half

1st Half
2018 1/
1st Half 2014 1st Half 2015 1st Half 2016 1st Half 2017
2nd Half

1st Half
2018 1/
MULTILATERAL
82.43

63.39

77.01

85.64

106.08

111.15

12.97

12.00

15.62

26.18

32.45

33.99

IBRD

IDA

IFAD

ADB Group
18.75

7.60

8.59

11.34

17.33

19.96

2.95

1.44

1.74

3.47

5.30

6.10

ADB

ADF

Others 2/

BILATERAL
23.17

29.43

30.75

34.02

37.81

76.53

3.64

5.57

6.24

10.40

11.57

23.40
Exim Bank of China

French Devt. Agency (AFD)

Others 3/

COMMERCIAL
72.58

66.49

57.89

66.51

133.99

239.94

11.42

12.59

11.74

20.33

40.98

73.37
Eurobonds

Diaspora Bond

Others 4/

Total Debt Service Payments
178.18

159.31

165.66

186.16

277.89

427.63

28.03

30.17

33.59

56.91

85.00

130.76
Source: Debt Management Office, The Presidency, Abuja.
1/ Provisional
2/ Includes AGTF, ABEDA, IDB and EDF
3/ Japan (JICA), India (Exim Bank of India), Gernamy (KfW), Exim Bank of Korea and Nigeria ICT Infrastructure Backbone Project.
4/ Includes ZTE & CMCE, Oil Warrants and Agency Fees
Holder
Naira Billion
US$ Million
CBN Economic Report for the First Half of 2018

Table 38a
Consolidated Debt of the Federal Government
( ' Billion)
₦
Table 38b
Consolidated Debt Service Payment
( ' Billion)
₦

Holders
End-June 2014
End-June 2015
End-June 2016
End-June 2017
End-December 2017 End-June 2018 1/
External Debt

DomesƟc Debt

Total Consolidated Debt


Holders
1st Half 2014
1st Half 2015
1st Half 2016
1st Half 2017
2nd Half 2017
1st Half 2018 1/
External Debt
28.03

30.17

33.59

56.91

85.00

130.76

DomesƟc Debt 2/
439.18

528.54

641.68

709.45

766.77

1,579.90

Total Consolidated Debt

Source: Debt Management Office (DMO)
1/ Provisional
2/ Includes ₦638.9 Billion of Treasury Bills redeemed during the first half of 2018.
CBN Economic Report for the First Half of 2018

Table 39
Gross Domestic Product at 2010 Constant Basic Prices
( ' Billion unless otherwise stated)
₦

1st Half 2016 2nd Half 2016 1st Half 2017 1/ 2nd Half 2017 2/ 1st Half 2018 2/
1. Agriculture
6,654.44

