CENTRAL BANK OF NIGERIA
CENTRAL BANK OF NIGERIA
Economic Report
For the
First Half of 2015
Economic Report
For the
First Half of 2015
© 20
Central Bank of Nigeria

ISSN 1597 - 2976
iii
Central Bank of Nigeria
Corporate Head Office
33 Tafawa Balewa Way
Central Business District
P. M. B. 0187, Garki
Abuja
Website: www.cbn.gov.ng
Tel: +234(0)946238707
+234(0)946238762
+234(0)946435900
CBN Economic Report for the First Half of 2015
v
Vision
Mission
y 2015, be THE MODEL CENTRAL BANK
delivering PRICE and FINANCIAL SYSTEM STABILITY
and promoting SUSTAINABLE ECONOMIC DEVELOPMENT”.
o be proactive in providing a stable framework for the economic development
of Nigeria, through effective, efficient and transparent implementation of
monetary and exchange rate policy, and management of the financial sector.
T
“B
CBN Economic Report for the First Half of 2015
The Central Bank of Nigeria
vi
Established by the Central Bank of Nigeria (CBN) Act of 1958, the
Principal objects of the Bank as contained in the new CBN Act, 2007 are to
ensure monetary and price stability
issue legal tender currency in Nigeria
maintain external reserves to safeguard the international value of
the legal tender currency
promote a sound financial system in Nigeria
act as banker and provide economic and financial advice to the
Federal Government of Nigeria
·
·
·
·
·
CBN Economic Report for the First Half of 2015
vii
MEMBERS OF THE BOARD OF DIRECTORS OF THE BANK
AS AT JUNE 30, 2015
CBN Economic Report for the First Half of 2015
1.
Godwin I. Emefiele, CON
- Governor (Chairman)
2.
Adebayo A. Adelabu
- Deputy Governor (Corporate Services)
3.
Sarah .O. Alade (Mrs), OON
- Deputy Governor (Economic Policy)
4.
Okwu J. Nnanna

- Deputy Governor (Financial System Stability)
5.
Suleiman A. Barau, OON
- Deputy Governor (Operations)
6.
Anastasia M. Daniel-Nwaobia
- Director (Permanent Secretary, Federal Ministry of Finance)
7.
Ahmed Idris
- Director (Accountant General of the Federation)
8.
Muhammad M. Kafarati
- Director
9.
Collins C. Chikeluba
- Director
10. Anthony A. Adaba
- Director
11. Stanley I. Lawson

- Director
12. Ayuli Jemide
- Director
Yunusa M. Sanusi

- Secretary to the Board
MEMBERS OF THE COMMITTEE OF GOVERNORS OF
THE BANK AS AT JUNE 30, 2015
1.
Godwin I. Emefiele, CON
- Governor (Chairman)
2.
Adebayo A. Adelabu
- Deputy Governor (Corporate Services)
3.
Sarah .O. Alade (Mrs), OON
- Deputy Governor (Economic Policy)
4.
Okwu J. Nnanna

- Deputy Governor (Financial System Stability)
5.
Suleiman A. Barau, OON
- Deputy Governor (Operations)
Yunusa M. Sanusi
- Secretary
MEMBERS OF THE MONETARY POLICY COMMITTEE (MPC)
AS AT JUNE 30, 2015
1.
Godwin I. Emefiele, CON
- Governor (Chairman)
2.
Adebayo A. Adelabu
- Deputy Governor (Corporate Services)
3.
Sarah .O. Alade (Mrs), OON
- Deputy Governor (Economic Policy)
4.
Okwu J. Nnanna

- Deputy Governor (Financial System Stability)
5.
Suleiman A. Barau, OON
- Deputy Governor (Operations)
6.
Dahiru Balami

- Member
7.
Anastasia M. Daniel-Nwaobia (Mrs.)
- Permanent Secretary, Federal Ministry of

Finance, Member
8.
Abdul-Ganiyu Garba
- Member
9.
Stanley I. Lawson
- Member
10. Adedoyin R. Salami
- Member
11. Chibuike C. Uche
- Member
12. Shehu Yahaya
- Member
viii
CBN Economic Report for the First Half of 2015
1.
Dipo T. Fatokun
-
Banking & Payments System
2.
Agnes O. Martins (Mrs.)
-
Banking Supervision
3.
Mahmoud K. Umar
-
Branch Operations
4.
Umma Dutse (Haj.)
-
Consumer Protection
5.
Ibrahim Mu'azu
-
Corporate Communications
6.
Yunusa M. Sanusi
-
Corporate Secretariat
7.
Olufemi A. Fabamwo
-
Currency Operations
8.
Mudashir A. Olaitan*
-
Development Finance
9.
Tope O. Omage (Mrs.)
-
Finance
10. Emmanuel U. Ukeje
-
Financial Markets
11. Kevin N. Amugo
-
Financial Policy and Regulation
12. Oghenekaro A. Olori
-
Governors' Department
13. Chizoba V. Mojekwu (Ms.)
-
Human Resources
14. John I. Ayoh
-
Information Technology
15. Vivian I. Agu (Mrs.)
-
Internal Audit
16. Alvan E. Ikoku
-
International Training Institute
17. Amusa O. Ogundana*
-
Legal Services
18. Faozat A. O. Bello (Mrs.)
-
Medical Services
19. Moses K. Tule
-
Monetary Policy
20. Ahmad Abdullahi
-
Other Financial Institutions Supervision
21. Lazarus M. Agbor
-
Procurement & Support Services
22. Charles N.O. Mordi**
-
Research
23. Lamido A. Yuguda
-
Reserve Management
24. Oluwafolakemi J. Fatogbe(Ms.)
-
Risk Management
25. Ibitayo O. Amu
-
Security Services
26. Sani I. Doguwa
-
Statistics
27. Lametek E. Adamu
-
Strategy Management
28. Olakanmi I. Gbadamosi
-
Trade & Exchange
29. Abwaku Englama
-
Secondment to WAMI
* Overseeing the Department
** Retired on April 20, 2015
DEPARTMENTAL DIRECTORS
ix
BRANCH CONTROLLERS/CURRENCY OFFICERS
1.
Obiageli A. Obiekwe (Mrs.)
-
Abakaliki
2.
Adeyemi A. Bedu
-
Abeokuta
3.
John N. Chukwudifu
-
Abuja
4.
Samuel O. Ogungbayi
-
Ado-Ekiti
5.
Rahmath A. O. Yusuf-Adeyemi (Mrs.)
-
Akure
6.
Elizabeth O. Agu (Mrs.)
-
Asaba
7.
Onyekachi Iheakwazu
-
Awka
8.
Muhammad M. Ladan
-
Bauchi
9.
Herbert F. Ekechukwu
-
Benin
10. Asmau N. Babah (Mrs.)
-
Birnin-Kebbi
11. Graham I. Kalio
-
Calabar
12. Ibrahim A. Dibola
-
Damaturu
13. Danjuma A. Mohammed
-
Dutse
14. Patrick O. Okonkwor
-
Enugu
15. Ishaku K. Jatau
-
Gombe
16. Umar A. Ambursa
-
Gusau
17. Musibau F. Olatinwo
-
Ibadan
18. Monday O. Olotewo
-
Ilorin
19. Mohammed S. Abdullahi
-
Jalingo
20. Gin Y. M. Kurah
-
Jos
21. Mohammed I. Gusau
-
Kaduna
22. Amina P. Abubakar (Mrs.)
-
Kano
23. Mohammed H. Adamu
-
Katsina
24. Usman S. Sule
-
Lafia
25. James O. Iyari
-
Lagos
26. Musa B. Bafai
-
Lokoja
27. Ibrahim Isyaku
-
Maiduguri
28. Aninyei G. Olisamedua
-
Makurdi
29. Dangusau K. Mohammed
-
Minna
30. Macduff O. Efetabore
-
Osogbo
31. Romanus K. Aligwe
-
Owerri
32. Jude N. Ekwebelem
-
Port Harcourt
33. Mohammed L. Idris
-
Sokoto
34. Veronica E. Aqua
-
Umuahia
35. Caulma C. Efegi
-
Uyo
36. Alexander Nwosu
-
Yenagoa
37. Yahaya A. Lawan
-
Yola
CBN Economic Report for the First Half of 2015
xi
TABLE OF CONTENTS
Page
Summary

xxi


Liquidity Management


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

Developments in the Payments system


Retail Payments System


Cheques


Electronic Payments..


ATM Transactions ..
..
..
..

Web Transactions. ..
..
..
..

Point of Sale (PoS) Transactions ..
..

Mobile Payments ..
..
..
..

Wholesale Payments System..


Real Time Gross Settlement (RTGS) System
..

Nigeria Interbank Settlement System Instant
Payment (NIP)


Nigeria Interbank Settlement System Electronic
Fund Transfer (NEFT) ..


Currency Operations


Issuance of Legal Tender


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

Financial Sector Surveillance


Banking Supervision


Routine/Target Examination


Routine/Special Foreign Exchange Examinations ..
..

Banking Sector Soundness ..


Compliance with the Code of Corporate

Governance for Banks


Financial Crimes Surveillance/Anti-Money Laundering
/Combating the Financing of Terrorism (AML/CFT)..
..

Financial Literacy and Consumer Protection
..
..

Fraud and Forgeries..


Cross Border Activities


Examination of Other Financial Institutions..
..
..

Foreign Exchange Market and Management
..
..
..

Spot Segment of the Foreign Exchange Market
..

Swaps and Forwards Transactions
..
..
..

Exchange Rate Movements


Spot Exchange Rates


Foreign Exchange Flows


1.0
INTRODUCTION
2.0 OPERATIONS OF THE CENTRAL BANK OF NIGERIA


CBN Economic Report for the First Half of 2015
xii
Sectoral Utilisation of Foreign Exchange ..
..
..

Foreign Exchange Receipts by Top Hundred Exporters ..

Nominal Effective Exchange Rate (NEER) and Real

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

Development Finance Operations


Agricultural Credit Guarantee Scheme
Fund (ACGSF)


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

The Trust Fund Model (TFM) ..


Entrepreneurship Development Centres (EDCs)..
..

N200 Billion Commercial Agricultural Credit Scheme (CACS) 33
N200 Billion SME Restructuring and Refinancing Facility (RRF) 35
N200 Billion SME Credit Guarantee Scheme (SMECGS)..

N300 Billion Real Sector Support Facility (RSSF)
..
..

N300 Billion Power and Airline Intervention Fund (PAIF)

Initiative ..


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


N213 Billion Nigeria Electricity Market Stabilisation Facility
(NEMSF)


N220 Billion Micro Small and Medium Enterprises
Development Fund (MSMEDF)


Financial Inclusion


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 2015
..
..
..


Monetary and Credit Developments


Reserve Money


Broad Money (M )


Narrow Money (M ) ..


Quasi Money (QM) ..


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

Currency Outside Bank (COB)


Drivers of Growth in Money Supply
..
..
..

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

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

Credit to the Government (Cg)
..

Credit to the Private Sector (Cp)
..


2.6.11
2.6.12
2.6.13
ECONOMIC REPORT
3.0
GLOBAL ECONOMIC DEVELOPMENTS
4.0
DEVELOPMENTS IN THE DOMESTIC ECONOMY

CBN Economic Report for the First Half of 2015
xiii
ther Assets (Net) (OAN)


Sectoral Distribution of Credit..


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

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

Consumer Credit


Money Market Developments..


Money Market Assets Outstanding..
..
..

Primary Market..


Federal Government of Nigeria Bonds ..
..

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

OMO Auctions


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

Tenor Repurchase Transactions.. ..
..
..

Central Bank of Nigeria (CBN) Standing Facilities..

Standing Lending Facility (SLF). ..
..

Standing Deposit Facility (SDF)...
..

Inter-Bank Funds Market


Interest Rates Developments..


Money Market Rates..


Deposit Rates..


Lending Rates..


Yield on Fixed Income Securities


Institutional Savings ..


Other Financial Institutions ..


Development Finance Institutions..
..
..

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

Discount Houses


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

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

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


Nigerian Mortgage Refinancing Company (NMRC)

Capital Market Developments..


Institutional Developments..
..
..
..

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

New Issues Market ..


The Secondary Market..


All-Share Index and Aggregate Market
Capitalisation


Fiscal Operations

Federation Account Operations


Revenue Distribution for First Half, 2015
..
..

Federation Account Distribution ..
..

VAT Pool Account..
..
..

Federal Government Finances


O
CBN Economic Report for the First Half of 2015
xiv
Federal Government Fiscal Balance
..
..

Federal Government Retained Revenue ..
..

Total Expenditure of the Federal Government
..

State Governments' Finances


Local Governments' Finances


Public Debt


Consolidated Government Debt ..
..
..

Domestic Debt..


External Debt..


Total Debt Service


Real Sector Developments ..


Agriculture.. ..


Agricultural Policies and Institutional Support..
..

Agricultural Production and Prices..
..
..

Industry..


Industrial Policy and Institutional Support ..
..

Industrial Production..


Manufacturing..


Crude Oil


Crude Oil Production and Demand
..
..

Crude Oil Prices..


Gas


Petroleum Products ..


Solid Minerals..


Electricity Generation ..


Electricity Consumption..


Industrial Financing ..


NEXIM ..


Telecommunications ..


Consumer Prices


Headline Inflation ..


Core Inflation..


Food Inflation..


Urban and Rural Consumer Price Indices and
Inflation Rates


Aviation Services


Aviation Policy and Airport Development
..

Domestic Operations


International Operations ..
..
..
..

Maritime Services ..


Railway Services


Social Sector Developments


Employment, Labour Productivity and Job Creation
..

Employment ..


Labour Productivity ..


CBN Economic Report for the First Half of 2015
xv
Job Creation..


Education


Health..


External Sector Developments


Current Account


Trade ..


Services ..


Income ..


Current Transfers..


Capital and Financial Accounts


Foreign Direct Investment ..
..
..
..

Portfolio Investment ..


Capital Importation and Capital Outflow
..
..

Reserve Assets


External Assets of Financial Institutions
..
..
..

Regional Institutions ..


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

African Union/United Nations Economic Commission
For Africa (UNECA) ..


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

African Development Bank (AfDB)..
..
..
..

Multilateral Economic and Financial Institutions.. ..
..
..

International Monetary Fund (IMF)/ World Bank Group
..


INTERNATIONAL ECONOMIC RELATIONS

OUTLOOK FOR THE SECOND HALF OF 2015
CBN Economic Report for the First Half of 2015
TABLES
xvi
Selected Macroeconomic and Social Indicators

xxix
Monetary Policy Benchmarks and Outcomes


Monetary Policy Committee Decision During the First Half of 2015
..

Structure of the CIC ..


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

Performance of EDCs


Performance of EDCs' Outreach Centres..


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

Summary of Projects Financed under PAIF


Summary of Disbursements Under NEMSF..


MSMEDF Commercial Wholesale Component Activity Summary
..

Indices of Selected International Stock Markets ..
..
..
..

Exchange Rate of Selected Countries


Sources and Uses of Reserve Money


Growth in Monetary Aggregates ..


Credit to the Core Private Sector ..


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

Bid-Cover Ratios of Selected Securities


Money Market Rates..


DMBs Deposit and Lending Rates...


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


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 Governments from the Federation
and VAT Pools Accounts


Domestic Debt of the Federal Government


Domestic Debt Service Payments to the Federal Government
by Instruments


External Public Debt Outstanding ..


External Debt Service


Consolidated Debt of the Federal Government..
..
..
..

Consolidated Debt Service..


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

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

Selected Real Sector Indicators.. ..


Composite Consumer Price Index ..


Urban and Rural Consumer Price Index ..


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

37a
37b

CBN Economic Report for the First Half of 2015
xvii

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

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

Nigeria's Gross External Reserves.. ..


Nigeria's Foreign Exchange Cross Rates.. ..
..
..
..

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

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

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

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

CBN Economic Report for the First Half of 2015
xviii

34 (a)
34 (b)

42 (a)
42 (b)
Volume of Cheques Cleared..


Value of Cheques Cleared..


Use of E-Payment Channels by Volume


Use of E-Payment Channels by Value


Volume of Electronic Payments


Value of Electronic Payments


Volume of ATM Transactions


Value of ATM Transactions..


Volume of Web Transactions


Value of Web Transactions ..


Volume of PoS Transactions


Value of PoS Transactions ..


Volume of Mobile Transactions


Value of Mobile Transactions


Volume of RTGS Transactions


Value of RTGS Transactions..


Volume of NIP Transactions..


Value of NIP Transactions


Volume of NEFT Transactions


Value of NEFT Transactions ..


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

Demand, Supply and Net Demand of Foreign Exchange
..

Exchange Rate Movements..


Interbank/Bureau-de-Change Foreign Exchange (N/US$) Premium 24
Foreign Exchange Disbursements Through the CBN..
..
..

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

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

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

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


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

Analysis of CACS Financed (privately-sponsored Projects) by
Value Chain ..


Performance of the Naira against Major Currencies
..
..

Performance of the Naira against Regional Currencies
..

Reserve Money and its Components: Sources
..
..
..

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
..
..

Sectoral Distribution of Bank' Credit


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

Maturity Structure of Banks Deposits ..


Distribution of Private Sector Credit..


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

Measures of Competition in Banks: Herfindahl-Hirschman Index

CBN Economic Report for the First Half of 2015
FIGURES

Consumer Credit of DMBs ..


Money Market Assets Outstanding..


Nigerian Treasury Bills Outstanding..


Distribution of FGN Bonds.. ..


Money Market Rates..


Yield on fixed Income Securities


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

Aggregate Market Capitalization and NSE Value Index..
..

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 ..
..
..
..

Gas Production and Utilization..


Sectoral Disbursement of NEXIM Loans


Total Active Lines and Tele-density..


Consumer Price Indices..


Inflation Rate..


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

Exports, Imports and Trade Balance..


Non-Oil Exports by Products..


Non-Oil Imports by Sectors..


Share of Services Out-Payments.. ..


Private Home Remittances..


FDI and Portfolio Investment Flows..


Capital Importation by Sector..


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

External Reserves Stock and Months of Import Commitments ..

Total External Assets ..


xix
CBN Economic Report for the First Half of 2015
CBN OPERATIONS:
Developmental
Initiatives
POLICY FRAMEWORK
SUMMARY
xxi
The maintenance of monetary and price stability was sustained
as the thrust of monetary policy by the Central Bank of Nigeria
(CBN) in the first half of 2015. Open Market Operations (OMO),
remained the primary policy tool for monetary management,
complemented by discount window operations, standing
facilities, reserve requirements, and interventions in the foreign
exchange market. The monetary policy rate (MPR) continued to
serve as the anchor for short-term interest rates in the economy.
The Bank sustained its tight monetary policy stance with a view to
managing liquidity in the banking system and stabilising the
exchange rate. Foreign exchange market pressures were also
accentuated by liquidity injections by the Asset Management
Corporation of Nigeria (AMCON), matured securities, and
statutory revenue releases. To stem the pressure on exchange
and inflation rates, the official foreign exchange window (rDAS)
was closed on February 18, 2015. In order to ensure a sound and
stable financial system, the Bank continued its supervisory and
surveillance activities through on-site and off-site monitoring,
and special investigations.
The developmental initiatives of the Bank were sustained in the
first half of the year. The initiatives included the:
200 billion
Commercial Agricultural Credit Scheme (CACS);
200 billion
SME Credit Guarantee Scheme (SMECGS) Fund; 200 billion SME
Restructuring and Refinancing Facility (RRF); and
300 billion
Power and Airline Intervention Fund (PAIF). Others were the: 213
billion Nigeria Electricity Market Stabilisation Facility; 220 billion
Micro Small and Medium Enterprises Development Fund; Nigeria
Incentive-Based Risk Sharing System for Agricultural Lending
(NIRSAL); Agricultural Credit Guarantee Scheme (ACGS);
Interest Draw Back (IDB); Trust Fund Model (TFM); and
Entrepreneurship Development Centres (EDCs).
Liquidity
Management
The Bank employed various measures to manage liquidity in the
banking system. These measures included: the retention of the
MPR at 13.0 per cent with a symmetric corridor of ±200 basis
points; the liquidity ratio of 30.0 per cent; and the harmonisation
of CRR on public and private sector deposits at 31.0 per cent
from the previous levels of 75.0 and 20.0 per cent, respectively.
Following the closure of the rDAS window, all demand for foreign
exchange was channeled to the inter-bank segment of the
market. OMO was sustained as the primary tool for liquidity
management, complemented by reserve requirements,
standing facilities, discount window operations and
interventions in the foreign exchange market.
CBN Economic Report for the First Half of 2015
Financial Sector
Surveillance
The CBN intensified its regulatory and surveillance activities to
ensure a safe and sound financial system. Consequently, in
March 2015, the Bank, in conjunction with the Nigeria Deposit
Insurance Corporation (NDIC), issued the approved Framework
for the Regulation and Supervision of Domestic and Systemically
Important Banks (SIBs) in Nigeria. It also reviewed the guidance
notes and capital adequacy computation reporting template
under the Basel II Accord. Furthermore, the CBN facilitated the
formation of the College of Supervisors for Ecobank with the
BCEAO; supported the drafting of Crisis Resolution Framework
for the West Africa Monetary Zone (WAMZ); participated at the
Community of Africa Bank Supervisors' (CABS) Working Group
inaugural meeting on cross border supervision. The working
group was saddled with the responsibility of developing the
Cross Border Crisis Resolution Framework.
The number of foreign subsidiaries of Nigerian banks reduced to
sixty (60) at end-June 2015, compared with sixty-one (61) at endDecember 2014. However, the number of representative offices
of Nigerian banks abroad increased to ten (10) from seven (7) at
end-December 2014.
During the review period, examination of one (1) foreign bank
subsidiary and a joint CBN/NDIC target risk assets examination of
all domestic banks were carried out. In addition, ad-hoc spot
checks were conducted on: banks' non-performing loans
(NPLs); investment and utilisation of Eurobonds; and the
collection and remittance of statutory government revenue.
Infractions were observed, which included: the failure to issue
certificate of capital importation to beneficiaries within the
stipulated periods; incorrect rendition of returns to regulators;
and failure to obtain evidence of repatriation of export
proceeds.
The banking sector was adjudged sound at end-June 2015 as
industry average CAR stood at 17.3 per cent, compared with
To support government effort in the management of public
finances, thereby promoting accountability and transparency,
the CBN commenced implementation of the Federal
government's independent revenue e-Collection Scheme
under the Treasury Single Account (TSA). The Bank also: reviewed
the guidelines on mobile money services; inaugurated various
payments system boards; issued approved framework for the
licensing of super agents under the agency banking scheme;
and implemented the two-factor authentication for internal
banking process. The Bank extended the Bank Verification
Number (BVN) registration deadline to October 31, 2015 from
the June 30, 2015 deadline.
Payments
&
Clearing System
CBN Economic Report for the First Half of 2015
xxiii
15.9 per cent recorded at end-December 2014 and 15.0 and
10.0 per cent benchmarks for banks with National and
International authorisation, respectively. Industry liquidity ratio
stood at 39.6 per cent at end-June, 2015, compared with 45.9
and 42.7 per cent at end-December and end-June 2014. The
industry ratio of non-performing loans (NPLs) to total credit
deteriorated to 4.7 per cent in the first half of 2015, compared
with 3.5 per cent at end-December 2014. The increase in NPLs
ratio was attributed to several factors, including inadequate risk
mitigation measures by banks and impaired cash flow of
obligors.
A report by the Bank revealed substantial compliance by banks
with several provisions of the Code of Corporate Governance.
Also, the Financial Reporting Council of Nigeria (FRCN) released
the draft of the Code of Corporate Governance for public,
private, and non-profit organisations. The objective of the Code
was to provide standardised corporate governance guideline
for all institutions within the regulatory ambit of the FRCN.
Anti-Money Laundering and Combating the Financing of
Terrorism (AML/CFT) spot check on ten (10) banks was
conducted during the review period. The risk profiles of nine (9)
were adjudged “above average”. The Bank also carried out the
maiden AML/CFT compliance examination of banks and the
joint cross-border AML/CFT examination on three (3) Nigerian
banks operating in three (3) West African countries.
The Bank marked the 2015 Global Money Week with Global Walk
for Money, Financial Fair/Exhibition, and the “Reach out and
Mentoring Programme” for students of Nigerian secondary
schools.
A total of 758 complaints against financial institutions were
received out of which 481 were resolved. Total claims in local
and foreign currencies amounted to
78.83 billion and
US$745,744.26 and £6,000, compared with
7.38 billion,
US$311,359.00 at end-June 2014. Total refunds by the institutions
stood at 1.87 billion and US$957,920.05, compared with 3.87
billion and US$176,358 at end-June 2014. The Bank undertook
examination and spot checks on twenty (20) banks to ascertain
their level of compliance with consumer protection laws and
regulations. The defaulting banks were directed to make
appropriate refunds and ensure strict compliance henceforth.
In the first half of 2015, the number of fraud and forgery cases
stood at 5,917, valued at
11.99 billion, compared with 11,447
and 5,197 cases valued at
25.81 billion and
16.8 billion
recorded at the end of the preceding December and the
Financial Sector
Surveillance
CBN Economic Report for the First Half of 2015
xxiv
corresponding period of 2014, respectively. Actual loss incurred
by banks was N1.9 billion, compared with N4.8 billion and N1.72
billion recorded at the end of the preceding-December and the
corresponding period of 2014, respectively. The significant
decrease in the actual loss reflected stronger internal control
measures adopted by the banks and improved use of
technology.
The Bank conducted examination and spot check on 110
microfinance banks (MFBs) and issued Regulatory Letters to 63
others for failure to meet the prudential minimum requirements.
A risk-based examination conducted on 32 out of the 36 primary
mortgage banks (PMBs) revealed that 14 PMBs had high
composite risk rating. Moreover, the Bank issued a circular to
finance companies (FCs) reminding them of the recapitalisation
deadline of September 30, 2015.
FOREIGN EXCHANGE
MANAGEMENT
The exchange rate of the naira to the US dollar depreciated
during the review period owing to high speculative demand,
reduced portfolio inflow, and low accretion to the external
reserves. This reflected largely, the adverse effect of the falling
global crude oil prices. Consequently, the Bank closed the retail
Dutch Auction System (rDAS) window of the foreign exchange
market in February 2015, reviewed downward the limit on the
usage of naira denominated cards for transactions abroad, and
excluded 41 items from being funded from the inter-bank market.
At the inter-bank and BDC segments, the average exchange rate
of the naira to the US dollar were N194.04/US$ and 213.55/US$,
representing 16.2 per cent depreciation, compared with the level
in the corresponding half in 2014. Foreign exchange inflow into
the economy declined by 36.0 and 31.2 per cent to US$52.12
billion against the respective levels in the first and second halves
of 2014. Total foreign exchange outflow from the economy
declined by 19.6 and 24.9 per cent to US$21.84 billion, from the
levels at end-June and end-December 2014, respectively.
N
THE FINANCIAL
SECTOR
Financial Sector
Surveillance
In pursuance of the monetary and price stability objective, the
CBN maintained a restrictive monetary policy stance and
retained the monetary policy rate at 13.0 per cent during the
review period. Key monetary aggregates moderated and were
below the indicative benchmarks, compared with the levels in
the preceding half-year. Reserve money, atN5,945.76 billion,
increased by 24.2 per cent, compared with 6.0 per cent decline
at end-June 2014. Similarly, broad money supply (M ) and narrow

money supply (M ) contracted to N18,811.4 billion and N6,542.4

billion or 0.5 and 5.3 per cent, respectively, relative to their levels
at end-December 2014). The growth in M was lower than the 15.2