9,297.78

6,910.26

9,697.08

7,130.69

10,048.80

7,277.03


(a) Crop ProducƟon
5,840.32

8,434.61

6,068.95

8,825.50

6,272.02

9,165.03

6,423.19


(b) Livestock
547.96

603.37

575.65

609.47

587.13

617.08

575.96


(c) Forestry
81.09

86.17

83.61

88.03

86.36

90.97

89.37


(d) Fishing
185.08

173.62

182.05

174.08

185.18

175.73

188.51


2. Industry
6,550.29

6,768.84

6,096.27

5,965.78

5,930.51

6,384.17

6,137.13


(a) Crude Petroleum & Natural Gas
3,291.61

3,338.36

3,023.25

2,648.96

2,824.38

3,113.66

2,965.19


(b) Solid Minerals
49.28

53.26

31.09

56.52

33.77

53.97

36.81


(c) Manufacturing
3,209.41

3,377.21

3,041.94

3,260.30

3,072.36

3,216.54

3,135.13


3. ConstrucƟon
1,437.57

1,242.65

1,353.69

1,167.16

1,355.54

1,190.45

1,398.63


4. Trade
5,686.39

6,011.20

5,742.90

5,926.17

5,607.42

5,939.03

5,475.30


5. Services
12,185.25

13,189.53

12,059.14

13,012.80

12,108.52

12,795.85

12,399.16


(a) Transport
366.48

438.98

380.31

428.29

388.74

451.11

457.89


(b) InformaƟon and CommunicaƟon
3,857.96

3,850.16

3,960.18

3,898.51

3,989.00

3,787.90

4,258.77


(c) UƟliƟes
165.58

201.74

138.01

197.23

159.16

218.45

172.83


(d) AccommodaƟon and Food Services
312.49

341.72

290.49

328.93

278.89

330.57

281.90


(e) Finance & Insurance
1,115.13

1,008.77

991.88

1,035.63

1,046.58

1,006.42

1,120.57


(f) Real Estate
2,373.28

2,891.42

2,254.40

2,649.21

2,179.27

2,515.12

2,039.36


(g) Professional, ScienƟfic & Technical Services
1,162.07

1,354.00

1,162.99

1,373.30

1,161.22

1,368.46

1,159.66


(h) AdministraƟve and Support Services Bussiness Services
6.96

7.51

6.78

7.59

6.77

7.70

6.63


(i) Public AdministraƟon
809.79

834.99

766.92

802.59

765.66

797.96

738.50


(j) EducaƟon
623.37

875.33

644.44

874.49

643.30

864.68

642.83


(k) Human Health & Social Services
234.00

250.33

231.37

244.32

231.41

242.83

231.48


(l) Arts, Entertainment & RecreaƟon
75.47

65.86

79.39

67.19

84.07

68.56

85.50


(m) Other Services
1,082.67

1,068.71

1,151.96

1,105.51

1,174.46

1,136.08

1,203.23


TOTAL (GDP)
32,513.94

36,509.99

32,162.26

35,768.98

32,132.69

36,358.30

32,687.24


NON-OIL (GDP)
29,222.34

33,171.63

29,139.01

33,120.02

29,308.30

33,244.63

29,722.05

90.60

92.59

91.21

91.44

90.93

NET INDIRECT TAXES ON PRODUCTS
312.91
443.85
274.26

446.93

264.40
450.31

276.38

TOTAL GDP AT 2010 CONSTANT MARKET PRICES
32,826.86

36,953.84

32,436.52

36,215.91

32,397.08

36,808.61

32,963.62

TOTAL GDP GROWTH RATE (%)
3.14

2.47

(1.08)

(2.03)

(0.09)

1.65

1.73

OIL GDP GROWTH RATE (%)
(7.49)

(3.34)

(8.15)

(20.65)

(6.58)

17.54

4.99

NON-OIL GDP GROWTH RATE (%)
4.50

3.10

(0.29)

(0.16)

0.58

0.38

1.41

Growth in Total GDP
Agriculture (%)
4.07

3.47

3.84

4.29

3.19

3.63

2.05

Industry (%)
(4.88)

(1.97)

(6.93)

(11.86)

(2.72)

7.01

3.48

ConstrucƟon (%)
8.67

(0.24)

(5.83)

(6.07)

0.14

2.00

3.18

Trade (%)
5.77

4.55

0.99

(1.41)

(2.36)

0.22

(2.36)

Services (%)
5.56

3.50

(1.04)

(1.34)

0.41

(1.67)

2.40

Source: NaƟonal Bureau of StaƟsƟcs
1/ Revised
2/ Provisional
Share of Total GDP (Per Cent)
AcƟvity Sector
1st Half 2015 2nd Half 2015 1st Half 2016 2nd Half 2016 1st Half 2017 1/ 2nd Half 2017 2/ 1st Half 2018 2/
CBN Economic Report for the First Half of 2018

Table 40
Gross Domestic Product at Current Basic Prices
( ' Billion unless otherwise stated)
₦

1st Half 2016 2nd Half 2016 1st Half 2017 1/ 2nd Half 2017 2/ 1st Half 2018 2/
1. Agriculture

(a) Crop ProducƟon

(b) Livestock

(c) Forestry

(d) Fishing

2. Industry

(a) Crude Petroleum & Natural Gas

(b) Solid Minerals

(c) Manufacturing

3. ConstrucƟon

4. Trade

5. Services

(a) Transport

(b) InformaƟon and CommunicaƟon

(c) UƟliƟes

(d) AccommodaƟon and Food Services

(e) Finance & Insurance

(f) Real Estate

(g) Professional, ScienƟfic & Technical Services

(h) AdministraƟve and Support Services Bussiness Services

(i) Public AdministraƟon

(j) EducaƟon

(k) Human Health & Social Services

(l) Arts, Entertainment & RecreaƟon

(m) Other Services

TOTAL (GDP)

NON-OIL (GDP)
40,763.36

47,391.18

43,935.73

52,186.44

48,496.29

54,859.40

51,487.89

95.97

93.68

91.40

90.45

87.03

NET INDIRECT TAXES ON PRODUCTS

TOTAL GDP AT CURRENT MARKET PRICES

TOTAL GDP GROWTH RATE (%)
4.76

6.59

4.29

10.87

15.89

8.88

11.51

OIL GDP GROWTH RATE (%)
(40.19)

(34.73)

(41.13)

23.39

147.01

64.58

68.25

NON-OIL GDP GROWTH RATE (%)
11.20

10.81

7.78

10.12

10.38

5.12

6.17

Growth in Total GDP
Agriculture (%)
8.34

9.41

13.67

6.91

11.22

11.33

8.35

Industry (%)
(21.77)

(14.13)

(18.70)

9.10

56.24

33.02

40.42

ConstrucƟon (%)
12.92

4.70

2.51

5.39

19.31

18.08

27.22

Trade (%)
14.90

14.72

14.38

14.96

7.16

1.82

(1.07)

Services (%)
13.37

11.63

5.11

12.42

9.42

1.18

4.54

Source: NaƟonal Bureau of StaƟsƟcs
1/ Revised
2/ Provisional
Share of Total GDP (Per Cent)
AcƟvity Sector
1st Half 2015 2nd Half 2015 1st Half 2016 2nd Half 2016 1st Half 2017 1/ 2nd Half 2017 2/ 1st Half 2018 2/
CBN Economic Report for the First Half of 2018

Table 41
Selected Real Sector Indicators /1
(Percent, except otherwise indicated)

2018 /2
First Half
First Half
First Half
First Half
First Half
First Half
Agricultural ProducƟon Index (2010 = 100)
Aggregate

Crops

Staples

Other Crops

Livestock

Fishery

Forestry

Indices of Average World Prices of Nigeria's Major Agricultural
Export CommodiƟes (2010 = 100) (Dollar Based)
All CommodiƟes

Cocoa

Coffee

CoƩon

Palm Oil

Copra

Soya Bean

Indices of Average World Prices of Nigeria's Major Agricultural
Export CommodiƟes (2010 = 100) (Naira Based)
All CommodiƟes

Cocoa

Coffee

CoƩon

Palm Oil

Copra

Soya Bean

GROWTH RATE OVER THE PRECEDING PERIOD (%)
Agricultural ProducƟon Index (2010 = 100)
Aggregate

Crops

Staples

Other Crops

Livestock

Fishery

Forestry

Indices of Average World Prices of Nigeria's Major Agricultural
Export CommodiƟes (2010 = 100) (Dollar Based)
All CommodiƟes

Cocoa

Coffee

CoƩon

Palm Oil

Copra

Soya Bean

Indices of Average World Prices of Nigeria's Major Agricultural
Export CommodiƟes (2010 = 100) (Naira Based)
All CommodiƟes

Cocoa

Coffee

CoƩon

Palm Oil

Copra

Soya Bean

Industrial ProducƟon Index (2010 = 100)
Industrial ProducƟon Index

Manufacturing ProducƟon Index

Mining ProducƟon Index

Electricity ProducƟon Index

Capacity UƟlizaƟon Rate (%)

InflaƟon Rate (12-Month Moving Average; End-Period)

InflaƟon Rate (Year-on-Year; End-Period)

Food InflaƟon Rate (Year-on-Year; End-Period)

Non-Food InflaƟon Rate (Year-on-Year; End-Period)

1/Revised
2/Provisional
Item
CBN Economic Report for the First Half of 2018

Table 41 cont'd
Selected Real Sector Indicators
(Percent, except otherwise indicated)
2018 2/
First Half
Second Half
First Half
Second Half
First Half

(1) & (3)
(2) & (3)
(1) & (3)
(2) & (3)
World Crude Oil ProducƟon
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

DomesƟc ConsumpƟon

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

West Texas Intermediate (WTI)

Bonny Light

Forcados

OPEC Basket

Gas AcƟviƟes
(MMm
3)
Gas Produced
32,472.43

35,643.45

32,472.43

Total Gas UƟlised
28,009.65

32,075.79

28,009.65

Gas UƟlised as % of Gas Produced
86.26

89.99

86.26

Gas Flared
4,462.79

3,525.43

4,462.79

Gas Flared as % Gas Produced
13.74

9.89

13.74

Sources: OPEC, NNPC, Reuters & CBN EsƟmates
1/ Revised
2/ Provisional
Item
Absolute Change
Between
Percentage
Change Between
2017 1/
2016 1/
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
CBN Economic Report for the First Half of 2018

Table 42
Composite Consumer Price Index
(November 2009=100)

Monthly
Index
InflaƟon
y-o-y (%)
12-Month
Average
Index
InflaƟon
12-Month
Average (%)
Monthly
Index
InflaƟon
y-o-y (%)
InflaƟon
12-Month
Average (%)
Monthly
Index
InflaƟon
y-o-y (%)
InflaƟon
12-Month
Average (%)

January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

Source: NaƟonal Bureau of StaƟsƟcs (NBS)
Year
&
Month
All Item (Headline)
All Items less Farm Produce (Core)
Food
CBN Economic Report for the First Half of 2018

Table 43
Urban and Rural Consumer Price Index
(November 2009=100)

All Items
(Headline)
Monthly Index
Headline
InflaƟon
y-o-y(%)
All Items less Farm
Produce (Core)
Monthly Index
Core
InflaƟon
y-o-y(%)
Food
Monthly
Index
Food
InflaƟon
y-o-y(%)
All Items
(Headline)
Monthly Index
Headline
InflaƟon
y-o-y(%)
All Items less Farm
Produce (Core)
Monthly Index
Core
InflaƟon
y-o-y(%)
Food
Monthly
Index
Food
InflaƟon
y-o-y(%)

January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

Source: NaƟonal Bureau of StaƟsƟcs (NBS)
Year
&
Month
Urban
Rural
CBN Economic Report for the First Half of 2018

Table 44
Balance of Payments Analytic Presentation
(US$ Million)

1st Half 2017 1/
2nd Half 2017
1st Half 2018 2/
CURRENT ACCOUNT
4,768.44
5,629.77
9,258.85
Goods
4,259.22
8,888.93
14,270.11
Exports (fob)
20,776.48
25,041.01
30,117.76
Oil and Gas
18,828.77
23,468.09
27,359.78
Non-oil
1,947.70
1,572.92
2,757.98
Imports (fob)
-16,517.26
-16,152.08
-15,847.65
Oil
-4,635.42
-3,519.72
-3,671.75
Non-oil
-11,881.84
-12,632.36
-12,175.90
Unrecorded(TPAdj)
-

-

-

Services(net)
-4,290.18
-8,944.10
-10,573.43
Credit
2,487.82
2,542.68
1,916.89
TransportaƟon
636.45
664.08
653.29
Travel
1,310.99
1,238.11
456.54
Insurance Services
10.76
59.31
194.51
CommunicaƟon Services
136.04
154.01
121.66
ConstrucƟon Services
-

-

-

Financial Services
124.89
166.04
223.74
Computer & informaƟon Services
0.00
0.00
0.00
RoyalƟes and License Fees
0.00
0.00
0.00
Government Services
241.75
239.79
235.59
Personal, cultural & recreaƟonal services
-