CBN Economic Report for the First Half of 2015
xxv
per cent provisional indicative benchmark for fiscal 2015.
Currency-in-circulation and currency outside banks also
decelerated during the review period relative to the levels at endJune 2014.
Growth in credit to the domestic economy reflected the increase
in the claims on the private sector and the Federal Government.
Net domestic credit (NDC) grew to N21,409.8 billion or 11.1 per
cent from end-December 2014, compared with the growth of
14.8 per cent at the end of the corresponding period of 2014. Net
claims on government rose by 118.5 per cent to N 2,251.46 billion
at the end of the first half of 2015, compared with 85.8 per cent
recorded at the end of the corresponding half of 2014. Credit to
the private sector grew by 4.3 per cent to N18,897.3 billion at endJune 2015, compared with 4.6 per cent at the end of the first half
of 2014.
The money market was awash with liquidity for most of the first half
of 2015. Consequently, rates moved in tandem with the liquidity
levels. Average short-term rates in all segments were higher than
their levels in the corresponding period of 2014. The weighted
average inter-bank and Open-Buy-Back (OBB) rates increased
over their levels at end-June 2014. The high average short-term
rates despite the liquidity, was due to some unusual spikes,
occasioned by the posting of the CRR debit after the
harmonisation of CRR on public and private deposits and IT
system downtime that affected DMBs ability to access balances
on their accounts. While the weighted average prime lending
rate fell by 0.09 percentage point to 16.63 per cent, the maximum
lending rate stood at 26.4 per cent. Consequently, the spread
between the average term deposit and maximum lending rates
widened by 1.3 to 18.2 percentage points. With the year-on-year
inflation rate at 9.2 per cent in June 2015, most deposit rates were
negative in real terms.
Aggregate financial savings increased substantially by 16.2 per
cent to N12,819.5 billion in the first half of 2015, compared with
N11,032.9 billion and N9,511.0 billion at end of the preceding
December and the corresponding period of 2014, respectively.
DMBs sustained their dominance of depository institutions in the
financial system, accounting for 95.2 per cent of the total financial
savings, compared with 90.0 per cent in the preceding half year,
while other savings institutions accounted for the balance.
The Nigerian Stock Exchange recorded eighteen (18) new listings,
consisting of six (6) equities and twelve (12) debt issues in the first
half of 2015. The All-Share Index (ASI) fell by 3.5 per cent to
33,456.8, while the aggregate market capitalisation rose by 1.2
per cent to close at N17.0 trillion, compared with N16.9 trillion at
end-December 2014.
THE FINANCIAL
SECTOR
CBN Economic Report for the First Half of 2015
At
3,452.8 billion or 7.8 per cent of GDP, provisional gross
federally-collected revenue in the first half of 2015 was lower
than the proportionate budget estimate and the end-June 2014
level by 29.4 and 32.4 per cent, respectively. The decline
reflected the fall in both oil and non-oil revenue. The oil and nonoil revenue constituted 59.4 and 40.6 per cent of the total
revenue, respectively.
At 1,583.19 billion or 3.6 per cent of GDP, the estimated Federal
Government's retained revenue was lower than both the
proportionate budget estimate and the level in the
corresponding period of 2014 by 14.8 and 15.8 per cent,
respectively. The decline in retained revenue was attributed to
the decrease in the share from the Federation Account.
The Federal Government estimated aggregate expenditure in
the first half of 2015 stood at 2,259.66 billion or 5.1 per cent of
GDP. This fell short of the proportionate budget estimate by 5.0
per cent, but exceeded the level in the corresponding period of
2014 by 6.2 per cent. The decline in total expenditure relative to
the proportionate budget estimate was, largely, accounted for
by the decline in statutory transfers during the period. Non-debt
expenditure and debt service constituted 73.8 and 26.2 per cent
of total expenditure, respectively. Fiscal operations of the
Federal Government in the first half of 2015 resulted in an overall
deficit of 1.5 per cent of GDP, compared with 0.6 per cent of
GDP in the corresponding period of 2014. The deficit was
financed mainly with overdraft from the CBN and the issuance of
FGN Bonds.
The Federal Government consolidated debt stock at end-June
2015 stood at
10,428.49 billion or 11.8 per cent of GDP,
representing an increase of 9.4 per cent over the level at endDecember 2014. Of the total debt stock, domestic debt
accounted for
8,396.59 billion or 80.5 per cent, while the
external debt amounted to 2,031.90 billion (US$10.32 billion) or
19.5 per cent of the total.
Provisional Data from the National Bureau of Statistics (NBS)
indicated that the gross domestic product (GDP), at 2010
constant basic prices, grew by 3.1 per cent in the first half of
2015, compared with 6.4 per cent in the corresponding half of
2014. The growth in GDP was driven, largely, by the 4.5 per cent
growth in the non-oil sector, while the oil sector contribution, fell
by 7.5 per cent due mainly to the slump in global crude oil prices.
Agriculture, construction, trade, and services also grew by 4.1,
8.7, 5.8, and 5.6 per cent respectively, while industry fell by 4.9
per cent.
xxvi
THE GOVERNMENT
SECTOR
THE REAL
SECTOR
CBN Economic Report for the First Half of 2015
xxvii
The continued decline in global oil prices and capital reversals,
accentuated by apprehensions about the general elections,
lowered external sector viability. The current account deficit was
3.1 per cent of GDP, while the capital and financial account
registered a net foreign position of 1.9 per cent of GDP. The gross
external reserves, at US$28.34 billion, fell by 24.1 per cent at endJune 2015 and could finance 6.7 months of current import of
goods. External debt stock increased by 6.2 per cent to US$10.32
billion at the end of the first half of 2015 over the level at endDecember 2014.
Global output moderated as the IMF revised growth projections
downwards to 3.3 per cent in the first half of 2015 from an earlier
3.5 per cent. Structural bottlenecks and geo-political tensions in
Europe and the Middle-East regions continued to influence
global demand. Growth in the advanced economies was
sustained resulting from acceleration in consumption and
investment, improved labour conditions, easing financing
conditions, and strengthening of the housing market. Growth in
the emerging market economies was projected at 4.2 per cent
in 2015, compared with 4.6 per cent in 2014, owing largely to
lower growth in China, weak outlook for Russia and the
expected slow growth in oil-exporting countries.
The global financial market was relatively stable in spite of the
Greek debt crisis in the euro area and sluggish growth in China.
Global monetary policy stance was largely accommodative as
market expectations were shaped by the prospects of the US
monetary policy normalisation, and the ECB quantitative easing
Average daily crude oil production, which stood at 1.9 mbd or
343.9 million barrels (mb) at end-June 2015, declined by 0.01
mbd or 4.0 per cent below the level in the first half of 2014. The
average spot price of Nigeria's reference crude, the Bonny Light
(37o API), fell by 47.4 per cent to US$58.54 per barrel, below its
level in the first half of 2014.
Domestic prices increased in the first half of 2015. The all-items
composite Consumer Price Index (CPI) stood at 173.2
(November 2009=100) at end-June 2015, compared with 158.6
and 164.4 at end-June and end-December 2014, respectively.
The year-on-year headline inflation increased steadily and
closed at 9.2 per cent, compared with 8.2 and 8.0 per cent at
end-June and end-December 2014, respectively. Inflationary
pressures were induced mainly by the persistent rise in prices of
food and consumables, the 2015 general election-related
spending, as well as the security challenges, especially in the
North East.
EXTERNAL
SECTOR
CBN Economic Report for the First Half of 2015
THE REAL
SECTOR
programme. In the emerging market and developing
economies, policy rates were lowered to stimulate growth.
Activities at most stock exchanges improved due to capital
reversals from emerging market and developing economies
and the recovery of the US economy. However, many
currencies continued to depreciate against the US dollar as a
result of sustained improvements in the US economy. Global
inflation generally remained subdued, reflecting the decline in
energy prices. In the emerging market and developing
economies, inflation trended upward due to the rise in the cost
of transport, and energy and power.
OUTLOOK
FOR THE REST
OF 2015
The outlook for the rest of the year is fairly optimistic, though
actual outcome would as usual be shaped by both external and
domestic developments. From the external front, there is no
reason to believe that the international crude oil market would
rebound anytime soon, given the sluggish recovery of the global
economy. However, the World Bank has forecast a marginal
increase in crude oil price, and this is expected to compensate
for the decline in demand for the country's crude oil. Moreover,
the reduction in the demand for Nigeria's crude by the US is
expected to be off-set by the rising demand from emerging
economies, especially China. The net effect would be a positive
impact on the economy particularly, through the shoring up of
government revenue. The pressure on the foreign exchange
market is expected to abate with enhanced foreign exchange
inflows associated with improved crude oil market condition
and the Bank's proactive foreign exchange management
measures. Ultimately, a gradual but steady accretion to external
reserves is expected in the remaining part of the year.
From the domestic end, the prospect of improved public
finance management following the adoption of treasury single
account (TSA) and the blockage of other sources of leakages in
government revenues, the commitment to fiscal prudence on
the part of the Federal Government, as well as the renewed war
on corruption, among others, further underpin the optimism of
the Nigerian economy for the rest of 2015. The agricultural sector
is expected to sustain the moderate growth momentum given
the fair distribution of rains in the year. Also, the war on the
lingering insurgency in the North-East appears very winnable
thereby, raising the prospects of improved food production. This
development would help to moderate the inflationary pressure
that is beginning to build-up. Overall, inflation is expected to
close within the single-digit bracket by year- end.
xxviii
CBN Economic Report for the First Half of 2015
xxix
CBN Economic Report for the First Half of 2015

Indicator
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15 2/
Domestic Output and Prices
GDP* at Current Mkt Prices (N' billion)

GDP* at Current Mkt Prices (US$' billion)

GDP* per Capita (N)

GDP* per Capita (US$)

Real GDP* Growth (Growth Rate %)

Oil Sector

Non-oil Sector

Sectoral Classification of GDP* (Growth Rate %)
Agriculture

Industry 3/

Services 4/

Oil Production (mbd)

Manufacturing Capacity Utilisation (%) 1/

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

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

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

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

Federal Government Finance (% of GDP*)
Retained Revenue

Total Expenditure

Recurrent Expenditure

Of which: Interest Payments

Foreign

Domestic

Capital Expenditure and Net Lending

Transfers

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

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

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

Financing

Foreign

Domestic

Banking System

Non-bank Public

Others

Consolidated Government Debt Stock

External

Domestic

Selected Macroeconomic and Social Indicators 1/
xxx
CBN Economic Report for the First Half of 2015
Indicator
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15 2/
Money and Credit ( Growth Rate %)
Reserve Money

Narrow Money (M1)

Broad Money (M2)

Net Foreign Assets

Net Domestic Assets

Net Domestic Credit

Net Credit to Government

Credit to Private Sector

Money Multiplier for M2

Income Velocity of M2

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

Repurchase Rate
Reverse Repurchase Rate
Treasury Bill Rate
91-day

Inter-bank Call Rate

Deposit Rates
Savings Rate

3-months Fixed

6-months Fixed

12-months Fixed

Prime Lending Rate

Maximum Lending Rate

External Sector
Current Account Balance (% of GDP*)

Goods Account

Services and Income Account

Current Transfers

Capital and Financial Account Balance (% of GDP*)

Overall Balance (% of GDP*)

External Reserves (US $ million)

Number of Months of Import Equivalent

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

Average Rate (N/$1.00) (official/interbank)

End of Period Rate (N/$1.00)

(official/interbank)

Average Bureau de Change Exchange Rate (N/$)

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

Capital Market
All Share Value Index (1984=100)

Value of Stocks Traded (Billion Naira)

Market Capitalization (Trillion Naira)

Social Indicators
Population (million)

Population Growth Rate (%)

Life Expectancy at Birth (Years)

Adult Literacy Rate (%)

Incidence of Poverty 7/

1/ Revised
2/ Provisional
3/ Includes Construction
4/ Includes Trade
5/ Core Inflation is measured as the rate of change of all-item Consumer Price Index (CPI) less farm produce.
6/ MPR replaced MRR with effect from December 11, 2006.
7/ The incidence of poverty in Nigeria was projected to increase from 65.6 per cent in 1996 to 70.0 per cent in 2000.
However, the result of a Nigeria Living Standard Survey of 2003/2004 from NBS (former FOS),
showed that the incidence of poverty declined to 54.4 per cent in 2003/2004.
Selected Macroeconomic and Social Indicators 1/ (Cont...)
* June 2015 interbank market

CENTRAL BANK OF NIGERIA
REPORT FOR THE FIRST HALF OF 2015
1.0
INTRODUCTION
In the first half of 2015, the thrust of monetary policy remained the maintenance of
monetary and price stability. Accordingly, the strategy for monetary management was a
hybrid approach, comprising a combination of interest rate corridor and monetary
targeting, with the Monetary Policy Rate (MPR) serving as the anchor for short-term
interest rates. To contain liquidity surfeit in the banking system and stabilise the exchange
rate, the Bank sustained its restrictive monetary policy measures in the first half of 2015. The
main instrument of monetary management was open market operations (OMO)
complemented by reserve requirements, standing facilities, discount window operations,
and interventions in the interbank foreign exchange market.
The major monetary policy benchmarks for 2015 and the outcome based on provisional
data as at the end of the first half are shown in Table 1.
Table 1
Monetary Policy Benchmarks and Outcomes
(Growth in % except otherwise stated)

CBN Economic Report for the First Half of 2015
Key Variables

June, 2015

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

24.64

16.39

18.38

1.42

14.50

20.60

15.20

-0.54

Narrow Money (M )

34.71

19.07

18.38

-12.98

11.00

-1.82

9.91

-5.25

Base Money
(Reserve)

8.23

33.06

8.69

-25.28

16.70

16.52

16.78

0.30

Aggregate credit to
the domestic
economy (Net)

52.17

-7.22

47.57

9.40

28.50

32.60

29.30

11.10

Credit to
Government (Net)

61.47

-393.81

66.59

4.56

58.54

169.44

36.05

118.45

Credit to the private
sector

47.50

6.83

46.20

7.14

15.85

11.93

26.06

4.27

Inflation rate

11.20

12.00

9.58

8.00

7.50

8.00

8.00

9.20

Real GDP

7.33

4.20

7.44

5.50

7.02

6.20

7.20

3.14


2.0
OPERATIONS OF THE CENTRAL BANK OF NIGERIA
2.1
Liquidity Management
2.2 Monetary Policy Committee (MPC) Decisions
In line with its restrictive monetary policy stance during the first half of 2015, the Bank
deployed various tools of liquidity management to contain the effect of increased
liquidity arising from fiscal injections in the banking system. The measures included:
retention of the MPR at 13.0 per cent with a symmetric corridor of +/-200 basis points; the
liquidity ratio at 30.0 per cent; and harmonisation of CRR on public and private sector
deposits at 31.0 per cent from their previous rates of 75.0 and 20.0 per cent, respectively.
These measures were complemented with the closure of the rDAS window, on February
18, 2015 and the directive that all demand for foreign exchange should be channeled to
the inter-bank segment to stem pressure on the naira exchange rate. Consequently,
reserve money, which stood at
5,930.90 billion at end-December 2014, increased
marginally by 0.30 per cent to
5,945.80 billion at end-June 2015. This exceeded the
second quarter indicative benchmark of 5,564.84 billion by 6.84 per cent.
The Bank's primary tool of liquidity management, OMO, was complemented by reserve
requirements, standing facilities, and discount window operations. In addition, the Bank
intervened in the foreign exchange market through the rDAS window up till February 18,
2015, and subsequently at the inter-bank segment. Primary market transactions in
Nigerian treasury bills were also deployed in monetary management.
In the first half of 2015, the MPC held three (3) regular meetings, in January, March, and
May. A summary of the key decisions of the Committee are presented in Table 2.

CBN Economic Report for the First Half of 2015

2.3 Developments in the Payments System
In its effort to enhance the efficiency of the National Payments System, the Bank
undertook the following:
·
Directed all deposit money banks, switches, and payments service providers to
establish industry fraud desks, to manage fraud in electronic payments;
·
Reviewed the Guidelines for Mobile Money Services in Nigeria;
·
Inaugurated Payments System Boards to provide governance for various
payments system initiatives;
·
Issued approved framework for the licensing of super agents for agent banking;
·
Extended the registration deadline for Bank Verification Number (BVN) to October
31, 2015;
·
Commenced the implementation of the Federal Government's Independent
Revenue e-Collection Scheme under the Treasury Single Account (TSA); and
·
Began the implementation of the two-factor authentication for internal banking
CBN Economic Report for the First Half of 2015
Table 2
Monetary Policy Committee Decisions During the First Half of 2015
Date of Meeting

Type of
Meeting

Decisions

January

-

20, 2015

Regular

·

Retained the MPR at 13.0 per cent with a
corridor of +/ -

200 basis points around the
midpoint;

·

Retained the CRR on private sector deposits
at 20.0 per cent;

·

Retained CRR on public sector deposits at
75.0 per cent; and

·
Retained the liquidity ratio at 30.0 per cent.

March 23

–

24, 2015

Regular

·
Retained the MPR at 13.0 per cent with a
corridor of +/ -

200 basis points around the
midpoint;
·
Retained the CRR on private sector deposits
at 20.0 per cent;

·
Retained CRR on public secto r deposits at
75.0 per cent; and

·

Retained the liquidity ratio at 30.0 per cent.

May 18

–

19, 2015

Regular

·

Retained the MPR at 13.0 per cent with a
corridor of +/ -

200 basis points around the
midpoint;

·

Retained the liquidity ratio at 30.0 per cent;
and;

·

Harmonised the CRR on public and private
sector deposits at 31.0 per cent.


Source: Central Bank of Nigeria MPC Communiqués

process.
•In addition, the Bank directed DMBs to carry out the following on Nigerian issued cards to
prevent fraud in non-EMV (Europay Master Card and Visa) environment:
•
Render returns on all their card frauds abroad to CBN not later than January 30,
2015. Subsequently, all card fraud occurring abroad should be rendered on the
Nigeria Inter-Bank Settlement System (NIBSS) Fraud portal;
•
Deploy the Anti-Fraud Solution Software on their cards management system, not
later than January 30, 2015;
•
Ensure that from February 1, 2015, only customers that expressly indicated their
intention of travelling to non-EMV jurisdictions would have their cards default to
the magnetic stripe and for the period indicated by the cardholder only;
•
Carry out regular awareness campaign on how to avoid being defrauded in a
non-EMV environment; and
•
Ensure strict compliance on Payment Card Industry Data Security Standard
(PCIDSS) and their vendors/partners involved in card processing activities.
The volume and value of cheques decreased to 6.4 million and 3,194.7 billion in the first
half of 2015, compared with 7.1 million and 3,710.7 billion in the corresponding first half
of 2014. The decrease was attributed to consumers' preference for the use of e-payment
channels.
2.3.1 Retail Payments System
2.3.1.1 Cheque
Figure 1
Volume of Cheques Cleared
(Million)
Million
CBN Economic Report for the First Half of 2015


First Half 2014
Second Half 2014
First Half 2015
Source: CBN
Figure 2
Value of Cheques Cleared
(N' Billion)

2.3.1.2 Electronic Payments
During the review period, the volume and value of electronic payments (comprising
ATM, PoS, Mobile payments and Internet) increased by 22.2 and 20.0 per cent, to 243.6
million and 2,333.1 billion, respectively in the first half of 2015 above 199.3 million and
1,944.6 billion in the corresponding period of 2014. Analysis of the usage of e-payment
channels for the review period indicated that ATM remained the most patronised,
accounting for 84.8 per cent, followed by mobile payments and PoS terminal, with 7.7
and 6.1 per cent, respectively. The web (internet) was the least patronised, accounting
for 1.4 per cent of the total. In terms of value, ATM accounted for 81.5 per cent; PoS, 8.6
per cent; mobile payments, 8.2 per cent; and the web (internet) 1.7 per cent.
Figure 3
Usage of E-payment Channels by Volume
(First Half 2015, Per cent)
NBillion
CBN Economic Report for the First Half of 2015


First Half 2014
Second Half 2014
First Half 2015
Source: CBN
ATM
84.8%
PoS
6.1%
Internet
1.4%
Mobile
7.7%
Source: CBN
Figure 4
Usage of E-payment Channels by Value
(First Half 2015, Per cent)

Figure 5
Volume of Electronic Payments
(Million)
Figure 6
Value of Electronic Payments
(N'Billion)
CBN Economic Report for the First Half of 2015

ATM
81.5%
PoS
8.6%
Internet
1.7%
Mobile
8.2%


First Half 2014
Second Half 2014
First Half 2015
Million


First Half 2014
Second Half 2014
First Half 2015
NBillion
Source: CBN
Source: CBN
Source: CBN

Figure 7
Volume of ATM Transactions
(Million)

2.3.1.2.1
ATM Transactions
The number of ATMs stood at 15,699 in the first half of 2015, representing a decrease of 1.5
per cent below the figure in the second half of 2014. However, ATM transactions
increased in volume and value by 17.7 and 16.1 per cent to 206.6 million and 1,900.4
billion, respectively, in the first half of 2015, above the levels in the corresponding period
of 2014.

Figure 8
Value of ATM Transactions
(N' Billion)
CBN Economic Report for the First Half of 2015


First Half 2014
Second Half 2014
First Half 2015
Million

First Half 2014
Second Half 2014
First Half 2015
NBillion
Source: CBN
Source: CBN

2.3.1.2.2
Web Transactions
The volume and value of web-based transactions increased by 50.0 and 29.6 per cent to
3.3 million and N39.8 billion, respectively, in the first half of 2015, above the levels in the
corresponding period of 2014. The development was due to increased awareness and
acceptance of web payment.

Figure 9
Volume of Web Transactions
(Million)
Figure 10
Value of Web Transactions
( 'Billion)
CBN Economic Report for the First Half of 2015


First Half 2014
Second Half 2014
First Half 2015
Million
Source: CBN


First Half 2014
Second Half 2014
First Half 2015
NBillion
Source: CBN

2.3.1.2.3
Point of Sale (PoS) Transactions
The number of PoS terminals in operation increased by 24.6 per cent to 102,855 in the first
half of 2015 above the level at end-December 2014. PoS transactions increased in
volume and value by 65.6 and 45.9 per cent to 14.9 million and 200.9 billion, respectively
in the first half of 2015 above the levels in the corresponding period of 2014. The
development was due to increased public confidence and acceptance of the usage of
PoS.

Figure 12
Value of PoS Transactions
( 'Billion)
Figure 11
Volume of PoS Transactions
(Million)
CBN Economic Report for the First Half of 2015


First Half 2014
Second Half 2014
First Half 2015
Million
Source: CBN

First Half 2014
Second Half 2014
First Half 2015
NBillion
Source: CBN


First Half 2014
Second Half 2014
First Half 2015
2.3.1.2.4
Mobile Payments
The volume and value of mobile payments increased by 49.2 and 37.4 per cent to 18.8
million and N192.0 billion, respectively, in the first half of 2015 above the levels in the
corresponding period of 2014. The development was attributed to greater awareness of
mobile payments.

Figure 13
Volume of Mobile Transactions
(Million)
Figure 14
Value of Mobile Transactions
( ' Billion)
2.3.2 Wholesale Payments System
2.3.2.1 Real Time Gross Settlement (RTGS) System
The volume and value of inter-bank transfers through the RTGS System (CBN Inter-bank
Funds Transfer System - CIFTS) increased to 368,519 and 188,348.5 billion in the first half of
2015 above the levels in the corresponding period of 2014, indicating an increase of 86.8
and 242.4 per cent. The development was attributed to the deployment of a new RTGS
that is more flexible with additional payment platforms.
CBN Economic Report for the First Half of 2015


First Half 2014
Second Half 2014
First Half 2015
Source: CBN
Million
NBillion
Source: CBN


First Half 2014
Second Half 2014
First Half 2015

2.3.2.2 Nigeria Inter-bank Settlement System Instant Payment
The volume and value of the NIBSS Instant Payment (NIP) transactions rose to N30.0 million
and
12,055.3 billion, respectively, in the first half of 2015 above the levels in the
corresponding period of 2014, indicating an increase of 78.6 and 31.9 per cent. The
development was attributed to the growing awareness of the scheme as well as users'
preference for quicker transfers.
Figure 17
Volume of NIP Transactions
(Million)
Figure 15
Volume of RTGS Transactions
(Million)
Figure 16
Value of RTGS Transactions
(N' Billion)
CBN Economic Report for the First Half of 2015
Million
Source: CBN


First Half 2014
Second Half 2014
First Half 2015
Source: CBN
NBillion


First Half 2014
Second Half 2014
First Half 2015
Source: CBN
Million


First Half 2014
Second Half 2014
First Half 2015


First Half 2014
Second Half 2014
First Half 2015


First Half 2014
Second Half 2014
First Half 2015

2.3.2.3 Nigeria Interbank Settlement System Electronic Fund Transfer
The volume and value of NIBSS Electronic Fund Transfer (NEFT) decreased to 14.0 million
and
6,771.6 billion, respectively, in the first half of 2015 below the levels in the
corresponding period of 2014, reflecting a decrease of 1.4 and 7.9 per cent. The
development was as a result of the users' preference for NIP, which is an instant payment
platform.
Figure 18
Value of NIP Transactions
( 'Billion)
Figure 20
Value of NEFT Transactions
( 'Billion)
Figure 19
Volume of NEFT Transactions (check scaling)
(Million)

CBN Economic Report for the First Half of 2015
NBillion
Source: CBN
Million
Source: CBN
NBillion
Source: CBN

2.3.3 CURRENCY OPERATIONS
2.3.3.1 Issuance of the Legal Tender
To meet the currency needs of the economy in 2015, the Bank approved an indent of
2,042.89 million pieces. This represented an increase of 16.07 per cent or 282.79 million
pieces, compared with the 1,760.1 million pieces ordered in the corresponding half of
2014. The total indent was ordered from the Nigerian Security Printing and Minting (NSPM)
Plc. Of the total, the NSPM Plc delivered 41.2 per cent or 842.03 million pieces in the first
half of 2015, compared with 13.1 per cent or 229.8 million pieces delivered in the
corresponding half of 2014. Cumulatively, delivery fell short of the target of 50.0 per cent
at end-June 2015. Out of the one billion
100 centenary commemorative banknotes
awarded in 2014, 520 million pieces or 52.0 per cent were delivered at end-June 2015.
The clean notes policy of the Bank was sustained in the first half of 2015 through the
processing of banknotes into fit for re-circulation into the economy and unfit/soiled notes
for disposal. A total of 230,055 boxes valued at
1,179.02 billion were processed,
compared with 150,445 boxes valued at 965.83 billion in the corresponding period of
2014. This represented 52.9 and 22.1 per cent increase in volume and value, respectively,
reflecting improved efficiency of the process during the review period. Furthermore,
89,450 boxes of unfit notes, valued at
467.83 billion, of various denominations, were
withdrawn and destroyed at end-June 2015, compared with 147,987 boxes, valued at
608.44 billion in the corresponding first half of 2014.
To ensure sustained implementation of the Nigerian Cash Holding Scheme, the Bank
collaborated with critical stakeholders to consider the proposal submitted by the
Nigerian Interbank Settlement System (NIBSS) for the Integrated Cash Management
platform. The Bank also commenced the gradual exit from the retail end of currency
management. Consequently, a draft of the Banknote Fitness Standards was developed,
while a report on the optimum number of CIT/Sorting Companies in Nigeria was being
considered. The Bank reconstituted the Currency Review and Redesign Committee to
undertake a comprehensive review of the entire currency series in line with international
best practice.
Currency-in-circulation (CIC) at end-June 2015 stood at 1,562.35 billion, representing an
increase of 65.61 billion or 4.2 per cent over the level at end-June 2014. However, CIC
declined by 13.1 per cent when compared with the level at end-December 2014. The
decline was attributed largely to the fall in the currency held by commercial banks and
the increased use of e-payments channels.
2.3.3.2 Currency-in-Circulation (CIC)
CBN Economic Report for the First Half of 2015
Table 3
Structure of the CIC, 2011 - June 2015

At end-June 2015, there were 5,818.06 million pieces of banknotes and 2,001.84 million
pieces of coins valued at 1,561.29 billion and 1.26 billion, respectively. This represented
an increase of 4.2 and 1.6 per cent in the value of banknotes and coins, respectively, over
the levels in the corresponding period of 2014. In terms of composition, the number and
value of 5, 10, N20 and 50 constituted 54.3 and 3.2 per cent of total banknotes in
circulation compared with 55.2 and 3.7 per cent, respectively, in the corresponding
period of 2014.
At end-June 2015, the 1,000 and 50 banknotes in circulation fell by 10.9 and 69.6 per
cent, respectively, while the 500, 200, 100, 20, 10 and 5 denominations rose by
30.9, 37.4, 22.7, 8.9, 12.9 and 43.0 per cent, respectively, over the levels in the first half of
2014.
Source: Central Bank of Nigeria
CBN Economic Report for the First Half of 2015

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-15
Jun-14

Coins

2.4 Financial Sector Surveillance
2.4.1 Banking Supervision
The CBN intensified its regulatory and surveillance activities in the banking sector in the
first half of 2015 to ensure a safe and sound financial system. In this regard, the Bank
continued close monitoring of banks through risk-based supervision, review and regular
appraisal of banks' periodic returns, spot checks, and special investigations, among
others.
The CBN and the Nigeria Deposit Insurance Corporation (NDIC) issued the approved
Framework for the Regulation and Supervision of Domestic Systemically Important Banks
(SIBs) in Nigeria with effect from March 1, 2015. The Framework specified, among others,
the methodology for identifying SIBs, higher loss absorbency and additional regulatory
requirements such as liquidity, stress testing, disclosure and reporting requirements.
The implementation of the Basel II Accord in the Nigerian banking sector, which
commenced in January 2014, progressed in the review period with the issuance of the
revised guidance notes and capital adequacy ratio (CAR) reporting templates to the
industry.
In an effort to surmount the challenges faced by on-site examiners in the application of IT
Audit tools, the special in-house training code-named iSight Project for Examiners on ACL,

Advanced Excel and SQL continued in the first half of the year. From inception, five
batches of twelve examiners each have graduated, out of which two batches
graduated in the first half of 2015.
The Bank sustained its effort at enhancing capacity and information sharing among
supervisors in other financial jurisdictions during the review period. In this regard, the Bank
championed the formation of College of Supervisors for Ecobank with the BCEAO and
also participated in the inaugural meeting in April 2015 in Abidjan, Cote D' Ivoire.
Furthermore, the CBN supported the drafting of a Crisis Resolution Framework for the West
African Monetary Zone (WAMZ). The draft was presented to member countries during the
College of Supervisors of the West African Monetary Zone (CSWAMZ) meeting in April
2015. The Bank also participated in the Community of African Bank Supervisors' (CABS)
Working Group inaugural meeting on Cross Border Supervision held on May 18, 2015 in
Pretoria, South Africa. The Group was charged with the responsibility of developing Cross
Border Crisis Resolution Framework for adoption by member countries.
At end-June 2015 only one (1) on-site examination of UBA, Burkina Faso was conducted,
while those on foreign subsidiaries of other banks were scheduled for the second half of
the year.
CBN Economic Report for the First Half of 2015
1 ACL and SQL data analytics is a data extraction and analysis software
used for fraud detection and prevention, and risk management.