-

-

Other Bussiness Services
26.94
21.33
31.55
Debit
-6,778.00
-11,486.78
-12,490.33
TransportaƟon
-2,210.63
-2,436.16
-3,314.11
Travel
-1,851.35
-3,945.92
-3,596.73
Insurance Services
-503.75
-310.04
-256.17
CommunicaƟon Services
-108.08
-109.97
-93.75
ConstrucƟon Services
-0.12
-1.00
-0.29
Financial Services
-174.98
-363.55
-184.53
Computer & informaƟon Services
-104.15
-118.13
-115.19
RoyalƟes and License Fees
-126.42
-126.42
-126.42
Government Services
-132.67
-129.08
-129.14
Personal, cultural & recreaƟonal services
-39.39
-69.91
-3.91
Other Bussiness Services
-1,526.48
-3,876.60
-4,670.10
Income(net)
-5,544.05
-5,967.18
-7,062.59
Credit
719.84
845.60
959.04
Investment Income
607.64
722.46
837.12
CompensaƟon of employees
112.20
123.13
121.92
Debit
-6,263.89
-6,812.78
-8,021.63
Investment Income
-6,260.66
-6,809.58
-8,018.32
CompensaƟon of employees
-3.22
-3.19
-3.30
Current transfers(net)
10,343.45
11,652.12
12,624.77
Credit
10,704.66
11,812.54
12,781.34
General Government
340.97
338.69
944.69
Other Sectors
10,363.68
11,473.86
11,836.64
Workers RemiƩance
10,340.08
11,461.61
11,792.61
Debit
-361.20
-160.42
-156.57
General Government
-

-

-

Other Sectors
-361.20
-160.42
-156.57
Workers RemiƩance
-236.08
-32.85
-25.53
CAPITAL AND FINANCIAL ACCOUNT
3,270.73
-7,598.61
2,701.78
Capital account(net)
-

-

-

Credit
-

-

-

Capital Transfers(Debt Forgiveness)
-

-

-

Debit
-

-

-

Capital Transfers
-

-

-

Financial account(net)
3,270.73
-7,598.61
2,701.78
Assets
-4,941.52
-17,305.52
-19,345.75
Direct investment (Abroad)
-642.40
-643.78
-690.27
Porƞolio investment
-1.66
-5.58
-0.61
Other investment
-1,022.82
-7,688.64
-10,828.94
Change in Reserve
-3,274.65
-8,967.53
-7,825.93
LiabiliƟes
8,212.25
9,706.91
22,047.53
Direct Invesment in reporƟng economy
1,745.12
1,757.88
1,244.21
Porƞolio Investment
1,422.77
7,108.00
9,375.33
Other investment liabiliƟes
5,044.36
841.03
11,428.00
NET ERRORS AND OMISSIONS
-8,039.17
1,968.84
-11,960.64
Memorandum Items:
1st Half 2017 1/
2nd Half 2017
1st Half 2018 2/
Current Account Balance as % of G.D.P
2.72
2.80
4.74
Capital and Financial Account Balance as % of G.D.P
1.87
-3.78
1.38
Overall Balance as % of G.D.P
1.87
4.46
4.00
External Reserves - Stock (US $ million)
30,340.96
39,353.49
47,157.90
Number of Months of Imports Equivalent
11.02
14.62
17.85
External Debt Stock (US$ million)
15,047.00
18,913.44
22,083.44
Debt Service Due as % of Exports of Goods Non Factor Services
-

-

-

EffecƟve Central Exchange Rate (N/$)
305.20
305.38
305.29
Average Exchange Rate (N/$)
305.70
305.88
305.79
End-Period Exchange Rate (N/$)
305.90
305.50
305.25
Source: Central Bank of Nigeria
1/ Revised
2/ Provisional
CBN Economic Report for the First Half of 2018

Table 45
Balance of Payments Analytic Presentation
( ' Million)
₦

1st Half 2017 1/
2nd Half 2017
1st Half 2018 2/
CURRENT ACCOUNT
1,455,292.60
1,719,236.00
2,826,554.74
Goods
1,299,948.68
2,714,489.65
4,356,412.85
Exports (fob)
6,341,247.35
7,646,682.48
9,194,491.17
Oil and Gas
5,746,763.65
7,166,358.91
8,352,534.91
Non-oil
594,483.71
480,323.57
841,956.26
Imports (fob)
-5,041,298.68
-4,932,192.83
-4,838,078.32
Oil
-1,414,772.22
-1,074,734.23
-1,120,955.85
Non-oil
-3,626,526.46
-3,857,458.60
-3,717,122.46
Unrecorded(TPAdj)
-

-

-

Services(net)
-1,309,468.36
-2,731,230.63
-3,227,918.28
Credit
759,316.58
776,432.18
585,192.98
TransportaƟon
194,253.34
202,783.00
199,440.11
Travel
400,131.19
378,066.01
139,370.29
Insurance Services
3,283.87
18,112.36
59,382.52
CommunicaƟon Services
41,521.46
47,028.45
37,140.41
ConstrucƟon Services
-

-

-

Financial Services
38,119.50
50,702.88
68,305.91
Computer & informaƟon Services
-

-

-

RoyalƟes and License Fees
-

-

-

Government Services
73,784.84
73,224.38
71,923.11
Personal, cultural & recreaƟonal services
-

-

-

Other Bussiness Services
8,222.36
6,515.09
9,630.65
Debit
-2,068,784.93
-3,507,662.81
-3,813,111.26
TransportaƟon
-674,714.74
-743,897.41
-1,011,764.41
Travel
-565,088.66
-1,204,905.10
-1,098,016.92
Insurance Services
-153,748.67
-94,676.83
-78,204.42
CommunicaƟon Services
-32,985.41
-33,579.76
-28,619.25
ConstrucƟon Services
-36.02
-305.30
-88.54
Financial Services
-53,405.86
-111,018.53
-56,333.54
Computer & informaƟon Services
-31,789.78
-36,074.25
-35,164.04
RoyalƟes and License Fees
-38,584.79
-38,604.06
-38,594.17
Government Services
-40,491.68
-39,416.01
-39,424.92
Personal, cultural & recreaƟonal services
-12,023.65
-21,349.21
-1,193.43
Other Bussiness Services
-465,915.67
-1,183,836.35
-1,425,707.63
Income(net)
-1,692,147.25
-1,822,159.50
-2,156,094.09
Credit
219,703.45
258,216.32
292,779.38
Investment Income
185,459.59
220,616.43
255,560.49
CompensaƟon of employees
34,243.87
37,599.88
37,218.89
Debit
-1,911,850.71
-2,080,375.82
-2,448,873.47
Investment Income
-1,910,866.69
-2,079,400.39
-2,447,864.79
CompensaƟon of employees
-984.02
-975.43
-1,008.69
Current transfers(net)
3,156,959.53
3,558,136.48
3,854,154.27
Credit
3,267,198.12
3,607,122.81
3,901,953.19
General Government
104,065.08
103,422.19
288,401.43
Other Sectors
3,163,133.04
3,503,700.62
3,613,551.76
Workers RemiƩance
3,155,929.36
3,499,960.86
3,600,109.55
Debit
-110,238.58
-48,986.33
-47,798.92
General Government
-

-

-

Other Sectors
-110,238.58
-48,986.33
-47,798.92
Workers RemiƩance
-72,049.67
-10,029.21
-7,794.63
CAPITAL AND FINANCIAL ACCOUNT
998,373.14
-2,320,347.16
824,799.34
Capital account(net)
-

-

-

Credit
-

-

-

Capital Transfers(Debt Forgiveness)
-

-

-

Debit
-

-

-

Capital Transfers
-

-

-

Financial account(net)
998,373.14
-2,320,347.16
824,799.34
Assets
-1,508,074.57
-5,284,473.06
-5,906,122.98
Direct investment (Abroad)
-196,066.93
-196,585.99
-210,727.97
Porƞolio investment
-506.08
-1,704.17
-186.60
Other investment
-312,158.83
-2,347,604.94
-3,305,950.32
Change in Reserve
-999,342.73
-2,738,577.97
-2,389,258.08
LiabiliƟes
2,506,447.72
2,964,125.91
6,730,922.32
Direct Invesment in reporƟng economy
532,632.03
536,802.29
379,844.51
Porƞolio Investment
434,269.54
2,170,555.06
2,862,166.04
Other investment liabiliƟes
1,539,546.15
256,768.56
3,488,911.78
NET ERRORS AND OMISSIONS
-2,453,665.75
601,111.16
-3,651,354.09
Memorandum Items:
1st Half 2017 1/
2nd Half 2017
1st Half 2018 2/
Current Account Balance as % of G.D.P
2.72
2.80
4.74
Capital and Financial Account Balance as % of G.D.P
1.87
-3.78
1.38
Overall Balance as % of G.D.P
1.87
4.46
4.00
External Reserves - Stock (US $ million)
30,340.96
39,353.49
47,157.90
Number of Months of Imports Equivalent
11.02
14.62
17.85
External Debt Stock (US$ million)
15,047.00
18,913.44
22,083.44
Debt Service Due as % of Exports of Goods Non Factor Services
-

-

-

EffecƟve Central Exchange Rate (N/$)
305.20
305.38
305.29
Average Exchange Rate (N/$)
305.70
305.88
305.79
End-Period Exchange Rate (N/$)
305.90
305.50
305.25
Source: Central Bank of Nigeria
1/ Revised
2/ Provisional
CBN Economic Report for the First Half of 2018

Table 46
Foreign Exchange Flows Through the Economy
(US$ Million)