Provisional data indicated that the Bank's Credit Risk Management System (CRMS)
continued to be a veritable platform for the management of credit risk in the banking
industry. The number of registered borrowers in the CRMS database stood at 128,516 at
end-June 2015, representing an increase of 2.5 per cent over the number recorded at
end-June 2014. The number of borrowers with outstanding facilities rose by 6.3 per cent to
51,909 during the review period, while the total number of credit facilities in the database
rose by 10.2 per cent to 86,318 at end-June 2015. The development was attributed to the
increased compliance by banks.
The number of private credit bureaux (PCBs) remained at three (3) at end-June 2015, and
continued to complement the CRMS in the credit administration process. At end-June
2015, the number of persons registered in the PCB database (registered records)
increased by 10.0 per cent to 32,214,018, compared with 29,285,471 at end-December
2014. The number of borrowers in the database at end-June 2015 stood at 17,683,008,
compared with 17,043,822 at end-December 2014. However, the number of credit
reports sold decreased by 28.8 per cent to 1,113,164 during the review period.
Following the nine-month parallel run of the Basel I and Basel II capital adequacy
computation, the full adoption of Basel II commenced in October 2014. Consequently,
all banks had been submitting their monthly capital adequacy computation using the
Basel II capital adequacy ratio (CAR) reporting template. During the first half of the year,
the Basel II guidance notes and CAR reporting template were reissued to the industry. By
end-June 2015, the banks had submitted their internal capital adequacy assessment
process (ICAAP) documents for the year ended December 31, 2014 for review, by the
CBN.
CBN Economic Report for the First Half of 2015
Figure 21
Credit Risk Management System (CRMS) Statistics
(End-June 2015)


End-Dec 2014
End-May 2015
No of Registered Borrowers
No of Borrowers with Outstanding Facilities
No of Credits
Source: CBN

2.4.2 Routine/Target Examination
2.4.3 Routine/Special Foreign Exchange Examinations
2.4.4 Banking Sector Soundness
A Joint CBN/NDIC target risk assets examination of all banks and discount houses was
carried out in the first half of 2015. The examination was aimed at ascertaining the quality
of banks' assets and the adequacy of loan loss provisioning. Where these were found to
be inadequate, banks were required to make the necessary provisions prior to the
approval for publication of their 2014 annual accounts. Also, monitoring/follow up of
banks' responses to major observations of risk-based examination reports for High and
Above Average composite-risk-rated banks as well as Medium and Low composite-riskrated banks as at September 30, 2014 was conducted in the first half of the year. The aim
was to ensure compliance with earlier recommendations by examiners during visits.
CBN undertook a number of ad-hoc investigations on banks. These included: spot checks
on non-performing loans (NPLs) of selected banks; spot check on banks' investment and
utilisation of Eurobonds; on-lending foreign loans; and other foreign loans received by all
the banks. To ensure that government revenues collected by banks were remitted to the
Federation Account within the stipulated period, the Bank conducted examination on
the banks during the review period. The reports of the examinations were being reviewed
by management.
The examination of foreign exchange activities of the 24 banks for the period October 1,
2014 to March 31, 2015 was conducted to ascertain banks' compliance with extant
foreign exchange laws and regulations. The major infractions observed included: failure
to issue certificate of capital importation to beneficiaries within the stipulated period of
24 hours of receipt of funds; incorrect rendition of returns to regulators; failure to obtain
evidence of repatriation of export proceeds; non-compliance with approved netopen–positions; and inadequate documentation for importation. Necessary regulatory
actions were taken to address the observed infractions.
Following the continued pressure on the foreign exchange market, the CBN undertook a
series of special/ad-hoc investigations into foreign exchange operations of banks in the
first half of 2015. The focus was to determine the role of authorised dealers in the
unabated depreciation of the naira, especially in the BDC segment. It was observed that
some authorised dealers purchased foreign exchange forwards from the CBN and resold
spot to customers at maturity.
In the review period, the health of banks in the industry was adjudged sound. At end-June
2015, the industry average CAR for banks stood at 17.3 per cent, compared with 15.9 per
CBN Economic Report for the First Half of 2015

cent recorded at end-December 2014 and 15.0 and 10.0 per cent benchmarks for banks
with national and international authorisation, respectively. The industry liquidity ratio
stood at 39.6 per cent at end-June 2015, compared with 45.9 and 42.7 per cent at endDecember and end-June 2014, respectively. Assets quality of banks, measured by the
ratio of non-performing loans to industry total, deteriorated from 2.9 per cent at endDecember 2014 to 4.7 per cent at end-June 2015, compared with 3.5 per cent at the end
of the corresponding period, and 5.0 per cent benchmark. The increase in the NPL ratio
relative to the levels at end-December 2014 was attributed to inadequate risk mitigation
measures taken by banks, and impaired cash flows of obligors, among others.
In the first half of 2015, the Bank undertook the assessment of banks' returns on the revised
code of corporate governance with the objective of monitoring compliance. A review
of the returns showed that most of the banks complied substantially with several
provisions of the Code. However, there was need for improvement in the level of
compliance with respect to the provisions for the appointment of Non-Executive
Directors.
During the review period, the Financial Reporting Council of Nigeria (FRCN) released an
exposure draft of the Codes of Corporate Governance for public, private and non-profit
organisations. The objective of the Codes was to provide standardised corporate
governance guidelines for all institutions under the regulatory purview of the FRCN. The
Codes were reviewed and comments on the Bank's position were forwarded to the
FRCN.

The Money Laundering/Financing of Terrorism (ML/FT) risk assessment was carried out at
the head offices of ten (10) selected DMBs in the first half of 2015. The objectives of the
exercise were to: test the ML/FT risk assessment tools (risk assessment matrix and control
questionnaire); determine the reasonability of the results arrived at using the risk
assessment tools; and re-calibrate the risk assessment matrix, if necessary.
Banks were rated either “Low”, “Average”, “Above Average” or “High”. The overall risk
for 9 of the 10 selected banks was “Above average”, while that for one could not be
determined due to lack of information. It was also observed that banks generally had
difficulties in maintaining and providing accurate information necessary to populate
Form 001 [ML/FT Monthly Risk Assessment Report]. These difficulties were due to lack of:
understanding by banks of ML/FT risks management system; clear procedures for
identifying and classifying ML/FT risks; and clear mechanisms for monitoring higher risk
customers.
2.4.5 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)
CBN Economic Report for the First Half of 2015
2 The Structural Risk + Inherent Risk (in customers, products, services, geographic zones and
delivery channels) – Risk Mitigants/Controls) = Composite ML/FT Risk approach.

In line with the recommendation of Financial Action Task Force (FATF), the CBN carried
out a maiden AML/CFT compliance examination of banks in the first half of 2015. The
exercise also involved an investigation of the massive deposits in foreign currency
recorded by the banks pre- and post-general elections. Similarly, the Bank conducted its
maiden joint cross-border AML/CFT examination of Nigerian banks operating in the West
African region in conjunction with the regulators of the host countries. The different teams
visited Togo, Ghana and Senegal for the examination of Diamond Bank, Zenith Bank and
UBA, respectively.
The Bank marked the 2015 Global Money Week from March 9 – 17, 2015 with the following
activities: Global Walk for Money; Financial Literacy Fair/Exhibition; and Reach Out and
Mentoring Programme, particularly for students of secondary schools. In addition, the
financial literacy sensitisation programme of the Bank was held in Asaba, Delta State,
during the review period.
The Bank received 758 complaints from consumers against financial institutions in the first
half of 2015, compared with 428 received in the corresponding period. A total of 481
complaints were resolved, compared with 497 complaints in the corresponding period of
2014. The complaints comprised excess charges, frauds, dishonoured guarantees,
unauthorised deductions, and those related to cards and other electronic channels,
among others. Total claims against the financial institutions during the review period in
local and foreign currencies amounted to 8.83 billion and US$745,744.26 and £6,000,
compared with
7.38 billion, US $311,359.00 at end-June 2014. Total refunds by the
institutions stood at
1.87 billion, US$957,920.05, compared with
3.87 billion and
US$176,358 at end-June 2014.
Following the successful integration of the Consumer Complaint Management System
(CCMS) in the industry, all banks were required to upload their outstanding complaints
into the platform. Consequently, training programmes were conducted for users and
sensitisation of relevant stakeholders continued to ensure industry-wide acceptance
and usage.
In addition, the Bank conducted compliance examination on twenty (20) banks to
ascertain their levels of compliance with laws and regulations on consumer protection.
The major findings of the examination included: compliance rate of 83.0 per cent on
minimum disclosure requirements in the offer letter; 97.0 per cent of lending/facility fees;
and 20.0 per cent with respect to upload of complaints on the CCMS. Overall, the
exercise revealed substantial compliance by the institutions, while those that failed to
2.4.7 Financial Literacy and Consumer Protection
CBN Economic Report for the First Half of 2015

comply in certain areas were directed to implement specific remedial actions, including
making refunds, where applicable.
During the review period, a number of fraud cases were reported, which included
suppression and conversion of customers' deposit, theft, illegal funds transfer, cheque
defalcation, and fraudulent ATM withdrawals, among others. The number of reported
cases of fraud and forgeries stood at 5,917, valued at
11.99 billion, compared with
11,447 and 5,197 cases valued at N25.81 billion and 16.8 billion at end-December and
the corresponding period of 2014, respectively. Of the amount, the actual loss incurred
by banks was
1.9 billion, compared with
4.8 billion and
1.72 billion, respectively,
recorded at end-December and the corresponding period of 2014. There was a
significant decrease in the amount involved and the actual loss to the banking industry,
when compared with the corresponding period in the previous year. This reflected
stronger internal control measures adopted by the banks, and improved use of
technology.
The number of foreign subsidiaries of Nigerian banks reduced to sixty (60) from sixty-one
(61) at end-December 2014, while the number of representative offices of Nigerian banks
abroad increased to ten (10) from seven (7) at end-December 2014. The decrease in the
number of subsidiaries was attributed to Keystone Bank's divestment of its subsidiary in
Uganda, while the increase in the number of representative offices was due to approvals
given to Access Bank to open new representative offices in India, Lebanon and United
Arab Emirates (UAE).
During the review period, on-site examination was conducted on 110 microfinance
banks (MFBs). The reports of the examination were being processed. Also, 63 MFBs
identified to have infringed on the prescribed minimum prudential requirements,
particularly for maintaining negative adjusted capital, portfolio-at-risk exceeding the
permissible 5.0 per cent benchmark, liquidity ratio below the stipulated minimum of 20.0
per cent and non-performing insider-related credit facilities were issued with Regulatory
Letters. The institutions were required to take corrective actions, including immediate
injection of fresh capital to meet the minimum capital requirement, recovery of all nonperforming credits, maintenance of adequate liquidity, and regularisation of all nonperforming insider-related loans and advances. The Board of Directors of the concerned
institutions were directed to take corrective actions to address the observed lapses
before July 31, 2015, failure of which would constitute grounds for revocation of licence.
2.4.8 Fraud and Forgeries
2.4.9 Cross Border Activities
2.4.10 Examination of Other Financial Institutions
CBN Economic Report for the First Half of 2015

The Bank issued circulars to remind all finance companies (FCs) of their recapitalisation
deadline of September 30, 2015 in line with the Revised Guidelines for Finance
Companies in Nigeria. To this end, all FCs were required to provide update on their level
of capitalisation and detailed plan of action to satisfy the minimum capital (shareholders'
fund unimpaired by losses) of N100 million before the stipulated deadline. Responses so
far received were being reviewed to ascertain compliance level.
A Risk Based examination was conducted on 32 primary mortgage banks (PMBs) out of
the 36 PMBs in operation at end-June 2015. The exercise revealed that one (1) institution
had Composite Risk Rating (CRR) of Low; six (6), Moderate; eleven (11), Above Average;
and fourteen (14), High. The other four (4) PMBs were those granted extension to meet
their recapitalisation requirements.
In addition, the risk-based examination of the three private Credit Bureaux was
conducted. The examination report of two (2) institutions were issued in the review
period, while the report of the remaining institution was being finalised. The exercise
revealed that the capital of two (2) had been eroded by accumulated losses and were
below the required minimum of N500 million. The Management of each institution was
engaged on the issue and recapitalisation plans had been submitted to the Bank.
Furthermore, 102 bureaux-de-change (BDCs) were examined to assess their compliance
with extant regulations on foreign exchange acquisition and utilisation. The reports
revealed that 30 BDCs were compliant, while 72 BDCs or 70.6 per cent of those examined
committed various infractions, which were classified as either administrative or
documentation lapses. The administrative lapses included: failure to maintain basic
accounting records; lack of basic office equipment and furniture; non-submission of
annual audited accounts to the CBN for approval; relocation of business addresses
without the CBN's prior approval; non-rendition of anti-money laundering returns to the
Nigeria Financial Intelligence Unit (NFIU) of the Economic and Financial Crimes
Commission (EFCC); and rendition of inaccurate or incomplete returns to the CBN. The
documentation lapses included: failure to account for all foreign exchange sourced
from the DMBs (autonomous market) and the CBN window; failure to maintain purchases
and sales registers; maintaining sales margins above the permissible maximum spread of
3.5 per cent; sale of foreign exchange to customers in excess of the approved limit in a
quarter; and failure to endorse or stamp customers' International Passports with the
amount of foreign exchange purchased. Appropriate sanctions were imposed on errant
BDCs.
CBN Economic Report for the First Half of 2015

A verification exercise was carried out during the period under review to confirm the
number of BDCs that had complied with payment of the 35 million Mandatory Caution
Fee. The exercise put the number of BDCs in this category at 2,688 as at June 24, 2015.
During the review period, 103 BDCs were barred from accessing the CBN window for their
failure to meet the recapitalisation requirements. Similarly, penalty letters were written to
75 BDCs out of the 100 BDCs examined in October/November 2014. Furthermore, 2 BDCs
were suspended indefinitely because their registered office addresses could not be
located, while the licence of one (1) BDC was revoked for denying Examiners access to its
books after it had earlier been sanctioned for other breaches. With the Bank's continued
regulatory surveillance and zero tolerance for infractions, the BDCs were expected to
ensure compliance with extant foreign exchange regulations, with a view to supporting
and strengthening the restrictive monetary policy stance of the Bank.
On February 18, 2015, as part of the foreign exchange reforms in the market, the CBN
discontinued the retail Dutch Auction System (rDAS) and mandated that all foreign
exchange transactions be channeled to the interbank segment. The policy change was
informed by the low accretion to external reserves arising from depressed global crude
oil prices, high speculative demand and widening premium between the rates in the
interbank and rDAS, resulting in high demand pressure in the foreign exchange market.
Aggregate demand in the period rose by 284.5 and 255.4 per cent to US$99.54 billion,
relative to the preceding half year and the corresponding period of 2014, respectively.
The pressure was further exacerbated as total sales fell by 20.1 and 27.4 per cent to
US$18.27 billion below the respective levels in the second and first halves of 2014.
As part of the efforts by the Bank at conserving the external reserves, the CBN in circulars
dated April 13 and April 22, 2015, reviewed downward the limit on the usage of the naira
denominated cards for transactions abroad from US$150,000.00 to US$50,000 per person,
per annum with a daily cash withdrawal limit of US$300.00. In another circular dated June
23, 2015, the Bank excluded funding of the import of forty-one (41) items from the interbank segment of the foreign exchange market.
A total of fourteen (14) trading auctions were held at the spot segment of the foreign
exchange market as against fifty (50) in the corresponding period in 2014 due to the
closure of the rDAS segment in the first half of the year. Aggregate demand for foreign
exchange grew to US$99.54 billion during the period under review, compared with
US$28.01 billion and US$25.89 billion in the first and second halves of 2014, respectively. A
disaggregation of total demand showed that rDAS-spot amounted to US$8.65 billion
2.5 Foreign Exchange Market and Management
2.5.1 Spot Segment of the Foreign Exchange Market
CBN Economic Report for the First Half of 2015

CBN Economic Report for the First Half of 2015
(8.5%); BDCs, US$1.83 billion (1.9%); and interbank, US$89.06 billion (89.6%). The
cumulative foreign exchange sold in the first half of 2015 fell by 20.1 and 27.4 per cent to
US$18.27 billion, compared with the respective levels in the first and second halves of
2014. Of the total, sales to the inter-bank segment was US$9.67 billion (52.9%); the rDAS
segment, US$3.18 billion (17.4%); and the BDC segment, US$1.83 billion (10.0%) others
were accounted for by swaps and forwards transactions. The supply gap stood at
US$81.26 billion in the review period.
As a proportion of total foreign exchange sales swap transactions valued at US$2.25
billion or 12.4 per cent of the total supply of foreign exchange were undertaken in the
review period, while forwards contracts amounting to US$1.34 billion or 7.3 per cent of
total were disbursed at maturity.
2.5.2 Swaps and Forwards Transactions
Figure 22
Demand, Supply and Net Demand of Foreign Exchange
(US$' Billion)

Foreign Exchange Demand
Foreign Exchange Supply
Net Foreign Exchange Demand

NBillion
Source: CBN
2.5.3 Exchange Rate Movements
2.5.3.1 Spot Exchange Rates
The exchange rate of the naira to the US dollar depreciated during the review period,
owing to low accretion to external reserves, reduced portfolio inflows and high
speculative demand.
At the spot segment of the foreign exchange market, the exchange rate averaged
169.68/US$ in January and February 2015 and depreciated by 7.3 and 5.8 per cent
relative to the levels in the first and second halves of 2014, respectively. Following the
closure of the official segment of the foreign exchange market on February 18, 2015, the
naira exchanged at an average of 194.04/US$ at the interbank segment, in the first half

The end-period exchange rate of the naira against the US dollar depreciated by 8.6 and
17.3 per cent to
196.95/US$ at the interbank segment relative to the rate at endDecember 2014 and end-June 2014, respectively. Similarly, the naira depreciated by
15.1and 25.5 per cent to 225.50/US$ at the BDC segment in the same period.
CBN Economic Report for the First Half of 2015
of 2015 and depreciated further by 16.2 and 13.8 per cent, compared with the levels in
the first and second halves of 2014, respectively. Similarly, at the BDC segment, the naira
depreciated by 20.6 and 18.8 per cent to 213.55/US$, compared with the rates in the first
and second half of 2014, respectively. Consequently, the premium between the interbank and the BDC exchange rates widened to 10.1 per cent in the first half of 2015 from
4.3 and 3.7 per cent recorded in the first and second halves of 2014, respectively. The
premium was above the international benchmark of 5.0 per cent.
Figure 23
Exchange Rate Movements
(N/US$)

Interbank
BDC
rDAS
rDAS segment
discontinued in
February 2015
Per cent per US$
Source: CBN
Figure 24
Interbank/Bureau-de-Change Foreign Exchange (N/US$) Premium
(Per cent)

5% International
Benchmark
Per cent
Source: CBN
2.5.4 Foreign Exchange Flows
The cumulative inflow of foreign exchange into the economy, at US$52.12 billion, fell by
35.7 and 31.1 per cent below the levels in the second and first half of 2014, respectively.
Of the total, inflow through autonomous sources accounted for 70.7 per cent, while the
balance was accounted for by inflow through the CBN. Total foreign exchange outflow
from the economy declined by 19.6 and 24.9 per cent to US$21.84 billion from the levels in
the second and first halves of 2014, respectively. The moderation in outflow was due to
the closure of the rDAS window and the increase in the number of items not eligible for
funding from the inter- bank window. Consequently, the net foreign exchange inflow into
the economy stood at US$30.29 billion, representing 43.8 and 34.9 per cent decline below
the levels in the second and first half of 2014, respectively.
The total inflow through autonomous sources declined by 35.8 and 30.2 per cent to
US$36.84 billion, below the respective levels at end-December and end-June 2014,
respectively. This was due to the reduction in the inflows from non-oil export, external
accounts and invisible purchases through banks by 33.40, 84.86 and 29.62 per cent,
respectively, over the preceding period.
Total invisible purchases comprised purchases from ordinary domiciliary accounts
(US$17.21 billion) and total OTC purchases by banks (US$17.16 billion). Of the total OTC
purchases, capital importations, other OTC purchases, foreign exchange purchases by
banks from oil companies and home remittances fell by 47.6, 41.6, 24.6 and 20.6 per cent
to US$5.42 billion, US$6.00 billion, US$5.26 billion and US$0.48 billion, respectively,
compared with the levels in the preceding period.
Foreign exchange inflow through the CBN fell by 35.5 and 33.2 per cent from the levels in
the second and first halves of 2014, respectively, to US$15.28 billion, due largely to the
drastic decline in crude oil export earnings. Consequently, receipts from crude oil sales
fell by 46.5 and 56.1 per cent to US$9.24 billion in the review period from the levels in the
preceding and the corresponding halves of 2014, respectively. The loss of key markets by
the country also contributed to the decline in oil receipts in addition to the persistent fall
in crude oil prices. The non-oil receipts through the Bank also fell by 0.8 per cent to US$6.05
billion, from the level in the second half of 2014, driven largely by the decline of 83.95 per
cent in other financial receipts. It, however, increased by 224.9 per cent, compared with
the level in the first half of 2014. A disaggregation of non-oil inflow through the Bank
showed that swaps, rDAS purchases, and interest earnings on external reserves and
investments were US$4.06 billion, US$0.65 billion and US$0.07 billion, respectively, in the
review period. The balance was accounted for by other official receipts.