1st Half
1st Half
1st Half
1st Half
2nd Half
1st Half
CATEGORY

2017 /2
2017 /3
2018 /3
INFLOW
75,643.39

52,124.57

29,154.54
34,781.07

53,398.75

65,090.55

A. Through the Central Bank
22,888.76

15,283.04

8,713.12
15,835.15

26,337.00

30,559.28

1. Oil
21,027.88

9,237.67

4,613.69
4,299.49

6,069.68

7,129.45

2.Non-oil
1,860.88

6,045.36

4,099.43
11,535.66

20,267.32

23,429.84

(i) Drawings on Loans/Grants
-

-

0.00
-

-

-

(ii) RDAS/WDAS Purchases
270.00

645.04

30.00
1,163.81

5,320.84

7,161.60

(iii) Swaps
500.00

4,060.00

1,850.00
1,567.00

1,360.00

3,328.89

(iv) Interest on Reserves & Investments
79.07

70.41

120.19
102.97

227.34

331.43

(v) Interest Repatriated from Overseas
0.12

0.24

0.15
-

-

-

(vi) Refund on World Bank/IBRD/IMF Loans/SDR AllocaƟon
-

-

0.00
-

-

-

(vii) Cash Swap IRO BDC Sales
0.00
10.00

1,910.59

1,548.29

(vii) Eurobond Proceeds - Fixed Income SecuriƟes
7.40

1.34

0.00
-

-

-

(viii) Returned Payments [Wired/Cash]
11.21

10.56

194.71
753.67

399.22

910.21

(ix) UnuƟlised funds from DAS
134.02

94.00

49.97
644.73

729.25

1,029.53

(x) Recovered Funds
226.39

0.00
-

322.52

-

(xi) Other Official Receipts
632.67

1,163.78

1,854.40
864.88

1,614.32

1,616.68

(xii) CBN Interbank TransacƟons
0.00
-

-

-

(xiiii) Return of UnuƟlised IMTO Funds
0.00
310.09

709.99

810.28

(xv) TSA and Third Party Funds
1,498.09

2,673.25

4,192.93

(xvi) Others (FGN Loans)
4,620.42

5,000.00

2,500.00

B. Through Autonomous Sources
52,754.63

36,841.53

20,441.42
18,945.92

27,061.74

34,531.26

1. Non-Oil Exports
3,650.25

2,431.21

1,592.34
1,910.83

1,202.34

1,395.41

2. Capital Inflow
271.85

41.17

58.78
33.80

55.80

21.65

3. Invisibles
48,832.53

34,369.15

18,790.30
17,001.29

25,803.60

33,114.21

(a) Ordinary Domiciliary Accounts
11,959.46
9,994.31

9,832.93

9,554.10

(b) Total OTC Purchases
6,830.83
7,006.99

15,970.67

23,560.11

(i) Oil Companies
3,328.12
897.39

747.37

42.42

(ii) Capital ImportaƟons
1,738.94
2,817.11

9,549.31

11,696.02

(iii) Home RemiƩances
152.73
389.50

714.05

912.09

(iv) Other OTC Purchases
1,611.04
2,902.98

8,262.94

10,909.58

OUTFLOW
29,092.93

21,837.26

11,880.58
13,879.61

19,799.77

24,929.41

A. Through the Central Bank
28,501.99

21,070.35

10,742.85
12,775.68

17,777.09

22,942.32

1. WDAS/RDAS UƟlisaƟon
25,172.86

18,273.40

7,805.33
9,835.84

11,569.96

15,472.02

(i) WDAS/RDAS Sales
17,233.85

3,184.55

0.00
-

-

-

(ii) WDAS Forward/Inter-Bank FWD
1,075.86

1,339.82

0.00
4,426.20

6,109.79

6,774.11

(iii) BDC Sales
3,518.15

1,825.41

15.49
1,198.98

2,959.62

3,166.47

(iv) Inter-bank Sales
3,345.00

9,673.62

5,599.84
4,011.98

1,588.08

3,202.48

(v) Swaps
-

2,250.00

2,190.00
198.68

912.48

2,328.96

(vi) Invisibles IFEM
-

-

0.00
-

-

-

2. Drawings on L/C
194.70

142.62

57.13
184.66

173.60

187.59

3. External Debt Service
178.18

207.16

166.11
189.83

232.66

405.66

(i) Principal
95.88

90.99

84.45
-

-

-

(ii) Interest
5.21

-

0.00
-

-

-

(iii) Others 1/
77.09

116.17

81.67
189.83

232.66

405.66

4. Professional Fees/Commission
-

0.00
-

-

-

5. Govt and Int'l Grants / ContribuƟons, Grants & Equity Investments
(AFC Equity ParƟcipaƟon)
135.55

-

0.00
29.99

-

-

6. NaƟonal Independent Priority Projects (Niger-Delta Payments)
42.52

91.00

21.58
0.61

1.97

12.92

7. Forex Special Payment (NSA) (Cash Swap/FX Advance/To MDAs)
0.00
57.48

66.23

209.42

8. Other Official Payments
2,427.90

1,847.36

1,699.91
1,473.57

3,955.47

4,131.80

(i) Int'l OrganisaƟons & Embassies /4
176.51

290.44

118.19
-

-

-

(ii) Estacode
106.26

522.96

38.56
29.55

200.25

135.70

(iii) Parastatals (Public Sector Uses)
458.29

120.20

278.77
581.35

2,403.79

2,617.17

(iv) NNPC/JVC (JVC) Cash Calls
1,564.81

892.52

1,155.09
862.67

1,351.43

1,378.93

(v) Miscellaneous (CBN Uses)
122.02

21.24

109.30
-

-

-

9. Bank Charges
0.05

0.04

0.09
4.72

5.02

10.40

10. NSIA Transfer
-

-

0.00
-

-

-

11. Funds Returned to RemiƩers
0.23

45.96

10.04
23.38

63.59

252.38

12. 3rd Party MDA Transfer
350.00

462.79

982.65
975.60

1,708.59

2,260.13

B. Through Autonomous Sources
590.94

766.92

1,137.74
1,103.93

2,022.68

1,987.09

1. Imports
577.23

385.05

326.18
319.12

266.56

200.69

2. Invisibles
13.71

381.87

811.56
784.81

1,756.11

1,786.40

-

NETFLOW THROUGH THE CBN
(5,613.23)

(5,787.31)

-2,029.72
3,059.47

8,559.91

7,616.96

NETFLOW
46,550.46

30,287.31

17,273.96
20,901.46

33,598.98

40,161.14

Source: Central Bank of Nigeria
1/ Includes penalty and service charges
2/ Revised
3/ Provisional
4/ Includes IMF (SDR charges)
CBN Economic Report for the First Half of 2018

Table 47
Nigeria's Gross External Reserves
(US$ Million)

Month

January
40,667.56

32,385.71

27,607.85

28,592.98

41,150.28
February
36,923.61

29,566.99

27,811.82

29,990.36

45,276.58
March
37,399.22

29,357.21

27,336.38

29,996.38

46,730.54
April
37,105.27

29,829.75

26,614.81

30,749.28

47,438.22
May
35,398.10

28,566.54

26,594.39

29,811.85

46,923.01
June
37,330.03

28,335.21

26,505.50

30,340.96

47,157.90
July
39,065.42

31,222.81

25,581.58

30,898.96

August
38,705.71

30,637.17

25,031.93
31,278.95

September
38,278.62

29,880.21

23,806.51
33,159.73

October
36,280.25

30,336.36

23,689.87

34,332.58

November
35,248.66

29,263.02

25,081.22

38,207.96

December
34,241.54

28,284.82

26,990.58

39,353.49

Source: Central Bank of Nigeria
CBN Economic Report for the First Half of 2018

Table 48
Nigeria's Foreign Exchange Cross Rates
Naira per Unit of Foreign Currency (Monthly Average)

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

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (RDAS/IFEM)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (IFEM)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (IFEM)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


Pounds
Euro
CFAFr
US$ (IFEM)
US$ (BDC)
Jan

Feb

Mar

Apr

May

Jun

1st Half Average

Source: Central Bank of Nigeria
Note: The Interbank exchange rate became the reference official rate on February 18, 2015 when the RDAS segment of the FOREX market was closed by the CBN.
CBN Economic Report for the First Half of 2018

Table 49
Monthly Average Exchange Rate Movements
( /US$ 1.00)
₦

W/RDAS
Interbank
BDC
Jan
157.29
160.23
171.71
Feb
157.31
163.62
169.45
Mar
157.30
164.62
171.52
Apr
157.29
162.19
170.30
May
157.29
161.86
166.85
Jun
157.29
162.82
167.17
1st Half
157.29
162.56
169.50
End-Period
157.29
162.95
168.00
Jul
157.29
162.25
167.71
Aug
157.29
161.99
170.36
Sep
157.30
162.93
168.64
Oct
157.31
164.64
169.43
Nov
160.00
171.10
175.85
Dec
169.68
180.33
188.45
2nd Half
159.81
167.21
173.41
End-Period
169.68
180.00
191.50

RDAS
Interbank
BDC
Jan
169.68
181.78
196.13
Feb
169.68
194.48
213.03
Mar
Closed
197.07
222.93
Apr
Closed
197.00
210.70
May
Closed
197.00
219.55
Jun
Closed
196.92
218.98
1st Half
Closed
194.04
213.55
End-Period
Closed
196.95
225.50
Jul
Closed
196.97
237.15
Aug
Closed
197.00
216.64
Sep
Closed
197.00
222.68
Oct
Closed
196.99
224.98
Nov
Closed
196.99
232.40
Dec
Closed
196.99
258.30
2nd Half
Closed
196.99
232.02
End-Period
Closed
197.00
267.00

RDAS
Interbank
BDC
Jan
Closed
197.00
289.78
Feb
Closed
197.00
329.83
Mar
Closed
197.00
320.93
Apr
Closed
197.00
320.71
May
Closed
197.00
336.93
Jun
Closed
231.76
351.82
1st Half
Closed
202.79
325.00
End-Period
Closed
283.00
348.00
Jul
Closed
294.57
364.47
Aug
Closed
309.73
396.15
Sep
Closed
305.23
431.10
Oct
Closed
305.21
462.03
Nov
Closed
305.18
415.36
Dec
Closed
305.22
455.26
2nd Half
Closed
304.19
420.73
End-Period
Closed
305.00
490.00

RDAS
Interbank
BDC
Jan
Closed
305.20
493.29
Feb
Closed
305.31
494.70
Mar
Closed
306.40
429.48
Apr
Closed
306.05
392.89
May
Closed
305.54
384.48
Jun
Closed
305.72
366.25
1st Half
Closed
305.70
426.85
End-Period
Closed
305.90
366.00
Jul
Closed
305.86
365.38
Aug
Closed
305.67
365.57
Sep
Closed
305.89
365.55
Oct
Closed
305.62
362.21
Nov
Closed
305.90
362.41
Dec
Closed
306.31
362.83
2nd Half
Closed
305.88
363.99
End-Period
Closed
306.00
363.00

RDAS
Interbank
BDC
Jan
Closed
305.78
363.20
Feb
Closed
305.90
362.48
Mar
Closed
305.74
362.07
Apr
Closed
305.61
362.25
May
Closed
305.83
362.86
Jun
Closed
305.87
360.66
1st Half
Closed
305.79
362.25
End-Period
Closed
305.75
360.50
Source: Central Bank of Nigeria
CBN closed the RDAS segment of the FOREX market on February 18, 2015.
CBN Economic Report for the First Half of 2018

Table 50
Supply of Foreign Exchange
(US$ Million)