CBN Economic Report for the First Half of 2015

Figure 25
Foreign Exchange Disbursements through the CBN
(First Half 2014)
Foreign exchange outflow through the CBN fell by 20.0 and 26.1 per cent to US$21.07
billion below the levels in the second and first halves of 2014, respectively. This was
attributed, largely, to the closure of the rDAS segment. Of the total outflow through the
Bank, rDAS utilisation accounted for US$18.27 billion of which BDC sales, US$1.83 billion
(10.0%); and swap contracts, US$2.25 billion (12.3%). Of the total rDAS transactions, sales
at the rDAS segment stood at US$3.18 billion (17.4%); inter-bank sales, US$9.67 billion
(52.9%) and forward contracts US$1.34 billion (7.3%).
Outflow in respect of 'Other' official payments through the Bank declined by 40.0 and
23.9 per cent to US$1.85 billion below the levels in the preceding and corresponding
halves of 2014, respectively. Of this, payments to international organisations and
embassies amounted to US$0.29 billion; parastatals and estacode, US$0.64 billion; Joint
Venture Cash (JVC) calls, US$0.89 billion; and miscellaneous, US$0.02 billion. Outflow
through drawings on letters of credit (L/Cs); external debt service and national priority
projects amounted to US$0.14 billion, US$0.21 billion, and US$0.09 billion, respectively.
Overall, the total foreign exchange transactions through the Bank resulted in a net
outflow of US$5.79 billion in the first half of 2015, compared with US$2.64 billion and
US$5.60 billion in the second and first halves of 2014, respectively.
CBN Economic Report for the First Half of 2015

Interbank Sales ,
45.9%
rDAS Forward ,
6.4%
Drawings on L/Cs,
0.7%
External Debt
Services, 1.0%
Other Official
Payments, 8.7%
National Priority
Project, 0.4%
BDC Sales , 8.7%
Swaps, 10.7%
rDAS Sales , 15.1%
rd
3 Party MDA
Transfers , 2.2%
Others, 0.2%
Source: CBN

2.5.5. Sectoral Utilisation of Foreign Exchange
The aggregate sectoral utilisation of foreign exchange in the first half of 2015 fell by 27.2
and 26.8 per cent to US$24.10 billion, from the respective levels in the second and first
halves of 2014. A disaggregation of imports showed that visible (goods) trade declined
by 18.8 and 14.2 per cent to US$14.27 billion from the levels in the preceding half and
corresponding half of 2014, respectively. Invisible trade also declined by 36.6 and 39.6
per cent during the same period.
Analysis of the foreign exchange utilisation for visible trade showed that oil sector imports,
industrial sector, food and manufactured products fell by 13.9, 7.3, 11.9 and 18.2 per cent
to US$4.45 billion, US$4.32 billion, US$2.34 billion, and US$2.28 billion, compared with the
respective levels in the corresponding period of 2014. Similarly, the amount of foreign
exchange utilised for transport and agricultural sectors declined by 46.6 and 36.7 per
cent, respectively, compared with the first half of 2014. Foreign exchange utilisation for
the importation of minerals, however, increased by 27.0 per cent, above the level in the
corresponding period of 2014.
The total value of foreign exchange utilised for invisibles (services) in respect of financial,
business, communication and distribution services declined by 41.2, 50.4, 13.3 and 35.5
per cent to US$7.77 billion, US$0.76 billion, US$ 0.32 billion and US$0.03 billion, respectively,
relative to the levels in the first half of 2014. Similarly, the amount of foreign exchange used
for transport services fell by 47.7 per cent to US$0.38 billion, compared with the level in the
corresponding period of 2014. Other services collectively amounted to US$0.15 billion
CBN Economic Report for the First Half of 2015
Figure 26
Foreign Exchange Transactions through the CBN
(First Half 2015, US$' Billion)


1st Half 2014
2nd Half 2014
1st Half 2015
Inflow
Outflow
Netflow
US$ Billion
Source: CBN

Figure 27
Sectoral Utilisation of Foreign Exchange (Visibles)
(First Half 2015)
CBN Economic Report for the First Half of 2015
and accounted for 1.5 per cent of invisible transactions, during the review period.
Foreign exchange payments for education, and construction and engineering services
grew by 67.8 and 9.3 per cent to US$0.23 billion and US$0.05 billion, respectively, over the
levels in the first half of 2014.
Figure 28
Sectoral Utilisation of Foreign Exchange (Invisibles)
(First Half 2015)

Oil Sector
31.2%
Industrial Sector
30.2%
Transport Sector
3.5%
Agricultural Sector
1.1%
Minerals
1.6%
Manufactured
Products
16.0%
Food Products
16.4%

7.8%
3.3%
Educational
2.4%
Others
3.6%
Financial
79.1%
3.8%
Communication
Business
Transport
Source: CBN
Source: CBN

2.5.6 Foreign Exchange Receipts by Top Hundred (100) Exporters
2.5.7
Nominal Effective Exchange Rate (NEER) and Real Effective Exchange
Rate (REER) Indices
Analysis of export proceeds of the top 100 exporters in the first half of 2015 showed that
total earnings declined by 23.8 per cent to US$831.17 million below the receipts in the
corresponding period of 2014. Ranking of the exporters by earnings indicated that Olam
Nigeria Limited retained the first position with proceeds valued at US$92.54 million,
compared with US$178.44 million in the first half of 2014. The company exported largely
cocoa beans, sesame seeds, cotton lints, and dried ginger to the Netherlands, Greece,
Turkey and the United Kingdom. Bolawole Enterprises Nigeria Limited ranked second with
exports valued at US$61.08 million, from US$54.12 million in the corresponding period of
2014. Its main export product was cocoa beans to the Netherlands and South Africa. The
British American Tobacco (BAT) Nigeria Limited, and AIS Trades and Industries Limited
ranked third and fourth with proceeds that amounted to US$40.85 million and US$40.59
million, respectively. BAT Nigeria Limited exported cigarettes to Ghana, Liberia, Guinea,
South Africa and Cote'dvoire, while the latter exported cashew nuts and split dried
ginger to the United Kingdom, the United Arab Emirates, India, Guinea and Canada.
Mamuda Industries Nigeria Limited ranked fifth largest exporter with earnings of US$31.31
million from the exports of split dried ginger and leather to Canada, Malaysia, Spain, India
and Italy. The sixth major exporter was Notore Chemical Industries Limited with proceeds
valued at US$25.81 million, from the exports of granular urea fertilizer and anhydrous
ammonia to Morocco, Portugal, China, Italy and India.
th
Fresh page limited was the 99 top exporter with export earnings of US$0.144 million from
th
the export of raw cashew nuts to India. The Tradelinks Afro Asia Limited ranked 100 , from
the export of raw cashew nuts to Bulgaria valued at US$0.142 million.
The average 13-currency Nominal Effective Exchange Rate (NEER) index at 104.90,
increased by 9.36 and 10.17 per cent at end-June 2015 over the levels in the first and
second halves of 2014. Similarly, the average Real Effective Exchange Rate (REER) index
(based on a 13-currency basket) increased by 2.32 and 5.94 per cent above the levels in
the first and second halves of 2014 to 62.10 in the review period.
CBN Economic Report for the First Half of 2015

CBN Economic Report for the First Half of 2015
Figure 29
Nominal Effective Exchange Rate (NEER) and Real Effective Exchange Rate
(REER) January 2014 – June 2015


Jan-14
Mar-14
May-14
Jul-14
Sep-14
Nov-14
Jan-15
Mar-15
May-15
Nominal Effective Exchange Rate
Real Effective Exchange Rate
Source: CBN
Table 4
Nominal and the Real Effective Exchange Rate indices
(November 2009=100)

Nominal Effective
Exchange Rate
(NEER)
Real Effective
Exchange Rate
(REER)
Jan
94.96
60.43
Feb
95.84
60.93
Mar
96.26
61.06
Apr
96.37
61.02
May
96.08
60.53
Jun
96.01
60.20
Jul
95.23
59.47
Aug
94.84
58.96
Sep
92.67
57.32
Oct
92.75
57.07
Nov
97.70
59.62
Dec
98.10
59.27

Jan
96.53
57.69
Feb
95.77
57.09
Mar
108.55
64.52
Apr
110.20
65.25
May
108.87
64.04
Jun
109.45
64.03
Source: CBN

2.6 Development Finance Operations
2.6.1
Agricultural Credit Guarantee Scheme Fund (ACGSF)
During the first half of 2015, the volume and value of guaranteed loans under the ACGSF
decreased by 18.9 and 9.0 per cent to 28,702 and 5.44 billion, respectively, below the
levels in the corresponding period in 2014. Of the total volume of loans guaranteed by
purpose, food crops accounted for 20,997 (73.2%); livestock, 2,378 (8.3%); mixed crops,
2,133 (7.4%); cash crops, 1,100 (3.8%); fisheries, 680 (2.4%); and others, 1,414 (4.9%).
Analysis by category of borrowers showed that individuals accounted for 5.37 billion,
(98.7%); informal groups N0.024 billion, (0.44%); cooperatives N0.009 billion, (0.17%); and
companies, 0.035 billion (0.65%). The sum of 4.36 billion was repaid for 25,287 projects
in the first half of 2015. In the review period, 1,467 claims valued at 13.70 million were
settled, thus bringing the total claims settled from inception to
615.60 million. The
cumulative number of loans guaranteed from inception of the scheme to end-June
2015, was 960,565, valued at 89.90 billion. Also, the cumulative repayment amounted
to 60.84 billion for 722,845 projects.
CBN Economic Report for the First Half of 2015
Figure 30
Sectoral Distribution of ACGSF Loans (By Purpose)
(First Half 2015)

Food Crop
73.0%
Mixed Crops
8.0%
8.0%
Others
5.0%
Cash Crops
4.0%
Fisheries
2.0%
Source: CBN
2.6.2
Interest Drawback Programme (IDP)
The number and value of IDP claims settled in the first half of the year increased by 11.3
and 12.9 per cent to 14,582 and 193.33 million, respectively, in the corresponding period
of 2014. This brought the cumulative number and value of IDP claims settled from
inception to 270,894 and 2.45 billion, respectively.

Table 5
Performance of EDCs
(Half year, 2015)
Also, three new EDC Outreach Centres established in Kano (North-West), Ibadan (SouthWest), and Minna (North-Central), commenced operation in the first quarter of 2015, and
trained 2,329 entrepreneurs, made up of 1,300 males and 1,029 females, while 1,016
others benefitted under the business internship programme, in the first half of 2015.
Table 6
Performance of EDCs Outreach Centres (Half year, 2015)
CBN Economic Report for the First Half of 2015
2.6.3
The Trust Fund Model (TFM)
2.6.4 Entrepreneurship Development Centres (EDCs)
During the first half of 2015, no new Memorandum of Understanding (MoU) was signed.
Thus, since inception in 2002, state governments, multinational agencies, local
government councils (LGCs), non-governmental organisations (NGOs) and individuals
signed fifty-eight (58) MoUs with pledged sum of 5.56 billion.
In the first half of 2015, the three existing Central Bank of Nigeria EDCs trained 3,671
entrepreneurs made up of 1,975 males and 1,696 females, thus exceeding the target in
the review period. A breakdown of the performance showed that Maiduguri (NorthEast), trained 1,048; Makurdi (North-Central), 1,153; and Calabar (South-South), 1,470,
respectively. Furthermore, 3,228 participants undertook business internship, while 3,100
jobs were created by the EDC graduates in the review period.
S/N

GeoPolitical
Zones

No
Traine
d

Males
Trained

Female
Trained
Internship
Job
Created

Link
age

Calabar

1,470

1,285
1,552

Makurdi

1,153

1,153

Maiduguri

1,048

TOTAL

3,671

1,975

1,696

3,228

3,100


1,437
S/N

Geo-Political
Zones

No
Trained
Males
Trained
Female
Trained

Internship

Kano

Ibadan

Minna

1,048

TOTAL

2,329
1,300
1,029

1,016

Source: CBN
Source: CBN

2.6.5
200 Billion Commercial Agriculture Credit Scheme (CACS)
The Bank continued to fund large ticket agricultural projects with emphases on seven
focal commodities, namely wheat, cotton, fish, rice, sugar, dairy products and oil palm.
In the review period, the sum of
24.47 billion was released to twenty-five (25) private
projects and one (1) state government through twenty (20) participating banks. Analysis
of number of projects financed by value chain revealed that production accounted for
65.4 per cent while processing and input supplies recorded 26.9 per cent and 7.7 per
cent, respectively.
CBN Economic Report for the First Half of 2015
Table 7
Analysis of CACS Financed Projects by Value Chain
(First Half 2015)
Category


Number of
Projects
Per cent
Value

{N’ billion }

Per cent

Production

65.4
16.39

67.0

Processing

26.9
7.89

32.2

Input Suplies

7.7
0.19

0.8


Total

100.0
24.47

100.0

Analysis by value, revealed that production accounted for
16.39 billion; processing,
7.89 billion; and input supplies, 0.19 billion, respectively.
At end-June 2015, the cumulative amount disbursed under the scheme, which is
revolving since inception, stood at 287.49 billion to 333 private and 37 state government
projects.
Figure 31
Analysis of CACS Financed (Privately-Sponsored Projects)
by Value Chain
(First Half 2015)


Processing
27%
Production
65%
Input Supplies
8%
Source: CBN
Source: CBN

2.6.6
200 Billion SME Restructuring and Refinancing Facility (RRF)
2.6.7 200 Billion SME Credit Guarantee Scheme (SMECGS)
2.6.8
The 300 Billion Real Sector Support Facility (RSSF)
2.6.9
300 Billion Power and Airline Intervention Fund (PAIF) Initiative
Under the RRF scheme, the Bank continued to disburse funds in support of the SME sector
from the RRF repayment account. The sum of 22.0 billion was released to the Bank of
Industry (BOI) for disbursement between January and June, 2015, compared with 17.8
billion released in the corresponding period of 2014. Thus, the cumulative amount
disbursed by the BOI to the deposit money banks participating under RRF from inception
in March, 2010 to June, 2015 amounted to 360.73 billion for 602 projects. Also, the sum of
8.99 billion was fully repaid in the review period.
In the first half of 2015, two (2) projects valued at 140.0 million were guaranteed under
the Scheme, compared with four (4) projects valued at
155.23 million in the same
period in 2014. At end-June 2015, eighty-one (81) projects valued at
3.77 billion had
been guaranteed from inception in April 2010, while repayments of 2.44 billion for thirtysix (36) projects received was repaid in the review period.
In a bid to further provide low interest rate, long-term financing to SME/Manufacturing
and Start-ups as well as create jobs in the real sector of the economy, the RSSF was set-up
in the fourth quarter of 2014. The Fund would be accessed at a single-digit interest rate of
9.0 per cent. In the first half of 2015, the sum of 3.5 billion was released to one (1) project
engaged in cassava processing for the production of starch and glucose.
PAIF, meant to address the paucity of long-term credit and acute power shortage in the
country, remained relevant in the first half of 2015. The sum of 13.26 billion was released
to the Bank of Industry (BOI) for two (2) projects, one (1) power ( 9.92 billion) and one (1)
airline ( 3.34 billion). Cumulative disbursement from inception of the initiative stood at
249.61 billion for fifty-five (55) projects; of which thirty-nine (39) for power projects
received N128.85 billion, while sixteen (16) airline projects had 120.76 billion. The sum of
11.71 billion was repaid at end-June 2015. Thus, the cumulative repayment since
inception in 2010, stood at 53.10 billion by fifty-one projects.
CBN Economic Report for the First Half of 2015

CBN Economic Report for the First Half of 2015
Table 8
Summary of projects financed under PAIF (from inception to Half year, 2015)
S/N
Type
No. of
Obligors

No. of
Projects

Amount (N)

%

No. of
Repayments as at
End-June 2015

Airline
projects

120,762,597,372

48.38

4,737,881,175.61

Power
projects

128,851,659,192

51.62

6,976,024,393.87
Total

249,614,256,565

11,713,905,569.68
2.6.10 Nigeria Incentive-Based Risk Sharing System for Agricultural Lending
(NIRSAL)
2.6.11
213 Billion Nigeria Electricity Market Stabilisation Facility (NEMSF)
In the first half of the year, NIRSAL executed six (6) Credit Risk Guarantee (CRG) valued at
700.46 million for projects of various counter parties under the NIRSAL CRG and Growth
Enhancement Scheme (GES) CRG. The sum of
140.71 million was paid as claim,
comprising fourteen (14) CRG projects ( 50.45 billion) and eighteen (18) GES projects
( 90.26 billion). Consequently, the cumulative Interest Draw Back (IDB) paid stood at
734.30 million.
The Bank established the
213 billion Nigerian Electricity Market Stabilisation Facility
(NEMSF) in the fourth quarter of 2014. The NEMSF was aimed at facilitating the settlement
of legacy gas debt and payment of outstanding obligations due to market participants,
service providers and gas suppliers. The disbursement of NEMSF facility began in
February, 2015. At end-June, the sum of
64.76 billion had been disbursed to NESI
Stabilisation Strategy Ltd to refinance eighteen participants.
Source: CBN
Table 9
Summary of Disbursements under NEMSF (Half year, 2015)
S/N

NESI PARTICIPANT
No
Amount Disbursed
in June 2015(N)
Cumulative
Amount
Disbursed(N)

DISCOs

4,469,986.55
41,055,703,962

GENCOs

6,827,294,999
18,457,878,439

GASCOs

5,241,925,612
5,241,925,612


TOTAL

12,073,690,598
64,755,508,014


Source: CBN
2.6.12 The
220 Billion Micro Small and Medium Enterprises Development Fund
(MSMEDF)
In order to address the observed low uptake of the Fund, the Bank engaged the
Participating Financial Institutions (PFIs) to determine the immediate and remote reasons
for their non-participation. The feedback from the PFIs indicated that most of the
institutions could not afford the required 75 per cent collateral cover and the 6 per cent
spread was not adequate to cover their operational cost. Consequently, the MSMEDF
Guidelines was amended to reflect a reduction of interest rate for PFIs from 3 to 2 per
cent, step down the financial asset collateral requirement from 75 to 50 per cent,
removal of corporate governance structure from the checklist for PFIs, and a reduction
from 2 years audited account to the current year.
In the first half of 2015, the sum of 45.42 billion was disbursed to various entrepreneurs
through 24 state governments, 13 DMBs and 56 MFBs. Analysis of disbursements
indicated that 61.7 per cent of the 25,210 beneficiaries were female, while others were
male micro-enterprises owners. Of the 67 SMEs that accessed the Fund through DMBs,
thirteen or 19.4 per cent were owned and managed by women. Cumulative
disbursement from inception to end-June 2015 stood at 48.59 billion.
Table 10
MSMEDF Commercial Wholesale Component Activity Summary: January to June, 2015
WHOLESALE
FUND

Wholesale Amount
198.00 Billion (N)
Wholesale Amount Disbursed (Jan uary

to
June, 2015)
45,422

Cumulative Wholesale Amount Disbursed

(Inception to June, 2015)
48,592

Wholesale Balance (As at June, 2015)

149,407

Source: CBN

CBN Economic Report for the First Half of 2015

CBN Economic Report for the First Half of 2015
2.6.13 Financial Inclusion
The Bank sustained its effort to enhance financial inclusion in Nigeria to 80 per cent in
2020. It inaugurated two committees, namely the Financial Inclusion Technical
Committee to provide technical support and the Steering Committee for policy
guidance. Also, the Financial Inclusion products, channels, special intervention and
financial literacy working groups were constituted to address specific issues that would
accelerate progress towards the 2020 targets.
In addition, the Bank signed a tripartite letter of understanding with the Federal Ministry
of Finance and the Bill and Melinda Gates Foundation to support the development of an
efficient digital payment system in the country. The project would address infrastructure
gap and enhance the adoption of electronic payments at all levels.
A field survey for the geo-spatial mapping of financial services access points across
Nigeria was concluded in the period. The exercise would show the spatial distribution of
places where Nigerians could transact in financial services and provide guidance for
policy.

CBN Economic Report for the First Half of 2015
ECONOMIC REPORT
3.0
GLOBAL ECONOMIC DEVELOPMENTS
3.1
Global Output
Global output growth was modest in the first half of 2015. Global growth was revised
downwards to 3.3 per cent from the earlier projection of 3.5 per cent by the International
Monetary Fund (IMF), which was lower than the growth of 3.4 per cent recorded in 2014.
The slower growth was due mainly to the lull in activities in North America in the first
quarter of 2015, the dampening effects of lower commodity prices, tighter external
financing conditions and the on-going rebalancing of the Chinese economy. Other
factors that slowed down growth included: weak investment and aging population in
the advanced economies; structural bottlenecks; and geo-political tensions in Europe
and the Middle East.
Growth in the advanced economies was projected at 2.1 per cent in 2015, up from 1.8
per cent in 2014 due largely to acceleration in consumption and investment in the US,
occasioned by lower fuel prices, improved labour market conditions, easing financing
conditions, and strengthening of the housing market. In the US, growth was estimated at
2.5 per cent in 2015, up from 2.4 per cent in 2014. The euro area economy was projected
to expand to 1.5 per cent in 2015 above 0.8 per cent in 2014 due to recovery in domestic
demand and increase in inflation.
In emerging market and developing economies, growth was projected to slow to 4.2 per
cent from 4.6 per cent in 2014 and to increase to 4.7 per cent in 2016. The major factors
responsible for the decline included: lower growth in China; weaker outlook for Russia;
and the downward revisions of growth in the commodity-exporting-countries. Growth in
China was projected to slow down to 6.8 per cent in 2015 from 7.4 per cent in 2014, which
has significant regional spillovers. India's economy was projected to expand by 7.5 per
cent in 2015. The Brazilian economy was projected to contract by 0.1 per cent in 2015, but
would pick-up by 1.0 per cent in 2016. As at end-June 2015, the Russian ruble depreciated
substantially following the drop in oil prices and the continuing geo-political tensions in
the region. Consequently, economic activities weakened and the economy was
projected to slow by 3.4 per cent in 2015 from 0.6 per cent in 2014. This would adversely
affect the performance of other economies in the Commonwealth of Independent
States (CIS).
In sub-Saharan Africa (SSA), growth was projected to slow to 4.4 per cent in 2015 from 5.0
per cent in the preceding year, reflecting lower commodity prices and the effects of

CBN Economic Report for the First Half of 2015
Ebola epidemic. Growth in Nigeria was projected to slow down to 4.8 per cent in 2015, due
largely to falling crude oil prices and insecurity. In South Africa, growth is projected to
improve to 2.0 per cent in 2015 from 1.5 per cent in 2014, due to lower oil prices and more
competitive rand exchange rate. The biggest risk to the South African economy was
identified as power outages.
In the Middle East and North Africa region, growth slowed to 2.6 from 2.7 per cent in 2014,
on account of continuing geopolitical tensions, declining oil prices, and policy
uncertainty. Most of the region's oil-exporting countries experienced large losses in exports
and fiscal revenues.
In the first half of 2015, the assessment of risks to global growth was more balanced but still
tilted to the downside. A greater boost to demand from oil prices was an important upside
risk, while the downside risks were related to geopolitical tensions, disruptive asset price
shifts in financial markets, and stagnation and low inflation in the advanced economies.
Globally, most commodity prices declined due to weak demand from slowing growth, the
appreciation of the US dollar, ample supply, leading to the buildup of inventories as well as
macroeconomic risks from the developments in Greece and China. Crude oil prices
remained weak, although with a temporary rebound in the later part of the first half of
2015. This trend was expected to persist for the rest of the year.
The FAO Food Price Index declined by 10.44 per cent to 166.4 points in June 2015 from
185.8 points in December 2014. When compared with 208.9 points in the corresponding
half of 2014, it declined by 20.34 per cent. All the sub-indices: meat; cereals; vegetable
oils; and sugar showed a downward trend.
Similarly, metal price index declined by 10.42 per cent to 133.2 at end-June 2015, from the
level at end-December 2014 and by 17.67 per cent, when compared with the level in the
first half of 2014. The decline reflected weak demand in China, the Greek debt crisis, and
increases in supply. Metal demand from China slowed in the first half of the year due to
weakness in infrastructure spending, construction, manufacturing, and industrial sectors.
Global inflation remained low, due largely to decline in energy prices. In the OECD
countries, annual consumer price inflation remained subdued, falling to 0.4 per cent in
April 2015 and 0.6 per cent a piece in May and June, 2015. Among major advanced
3.2 Global Commodity Prices
3.3 Global Inflation

CBN Economic Report for the First Half of 2015
economies, the US and Europe experienced significantly low inflation rates and in some
cases, deflation during the first half of 2015. Inflation in the US was below the Federal
Reserve Bank's target of 2.0 per cent although it rose from negative 0.2 per cent in April
2015 to 0.0 per cent in May 2015 and 0.1 per cent in June, 2015. In the euro area, inflation
was in negative territory in the first quarter of 2015, but rose to 0.3 per cent in May 2015 and
0.2 per cent in June, 2015. The rise in inflation in the second quarter of 2015 could be
attributed to the massive quantitative easing embarked upon by the European Central
Bank (ECB) from March 2015. Inflation in advanced economies was forecast at 0.4 per
cent in 2015, while those of the US, euro area and the United Kingdom were all projected
at 0.1 per cent apiece, and Japan at 1.0 per cent.
Inflation also remained largely subdued in emerging and developing market economies.
China's annual inflation rate eased slightly to 1.2 per cent in May 2015, compared with 1.5
per cent recorded in April 2015. In contrast, in Brazil and Russia, inflation remained
elevated as currency depreciation led to higher import prices. In India, inflation rose to
5.01 per cent in May 2015 from 4.87 per cent in April 2015. This was attributed to the rise in
the cost of transport and prices of fuel and light.
In sub-sahara Africa, inflation was expected to remain contained due to low global food
and fuel prices. There was, however, the likelihood of a small uptick in headline inflation
rate in 2015, reflecting the pickup in domestic prices in Nigeria and Angola, the region's
largest oil exporters, as the impact of the exchange rate depreciation and cuts in fuel
subsidies (in Angola), feeds through. In other oil-exporting countries, minor change was
expected. Among oil importers, the impact of the decline in oil and commodity prices
was projected to marginally drive down inflation rate in 2015.
The global financial market remained relatively stable despite heightened risks in the
euro area following the Greek debt crisis and continued slowdown in the Chinese
economy. Monetary policy remained broadly accommodatiive both in the developed
and emerging market economies. Liquidity concerns in the global financial market were
shaped by market expectations about the prospects of the US monetary policy
normalisation. Other factors included: quantitative easing programme, involving
monthly injections of €60.0 billion over an 18 month period from March 2015; and the
continuing quantitative and qualitative monetary easing by the Bank of Japan (BoJ).
Accordingly, policy rates in the advanced economies were largely unchanged in the
review period.
3.4 International Financial Markets

CBN Economic Report for the First Half of 2015
In contrast, most emerging market and developing economies lowered their policy rates
to stimulate growth in response to the dampening effect of weak external demand and
commodity prices. These included China, Russia and India, while South Africa held rates
constant throughout the review period. A few countries such as Brazil, Ghana, and Kenya
raised their policy rates in response to inflationary pressures and exchange rate
depreciation.
The performance of most stock markets in advanced countries improved due partly to
capital reversals from emerging market and developing economies and stronger
performance of the US economy. Major European indices such as the French CAC 40,
the German DAX and the Russian MICEX indices increased by 12.1, 11.6, and 18.5 per
cent, respectively. In the UK, the FTSE 100 index, fell marginally by 0.7 per cent. In North
America, the S&P 500, and the Mexican Bolsa indices rose by 0.2 and 4.4 per cent,
respectively, while the Canadian S&P/TSX Composite Index decreased by 0.5 per cent.
Major stock markets in Asia were bullish during the review period. The Japanese Nikkei,
the Chinese Shanghai SE A and the Indian BSE Sensex indices rose by 16.0, 32.0, and 1.0
per cent, respectively. In Africa, the Nigerian NSE ASI, Kenyan NSE 20, and Egyptian EGX
Case 30 indices decreased by 3.5, 4.0, and 6.2 per cent, respectively, while the South
African JSE, and the Ghanaian GSE increased by 4.1 and 4.0 per cent, respectively.
Generally, most currencies across the world continued to depreciate against the US
dollar in the period under review. This was due largely to sustained improvements in the
US economy, resulting in increased investor appetite for dollar-denominated assets,
fuelling capital reversals and decline in global commodity prices. In the advanced
economies, the Japanese yen, the euro and the Canadian dollar depreciated by 1.92,
7.78, and 4.13 per cent, respectively.
In the emerging markets economies, the Brazilian real recorded the highest depreciation
of 14.19 per cent. Other emerging market currencies, including the Mexican peso, the
Indian rupee and the South African rand depreciated by 5.99, 0.96, and 4.77 per cent,
respectively.
In sub-Saharan Africa, the Nigerian naira and the Kenyan shilling depreciated by 13.85
and 8.72 per cent, respectively, while the Ghanaian cedi recorded the largest
depreciation of 25.98 per cent.

CBN Economic Report for the First Half of 2015
Figure 32
Performance of the Naira against Major Currencies
GBP
EUR
JPY

Naira per Foreign Currency
USD
GBP
EUR
JPY
USD
Source: CBN
Figure 33
Performance of the Naira against Regional Currencies

WAUA
CFA

Naira per CFA Franc
Naira per WAUA
Source: CBN

CBN Economic Report for the First Half of 2015
Table 11
Indices of Selected International Stock Markets
(As at June 30, 2015)

Country
Index
End-June, 2014 End-Dec, 2014 End-June, 2015

% Change
Dec 14 - Jun 15

% Change Jun
14 - Jun 15
AFRICA
Nigeria
ASI

South Africa
JSE African AS

Kenya
Nairobi NSE 20

Egypt
EGX CSE 30

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

Russia
MICEX

ASIA
Japan
NIKKEI 225

China
Shanghai SE A

India
BSE Sensex

Source: Bloomberg

CBN Economic Report for the First Half of 2015
Table 12
Exchange Rates of Selected Countries
(Value in Currency Units to US$)


Currency
31-Dec-13
31-Dec-14
30-Jun-15
Dec 31,
2014 - June
30, 2015
%App/Dep
YTD %
App/Dep
AFRICA
a
d
d
Nigeria
Naira

South Africa
Rand

Kenya
Shilling

Egypt
Pound

Ghana
Cedi

NORTH
AMERICA
Canada
Dollar

Mexico
Peso

SOUTH
AMERICA
Brazil
Real

Argentina
Peso

Colombia
Peso

EUROPE
UK
Pound

Euro Area
Euro

Russia
Ruble

ASIA
Japan
Yen

China
Yuan

India
Rupee

Source: bloomberg
YTD = Year to Date
3.5 World Economic Outlook for the Rest of 2015
The moderation in global growth witnessed towards the end of the first half, might
continue in the rest of 2015, as key drivers responsible for the slowdown, (notably, the
uneven recovery in the euro area and Japan, slowdown in China and weak demand)
were still in place. The IMF projected a decline in global growth to 3.3 per cent for the rest
of the year.