Year/Month
January
31.50
33.00

31.60

687.26

370.11


495.24

925.92

1,110.93

117.31

2,025.43
February
68.00
124.16

74.58

395.42

324.97


405.13

891.36

1,161.11

55.16

1,830.98
March
161.00
219.41

111.51

1,126.53

835.02

24.06

1,190.00
412.00
170.70

452.38

888.93

1,040.96

370.71

2,034.75
April
572.27
587.41

136.25

1,347.03

824.57


515.76

842.09

1,313.76

170.83

2,203.01
May
711.71
2,202.18

-

1,091.23

1,080.39

144.62

3,427.19
634.19
1,302.70

499.29

758.54

1,223.46

515.55

3,541.01
June
117.34
845.82

845.04

146.53

941.13

30.00

2,662.00
1,152.50
1,014.88

798.67

1,004.25

923.89

1,099.40

3,836.84
First Half

July
309.91
323.77

870.57

520.34

1,286.52

88.07

2,568.93

August
322.40
263.56

584.39

640.93

970.15

575.02

2,393.12

September
319.14
101.55

311.89

901.19

1,055.50

54.83

1,523.77

October
409.57
308.21

365.64

906.42

1,000.85

7.73

1,682.42

November
344.26
252.27

384.18

854.39

1,004.37

111.99

1,752.82

December
399.19
338.72

442.96

907.50

792.39

74.84

1,648.91

Second Half
2,104.47

1,588.08

2,959.62

4,730.77

6,109.79

912.48

11,569.96

Source: Central Bank of Nigeria
Total supply includes cash-backed Interbank spot and forward sales, sales to BDCs and Swaps.
CBN closed the RDAS segment of the FOREX market on February 18, 2015.
Sales to
BDCs
Interbank
Forward
Sales (CashBacked)
Swaps
Interbank
Forward
Sales (CashBacked)
Swaps
Interbank
Sales
(AucƟon)
Total
Supply
First Half 2018
Interbank
Sales
(AucƟon)

Sales to
BDCs
Interbank
Forward
Sales
(AucƟon)
Interbank Sales
(Cash-Backed)
Interbank
Forward
Sales
(AucƟon)
Total
Supply
Interbank Sales
(Cash-Backed)
CBN Economic Report for the First Half of 2018

Table 51
Sectoral Utilization of Foreign Exchange
(US Dollar)

A. Imports
16,631,013,170.43

15,215,575,071.71

8,852,611,269.25

7,364,998,409.50

6,461,030,052.77
7,664,472,234.63
Industrial Sector

Food Products

Manufactured Products

Transport Sector

Agricultural Sector

Minerals

Oil Sector

B. Invisibles

Business Services

CommunicaƟon Services
374,076,738.67 349,419,890.87 63,726,178.74 139,275,231.58
84,347,820.33 89,503,224.42
ConstrucƟon and Engineering
45,162,720.93 49,253,638.79 257,282.43 -
1,000,000.00 291,455.44
DistribuƟon Services
49,743,988.82 29,288,273.16 11,933,333.38 4,916,699.05
22,652,800.21 7,907,612.12
EducaƟonal Services
140,778,938.66 244,053,566.86 316,150,957.37 235,831,630.79
200,680,181.80 289,428,240.22
Environmental Services

Financial Services
13,210,340,603.21 8,257,543,710.34 3,264,410,451.02 3,122,109,272.19
4,337,086,537.40 7,856,773,391.06
Health Related and Social Services
333,168.32 858,801.93 3,287,760.74 1,553,904.69
559,313.28
942,172.46
Tourism and Travel Related Services
21,363,448.93 131,694,368.56 9,187,235.78 39,394,273.87
64,770,168.90
3,908,888.48
RecreaƟonal, Cultural and SporƟng Services

Transport Services

Other Services not Included Elsewhere
167,134,134.50 165,375,303.01 61,558,776.51 319,445,662.97
148,151,718.19
118,759,111.05
TOTAL (A+B)
32,905,811,687.40

25,743,210,861.00

13,109,000,182.02

12,060,481,574.92

12,416,498,095.50
17,738,409,175.38
Source: Central Bank of Nigeria
1/ Provisional
1st Half 2016
1st Half 2014
SECTORS
1st Half 2015
1st Half 2017
1st Half 2018 1/
2nd Half 2017
CBN Economic Report for the First Half of 2018

Table 52
Total External Assets of Financial Institutions
( ' Million)
₦

End-June 2014
End-June 2015
End-June 2016
End-June 2017
End-December 2017 End-June 2018 1/
1. Monetary AuthoriƟes

Foreign Assets

Gold

IMF Reserve Tranche

Foreign Currencies

Demand Deposits at Foreign Banks

of which: Domicilliary Accounts

SecuriƟes of Foreign Governments

SDR Holdings

Foreign Equity
744.55
744.55
744.55
FX Swap/Forward/Futures
68,620.51
16,587.52
18,073.42
Regional Monetary CooperaƟon Funds
Other Foreign Assets
2. Semi Official InsƟtuƟons
-

-

-

-

-

-
i) BOI
-

-

-

-

-

-
ii) Others
-

-

-

-

-

-
3. Deposit Money Banks

Total Assets

Total Assets (US$' Million)

Exchange Rate (End-period)

Source: Central Bank of Nigeria
1/ Provisional