CBN Economic Report for the First Half of 2015
The outlook for advanced economies showed prospects for improvement, while growth
in emerging markets and developing economies was projected to be lower, primarily
reflecting weaker prospects for some large emerging market economies and oilexporting countries. Advanced economies were projected to grow by 2.1, and 2.4 per
cent in 2015 and 2016, respectively, from 1.8 per cent in 2014. The rebound was expected
to be driven by the United States and the United Kingdom, which were expected to grow
by 2.5 and 2.4 per cent, respectively.
Global inflation was likely to be subdued on account of weak demand and lower
commodity prices. Global inflation could rise if the broadly accommodative monetary
policy stance of key advanced economies and continued depreciation of currencies of
the emerging market and developing economies were not contained.
Bond yields and risk premia in emerging market economies had risen broadly in line with
those of advanced economy instruments. However, improvements in some advanced
economies, particularly the United States may likely accentuate capital reversals in the
rest of 2015 and lead to further currency depreciation.
The on-going quantitative easing programme in the euro area and Japan, coupled with
the monetary stimulus required to prop up the slowing Chinese economic growth might
offset the effects of the expected US monetary policy normalization, thereby leaving
global monetary conditions accommodative for the rest of the year. These
developments, coupled with the growth of the US economy, could sustain improved
performance of international stock markets.

4.0
DEVELOPMENTS IN THE DOMESTIC ECONOMY
4.1 Monetary and Credit Developments
4.1.1
Reserve Money
Excess liquidity in the banking system and the depreciation of naira exchange rate
constituted major challenges to monetary policy in the first half of 2015. Consequently,
the CBN sustained its restrictive monetary policy stance, keeping the policy rate at 13.0
per cent and liquidity ratio at 30.0 per cent throughout the period. The cash reserve ratio
on private sector at 20.0 per cent and on public sector at 75.0 per cent was harmonised in
May 2015 at 31.0 per cent. Growth in reserve money, broad and narrow money supply
was sluggish, compared with their levels at the end of the preceding December. Also,
both currency-in-circulation and currency outside banks fell below their levels at endDecember 2014, but remained relatively stable throughout the period. Aggregate credit
(net) to the domestic economy grew by 13.0 per cent due, largely, to the significant
growth in net claims on the Federal Government. Similarly, consumer credit slowed in
tandem with the growth in credit to the private sector.
At N5,945.76 billion, reserve money, rose by 0.3 per cent above its level at end-December
2014, in contrast to the decline of 6.0 per cent at the end of the corresponding period of
2014. The increase in the sources of reserve money relative to the level at end-December
2014, reflected the rise in net domestic asset of the CBN, while the corresponding
increase in the uses of reserve money was attributed wholly to the increase in bank
deposits with the CBN.
CBN Economic Report for the First Half of 2015

CBN Economic Report for the First Half of 2015
Table 13
Sources and Uses of Reserve Money

Dec 12
Jun-13
Dec 13
Jun-14
Dec 14
Jun-15
Foreing assets (net)
7,393,557.68

7,561,183.53

7,043,927.36

6,343,984.91

6,244,718.92

5,795,959.61

Foreign Assets
7,395,331.5

7,614,112.5

7,048,706.3

6,724,347.5

6,244,718.9

7,646,654.5

Long-term Foreign Liabilities
311.5

311.5

4,757.3

-

-

-

Short-term foreign Liabilities
1,462.2

52,617.4

21.6

380,362.5

-

1,850,694.9

Net credit to Government
(3,574,376.4)

(3,519,920.5)

(2,289,104.9)

(2,913,883.1)

(2,141,684.2)

(769,517.4)

Claims on Government
733,354.5

451,404.9

678,134.4

541,780.7

922,379.3

1,527,410.0

Fed. Government Deposits
4,307,730.9

3,971,325.4

2,967,239.3

3,455,663.8

3,064,063.4

2,296,927.5

Net credit to Private Sector
3,661,512.3

4,223,762.4

4,182,273.9

4,169,964.0

4,642,838.9

4,864,940.6

Claims on private sector
4,708,311.8

4,703,313.2

4,599,388.3

4,702,336.0

4,859,887.7

5,093,071.5

Private sector deposits
1,046,799.6

479,550.8

417,114.4

532,371.9

217,048.8

228,130.9

Net claims on DMBS
(1,583,300.3)

(3,380,269.2)

(3,043,227.6)

(2,428,441.7)

(2,035,145.2)

(2,148,916.7)

Claims on DMBS
1,052,556.0

915,469.7

806,531.6

993,896.5

774,249.0

1,400,075.2

CBN Securities
2,635,856.3

4,295,738.9

3,849,759.2

3,422,338.2

2,809,394.2

3,548,991.9

Other Assets Net
(1,238,872.8)

(706,143.1)

(265,694.9)

349,033.0

186,528.6


(383,246.0)

Other Assets
6,790,896.4

7,182,339.6

1,929,856.0

1,543,454.6

1,782,121.4

1,641,281.1

Other liabilities
8,029,769.2

7,888,482.7

2,195,550.9

1,194,421.6

1,595,592.8

2,024,527.1

RESERVE MONEY
3,704,483.6

3,236,152.9

5,090,244.8

4,786,356.0

5,930,946.0

5,945,762.1

Currency in Circulation
1,631,717.2

1,425,507.8

1,776,413.1

1,496,742.1

1,797,978.9

1,562,346.1

Banks' Deposit with CBN
2,072,766.4

1,810,645.1

3,313,831.6

3,289,614.0

4,132,967.1

4,383,416.0

Figure 34 (a)
Reserve Money and its Components: Sources
( ' Billion)

Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun - 14
Dec -14
Jun -15
NFA
NDA
OIN
RM
NBillion
Source: CBN
Source: CBN

4.1.2 Broad Money (M )

4.1.3 Narrow Money (M )

4.1.4 Quasi Money (QM)
4.1.5
Currency-in–Circulation (CIC) and Deposits at the CBN
Growth in money supply (M ) decelerated in the first half of 2015, reflecting the restrictive

monetary policy stance of the Bank. Broad money supply fell by 0.5 per cent to 18,811.4
billion at end-June 2015, in contrast to the growth of 12.0 per cent at the end of June 2014.
The development reflected the decline in net foreign assets and other assets (net) of the
banking system, which overwhelmed the 11.1 per cent growth in aggregate credit (net).

Narrow money supply (M ) fell by 5.3 per cent to
6,542.4 billion at end-June 2015, in

contrast to the growth of 0.9 per cent at the end of the corresponding period of 2014. The
development reflected the decline of 17.6 and 2.0 per cent in currency outside banks
and demand deposits, respectively. The decline in currency outside banks reflected the
growing confidence and increased usage of e-payments in the economy derived
largely from the positive impact of the cash-less policy.
Quasi money grew by 2.2 per cent to 12,269.0 billion at end-June 2015, compared with
the growth of 21.1 per cent at end-June 2014. The development reflected the expansion
in savings and time deposits in commercial banks, especially foreign currency deposits,
which grew by 4.3 per cent.
Currency-in-circulation fell by 13.1 per cent to 1,562.3 billion, compared with the decline
of 15.7 per cent at the end of the corresponding period of 2014. As a proportion of reserve
money, CIC, was 26.3 per cent compared with 31.3 per cent at the end of the first half of
CBN Economic Report for the First Half of 2015
Figure 34 (b)
Reserve Money and its Components: Uses
( 'Billion)


Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
CIC
Bank reserves
RM
NBillion
Source: CBN

2014. However, banks' deposit with the CBN grew by 6.1 per cent at end-June 2015, in
contrast to a decline of 0.7 per cent at the end of the corresponding period of 2014. The
growth in deposit at the CBN reflected the respective increase of 128.3 and 23.3 per cent
in the demand deposits of merchant banks and non-interest banks.

Currency outside banks fell by 17.6 per cent to
1,184.0 billion at end-June 2015,
compared with the decline of 16.3 per cent at end-June 2014. As a ratio of broad money,
COB constituted 6.3 per cent, a slight decline from 6.9 per cent at the end of the
corresponding period of 2014, reflecting the positive impact of the cash-less policy.
4.1.6
Currency Outside Banks (COB)
CBN Economic Report for the First Half of 2015
Figure 35
Ratio of Currency Outside Bank to Broad Money Supply

"Dec 11
Jun 12
Dec 12
Jun 13
Dec 13
Jun 14
Dec 14
Jun 15
COB/M2
COB/M1
Per cent
Source: CBN
Figure 36
Growth in Money Supply
(Per cent)


Dec 11
Dec 12
Jun 13
Dec 14
Narrow money (M1)
Broad Money M2
Per cent
Dec 13
Jun 14
Jun 15
Jun 12
Source: CBN

CBN Economic Report for the First Half of 2015
4.1.7 Drivers of Growth in Money Supply
4.1.7.1 Net Foreign Assets (NFA)
4.1.7.2 Net Domestic Credit (NDC)
Net foreign assets fell by 14.4 per cent to 5,951.5 billion at the end of the review period,
compared with the decline of 11.4 per cent at end-June 2014. The development
reflected the 7.2 and 78.1 per cent decline in NFA of the CBN and banks, respectively. As
a percentage of M2, NFA constituted 31.6 per cent at the end of the review period,
compared with 43.7 per cent at the end of the corresponding period of 2014. The
contribution of NFA to the growth of M was negative 6.1 per cent, compared with

negative 6.3 per cent a year ago.
Net domestic credit (NDC) grew by 11.1 per cent to 21,409.8 billion at the end of the first
half of 2015, compared with the growth of 14.8 per cent at the end of the corresponding
period of 2014. The development reflected mainly, the significant increase in net claims
on the Federal Government as the growth in private sector credit remained slow at 4.3
per cent.
Figure 37
Distribution of Aggregate Credit to the Economy
( 'Billion)

Dec 12
Jun 13
Dec 13
Jun 14
Dec 14
Jun 15
Claims on Private Sector
Claims on Federal Government (Net)
17,400.00
N Billion
Source: CBN
4.1.7.2.1 Net Credit to the Government (NCg)
Credit to the Federal Government rose by 118.5 per cent to 2,512.5 billion at the end of
the first half of 2015, compared with the growth of 85.8 per cent recorded at the end of
the corresponding half of 2014. The increase in net claims on the Federal Government
reflected, wholly, the rise in investment in treasury securities by the banking system,
particularly, the Nigerian treasury bills, which grew by 256.0 per cent.

CBN Economic Report for the First Half of 2015
4.1.7.2.2
Credit to the Private Sector (Cp)
4.1.7.3 Other Assets (net) (OAN)
Credit to the private sector grew by 4.3 per cent to 18,897.3 billion at end-June 2015,
compared with 4.5 per cent at the end of the corresponding period of 2014. The
development reflected the 4.6 per cent increase in claims on the core private sector,
compared with the 6.7 per cent growth at the end of the first half of 2014. The contribution
of claims on the private sector to the growth of total monetary assets stood at 4.1
percentage points, compared with the 4.7 percentage points at the end of the
corresponding half of 2014.
Other assets (net) of the banking system fell by 16.9 per cent at end-June 2015, in contrast
to the growth of 9.6 per cent recorded at the end of the corresponding period of 2014.
The development reflected largely the 7.9 per cent decline in unclassified assets of the
CBN. The contribution of other assets (net) of the banking system to the growth of broad
money was negative 7.96 percentage points at the end of the review period.
Table 14
Growth in Monetary Aggregates Over Preceding December
(Per cent)

June ‘13

Dec ‘13

Jun ‘14

Dec ‘14

Jun ‘15
Domestic Credit (Net)

3.55
14.47
14.82

32.6

11.08
Claims on Federal Government (Net)

Foreign Assets (Net)


Other Assets (Net)

(7.39)
(19.92)
9.58

2.53
(16.88)
Total Monetary Assets (M2)

0.71
1.32
12.03

20.55
(0.54)
Quasi-Money

7.33
7.36
21.07

38.73
2.17
Money Supply (M1)

(6.49)
(5.23)
0.90

(1.82)
(5.25)
Total Monetary Assets (M2)

0.71

1.32

12.03

20.55

(0.54)
Source: CBN
4.1.8 Sectoral Distribution of Credit
Total bank loans and advances to the private sector of the economy grew by 4.2 per
cent to 13,804.2 billion at the end of the first half of 2015 and was 2.7 percentage points
lower than the level recorded at the end of the second half of 2014. Of the total loans
outstanding, credit to the oil and gas sub-sector accounted for the highest share (23.78
per cent), followed by manufacturing (13.98 per cent) and general commerce (13.84 per
cent). The share of agriculture, forestry and fishing (3.80 per cent) was 0.1 percentage
point lower than their share at the end of the second half of 2014.

4.1.9 Maturity Structure of DMBs' Outstanding Loans and Advances, and Deposit
Liabilities
The structure of bank credit in the first half of 2015 indicated that credit of short-term
maturities remained dominant. Credit maturing within one year accounted for 44.5 per
cent, a decline when compared with 56.6 per cent at the end of the first half of 2014. The
medium-term (≥1yr and < 3yrs) and long-term (3yrs and above) maturities stood at 18.8
and 36.7 per cent, respectively, compared with 16.8 and 26.6 per cent at the end of the
corresponding period of 2014.
CBN Economic Report for the First Half of 2015
Table 15
Credit to the Core Private Sector:
(Percentage Share)
Share in Outstanding (per cent)


Jun 12

Dec 12

Jun 13


Dec 13


Jun 14


Dec 14
Jun 15
1. Preferred

Sectors

37.1

39.5

37.2

36.8

37.9

40.9

42.5
Agriculture

3.7

3.9

4.2

3.4

4.0

3.9

3.6
Solid Minerals

18.9
21.7
20.6

21.5

22.0

25.0

23.9
Exports

0.7
0.8
0.1

0.04

0.10

0.03

1.1
Manufacturing

13.8
13.1
12.3

11.8

11.9

12.0

13.8
2. Less Preferred Sectors

39.8
38.3
40.2

41.4

43.1

44.0

42.6
Real Estate

6.8
6.6
7.3

7.3
7.6

8.1

8.9
Public Utilities

0.3
0.4
0.7

2.2

2.3

3.4

0.8
Transport and Communications

11.6

11.9

13.5

13.9

14.8

14.0

9.4
Finance & Insurance

3.9

3.1

3.2

3.2

3.1

4.4

6.0
Government

7.4

7.8

6.9

7.2

6.9

5.9

9.3
Import & Dom. Trade (General Comm.)

9.8

8.5

8.6

7.6

8.3

8.2

8.2
3. Unclassified

23.1

22.2

22.6

21.8

19.0

15.1

14.9
Total (1+2+3)

Figure 38
Sectoral Distribution of Banks' Credit
(Per cent)


Jan-12
Jan-13
Jan-14
Jan-15
Preferred Sectors
Less Preferred Sectors
Unclassified
Source: CBN
Per cent
Source: CBN

Similarly, deposits of below one-year maturity constituted 95.5 per cent (of which 73.0 per
cent had maturity of less than 30 days), the same as in the first half of 2014. Further analysis
showed that the medium and long-term deposits constituted 1.8 and 2.7 per cent,
respectively, compared with 3.4 and 1.1 per cent recorded at end-June 2014.
Although some improvements were observed with the credit structure during the review
period, the challenge of maturity mismatch remained a constraint to the ability of banks
to create long-tenored risk assets and limited lending to the real sector.
Figure 39
Distribution of Bank Loans and Advances by Maturity

CBN Economic Report for the First Half of 2015


Jun 13
Dec 13
Jun 14
Dec 14
Jun 15
Per cent

Short-Term
Medium-Term
Long-Term
Per cent
Source: CBN
Figure 40
Maturity Structure of Banks Deposits


Jun 11
Dec 11
Jun 12
Dec 12
Jun 13
Dec 14
Jun 14
Dec 14
Jun 15
Short-Term
Medium-Term
Long-Term
Source: CBN
Per cent

4.1.10 Market Structure of the Banking Industry
The banking system remained largely oligopolistic in the first half of 2015. Available data
showed that the average market share of assets and deposits of the five largest banks
(concentration ratio, CR5) stood at 44.4 and 54.3 per cent, respectively, compared with
50.9 and 51.9 per cent at the end of the first half of 2014. The market share of the largest
bank, with respect to assets and deposits, stood at 15.6 and 14.1 per cent, respectively,
compared with 13.2 per cent and 14.1 per cent at the end of the second half of 2014.
During the review period, a total of 17 banks had market shares ranging from 0.16 to 7.8
CBN Economic Report for the First Half of 2015
Table 16
Maturity Structure of Banks Assets and Liabilities


Assets (Loans and Advances)
Jun 13
Dec 13
Jun 14
Dec 14
Jun 15
Tenor


0-30 days

31.1

27.5

31.5

24.6

24.3

31-90 days

10.7

12.7

11.0

12.3

7.8

91-181 days

7.7

4.9

6.7

7.0

7.7

181-365 days

6.6
7.5
7.4

5.6

4.6

Short-Term

56.0
52.6
56.6

49.6

44.5

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

19.8
19.1
16.8

19.5

18.8

Long-Term (3 Years and Above)
24.2
28.3
26.6

30.9

36.7

Liabilities


0-30 days

77.5
74.51
72.72

73.69

73.0

31-90 days

11.4
14.33
13.59

13.63

13.61

91-181 days

4.5
4.69
5.48

5.5

4.42

181-365 days

3.8
3.62
3.76

3.49

4.45

Short-Term

97.2

97.15

95.55

96.31

95.49

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

2.8

2.84

3.38

2.69

1.83

Long-Term (3 Years and Above)

0.003

0.01

1.07

1.00

2.68

Total

Figure 41
Distribution of Private Sector Credit
(End-June 2015)
Credit to core
private sector
97.2%
Credit to state
and Local
Government
2.8%
Source: CBN
Source: CBN

per cent in assets and 0.14 to 7.06 per cent in deposits, reflecting low competition in the
market. This was supported by the respective Herfindahl-Hirschman Index (HHI) of the
industry (on a scale of 100 to 10,000) at 778.07 and 814.53 for assets and deposits,
respectively.
CBN Economic Report for the First Half of 2015
Figure 42a
Market Concentration Ratios of Banks (Assets and Deposits)


Jun 12
Dec 12
Jun 13
Dec 13
Jun '14
Dec 14
Jun 15
CR
CR5 (Deposits)
CR5 (Assets)
CR (Largest-Deposits)
CR (Largets-Assets)
Figure 42b
Measures of Competition in Banks: Herfindahl- Hirschman Index

Jun 12
Dec 12
Jun 13
Dec 13
Jun '14
Dec 14
Jun 15
HHI
HHI (Deposits)
HHI (Assets)
4.1.11 Consumer Credit
At 767.96 billion, consumer credit fell by 9.6 per cent at the end of the review period, in
contrast to the growth of 3.5 per cent at the end of the corresponding period of 2014. At
that level, consumer loans constituted 4.2 per cent of the total credit to the core private
sector, compared with 4.9 per cent at the end of the corresponding half of 2014.
Source: CBN
Source: CBN

CBN Economic Report for the First Half of 2015
Figure 43
Consumer Credit and Ratio of Claims on Core Private Sector
(N' Billion)


Dec 10
Jun 11 Dec 11 Jun 12
Dec 12
Jun 13
Dec 13
Jun 14
Dec 14
Jun 15
Ratio (%)
Consumer Credit
Ratio of claims on core private sector (rhs)
N Billion
4.1.12 Money Market Developments
Financial market activities in the first half of 2015 reflected the trend in liquidity conditions
in the banking system. Short-term interest rates, particularly the Open-Buy-Back (OBB)
and overnight call, moved in tandem with the banking system liquidity. The release of
Statutory Revenue Allocation to the three tiers of government and the payment of
matured CBN bills buoyed banking system liquidity during the period. However, the
execution of the NNPC mandate, coupled with the implementation of the harmonised
Cash Reserve Requirement (CRR) for both private and public sector deposits resulted in
liquidity shortfalls in the same period, thereby causing some spikes in the short-term rates.
The Monetary Policy Committee (MPC) met three times in the review period, in which the
monetary policy rate (MPR) was retained at 13.00 per cent with the symmetric corridor for
lending and deposit at ± 200 basis points. The liquidity ratio and the net foreign currency
trading position limit were also retained at 30.00 and 0.05 per cent, respectively. The
Monetary Policy Committee (MPC), at its May 2015 meeting, removed the dichotomy
between CRR of public and private sector fund, by harmonising both to 31.00 per cent.
The maintenance period was also changed from fortnightly to weekly.
Following the closure of the rDAS window in the early part of the year, the CBN intervened
regularly in the interbank foreign exchange market to provide the needed liquidity and
sustain stability in the exchange rate. On the average, weekly intervention stood at
US$91.70 million, amounting to US$9.54 billion in the first half of 2015, compared with
US$299.55 million in the corresponding half of 2014 and US$3.30 billion in the preceding
half of 2014. Furthermore, the Bank reviewed a list of imported goods that were not valid
for funding at the official foreign exchange window. The policy was designed to curb
Source: CBN

CBN Economic Report for the First Half of 2015
pressure in the foreign exchange market arising from the importation of goods that could
be produced in the country.
Provisional data indicated that money market asset outstanding at the end of the first half
of 2015 stood at 8,201.5 billion, showing an increase of 7.2 and 14.2 per cent above the
levels at end-December 2014 and the corresponding half of 2014, respectively. The
development relative to the corresponding half year reflected, mainly, the increase of
930.58 billion (21.3 per cent) and
89.08 billion (3.3 per cent) in the FGN Bonds and
Nigerian Treasury Bills Outstanding, respectively.
4.1.12.1 Money Market Assets Outstanding
Figure 44
Money Market Assets Outstanding
(End-June 2015)
Commercial Paper
0.09%
Bankers Acceptances
0.16%
Certificate of Deposit
0.68%
FGN Bond
64.63%
NTB
34.44%
Source: CBN
A breakdown of the money market assets outstanding at the end of the first half of 2015
showed that 64.63 per cent of the outstanding assets was held in FGN Bond, while, 34.44,
0.68, 0.16 and 0.09 per cent were NTBs, Certificates of Deposits, Bankers Acceptances,
and Commercial Paper, respectively.
At the Nigerian treasury bill auction, 414.08 billion worth of 91-day bills was offered and
sold with bid rates ranging from 9.79 to 11.20 per cent, compared with the range of 9.95 to
11.95 per cent in the corresponding half of 2014. For the 182- and 364-day auction,
452.59 billion and 1,367.12 billion worth of bills were offered and sold at the bid rates of
12.7 to 14.85 per cent and 12.8 to 15.89 per cent, respectively. Total subscription at the
auction stood at 5,213.20 billion, compared with 5,609.37 billion in the corresponding
half of 2014. The decrease in the review period was attributed to low patronage by
foreign investors at the 364- day tenor.
4.1.12.2 Primary Market

CBN Economic Report for the First Half of 2015
The bid-to-cover ratios for the various tenors were 1.2, 1.8 and 2.9 for the 91-, 182- and 364day, respectively. The high (above 2.0) bid-to-cover ratio for the 364-day tenors
indicated investors' preference for the issues.
Thus, total NTB outstanding at end-June 2015 stood at
2,825.0 billion, showing an
increase of 3.26 per cent over the 2,735.9 billion at the end of the first half of 2014.
Table 17
Bid-Cover Ratios of Selected Securities
TENOR (DAY)
91-day
182-day
364-day

TOTAL (Nbn)
OFFER AMOUNT (Nbn)
414.08
452.59
1367.12

2,233.80

TOTAL SUBSCRIPTION ( Nbn)
477.291
812.69
3923.22

5,213.20

ALLOTMENT (Nbn)
414.08
452.59
1367.12

2,233.80

BID COVER RATIO
1.15
1.80
2.87


BID RANGE

9.20-11.62
9.45-12.75
9.54-12.99


Figure 45
Nigerian Treasury Bills Outstanding
( 'Billion)

4.1.12.3 Federal Government of Nigeria Bonds
During the review period, the CBN in collaboration with the Debt Management Office,
issued a new tranche of the 10-year FGN Bond, while 5- 10- and 20-year tranches were
reopened. The term-to-maturity of the bonds ranged from 4 years 8 months to 19 years, 6
months. Total FGN Bonds offered was 468.22 billion, while public subscription and sale
stood at
872.12 billion and
449.72 billion, respectively. The high demand for the
securities was attributed to the liquidity surfeit in the banking system, investors' preference

Second Half 2011
First Half 2012
First Half 2013
First Half 2014
First Half 2015
N Billion
Source: CBN
Source: CBN

CBN Economic Report for the First Half of 2015
for risk-free long-term instruments, and the attractive coupon yields on the bonds. A total
of N500.0 billion 4.0% FGN April 2015 bond matured and was repaid.
Figure 46
Distribution of FGN Bonds
(End-June 2015, per cent)

Banks
46%
Discount Houses
0%
Others
54%
Banks
Discount Houses
Others
Source: CBN
Thus, the total value of bonds outstanding at end-June 2015 was
5,300.42 billion,
compared with 4,369.8 billion at end-June 2014, and represented an increase of 21.3
per cent.
In line with the restrictive monetary policy stance of the CBN, OMO auctions were
conducted to mop-up the excess liquidity in the banking system.
Total subscription and sales amounted to
5,355.0 billion and
4,261.72 billion,
respectively, while total CBN bills offered was 2,080.00 billion. The bid rates ranged from
10.25 to 18.00 per cent. In the corresponding period of 2014, the amount sold was
4,484.93 billion, while total subscription was 5,705.2 billion. CBN bills valued at 3,609.32
billion matured and were repaid in the review period, translating to a net withdrawal of
652.4 billion in the first half of 2015.
Activity at the two-way quote trading platform remained passive in the review period,
same as in the corresponding half year of 2014.
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

CBN Economic Report for the First Half of 2015
4.1.12.7 Tenored Repurchase Transactions
4.1.12.8 Central Bank of Nigeria (CBN) Standing Facilities
4.1.12.8.1 Standing Lending Facility (SLF)
4.1.12.8.2 Standing Deposit Facility (SDF)
4.1.12.9 Inter-Bank Funds Market
Requests for repurchase transactions amounting to
54.38 billion was received and
granted for tenors ranging from 5 to 43 days at 16.00 to 16.50 per cent. There was no
request for repo in the corresponding period of the preceding year as authorised dealers
preferred to access the overnight standing facility window to bridge the liquidity shortfall.
In the first half of 2015, the Bank continued to provide deposit money banks and discount
houses access to standing facilities window to square up their positions either through the
Standing Lending Facility (SLF) or the Standing Deposit Facility (SDF). There was greater
recourse to the SDF than the SLF during the review period. Applicable rates for the SDF
and SLF remained at 11.00 and 15.00 per cent, respectively.
Total request for SLF (inclusive of intra-day lending facility (ILF) that converted to overnight
repo) in the first half of 2015 was 2,826.28 billion. The daily average request was 33.4
billion in 87 working days. In comparison with the corresponding period of 2014, the total
SLF demanded stood at 3,487.9 billion, translating to a daily average of 29.7 billion. The
development was attributed to the inflow from the matured FGN Bonds and the NTBs.
Patronage of the SDF window reflected liquidity surfeit in the system. The daily average
amount for the SDF in the first half of 2015 was 79.57 billion, compared with 376.1 billion
in the corresponding period of 2014. The significant decline was attributed to the cap of
7.50 billion placed on remunerable deposit per day, in November 2014.
The value of Inter-bank transactions stood at
4,555.17 billion in the first half of 2015,
compared with 13,739.75 billion in the first half of 2014. The unsecured call and tenored
segments amounted to 932.08 billion in the first half of 2015, compared with 87.5 billion
in the first half of 2014. At the Open-Buy-Back (OBB) segment, the value of transactions
increased to 3,612.10 billion in the first half of 2015, compared with 3,558.8 billion in the
first half of 2014. The lower level of transactions at the unsecured segment was attributed,
largely, to the launch of new Real Time Settlement System (RTSS) and Scripless Securities
Settlement System (S4), both of which facilitated the transfer of securities and settlement,
as well as DMBs' preference to trade using securities in the OBB segment of the market.

CBN Economic Report for the First Half of 2015
4.1.13 Interest Rate Developments
Money market rates moved in tandem with the level of liquidity in the banking system
during most of the first half of 2015. Short-term rates in all the segments of the money
market were higher than their levels in the corresponding period of 2014. The high
average short-term rates, despite increased liquidity in the system, was due to the
harmonisation of CRR on public and private deposits which increased the CRR. The
monthly weighted average inter-bank and OBB rates ranged from 6.99 to 24.25 per cent
and 8.70 to 27.20 per cent, respectively. Weighted average inter-bank rate in the first half
of 2015 stood at 12.84 per cent, compared with 10.43 in the corresponding half of 2014.
The OBB average rate increased to 15.95 per cent above 10.88 in the corresponding
period of 2014.
Table 18
Money Market Rates
(Per cent)
WEIGHTED AVERAGE
Month
MPR
Call
Rate
OBB
NIBOR 30days

Jan-15


Feb-15


Mar-15


Apr-15


May-15


Jun-15


Average 2015
First Half


Average 2014
First Half


The weighted average of the Nigeria Inter-bank Offered Rate (NIBOR) for the 30-day
tenor was 15.05 per cent, compared with the 12.14 per cent in the corresponding half of
2014.
Source: CBN

CBN Economic Report for the First Half of 2015
Figure 47
Money Market Rates
(Per cent)

MPR
Call Rate
OBB

Per cent
Source: CBN
4.1.13.1 Money Market Rates
4.1.13.1.1 Deposit Rates
4.1.13.1.2 Lending Rates
The average deposit rates fell at the end of the first half of 2015. Average term deposit
rates declined by 0.37 percentage point to 8.22 per cent below the level in the
corresponding half of 2014. Average rates on deposits of various maturities fell from a
range of 4.82 to 9.99 per cent in the first half of 2014 to a range of 4.28 to 9.45 per cent at
the end of the first half of 2015. The developments in interest rates followed the liquidity
conditions in the banking system. With the year-on-year inflation rate at 9.2 per cent in
June 2015, most deposit rates were negative in real terms.
In the first half of 2015, the weighted average prime lending rate fell by 0.09 percentage
point to 16.63 per cent, while average maximum lending rate rose by 0.91 percentage
point to 26.4 per cent. Consequently, the spread between the average term deposits
and maximum lending rates widened by 1.27 percentage points to 18.20 percentage
points.

CBN Economic Report for the First Half of 2015
4.1.14 Yields on Fixed Income Securities
Average yields on fixed income securities were higher in the first half of 2015, compared
with their levels in the corresponding period of 2014. The yield curve was flat in the short
and medium segments, but slightly higher at the long-end. Overall, the yield curve was
normal, but the spread between the long and short-term yields narrowed from 0.85
percentage point in 2014 to 0.32 percentage point in 2015. The higher yields in 2015
reflected investors' expectations arising from the restrictive monetary policy stance of the
Bank.
Table 19
DMBs Deposits and Lending Rates
(Per cent)
Month
Savings
Average
Term
Deposit

Prime
Lending

Maximum
Lending

Jan-15
3.48

8.66

16.9

26.0

Feb-15
3.47

8.61

16.8

26.3

Mar-15
3.76

8.34

16.9

26.6

Apr-15
3.60

7.23

16.0

26.4

May-15
3.60

7.37

16.1

26.4

Jun-15

3.60

9.14

17.24

26.84

Average 2015

First Half

3.58

8.23

16.63

26.43

Average 2014

First Half

3.36

8.59

16.7

25.52

Source: CBN
Figure 48
Yield on Fixed Income Securities
(Per cent)


TTM
HY1 14
HY1 15
Per cent
Source: CBN

CBN Economic Report for the First Half of 2015
4.1.15 Institutional Savings
4.1.16 Other Financial Institutions
4.1.16.1 Development Finance Institutions
4.1.16.2 Microfinance Banks (MFBs)
Aggregate financial savings rose by 16.2 per cent to 12,819.5 billion in the first half of
2015, compared with 11,032.9 billion and 9,511.0 billion at the end of the preceding
half year and the corresponding period of 2014, respectively. DMBs remained the
dominant depository institutions in the financial system, accounting for 95.2 per cent of
the total financial savings, compared with 90.0 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.
Provisional data indicated that total assets of the six (6) 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 National Economic
Reconstruction Fund (NERFUND) and The Infrastructure Bank (TIB) increased by 11.95 per
cent to 986.8 billion at end-June 2015, compared with 881.5 billion at end-December
2014. Similarly, the aggregate net loans and advances of the institutions increased by
14.5 per cent to 805.70 billion, from 703.7 billion at end-December 2014. The increase
relative to the preceding half year was attributed largely to the rise in the financial
performance of the NERFUND. A disaggregation of the asset base of the institutions
indicated that BOI, FMBN, NEXIM, BOA, NERFUND and TIB accounted for 66.5, 20.9, 5.6,
4.5, 1.7 and 0.8 per cent, respectively, of the total. Similarly, each of these institutions
accounted for 72.7, 18.3, 5.0, 2.1, 1.8 and 0.2 per cent of the gross loans and advances,
respectively.
Provisional data indicated that the total assets/liabilities of the reporting MFBs increased
to
356.03 billion at end-June 2015, compared with
300.73 billion at end-December
2014, reflecting an increase of 18.4 per cent. However, the paid-up capital decreased by
0.6 per cent to
81.94 billion from
82.44 billion at end-December 2014, while the
shareholders' funds increased by 6.6 per cent to
97.03 billion at end-June 2015,
compared with 91.01 billion at end-December 2014. The paid-up capital recorded in
2015 excluded the capital of MFBs in security-prone zone of the North East.
Total deposit liabilities and net loans and advances increased by 9.3 per cent each to
159.40 billion and 178.12 billion at end-June 2015, compared with 145.83 billion and
N162.91 billion, respectively, at end-December 2014. Reserves of these institutions, also
increased by 6.51 billion to 15.09 billion at end-June 2015, compared with 8.6 billion
at end-December 2014.

CBN Economic Report for the First Half of 2015
Investible funds available to the sub-sector in the first half of 2015 amounted to 56.04
billion. The funds were sourced mainly from increase of 21.65 billion, 13.57 billion, 11.73
billion and 6.51 billion in long-term loans, deposit liabilities, other liabilities and reserves,
respectively. The funds were utilised mainly to increase loans and advances (
15.21
billion), bank balances ( 14.79 billion), other assets ( 8.84 billion), short term investments
( 7.59 billion) and placements with other banks ( 6.79 billion).
Total assets/liabilities of the two (2) discount houses (DHs) in operation during the first half
of 2015 increased by 31.1 per cent to 175.41 billion at end-June 2015, compared with
133.8 billion and
173.14 billion at the end of the preceding December and the
corresponding period of 2014, respectively. Aggregate funds sourced amounted to
13.84 billion in the first half of 2015, compared with 19.17 billion and 23.34 billion at
end-December 2014 and the corresponding period of 2014, respectively. The funds were
sourced, mainly, from increase in other liabilities ( 10.24 billion), borrowings ( 1.15 billion)
and drawdown on capital and reserves ( 963.30 million) as well as disposal of other assets
( 1.2 billion). The funds were utilised to increase claims on Federal Government ( 7.01
billion) and claims on banks (
6.07 billion). Discount houses' investment in Federal
Government securities amounted to 67.16 billion in the review half year, representing
59.2 per cent of their total liabilities. This was 0.8 percentage point below the prescribed
minimum level of 60.0 per cent for fiscal year 2015.
Two finance companies were licensed during the review period, bringing the number of
FCs in operation to 66 at end-June 2015, compared with 64 at end-December 2014.
Provisional data indicated that total assets/liabilities of the FCs increased to
128.32
billion at end-June 2015, compared with
119.60 billion at end-December 2014,
reflecting an increase of 7.3 per cent. Similarly, paid-up capital increased by 6.5 per cent
to 17.2 billion, compared with 16.1 billion at end-December 2014. However, reserves
decreased by 21.4 per cent to
1.8 billion at end-June 2015, compared with
2.337
billion at end-December 2014, owing, largely, to the poor performance for the financial
year ended December 31, 2014. Borrowings and loans/advances increased by 9.7 and
12.9 per cent to 75.1 billion and 55.1 billion, respectively, at end-June 2015, compared
with 68.42 billion and 48.81 billion at end-December 2014.
Investible funds available to the sub-sector in the first half of 2015 amounted to
14.7
billion. The funds were sourced mainly from increase in borrowings ( 6.7 billion), other
liabilities (
3.7 billion), reduction in placements (
1.27 billion) and investments (
1.4
billion), among others. The funds were utilised mainly to increase loans and advances
4.1.16.3 Discount Houses

4.1.16.4 Finance Companies (FCs)

CBN Economic Report for the First Half of 2015
( 6.27 billion), other assets ( 2.95 billion), fixed assets ( 2.70 billion) and repayment of
long-term loans ( 2.2 billion).
The number of primary mortgage banks (PMBs) in operation decreased from 42 at endDecember 2014 to 36 at end-June 2015, following the failure by six (6) out of the ten (10)
PMBs granted additional time to meet the recapitalisation deadline. Thus, the number of
PMBs with national authorisation remained at ten (10) at end-June 2015, while PMBs with
state authorisation decreased to twenty-six (26) from 32 at end-December 2014.
The total assets/liabilities of PMBs increased by 7.5 per cent to 418.1 billion at end-June
2015, compared with
389.0 billion at end-December 2014. This was attributed to net
growth in activities in the review period. Total loans and advances, deposit liabilities and
liquid assets of the PMBs increased by 13.3, 7.6 and 20.9 per cent to 150.7 billion, 146.2
billion and 99.01 billion, respectively, at end-June 2015, compared with 133.0 billion,
135.8 billion and
81.89 billion at end-June 2014. However, the paid-up capital and
aggregate reserves declined to 113.31 billion and 22.77 billion, compared with 121.70
billion and 24.10 billion at end-December 2014, occasioned mainly by the revocation of
licences of 6 PMBs that failed to meet the recapitalisation requirements as at December
31, 2014. Consequently, shareholders' funds fell by 9.7 billion to 136.08 billion at endJune 2015, compared with 145.8 billion at end-December 2014, reflecting a decrease of
6.7 per cent.
Investible funds available to the sub-sector in the first half of 2015 amounted to
50.8
billion. The funds were sourced mainly from contraction in investments (
10.7 billion),
increase in deposit liabilities ( 10.35 billion), recovery of long-term loans ( 17.16 billion)
and other liabilities ( 9.2 billion). The funds were utilised mainly to increase bank balances
( 17.91 billion), loans and advances ( 17.7 billion), paid-up capital ( 8.4 billion) and other
assets ( 5.4 billion).
The President of the Federal Republic of Nigeria, on May 26, 2015 signed into law the
AMCON Amendment Act 2015. The Amended Act was to strengthen the powers of the
Corporation to execute its core mandate. The Amended Act also institutionalised a
Banking Sector Resolution Cost Fund in which deposit money banks and the CBN make
annual contributions to meet any shortfall in the funding of the resolution costs for the
2008/2009 banking crisis. The Corporation made recoveries of N54.1 billion, while
contributions to the Banking Sector Resolution Cost Fund stood at 176.99 billion at endJune 2015.
4.1.16.5 Primary Mortgage Banks (PMBs)
4.1.16.6 Asset Management Corporation of Nigeria (AMCON)

CBN Economic Report for the First Half of 2015
4.1.16.7 Nigerian Mortgage Refinance Company (NMRC)
4.1.17 Capital Market Developments
4.1.17.1 Institutional Developments
Following the approval of the Managing Director/Chief Executive Officer of the NMRC by
the Bank on December 18, 2014, the NMRC was granted a final licence to operate as a
Mortgage Refinance Company on February 18, 2015. Thereafter, NMRC published its
Uniform Underwriting Standards that would be applied by mortgage originators as a precondition for refinancing. It also appointed four (4) audit firms to evaluate the legacy
mortgages for refinancing.
Furthermore, the CBN processed and obtained no objection from the World Bank for the
disbursement of a second tranche of US$10 million to the NMRC, bringing a cumulative
sum of US$30 million disbursed by the Bank to the NMRC as at June 30, 2015. The CBN also
approved a request from the NMRC for no objection to raise
140 billion through the
issuance of bonds. The first series of 10 billion bonds were issued during the review period,
paving the way for the refinancing of legacy mortgages by the NMRC.
The Bank received Expressions of Interest (EOIs) from 14 MFBs that had indicated
willingness to participate in the pilot Housing Microfinance (HMF) scheme during the
review period. A Term of Reference (ToR) was also developed for advertisement and
recruitment of a senior HMF Expert for the National Housing Fund (NHF) consultancy
service. The Consultant completed the review of the EOIs and submitted the final report
on June 21, 2015. The national housing fund programme was expected to review the final
report and select up to 8 MFBs to pilot the Scheme and also engage a firm as the Task
Manager to implement the report on the selected MFBs, as well as prepare the draft
technical agreement for execution of the pilot Scheme by the selected MFBs.
During the first half of 2015, series of reforms and policy initiatives were undertaken in the
capital market by the regulatory authorities. These were aimed at repositioning and
restoring investor confidence in the market to enable it play its role of wealth creation
and allocation of resources to competitive sectors, stabilising and nurturing the market
and revamping the Nigerian economy in the face of current harsh global economic
conditions.
The Securities and Exchange Commission (SEC), as part of its effort to reposition the
capital market, implemented, among others, a new code of corporate governance, to
strengthen the mechanism for Anti-Money Laundering and Combating the Financing of
Terrorism (AML/CFT) in the market. The Corporate Governance requires all public
companies to disclose meaningful and relevant information to the public and the

CBN Economic Report for the First Half of 2015
implementation of good accounting practices to ensure compliance with the
international financial reporting standards (IFRS). Compliance with the code has
become mandatory for quoted companies.
The Commission reconstituted the Administrative Proceedings Committee for Dispute
Resolution in the market. The Commission also strengthened its working relationships with
other law enforcement agencies, especially the Federal Ministry of Justice, the Economic
and Financial Crimes Commission (EFCC) and the Nigeria Police.
A robust draft of Complaints Management Framework was completed and exposed to
the market for comments during the review period. The Framework was part of the
Commission's strategic effort to strengthen and encourage Self-Regulatory
Organisations (SROs) and trade groups to play a greater role in resolving complaints in
the market. The Framework would ensure that investor complaints were dealt with
dispatch.
The Commission amended and introduced a number of new rules into the market,
covering areas such as securitisation, securities lending and borrowing, and
ethical/Islamic fund. Also, rules on Trading of Unlisted Securities, which mandates the
trading of unlisted securities of public companies exclusively on SEC-Registered
Over–The-Counter (OTC) platforms, were released during the review period. This was
expected to improve the level of price discovery, liquidity, transparency and best
practice in the Nigerian capital market. In addition, rule on Code of Conduct, which
introduced zero tolerance for infractions in the market, was released for all categories of
market operators, including Rating Agencies, Underwriters and Trustees.
An electronic financial reporting template for Capital Market Operators (CMOs) was
developed during the first half of the year. This has facilitated efficient rendition and
review of all financial returns of CMOs, thus making the market more transparent and
attractive to investors. The Commission also released new rules on demutualisation to
enhance liquidity, price discovery and good corporate governance.
The Commission collaborated with the West African Monetary Institute (WAMI) and
integrated the Nigerian Capital Market into the West African Capital Market Integration
(WACMI) programme during the first half of 2015. The objective of the market integration
was to establish a harmonised regulatory environment for the issuance and trading of
financial securities across the region.

The Commission, in collaboration with the United States SEC and USAID, organised
training workshop for financial and capital market operators on global best practices in
the development and regulation of capital markets. The Commission continued to
leverage on its strategic relationships with other International Organisations of Securities
Commissions (IOSCO), the US SEC on capital market development issues. The SEC was reelected to chair the Africa Middle East Regional Committee (AMERC). The Commission
was also admitted as a full member of the Islamic Financial Services Board (IFSB). This was
expected to boost the non-interest market products within the regions.
Activities on the Nigerian Stock Exchange recorded mixed developments in the first half
of 2015. In the primary market segment, there were six (6) new issues, comprising one (1)
initial public offering (IPO), two (2) rights issues and three (3) private placements. In the
debt securities segment, there were twelve (12) new issues, comprising three (3)
corporate bonds and nine (9) sub-national bonds.
In the secondary segment of the market, the aggregate volume and value of securities
traded fell by 4.3 and 4.0 per cent to close at 50.5 billion shares valued at 557.0 billion,
compared with 52.8 billion shares valued at 579.3 billion, recorded in the corresponding
period of 2014, respectively. The All-Share Index (ASI) fell by 3.5 per cent to 33,456.83,
while aggregate market capitalisation rose by 1.2 per cent to close at
17.0 trillion,
compared with 34,657.15 and 16.87 trillion at end-December 2014.
The Exchange recorded eighteen (18) new listings, consisting of six (6) equities and twelve
(12) debt issues in the first half of 2015. The new equity issues comprised one (1) IPO, two
(2) rights issues, and three (3) Private Placements. Three (3) Corporate Bonds and nine (9)
sub-national bonds were issued in the debt securities market in the review period. A total
of 150.2 billion was raised from all the new listings, with the bulk, 119.0 billion (79.1 per
cent) in debt securities, while the equities issuance accounted for the balance of 31.2
billion (20.8 per cent).
Available data indicated that transactions on the secondary segment of the Nigerian
Stock market declined in the first half of 2015. Aggregate volume and value of securities
traded fell by 4.3 and 4.0 per cent to close at 50.5 billion shares valued at 557.0 billion,
respectively, compared with 52.8 billion shares valued at 579.30 billion, recorded in the
corresponding period of 2014. The equities sub-sector sustained its dominance in the
secondary segment of the market as it accounted for 88.0 per cent of the aggregate
4.1.17.2 The Nigerian Stock Exchange (NSE)
4.1.17.3 New Issues Market
4.1.17.4 The Secondary Market
CBN Economic Report for the First Half of 2015

First half 2012
First half 2013
First half 2014
First half 2015
Value in Naira (billion)
Volume of traded securities (LHS)
Value of securities (RHS)

trade transactions, while the debt market accounted for the balance. Sectoral analysis
of the developments in the market indicated that the financial services sector (driven
largely by activities in the banking sub-sector, constituting 59.3 and 76.0 per cent in terms
of volume and value of transactions, respectively) remained the most active on the
Exchange with a traded volume of 39.83 billion shares, valued at 283.95 billion in 313,997
deals, compared with 39.4 billion shares, valued at
305.8 billion in 335,956 deals
recorded in the first half of 2014.
CBN Economic Report for the First Half of 2015
Figure 49
Volume and Value of Transactions at the NSE

Source: Securities and Exchange Commission (SEC)/Nigerian Stock Exchange (NSE)
4.1.17.5 All-Share Index and Aggregate Market Capitalisation
The All-Share Index (ASI) recorded moderate performance relative to the level at endDecember 2014. The NSE ASI fell by 3.5 per cent to 33,456.83 at the end of the first half of
2015, compared with 34,657.15 at end-December 2014. Similarly, it indicated 21.2 per
cent decline, compared with the level at the end of the first half of 2014. Aggregate
market capitalisation of all the listed securities closed at
17.01 trillion, indicating an
increase of 1.2 per cent over the levels at end-December 2014, but fell by 10.8 per cent
from the level at the end of the corresponding period of 2014. Listed equities accounted
for 67.2 per cent of the aggregate market capitalisation ( 11.43 trillion), while the debt
component accounted for the balance of 32.8 per cent ( 5.58 trillion). The top twenty
(20) most capitalised companies on the Exchange accounted for 83.6 per cent ( 9.6
trillion) of the total equity capitalisation and 56.1 per cent of the aggregate (equity plus
debt) market capitalisation. Six (6) banks, representing 30.0 per cent, made the list of the
top twenty (20) most capitalised companies and accounted for
2.2 trillion (19.3 per
cent) of the total equity market capitalisation, the same as in the corresponding period of
2014. As a percentage of estimated nominal GDP, aggregate market capitalisation
stood at 38.4 per cent, compared with 45.1 per cent recorded at end of the first half of
2014. The development was attributed to the unimpressive performance of blue chip
companies listed on the exchange.
Volume in Number (billion)

CBN Economic Report for the First Half of 2015


1st Half 2010
1st Half 2011
1st Half 2012
1st Half 2013
1st Half 2014
1st Half 2015
N' Trillion
NSE Index
Aggregate Market Capitalisation
Figure 50
Aggregate Market Capitalisation and NSE Value Index
Index
Source: SEC/NSE
4.2 FISCAL OPERATIONS
4.2.1
Federation Account Operations

Provisional gross federally-collected revenue in the first half of 2015 stood at 3,452.84

billion or 7.8 per cent of GDP . The amount was lower than the proportionate budget
estimate and the level in the corresponding period of 2014 by 29.4 and 32.4 per cent,
respectively. The drop in federally-collected revenue relative to the budget estimate was
due to the decline in oil and non-oil revenue sources. Of the total revenue, oil revenue
constituted 59.4 per cent, while non-oil revenue accounted for the balance of 40.6 per
cent.
3 Earnings lodged in Federation Account by virtue of Section 161 of the Federal Republic of Nigeria Constitution 1999 as amended
4 2015 Half Year estimates
Figure 51
Structure of Gross Federation Revenue
(First Half 2011 - 2015, Per cent)


Oil Revenue
Non-Oil Revenue

Sources: Computation based on data from:
The Office of Accountant General of the Federation (OAGF)
and the Federal Ministry of Finance (FMF
Per cent

At 2,049.78 billion or 4.6 per cent of GDP, gross oil revenue fell short of the proportionate
budget estimate and the level in the first half of 2014 by 24.5 and 43.1 per cent,
respectively. The drop in oil revenue relative to the budget estimate was attributed to the
persistent decline in prices of crude oil in the international market alongside pervasive
pipeline vandalism and oil theft in the Niger Delta region which hindered production and
exports during the period.
CBN Economic Report for the First Half of 2015
Figure 52
Composition of Oil Revenue
(First Half 2015, Per cent)

PPT & Royalties
43.8%
Domestic
Oil/Gas Sales
29.6%
Others
2.7%
Crude Oil/Gas
Exports
23.9%
Sources: Computation based on data from the OAGF and the FMF
Of the total oil revenue, the sums of 383.66 billion and 13.52 billion were utilised for Joint
Venture Capital (JVC) calls and Department of Petroleum Resources (DPR) cost of
collection, respectively, while
15.50 billion and
37.98 billion was transferred to the

Excess PPT/Royalty Account and Others , respectively. The balance of 1,599.12 billion
was, therefore, retained in the Federation Account for distribution to the three tiers of
government and the 13% Derivation Fund.
Gross revenue from non-oil sources, at 1,403.06 billion or 3.2 per cent of GDP, was below
the proportionate budget estimate and the level in the corresponding period of 2014 by
35.4 and 6.8 per cent, respectively. The drop in non-oil revenue relative to the budget
estimate was largely attributed to the decline in receipts from corporate tax. The gross
non-oil revenue comprised Value Added Tax (VAT),
398.84 billion (28.4%); Corporate
Tax, 334.30 billion (23.8%); FGN Independent Revenue, 290.93 billion (20.8%); Customs

and Excise Duties, 265.67 (18.9%) and other transfers , 113.32 billion (8.1%).
5 Oil Excess Revenue, NNPC Refunds

CBN Economic Report for the First Half of 2015
6Included Education Tax Fund, Customs Special Levies (Federation and Non-Federation) and National Information Technology
Development Fund (NITDF).
Figure 53
Composition of Non-Oil Revenue
(First Half 2015, Per cent)

Corporate Tax
23.8%
Customs &
Excise Duties
18.9%
Value-Added
Tax
28.4%
FGN
Independent
Revenue
20.8%
Education Tax
1.2%
Special Levies
(Federation)
2.6%
NITDF
0.2%
Special Levies
(Non-Federation )
4.1%

The sum of
48.54 billion was deducted from the non-oil revenue as Federal Inland
Revenue Service (FIRS) and Nigeria Custom Service (NCS) cost of collection, leaving a
distributable balance of 1,354.52 billion.
Overall, of the
2,953.64 billion federally-collected revenue (net); the sum of
382.88
billion (13.0%), 290.93 billion (9.8%), and 113.32 billion (3.8%) were transferred to the VAT
Pool Account, Consolidated Revenue Fund Account (FG Independent Revenue) and
Other Transfers, respectively. The balance of 2,166.51 billion (73.4%) was retained in the
Federation Account for distribution to the three tiers of government and the 13%
Derivation Fund.
Sources: Staff computation based on data from the OAGF and the FMF
Figure 54
Composition of Federally Collected Revenue (Net)
(First Half 2015, Per cent)
Sources: Staff computation based on data from the OAGF and the FMF
FG Indep. Rev.
9.8%
Other Transfers
3.8%

VAT
13.0%
Retained for
Distribution to three
tiers of govt/13%
Deviation Fund
73.4%

CBN Economic Report for the First Half of 2015
4.2.1.1 Revenue Distribution
Statutory revenue distributed to the three tiers of government and the 13% Derivation

Fund amounted to
2,828.11 billion in the first half of 2015. This was below the
proportionate budget estimate of 3,742.95 billion for 2015 and the statutory revenue in
the first half of 2014 by 24.4 and 24.7 per cent, respectively. The amount comprised
Federation Account (including exchange rate gain, NNPC refunds, Excess Crude and
NNPC additional revenue), VAT Pool Account of
2,445.23 billion (86.5%) and
382.88
billion (13.5%), respectively.
Figure 55
Cummulative Distributions to the Tiers of Government and
13% Derivation Fund
(First Half 2015, ' Billion)


Federal Government
State Governments
Local Governments
13% Derivation Fund
Sources: Staff computation based on data from the OAGF and the FMF
4.2.1.1.1 Federation Account Distribution
Distribution from the Federation Account to the three tiers of government in the first half of
2015 was as follows: Federal Government, 1,031.80 billion; state government, 523.34
billion; and local government, 403.48 billion. The balance of 207.89 billion was shared
as the 13% Derivation Fund among the oil producing states.
The Federal Government received the sum of 96.44 billion, while the states and local
governments as well as the 13% Derivation Fund got
48.92 billion,
37.71 billion and
27.36 billion, respectively, from exchange rate gain. In addition, the Federal
Government received
37.98 billion as NNPC refund. Furthermore, the share from the
Excess Crude and the NNPC additional revenue was allocated as follows: Federal
Government, 7.16 billion and 6.73 billion; state governments, 3.63 billion and 3.41
7 Fund set aside from oil revenue for the oil producing states..

billion; local governments, 2.80 billion and 2.63 billion; and, the 13% Derivation Fund,
2.03 billion and 1.91 billion.
The sum of
382.88 billion accrued to the VAT Pool Account in the first half of 2015,
representing a decrease of 37.9 per cent below the proportionate budget estimate for
the fiscal year. The distribution among the three tiers of government was as follows:
Federal Government, N57.43 billion; state governments,
191.44 billion; and local
governments, 134.01 billion.
The fiscal operations of the Federal Government in the first half of 2015 resulted in an
overall deficit of 676.47 billion or 1.5 per cent of GDP compared with the proportionate
budget estimate and corresponding period of 2014 deficits of 520.50 billion and 247.66
billion or 0.6 per cent of GDP, respectively. The deficit was financed mainly with overdraft
from the CBN and the issuance of FGN Bonds.

4.2.1.1.2 VAT Pool Account
4.2.2
Federal Government Finances
4.2.2.1 Federal Government Fiscal Balance
N
CBN Economic Report for the First Half of 2015
8 Shared as follows: Federal (15.0%); States (50.0%) and local governments (35.0%)
Figure 56
FGN Fiscal Balance
(First Half 2011 - 2015, N' Billion)

Source: Staff computation based on data from the OAGF and the FMF

4.2.2.2 Federal Government Retained Revenue
At
1,583.19 billion or 3.6 per cent of GDP, the retained-revenue of the Federal
Government was lower than the proportionate budget estimate and the level in the first
half of 2014 by 14.8 and 15.8 per cent, respectively. The development relative to the
proportionate budget estimate was attributed largely, to the drop in the share from
Federation Account. A breakdown of the retained-revenue revealed that the share from
the Federation Account was
1,180.11 billion (74.5%), the Federal Government
Independent Revenue, 290.93 billion (18.4%); VAT Pool Account, 57.43 billion (3.6%)
and “Others”, 54.72 billion(3.5%), respectively.
The share from the Federation Account included current federation revenue, 1,031.80
billion (87.4%); exchange rate gain,
96.44 billion (8.2%); NNPC refunds,
44.71 billion
(3.8%); and Excess Crude, 7.16 billion (0.6%).
CBN Economic Report for the First Half of 2015
Figure 57
Composition of Federal Government Retained Revenue
(First Half 2015, Per cent)

Federation Account
74.5%
Sources: Staff computation based on data from the OAGF and the FMF
VAT
3.6%
FGN IR
18.4%
“Others”
3.5%
9Includes FGN balance of special accounts, transfers to CRF and payments to FGN and other statutory benefits
4.2.2.3 Total Expenditure of the Federal Government
The aggregate expenditure of the Federal Government in the first half of 2015 was
2,259.66 billion or 5.1 per cent of GDP. This was below the proportionate budget
estimate by 5.0 per cent. However, it exceeded the level in the corresponding period of
2014 by 6.2 per cent. The development relative to the proportionate budget estimate
largely reflected the decline in statutory transfers during the period. Non-debt
expenditure was below the proportionate budget estimate by 12.4 per cent and
constituted 73.8 per cent of the total expenditure. Total debt service amounted to
592.17 billion, representing 26.2 per cent of the total expenditure.

CBN Economic Report for the First Half of 2015
Figure 58
Composition of Federal Government Expenditure
(First Half 2015)
Recurrent
82.9%
Capital
12.1%
Transfers
5.0%
Sources: Staff computation based on data from the OAGF
At 1,872.80 billion, recurrent expenditure fell by 1.6 per cent below the proportionate
budget estimate and accounted for 82.9 per cent of the total expenditure. As a
percentage of GDP, recurrent expenditure was 4.2 per cent, compared with 3.8 per cent
in the first half of 2014. A breakdown of the recurrent expenditure showed that the goods
and services component, at 1,166.06 billion (62.3% of the total)fell below the half year
budget estimate by 10.5 per cent. This was due mainly to the reduction in goods and
services, in particular, personnel cost, which dropped below the half year budget
estimate by 6.0 per cent. Further analysis of the goods and services component showed
that personnel cost and pensions amounted to 956.16 billion (82.0%), while overhead
cost was 209.90 billion (18.0%).

Furthermore, interest payment , which was 31.6 per cent of the total or 1.3 per cent of
GDP, rose by 24.2 per cent to
592.17 billion, relative to the proportionate budget
estimate for 2015. Of the amount, 35.82 billion (6.0%) and 556.35 billion (94.0%) were
expended on external and domestic debt service, respectively. Transfers to special funds
(FCT, Stabilisation Fund, Development of Natural Resources and Ecology Fund) and
“Others” accounted for 114.57 billion or 6.1 per cent of the recurrent expenditure.
10Included interest payments on CBN Overdraft

CBN Economic Report for the First Half of 2015
Figure 59
Economic Classification of FG Recurrent Expenditure
(First Half 2015, Per cent)
Sources: Staff computation based on data from the OAGF
The functional classification of recurrent expenditure showed that the outlay on
administration was 607.41 billion and accounted for 32.4 per cent of the total. When
compared with the corresponding period of 2014, it rose by 18.5 per cent largely due to
the rise in allocations to defence and internal security. Also, spending on economic
services sector increased by 15.8 per cent to 123.33 billion and was 6.6 per cent of the
total. In addition, outlay on social and community services sector increased by 15.6 per
cent to 339.31 billion and accounted for 18.1 per cent of the total, while “transfers” rose
by 15.1 per cent to 802.75 billion and constituted 42.9 per cent of the total. The increase
was attributed to the rise in pension and gratuities.
Capital expenditure at
274.53 billion or 0.6 per cent of GDP, was lower than the
proportionate budget estimate by 5.0 per cent, reflecting the slow pace of budgetary
capital releases during the period. Also, it accounted for 12.1 per cent of the total
expenditure. As a proportion of Federal Government revenue, capital expenditure, at
17.3 per cent was slightly below the stipulated minimum target of 20.0 per cent under the
WAMZ secondary convergence criteria.
Analysis by functional classification of capital expenditure showed that outlays in the
economic sector was 112.05 billion or 40.8 per cent of the total, compared with 40.4 per
cent in the preceding period. Administration accounted for 38.8 per cent, while public
investments in social and community services, and transfers constituted 15.8 and 4.6 per
cent of the total, respectively.
Goods and
Services
62.3%
Transfer
6.1%
Interest
Payments
31.6%

Statutory transfers at 112.33 billion or 0.3 per cent of GDP fell by 40.2 per cent, compared
with the proportionate budget estimate and accounted for 5.0 per cent of the total
expenditure.
Aggregate statutory allocations to state governments from the Federation Account

(including Excess Crude, Exchange Gain and NNPC Additional Revenue) and VAT Pool
Account amounted to 1,009.93 billion in the first half of 2015. This was 23.9 and 25.8 per
cent below the proportionate budget estimate and the level in the corresponding
period of 2014, respectively. A breakdown showed that allocation from the Federation
Account was 731.23 billion (72.4%); Excess Crude, 5.67 billion (0.6%), Exchange Gain,
N76.27 billion (7.5%); NNPC Additional Revenue, N5.32 billion (0.5%) and VAT Pool
Account, 191.44 billion (19.0%).
4.2.3
State Government Finances
CBN Economic Report for the First Half of 2015
Figure 60
Composition of Total Allocations to State Governments
(First Half 2015)
Source: Staff computation based on data from the FMF
11Includes allocation to the 13% Derivation Fund
12 Included contribution to external debt service fund, payments for fertilizer, State Agricultural Project, National Fadama Project
and the National Agricultural Technology Support Programme.
The sum of 107.06 billion was, however, deducted as state governments' contractual

obligations from their share of Federation Account, leaving a net distributable balance
of 624.17 billion. Of the net sum, 384.99 billion was distributed to the 36 states of the
federation and the balance of 239.18 billion, being 13% Derivation Fund, was allocated
to the oil-producing states.
The allocations to the states from the VAT Pool Account, represented a decrease of 2.2
per cent below the level in the first half of 2014, and that from the Federation Account
showed a decrease of 32.8 per cent. Consequently, the net statutory allocation to states

Federation
Account
72.4%
Excess Crude
0.6%
Exchange Gain
7.5%
VAT
19.0%
NNPC Refund
0.5%

(including the 13% Derivation Fund) was 28.0 per cent below the level in the first half of
2014. Further analysis of the state governments' allocation showed that Akwa Ibom, Delta
and Rivers States received 8.9, 7.7 and 6.7 per cent of the total, respectively. Conversely,
Ebonyi, Kwara, and Ekiti States got the least of approximately 1.7 per cent each.
Aggregate statutory allocation to the 774 local governments from the Federation
Account (including NNPC Additional Revenue, Excess Crude and Exchange Gain) and
VAT Pool Account was 580.63 billion in the first half of 2015, indicating a decline of 27.9
and 23.9 per cent below the proportionate budget estimate and the level in the first half
of 2014, respectively. A breakdown indicated that allocations from the Federation
Account was 403.48 billion (69.5%); VAT Pool Account, 134.01 billion (23.1%); Exchange
Gain,
37.71 billion (6.5%); distribution from the Excess Crude,
2.80 billion (0.5%); and
NNPC Additional Revenue, 2.63 billion (0.4%). A further analysis on state basis showed
that Lagos, Kano and Katsina States received 6.2, 5.6 and 4.2 per cent of the total,
respectively, while Ebonyi, Gombe and Bayelsa states got 1.6, 1.5 and 1.2 per cent,
respectively.
4.2.4
Local Government Finances
CBN Economic Report for the First Half of 2015

VAT
23.1%
Exchange Gain
6.5%
NNPC Additional
Revenue
0.4%
Excess Crude
0.5%
Federation Account
69.5%
Figure 61
Composition of Statutory Allocations to Local Governments
(First Half 2015)
Source: Staff 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 2015 was
10,428.49 billion or 11.8 per cent of GDP. This represented an increase of 9.4 per cent
over the level at end-December, 2014. Of the total debt stock, domestic debt was
8,396.59 billion or 80.5 per cent, while the external debt amounted to 2,031.90 billion
(US$10.32 billion) or 19.5 per cent of the total.

CBN Economic Report for the First Half of 2015
Figure 62
Composition of Federal Government Consolidated Debt
(First Half 2015)

External
19.4%
80.6%
Source: Staff computation based on data from the Debt Management Office (DMO)
4.2.5.2 Domestic Debt
4.2.5.3 External Debt
At 8,396.59 billion or 9.5 per cent of GDP, the Federal Government securitised domestic
debt for end-June 2015 was above the level as at end-December 2014 by 6.2 per cent.
The increase was due to the issuance of additional FGN Bonds and Nigerian Treasury Bills
(NTBs). Consequently, the stock of FGN Bonds and NTBs increased by 10.6 and 0.3 per
cent, respectively, above the level at end-December, 2014.
Further analysis indicated that the holders of the total outstanding domestic debt
instruments were: banking system, 71.9 per cent; the non-bank public, 23.4 per cent; and
the Sinking Fund, 4.7 per cent.
Total external debt stock (Federal and states, including the Federal Capital Territory) at
end-June 2015 was US$10.32 billion or 2.3 per cent of GDP. This represented an increase of
6.2 per cent above the level at end-December 2014, reflecting additional multilateral
and bilateral loans of US$433.5 million and US$171.9 million, respectively. A
decomposition by holders indicated that 70.1 per cent of the total debt stock was owed
to the multilateral creditors, while the balance of 29.9 per cent was non-Paris bilateral
and commercial debt.

CBN Economic Report for the First Half of 2015
Figure 63
Breakdown of External Debt Stock
(First Half 2011 - 2015, and End-Dec 2014, US$ Billion)

End-Jun 2011
End-Jun 2012
End-Jun 2013
End-Jun 2014
End-Dec 2014
End-Jun 2015
Multilateral
Others
Sources: Staff computation based on data from the Debt Management Office (DMO)
4.2.5.4 Total Debt Service
The consolidated debt service of the Federal Government at end-June 2015 stood at
559.45 billion or 1.3 per cent of GDP, representing an increase of 19.7 per cent above the
level at end-June 2014. Principal repayment (amortisation) accounted for 32.26 billion
or 5.8 per cent, while the balance of
527.19 billion or 94.2 per cent was for interest
payments. A further breakdown showed that 30.91 billion or 5.5 per cent of the total was
expended on external debt service, while domestic debt service accounted for the
balance of 528.54 billion or 94.5 per cent.
Sources: Computation based on data from the DMO
Figure 64
Breakdown of External Debt Service
(First Half 2011 - 2015)

End-June 2011
End-June 2012
End-June 2013
End-June 2014
End-June 2015
Domestic Debt (N' Billion)
External ($US Million)
N Billion
US$ Billion
US$ Million

4.3 REAL SECTOR DEVELOPMENTS
Provisional data from the National Bureau of Statistics (NBS) indicated that the gross
domestic product (GDP), at 2010 constant basic prices, grew by 3.1 per cent in the first
half of 2015, compared with 6.4 per cent in the first half of 2014. The non-oil sector grew by
4.5 per cent and accounted largely for the growth in GDP in the period under review. Oil
sector GDP fell by 7.5 per cent due, mainly, to the decline in global crude oil prices, and
the slump in production.
Further sectoral analysis, indicated that agriculture grew by 4.1 per cent in the review
period. Similarly, construction, trade and services grew by 8.7, 5.8 and 5.6 per cent,
respectively. However, industry fell by 4.9 per cent, and reflected the decline in industrial
activities, particularly manufacturing such as crude oil refining and textile, apparel and
footwear (TAF). The decline in the TAF component continued to reflect the impact of
cheap imports which discouraged local production as well as the slowdown in credit to
the sector. Also, the fuel crisis that resulted from the stand-off between the Federal
Government and the oil marketers over the non-payment of subsidy claims led to a sharp
decline in economic activities. The transport sector was the most affected. Services,
agriculture, industry, trade, and construction contributed shares of 37.5, 20.5, 20.2, 17.5,
and 4.4 per cent, to GDP, respectively.
CBN Economic Report for the First Half of 2015
Figure 65
GDP Growth Rate
(Per cent)


1st Half 2014
2nd Half 2014
1st Half 2015
Total GDP
Non-Oil GDP
Oil-GDP
Source: National Bureau of Statistics (NBS)
4.3.1
Agriculture
4.3.1.1 Agricultural Policies and Institutional Support
The Federal Government continued the implementation of the various initiatives to boost
agricultural output in the first half of 2015. Under the Rice Transformation Action Plan
(RTAP), the government continued the installation of the planned ten (10) integrated rice
mills. The rice mills, with a total processing capacity of 360,000 tonnes per annum would
be owned and managed by private operators. The mills would be located in Kebbi,
Per cent

Zamfara, Kaduna, Niger, Benue, Kogi, Bayelsa, Bauchi, Ogun, and Anambra States.
There are plans to establish twenty-five (25) Grain Aggregation Centres (GACs) across
the country. The GACs would each have a total capacity of 40,500 bags at an estimated
cost of 38.0 million. The initiative would ensure adequate supply of quality rice paddy at
a good price. It would also enable government to save over 3.61 billion annually on the
importation of rice and other grains.
Furthermore, the Federal Government took steps to unlock the job creation potential of
the agricultural sector. Towards this objective, the Government empowered Itsekiri
Fishermen Co-operatives in the Niger Delta with outboard Marine boat engines, fishing
nets and marine ropes. The initiative would also boost government's effort at increasing
local production of fishes with an additional 200,000 tonnes. Also, 174 women were
trained in aquaculture and poultry production, processing and packaging.
In an effort to boost investment in agricultural production and alleviate the effect of
insurgency on farming communities in the North East, the World Bank under its Insurgency
Relief Fund disbursed 787.0 million to four farming communities in Borno State. This was
expected to increase farmers' earnings on a sustainable basis and lay the foundation for
wealth creation. It would also enhance food security in the region in particular, and the
country in general.
To mitigate losses and encourage increased production in the poultry sub-sector, the
Federal Government paid
145.15 million as compensation to thirty-nine (39) poultry
farmers affected by avian influenza (bird flu) across the country. Under the intervention,
over 100,000 birds were culled to stem the spread of the disease.
At 123.4 (2010=100), the estimated index of agricultural production, increased by 4.7 per
cent, in the first half of 2015, compared with the level in the corresponding period of 2014.
The growth in agricultural output during the review period was attributed mainly to
favourable weather conditions and sustained implementation of various policy
measures.
Output of the fishery sub-sector grew by 7.0 per cent, compared with the level in the first
half of 2014. Livestock, staples, forestry, and “other” crops grew by 6.4, 4.6, 4.3 and 4.3, per
cent respectively, relative to the growth levels in the corresponding period of 2014.
Developments in domestic prices of selected agricultural commodities in the first half of
2015 were mixed as prices of five (5) out of the ten (10) monitored increased. These
comprised: sweet potatoes, groundnut oil, yellow garri, yams and wheat with growth
4.3.1.2 Agricultural Production and Prices
CBN Economic Report for the First Half of 2015

rates of 40.0, 12.1, 9.4, 6.4 and 6.2 per cent, respectively, compared with the levels in the
first half of 2014. The price increase was attributed mainly to production and distribution
constraints arising from the security challenges in the northern part of the country. On the
other hand, the prices of sorghum, millet, white maize , palm oil and cocoa declined by
13.2, 9.7, 4.5, 1.2 and 0.4 per cent, respectively.
The dollar-based all-commodities price index of Nigeria's major agricultural export
commodities at the London market decreased during the first half of 2015. At 90.8
(2010=100), it declined by 5.5 per cent below the level in the corresponding period of
2014. Prices of all six commodities monitored, namely cocoa, coffee, copra, palm-oil,
cotton and soya beans, recorded price decrease of 2.5, 11.5, 17.8, 23.5, 24.7 and 30.7 per
cent, respectively. The development reflected majorly the weak demand of the
commodities, arising from the economic slowdown in the developed economies.
In a bid to sustain the growth experienced in the industrial sector in 2014, the Federal
Government inaugurated the 540 MW Alaoji gas-fired power plant as the first phase of
the 1,074 MW combined cycle. The plant, with four 126.1 MW gas turbines, is located in
Abia State. In addition, the inauguration of the 450 MW Ihovbor power station, the 450
MW Sapele II power station, the 560 MW Calabar power station and the 750 MW
Olorunsogo II power station under the government-sponsored National Integrated
Power Projects (NIPP) programme added a total of 2,210MW to the national grid. This
brought the total installed power capacity by the Niger Delta Power Holding Company
(NDPHC) to 5.5GW.
The European Union (EU) announced a grant of 150 million euros to support priority
projects in the power sector in Nigeria. The country has the liberty to identify priority areas
to deploy the resources. Three areas being considered were: bridging the huge metering
gap; addressing transmission bottlenecks; and the need for embedded generation to
improve shortage in power supply.
Furthermore, the National Automotive Council (NAC) awarded a 2.5 billon contract for
the supply and installation of automotive testing laboratory equipment and tools worth
€11.6 million to three companies, namely Mustang Advanced Engineering, USA; AVL,
Austria; and Artec Testnology, The Netherlands. The equipment and tools were for the
operation of the gas emission testing laboratory in Lagos, component testing laboratory
in Enugu as well as vehicle evaluation laboratory in Zaria, Kaduna State.
4.3.2
Industry
4.3.2.1 Industrial Policy and Institutional Support
CBN Economic Report for the First Half of 2015

In an effort to achieve the 1.79 tonnes of sugar required under the first phase of the
National Sugar Master Plan (NSMP), the Federal Government inaugurated the first
sugarcane bio-factory in Zaria in April 2015. The factory would produce high grade and
quality seedlings. The one-million seedlings per annum capacity bio-factory was the first
in the series of bio-factories that would be established over the next five years, with a
combined estimated capacity of 12.5 million sugar cane seedlings per annum.
Provisional data indicated a decline in activities in the industrial sector in the first half of
2015. At 114.2 (2010=100), index of industrial production fell by 5.3 per cent, relative to the
level in the corresponding period of 2014.
4.3.2.2 Industrial Production
CBN Economic Report for the First Half of 2015
Figure 66
Industrial Production Index
(First Half 2013 - 2015, 2010=100)


First Half 2013
First Half 2014
First Half 2015
Manufacturing
Mining
Electricity
Industry
Source: Computed based on data from NBS and Manufacturing Association of Nigeria (MAN)
4.3.2.3 Manufacturing
Provisional data showed that, at 182.8 (2010=100), the index of manufacturing
production in first half of 2015, was 2.2 per cent below the level in the corresponding
period of 2014. Similarly, capacity utilisation during the period declined by 3.02
percentage point compared with 59.3 per cent in the corresponding period of 2014.
Index

CBN Economic Report for the First Half of 2015
Figure 67
Average Manufacturing Capacity Utilisation
(First Half 2011-2015, Per cent)

First Half 2011
First Half 2012
First Half 2013
First Half 2014
First Half 2015
Per cent
Source: Computed based on data from NBS and Manufacturing Association of Nigeria (MAN)
4.3.3 Crude Oil
4.3.3.1 Crude Oil Production and Demand
The Federal Government's effort to increase domestic refining of petroleum products
received a boost during the period under review. The Port Harcourt Refinery was
successfully rehabilitated with plans to refurbish the other refineries over a phased 18month period. The Nigerian National Petroleum Corporation (NNPC)'s target was to
increase the refinery's production capacity utilization to 80 per cent.
Following the excessive supply of crude oil in the international market relative to
demand, most of Nigeria's crude cargoes were left unsold with a lag period of about 28
days. This necessitated the NNPC to lower the official selling price for its largest crude oil
stream.
Aggregate crude oil production, including natural gas liquids (NGLs) and condensates
by the Organization of Petroleum Exporting Countries (OPEC) averaged 36.77 million
barrels per day (mbd) in the first half of 2015. This represented an increase of 1.7 and 3.8
per cent over the levels in the preceding and the corresponding half of 2014,
respectively. Increased production from Saudi Arabia, Iraq, and the United Arab
Emirates accounted for the growth in OPEC supply during the period. Non-OPEC supply
was estimated at an average of 57.44 mbd, indicating a 2.7 per cent increase over the
corresponding half of 2014. Production increase from the United States, Russia and China
majorly accounted for the increase in non-OPEC supply. Total world supply averaged
94.21 mbd, indicating an increase of 3.1 per cent above the level in the first half of 2014.

World crude oil demand was estimated at an average of 91.44 mbd in the first half of
2015, compared with 90.23 mbd in the corresponding half of 2014. This was an increase of
1.3 per cent, but a decrease of 1.0 per cent, compared with the preceding half of 2014.
Of this, demand from the Organisation for Economic Co-operation and Development
(OECD) countries averaged 45.59 mbd, while that of the non-OECD was 45.85 mbd.
Increase in demand was largely driven by improved economic activities in some parts of
Europe, crude stock accretion notably in India, colder weather during the first quarter of
2015 and rising demand for transportation fuels in the US and China.
At an average daily production of 1.90 mbd or 343.9 million barrels (mb), Nigeria's crude
oil output declined by 0.01 mbd or 0.1 per cent and 0.07 mbd or 4.0 per cent below the
levels of 1.91 mbd or 345.7 mb and 1.97 mbd or 362.48 mb in the first half of 2014 and the
preceding half of 2014, respectively. Despite increased surveillance by security
agencies, sabotage and vandalism persisted, impacting negatively on crude oil output.
Aggregate export of crude oil for the review period was estimated at 262.5 mb or 1.45
mbd, compared with 279.68 mb or 1.52 mbd and 264.3 mb or 1.46 mbd in the preceding
and corresponding halves of 2014, respectively.
CBN Economic Report for the First Half of 2015
Figure 68
Crude Oil Production and Exports

First Half 2014
Second Half 2014
First Half 2015
Million barrels per day
Output
Exports
Domestic Consumption
Source: Nigerian National Petroleum Corporation (NNPC)
4.3.3.2 Crude Oil Prices
The average spot price of Nigeria's reference crude, the Bonny Light (37o API), fell by 47.4
per cent to US$58.54 per barrel and 35.1 per cent below its level in the first half of 2014 and
the preceding half of 2014, respectively. Similarly, the average prices of the Forcados, the
UK Brent, and the West Texas Intermediate fell by 47.6, 47.5, and 45.7 per cent, to
US$58.85, US$57.38, and US$52.87 per barrel, respectively, in the review period. The
development was due to several factors, which included: record high supply from the

OPEC countries; high crude inventory build-up in the US; strong US dollar; and slow growth
in oil demand relative to supply. The average price of the OPEC basket of twelve crude
streams was US$54.74 per barrel, compared with US$105.30 per barrel and US$87.04 per
barrel in the same period and preceding half of 2014, representing a decrease of 48.0
and 32.3 per cent, respectively.
CBN Economic Report for the First Half of 2015


First Half 2014
Second Half 2014
First Half 2015
US Dollar per barrel
BONNY LIGHT
U.K. BRENT
FORCADOS
WEST TEXAS INTERMEDIATE
OPEC BASKET
Figure 69
Average Spot Prices of Selected Crudes
Source: Reuters
4.3.4 Gas
The gas sub-sector recorded increased investments from the Federal Government and
private sector during the first half of 2015. The Nigeria LNG Limited acquired six (6) new
LNG export vessels at the cost of US$1.60 billion. From the private sector, Seplat Petroleum
Development Plc completed the acquisition of 40 and 22.5 per cent working interest in
Oil Mineral Licences (OML) 53 and 55 gas fields, respectively. The Company deployed
US$1.0 billion for additional investments in gas prospecting fields.
Figure 70
Gas Production and Utilisation

First Half 2014
Second Half 2014
First Half 2015
Million Standard Cubic Feet
(mmscf)
Gas Produced
Gas Utilised
Gas Flared
Source: NNPC

Total associated gas produced in the first half of 2015 was estimated at 1,393,058.08
million standard cubic feet (mmscf), indicating an increase of 11.75 per cent above the
level in the corresponding period of 2014 and a decrease of 30.12 in the preceding
period of 2014. Total volume of gas utilized and flared during the period was estimated at
1,160,869.51 mmscf and 232,188.57 mmscf, indicating an increase of 9.20 and 26.58 per
cent above their respective levels in the first half of 2014 and a decrease of 32.89 and
11.92 percent respectively in the preceding half of 2014.
The estimated quantity of petroleum products distributed by the major and independent
marketing companies in the period under review was 2,431.4 million litres. These included
2,208.6 million litres of Premium Motor Spirit (PMS), 121.0 million litres of Dual Purpose
Kerosene (DPK), 83.3 million litres of Automotive Gas Oil (AGO) and12.2 million litres of Low
Pour Fuel Oil (LPFO).
As part of efforts to boost mining activities in the country, the Dangote Group and six
foreign companies concluded plans to commence full scale mining of gold, coal, ironore, columbite, lead, and zinc. The companies included: Kogi Mines Ltd; Segilola Nig. Ltd;
Mines Geotechniques Nig. Ltd; Nothern Numero Resources Ltd; West African Polaris
Investment Ltd; and Tongyi Allied and Mineral Services Ltd. The companies, which had
conducted exploration exercises and delineated the mineral deposits, were currently
sourcing for funds from the capital market to begin extraction. The companies would
mine gold in Osun and Kebbi states, iron-ore in Kogi State, tin and columbite in
Nassarawa State, coal in Kogi and Benue states as well as lead and zinc in Plateau State.
Provisional data from the Ministry of Mines and Steel Development showed that solid
minerals production in the first half of 2015 decreased by 16.4 per cent from the level in
the corresponding period of 2014 to 21.28 million tonnes. Decrease in the production of
some principal minerals such as clay, coal, lead/zinc and laterite accounted for the
decline in production.
Estimated average electricity generation in the first half of 2015 declined by 18.5 per
cent, compared with 3,550.8 MW/h in the first half of 2014. The decline was attributed to a
series of system collapse, industrial actions, and shortages of gas supply to thermal plants.
At 2,592.5 MW/h, average estimated electricity consumed declined by 17.3 per cent,
compared with the level in the same period of 2014. The decline in consumption was
attributed to the fall in electricity generation and a series of system breakdown.
4.3.5
Petroleum Products
4.3.6
Solid Minerals
4.3.7 Electricity Generation
4.3.8 Electricity Consumption
CBN Economic Report for the First Half of 2015

4.3.9
Industrial Financing
4.3.9.1 NEXIM
The total disbursement by the Nigeria Export-Import Bank (NEXIM) to various beneficiaries
during the period under review was 3.75 billion, compared with 5.49 billion recorded in
the corresponding period of 2014. This amount was 31.7 per cent below the level
disbursed in the corresponding period of 2014. Of the total disbursement, agriculture and
manufacturing sub-sectors received 42.3 per cent and 28.5 per cent, while services and
solid minerals sub-sectors received 17.0 and 12.2 per cent, respectively.
N
N
CBN Economic Report for the First Half of 2015
Figure 71
Sectoral Disbursement of NEXIM Loans, First Half 2015
Source: NEXIM Bank
Agric and Agro
Allied
42%
Manufacturing
29%
Solid
Minerals
12%
Services
17%
4.3.10 Telecommunications
The Telecommunications sub-sector experienced a robust growth in the first half of 2015.
Data obtained from the National Communications Commission (NCC) showed that the
number of active telephone lines increased to 148.8 million at end-June 2015, up from
132.8 and 139.1 million at end-June and end-December 2014. The development
represented increase of 12.0 and 7.0 per cent, respectively. Teledensity rose from 94.8
and 99.4 per 100 inhabitants at end-June and end-December 2014, respectively, to 106.3
per 100 inhabitants at end-June 2015. The teledensity has persistently exceeded the
International Telecommunication Union (ITU) minimum standard of 1:100. The sectoral
growth was largely driven by a 9.6 per cent increase in the mobile subscriber base. Also,
there was a significant rise in the number of internet users on the country's telecom
networks from 67.2 million at end-June 2014 to 92.7 million at end-June 2015. The
increased participation in the sector was attributed to cheaper call tariffs and the
introduction of new and relatively cheaper products for internet browsing.

CBN Economic Report for the First Half of 2015
Figure 72
Total Active Lines and Teledensity


End-June 2014
End-Dec. 2014
End-May 2015
Teledensity
No. of Mobile and Fixed Lines
(Thousand)
Fixed
Mobile
Teledensity
Source: Nigerian Communication Commission (NCC)
In the review period, NATCOM Consortium paid the 70 per cent outstanding balance of
the US$252.25 million bid for the Nigeria Telecommunications Limited (NITEL) and the
Mobile Telecommunication Limited (MTEL), to fully acquire the assets of both companies.
In accordance with the guidelines of the National Council on Privatisation (NCP), the
Consortium was to operate all the core assets and business undertakings of NITEL and
MTEL, and continue to provide telecoms services.
Consumer prices continued to rise in the period under review. The all-items composite
Consumer Price Index (CPI) was estimated at 173.2 (November 2009=100) for end-June
2015, compared with 158.6 and 164.4 at end-June and end-December 2014,
respectively. The estimated all-items less farm produce CPI stood at 170.6 at end-June
2015, compared with 157.4 and 162.5 at end-June and end-December 2014,
respectively. The estimated Food CPI stood at 178.1 at end-June 2015, compared with
161.9 at end-June 2014 and 168.4 at end-December 2014.
4.3.11 Consumer Prices

CBN Economic Report for the First Half of 2015
Figure 73
Consumer Price Indices
(November 2009 = 100)

First Half 2014
Second Half 2014
First Half 2015
CPI
Composite
Core
Food
4.3.11.1 Headline Inflation
4.3.11.2 Core Inflation
The headline inflation on year-on-year basis increased steadily throughout the first half of
2015 and closed at 9.2 per cent at end-June 2015, compared with 8.2 and 8.0 per cent at
end-June and end-December 2014, respectively. The 12-month moving average
inflation rate was 8.4 per cent at end-June 2015, compared with 8.0 per cent at end-June
and end-December 2014. The increase was attributed largely to the rise in the prices of
consumables and food prices occasioned by the continued insurgency in the NorthEast, which disrupted agricultural activities as well as the 2015 general elections-related
spending.
The year-on-year core inflation (all-items less farm produce) was 8.4 per cent for endJune 2015, compared with 8.1 and 6.2 per cent, at end-June and end-December 2014,
respectively. Core inflation, on a 12-month moving average basis was 7.0 per cent at
end-June, compared with 7.4 and 6.9 per cent at end-June and end-December 2014,
respectively. Core inflation increased steadily throughout the first half of the year. The
development was largely attributed to increase in the prices of imported food;
processed food; housing, water, electricity, gas and other fuel; clothing and footwear;
transport; furnishing, household equipment and maintenance; education; and health.
Also, the lingering effect of the naira exchange rate depreciation, the 2015 general
election spending and the perennial fuel scarcity and the on-going insecurity challenge
in the north-east partly impacted negatively on core inflation.
Source: NBS

First Half

Second Half

First Half

Second Half

First Half

Per cent
Headline
Food
Core

4.3.11.3 Food Inflation
The year-on-year food inflation comprising farm produce, processed and imported food
maintained an upward trend all through the first half of 2015. It was 10.0 per cent at endJune 2015, compared with 9.8 and 9.2 per cent at end-June and end-December 2014,
respectively. The 12-month moving average food inflation remained constant at 9.5 per
cent throughout the first half of 2015, same as at end-June and end-December 2014. The
gradual but steady rise in food inflation was attributed mainly to the fuel crisis
experienced throughout the country in the first half of 2015 due to the stand-off between
the Federal Government and the oil marketers over the non-payment of subsidy claims.
The development led to a hike in the prices of petroleum products and a significant rise in
the cost of transportation. Distribution constraints arising from security challenges,
especially in the North-Eastern part of the country and late commencement of the rainy
season also contributed to the increase in food inflation.
CBN Economic Report for the First Half of 2015
Figure 74
Inflation Rate
(Year-on-Year, Per cent)
4.3.11.4 Urban and Rural Consumer Price Indices and Inflation Rates
The all-items Urban CPI increased to 172.2 at end-June 2015, above the 157.6 and 163.4
at end-June and end-December 2014, respectively. The development was mainly
attributed to the increase in the prices of imported food; food and non-alcoholic
beverages; alcoholic beverage, and tobacco and Kola. Accordingly, the year-on-year
urban inflation stood at 9.2 per cent at end-June 2015, compared with 8.4 and 7.9 per
cent at end-June and end-December 2014, respectively.
Similarly, the all-items rural CPI rose to 174.2 at end-June 2015, above 159.7 and 165.5 at
end-June and end-December 2014, respectively. The increase was majorly accounted
for by a rise in the prices of clothing and footwear; food and non-alcoholic beverages;
restaurant and hotels; and miscellaneous goods and services. The development resulted
Source: NBS

CBN Economic Report for the First Half of 2015
in a year-on-year rural inflation rate of 9.1 per cent at end-June 2015, compared with 8.0
per cent apiece, at end-June and end-December 2014. Urban headline inflation was
higher than the rural headline inflation by 0.1 percentage point in the period under
review.
Urban core inflation rate stood at 8.8 per cent at end-June 2015, compared with 8.0 per
cent at end-June and 6.4 per cent at end-December 2014. Urban food inflation rate
stood at 10.5 per cent at end-June 2015, compared with 10.4 and 9.5 per cent at endJune and end-December 2014, respectively.
Rural core inflation rate stood at 8.1 per cent at end-June 2015, compared with 8.2 and
6.1 per cent at end-June and end-December 2014, respectively. Rural food inflation rate
stood at 9.6 per cent at end-June 2015, compared with 9.4 and 8.8 per cent at end-June
and end-December 2014, respectively.
Figure 75
Urban and Rural Consumer Price Indices
(First Half, November 2009 = 100)


First Half 2014
Second Half 2014
First Half 2015
Urban Consumer Price Index
Rural Consumer Price Index
Source: NBS
4.3.12 Aviation Services
4.3.12.1 Policy and Airport Development
Effort aimed at improving aviation security was sustained during the first half of 2015. In
line with this, the Nigeria Civil Aviation Authority approved the transition from
Aeronautical Information Services to Aeronautical Information Management. This was
to enable a more robust data-driven aeronautical information management, which
better meets user requirement in terms of integrity, resolution, timeliness and accessibility.
Similarly, to ensure safety and enhance aircraft communication between air traffic
controllers and pilots, the Nigerian Airspace Management Agency entered into a
partnership with SITA On-air Communication Systems. This would enable the country
benefit from its superior VHF data link coverage within Africa and move voice traffic off
Index
4.3.12 Aviation
Services

congested frequencies so as to allow for accurate data exchange between controllers
and pilots.
Also, to improve air travellers' comfort, security and safety at the Murtala Mohammed
Airport Terminal 2, Bi-Courtney Aviation Services Limited (BASL), the operator of the
Terminal, commissioned the Common User Passenger Processing System in the review
period. The system provides fast, secure and customer-friendly features that improve
travelers experience such as self-check-in, automatic e-gates and a full-baggage
reconciliation system.
To ensure compliance with global aviation security standards, the country successfully
completed the International Civil Aviation Organization's Universal Security Audit
Programme during the first half of 2015. The exercise confirmed Nigeria's adherence to
associated security procedures, guidance materials and security practices.
A total of 4,732,206 passengers were airlifted by domestic airlines in the first half of 2015.
This represented a 16.6 per cent decline below the 5,673,899 passengers airlifted in the
corresponding period of 2014. Total aircraft movement for the first half of 2015 was 96,925,
a 28.3 per cent decline below the 135,087 recorded in the corresponding period of 2014.
The number of passengers airlifted by airlines on international routes in the first half of 2015
grew by 15.6 per cent to 2,503,565, compared with 2,165,985 recorded in the first half of
2014. Aircraft movement reduced by 6.0 per cent to 21,623 in the review period,
compared with 23,007 recorded in the corresponding period of the preceding year.
Cargo movement at designated airports rose by 5.5 per cent to 93.42 million kg over the
88.54 million kg recorded in the first half of 2014. Mail movement also rose by 43.4 per cent
to 4.36 million kg in the first half of 2015, compared with 3.04 million kg recorded in the
corresponding period of 2014.
Effort at curbing the menace of piracy and promoting shipping activities in Nigeria and
the Gulf of Guinea in line with international best
practices received a boost with the submission of the
instruments of assent to five protocols of the
International Maritime Organization. According to
the Nigerian Maritime Administration and Safety
Agency (NIMASA), this marked a major step towards
4.3.12.2 Domestic Operations
4.3.12.3 International Operations
4.3.13 Maritime Services
CBN Economic Report for the First Half of 2015

domesticating the protocols. The instruments included: the Safety of Lives at Sea Protocol
1988 (as amended); Maritime Pollution (MARPOL) Protocol of 1997; Protocol of 2005 to
the Suppression of Unlawful Acts (SUA) Convention 1988; Protocol of 1988 to the SUA
Convention against Fixed Platforms on the Continental Shelf and the Protocol of 1988 to
the International Convention on Load Lines.
In a bid to provide additional opportunity for single haulage vessel owners to make
necessary changes in the replacement of fleet and development of capacity to handle
scrapping of vessels, NIMASA extended the deadline for phasing out of the vessels to
December 31, 2020.
Cargo throughput stood at 49,304,407 tonnes in the first half of 2015, compared with
41,317,962 tonnes recorded in the corresponding period of 2014, representing an
increase of 19.33 per cent.
A total of 5,139 ocean going vessels with a total gross registered tonnage (GRT) of
61,990,999 berthed at Nigerian ports, compared with 2,719 vessels with GRT of 70,659,820
recorded in the corresponding period of 2014. This represented a 2.8 per cent growth
apiece in the number of vessels and GRT.
To ensure sustainability of reforms in the railway sector, the National Council on
Privatisation directed the Bureau for Public Enterprises in collaboration with the Nigeria
Infrastructure Advisory Facility to commence the process of privatisation of the Nigeria
Railway Corporation (NRC) and other railway facilities across the country. A total of
2,320,244 passengers and 69,730 tonnes of freight were moved by rail during the period.
The NBS reviewed its definition and methodology for computing unemployment rate in
Nigeria, using a variant of the International Labour Organisation (ILO) definition.
Unemployment was now defined as the proportion of those in the labour force to total
labour force, who were actively searching for work, but were unable to find work for at
least 20 hours during the reference period.
Based on the new definition and methodology, in the first half of 2015, labour force
population increased to 74.0 million from 72.9 million at end-December 2014,
representing an increase of 1.5 per cent. The number of unemployed in the labour force,
4.3.14 Railway Services
4.4 SOCIAL SECTOR DEVELOPMENTS
4.4.1 Employment, Labour Productivity and Job Creation
4.4.1.1 Employment
CBN Economic Report for the First Half of 2015

similarly increased by 450,991 persons or 8.03 per cent between the last quarter of 2014
and first half 2015, resulting in an unemployment rate of 8.2 per cent in the first half of 2015
from 6.4 per cent.
Data used for the computation of the labour productivity are from the NBS Labour Force
Surveys, as well as the OECD EuroStat database. Labour productivity is derived as the
ratio of total output (annual GDP at current prices) to labour input (total hours worked per
year). Data from the NBS showed that labour productivity, in naira terms, increased by
14.31 per cent to 730.83 in the first half of 2015 from 639.34 at end 2014. In dollar terms, it
dropped from US$3.77 in 2014 to US$3.71 in the first half of 2015, a decrease of 1.60 per
cent. The sharp drop in dollar terms reflected the weakening of the naira vis-à-vis the US
dollar during the review period.
The Job Creation survey, a nationwide exercise, covering all 36 states of the federation
including the Federal Capital Territory (FCT) was conducted in the review period. A
sample of 5,000 establishments was surveyed across the country covering all sectors of
the economy. The Survey showed that a total of 610,438 jobs were created in the
economy during the first half of 2015, compared with 259,353 jobs created in the second
half of 2014, representing an increase of 135.4 per cent.
In the formal sector, 182,011 new jobs were created, representing 131.2 per cent increase
over the 78,738 total jobs created in the second half of 2014. On the other hand, there
was a 151.9 per cent increase in the number of jobs with 12,121 jobs created in the public
sector of the economy in first half 2015, compared with 4,812 jobs in second half of 2014.
The informal sector new jobs stood at 416,306 during the review period. This represented a
136.8 per cent increase in new jobs and over the 175,782 created in the second half of
2014 and accounted for 68.2 per cent of the total jobs created in first half of 2015.
The increased share of jobs created in the informal sector, reflected largely, the positive
impact of the Federal Government's financing initiatives on the small and medium scale
enterprises (SMEs) being implemented across the country.
The Federal Government granted provisional licenses for the establishment of nine (9)
private universities during the review period. These included: Augustine University, Ilara,
Lagos; Chrisland University, Owode, Ogun State; Christopher University, Mowe, Ogun
State; Hallmark University, Ijebu-Itele, Ogun State; Kings University, Ode-Omu, Osun State;
4.4.1.2 Labour Productivity
4.4.1.3 Job Creation
4.4.2 Education
N
CBN Economic Report for the First Half of 2015

Michael and Cecilia Ibru University, Owhrode, Delta State; Mountain Top Unversity,
Makogi/Oba, Ogun State; Ritman University, Ikot-Epene, Akwa-Ibom State and Summit
University, Offa, Kwara State. Thus, Nigerian universities increased from 129 to 138,
classified into Federal (40), State (39) and Private (59) universities.
The Federal Government, through the Tertiary Education Trust Fund (TETFund), disbursed
the sum of N1.3 trillion to all public universities to improve on the quality of teaching,
personnel development and infrastructure in the institutions.
The World Bank boosted the health sector through the provision of
99.5 billion to
improve maternal and child health care services in Nigeria. Also, to build capacity to
respond to any future outbreak of the Ebola virus disease (EVD) in the West African subregion, the Federal Government, in collaboration with the United States and the World
Health Organisation (WHO) established two (2) EVD Study centres in Nigeria at; the
Federal Ministry of Defence, Abuja and the Jos University Teaching Hospital, Plateau
State to carry out rigorous research on the Ebola virus vaccine.
During the 2015 World Malaria Day, ExxonMobil committed US$10.0 million in grant to
raise public awareness on the impact of malaria and to contain spread in communities at
risk. In addition, the Rotary Club International donated the sum of 8.1 billion in grant to
help the country in its final push to eradicate the wild polio virus.
The National Health Insurance Scheme (NHIS), in collaboration with Globacom Limited
launched a Mobile Health Insurance product to boost access to healthcare and reduce
out-of-pocket payment. The product would help in enrolling beneficiaries via their
mobile phones, simplify the process for registration, making payments and choosing a
healthcare provider of their preference. The product would cover free consultation and
medication in over 8,000 accredited hospitals nation-wide.
The viability of the external sector remained weak in the first half of the year, largely due
to the over 50 per cent fall in the global price of crude oil, as well as capital reversals
occasioned by the uncertainties that surrounded the general elections. Consequently,
the performance of the external sector deteriorated as reflected in the negative
outcomes in the overall and current account balances of 2.6 and 3.1 per cent of GDP,
respectively. The current account swung from a surplus of 1.1 per cent of GDP in the first
half of 2014 to a deficit of 3.1 per cent of GDP, while the capital and financial account
registered a net foreign liability position of 1.9 per cent of GDP. The stock of external
4.4.3 Health
4.5 EXTERNAL SECTOR DEVELOPMENTS
N
N
CBN Economic Report for the First Half of 2015

reserves fell by 24.1 per cent to US$28.34 billion year-on-year, at end-June 2015 and 17.2
per cent over end-December 2014 position. The level of external reserves could finance
6.7 months of current import of goods or 5.1 months of import of goods and services.
Other external sector indicators had their turn in the adverse development, as the
exchange rate depreciated by 13.9 per cent, from
169.68/US$1 at end-December
2014, to 196.95/US$1 at end - June 2015. External debt increased by 6.2 per cent from
US$9.71 billion at end-December 2014 to US$10.32 billion. However, the total external
debt remained within the sustainable threshold of 40.0 per cent of GDP.
At
10,004.35 billion, total external trade, which represented 22.6 per cent of GDP
declined by 15.6 per cent below the level recorded in the first half of 2014. Aggregate
exports declined by 28.3 per cent to 5,014.00 billion from 6,988.16 billion in the first half
of 2014. Imports at 4,990.35 billion or 11.3 per cent of GDP, increased by 2.6 per cent in
naira terms, but declined in real terms (dollar) by 18.9 per cent below the level in June,
2014 as a result of exchange rate depreciation during the period. Further analysis
revealed that the oil component remained dominant at 90.2 per cent of total exports or
10.2 per cent of GDP, while non-oil exports, at 1.1 per cent of GDP, accounted for the
balance of 9.8 per cent. A disaggregation of oil exports showed that crude oil exports at
8.6 per cent of the GDP, fell by 31.8 per cent to 3,795.25 billion, compared with 5,565.02
billion recorded in the first half of 2014. The development was due, largely, to the sharp fall
in the reference crude oil price to the average of US$58.54 from US$111.29 per barrel in
the first half of 2014. Similarly, gas exports declined by 13.4 per cent from the level in the
first half of 2014 to 728.82 billion. The value of non-oil exports declined by 15.8 per cent to
489.93 billion from 581.78 billion in the first half of 2014.
N
N
N
N
N
N
N
N
N
N
N
4.5.1
Current Account
4.5.1.1 Trade
CBN Economic Report for the First Half of 2015
Figure 76
Exports, Imports and Trade Balance
(N' Billion)

1st Half 2014
2nd Half 2014
1st Half 2015
N billion
Exports
Imports
Trade Balance
Source: CBN

A disaggregation of non-oil exports by product revealed that industrial sector exports
accounted for 61.8 per cent of the total, while agricultural produce, manufactured
goods, food products and “others”, accounted for 18.5, 12.1, 4.4 and 3.2 per cent,
respectively.
CBN Economic Report for the First Half of 2015
Figure 77
Non-Oil Exports by Products
(First Half 2015, Per cent)
Aggregate imports at N4,990.35 billion or 11.3 per cent of GDP, increased by 2.6 per cent
above the level in the first half of 2014 due to exchange rate depreciation. However, in
dollar terms, it declined by 18.9 per cent, reflecting suppressed trade-related activities in
the review period. Non-oil imports dominated total imports and accounted for 79.5 per
cent, while the oil component accounted for the balance of 20.5 per cent.
Sectoral breakdown of total imports in the review period showed that oil sector
accounted for 31.2 per cent; industrial sector, 30.3 per cent; food products, 16.4 per cent;
manufactured product, 16.0 per cent; and other sectors (transport, agriculture and
mineral) accounted for 6.1 per cent of the total.
Figure 78
Aggregate Imports by Sector
(First Half 2015, Per cent)

Agricultural
Produce
18.5%
Industrial
61.8%
Manufactured
12.1%
Food Produce
4.4%
Others
3.2%

Oil Sector
31.2%
Manufactured
16.0%
Industrial
30.3%
Food Product
16.4%
Others
6.1%
Source: CBN
Source: CBN

4.5.1.2 Services
The deficit in the services account narrowed by 19.4 per cent to 1,475.41 billion from
1,831.36 billion in the first half of 2014. The development was attributed to lower
payments in respect of the major components of the account, particularly transportation
and travels. During the review period, payments on transportation and travels declined
by 1.5 and 29.0 per cent, to 645.87 billion and 421.82 billion, respectively. The decline in
the payments for travel services in particular was due mainly to fall in the appetite of
Nigerians for foreign travels occasioned by the downturn in the economy. Payments in
respect of transportation services accounted for 38.9 per cent of the total, travels, 25.4
per cent; other business services, 13.6 per cent; financial services, 5.5 per cent; and other
services took the balance.
CBN Economic Report for the First Half of 2015
Figure 79
Share of Services Out-Payments
(First Half 2015, Per cent)
4.5.1.3 Income
4.5.1.4 Current Transfers
Transactions in the income account resulted in a higher deficit of
1,916.91 billion,
equivalent to 4.3 per cent of GDP, indicating an increase of 25.2 per cent above the level
in the first half of 2014. The development was attributed to the decline in investment
income from abroad, by 40.6 per cent, and the outflow of dividends and distributed
branch profits to foreign investors, which increased by 20.9 per cent to 1,999.78 billion in
first half 2015.
The current transfers was in surplus and increased by 16.2 per cent to 1,985.87 billion or
4.5 per cent GDP. The development was driven, largely, by increased home remittances
by non-resident Nigerians, which accounted for 97.1 per cent of net transfers. General
government transfers (net), comprising payments to foreign embassies and international
organisations also declined by 6.5 per cent to 128.96 billion from 138.00 billion in the first
half of 2014.
N
N
N
N
N

Transport
38.9%
Travel
25.4%
Other Business
13.6%
Financial
5.5%
Others
16.6%
Source: CBN

First Half 2014
Second Half 2014
First Half 2015

CBN Economic Report for the First Half of 2015
Figure 80
Private Home Remittances
(N'billion)
Source: CBN
4.5.2 Capital and Financial Account
4.5.2.1 Foreign Direct Investment
The capital and financial account registered higher net foreign liabilities of 849.94 billion
in the first half of 2015 as against 367.47 billion recorded in the corresponding period of
2014. The development was attributed to lower acquisition of financial assets abroad,
particularly, portfolio and other investments, which declined by 38.6 and 46.2 per cent,
respectively, reflecting risk averse attitude of resident investors and sluggish global
recovery.
Further disaggregation showed that aggregate foreign financial assets, representing
claims by Nigerians abroad declined by 88.6 per cent to 157.38 billion from 1,382.95
billion in the first half of 2014. The development was driven, largely, by the 38.6 per cent
decline in portfolio investments to 183.58 billion from 298.98 billion in the first half of 2014.
Other investment assets also declined by 46.2 per cent, relative to the level recorded in
the corresponding half of 2014.
Provisional data showed that foreign financial liabilities fell by 42.5 per cent to 1,007.32
billion from 1,750.43 billion in the first half of 2014, owing to lower investment inflows due
to uncertainties surrounding the 2015 general elections. Inward foreign direct investment
was 266.33 billion or 0.6 per cent of GDP, while portfolio investment inflow at 349.39
billion was 0.8 per cent of GDP.
Foreign direct investment inflow, which comprised equity capital, re-invested earnings
and other capital, accounted for 26.4 per cent of total investment inflows. It declined by
32.0 per cent to 266.33 billion, compared with the level recorded in the corresponding
half of 2014. The contraction was induced by the fall in the inflow of equity capital by 77.2
per cent, in the review period. Similarly, the inflow of other investment capital fell by 56.2

per cent below the level recorded in the first half of 2014. In contrast, foreign direct
investment abroad increased by 23.2 per cent to N145.32 billion over the level in the
corresponding half of 2014.
The inflow of portfolio investment declined by 24.7 per cent to
349.39 billion and
accounted for 34.7 per cent of total investment inflow, compared with the level in the
corresponding half of 2014. The development was mainly driven by the decline in both
equity and debt securities by 65.5 and 18.7 per cent, respectively from the level recorded
in the first half of 2014. Similarly, portfolio investment abroad declined by 38.6 per cent to
183.58 billion from 298.98 billion in the first half of 2014.
4.5.2.2 Portfolio Investment
CBN Economic Report for the First Half of 2015
Figure 81
Foreign Direct Investment and Portfolio Investment Inflows

1st Half 2014
2nd Half 2014
1st Half 2015
N' billion
FDI Inflow
Portfolio Inflow
Source: CBN
4.5.3
Capital Importation and Capital Outflow
Available data on new capital imported into the economy from the database of DMBs,
amounted to US$5.48 billion. Sectoral analysis showed that 60.2 per cent of the total
capital inflows was utilised for shares or equity investment, while financing,
telecommunication, banking, production/ manufacturing and trading, accounted for
14.8, 8.7, 8.7, 3.1 and 2.2 per cent of the total, respectively. “Other” sectors accounted for
the balance.
Capital outflow in the review period amounted to US$9.01billion; out of which capital
transfers was US$3.80 billion or 42.1 per cent of total. Remittance of dividends by foreign
investors stood at US$3.66 billion and represented 40.6 per cent, while repayment of loans
was US$1.47 billion or 16.3 per cent of total. “Others” accounted for the balance.

4.5.4
Reserve Assets
The stock of external reserves at the end of the first half of 2015 stood at US$28.34 billion
when compared with the first half and corresponding half of 2014, declined by 17.3 and
24.1 per cent, respectively.
A disaggregation of the external reserves showed that Federation Reserves was US$2.27
billion, (8.0.%); Federal Government reserves, US$2.48 billion (8.8%) and the CBN reserves,
US$23.58 billion (83.2%). The amount of external reserves could support 6.7 months of
CBN Economic Report for the First Half of 2015
Figure 82
Capital Importation by Sector
(First Half 2015, Per cent)
Figure 83
Capital Outflow and Outward Transfers
(First Half 2015, Per cent)
Source: CBN
Source: CBN

Shares 60.2%
Financing 14.8%
Telecommunication
8.7%
Banking 8.7%
Shares
Financing
Telecommunication
Banking
Trading
Others
Production

Capital Transfers
42.1%
Dividends 40.6%
Others 1.0%
Capital Transfers
Dividends
Others
Loans
Production 3.1%
Trading 2.2%
Others 2.3%
Loans 16.3%

import commitments, compared with 7.3 months and 7.7 months in the second half and
the corresponding period of 2014, respectively.
Furthermore, of the CBN reserves, the discretionary components, namely; the liquidity,
investment, and stable tranches stood at US$2.04 billion, US$8.33 billion and US$10.07
billion, respectively. A decomposition of the stable tranche showed that internal bond
portfolio was US$1.82 billion and external portfolio funds, US$8.25 billion. The nondiscretionary component consisted of CBN holdings of Special Drawing Rights (SDR) with
the IMF and LC collateral funds of US$2.36 billion and US$0.79 billion, respectively.
The Interest earnings from the investment of the external reserves portfolio stood at
US$0.07 billion in the review period, compared with US$0.08 billion and US$0.06 billion in
the first and second half of 2014, respectively.
CBN Economic Report for the First Half of 2015
Figure 84
External Reserves Stock and Months of Import Commitments

1st Half 2014
2nd Half 2014
1st Half 2015
US$ billion
External reserves
Months of Import Cover
4.5.5
External Assets of Financial Institutions
Provisional data on the total external assets of the banking system in the first half of 2015
was 9, 395.06 billion. Of the total, CBN's holdings accounted for 7,646.65 billion or 81.4
per cent and DMBs' holdings was 1,748.40 billion or 18.6 per cent.
Source: CBN

CBN Economic Report for the First Half of 2015
Figure 85
Total External Assets,
(First Half 2015, Per cent of total)
CBN
97.4%
DMBs
18.6%
Source: CBN
5.0
INTERNATIONAL ECONOMIC RELATIONS
5.1 Regional Institutions
5.1.1
West African Monetary Zone (WAMZ)
5.1.2 African Union/United Nations Economic Commission for Africa (UNECA)
An Extraordinary Meeting of the Committee of Governors of the West African Monetary
Zone (WAMZ) was held in Abuja, Nigeria, on January 22, 2015. The meeting was
preceded by the Technical Committee meeting of the WAMZ on January 21, 2015. The
WAMZ Committee of Governors (COG):
·
Considered and approved WAMI's work programme and budget for 2015, and
the report on the Status of Implementation of the Restructuring of WAMI;
·
Directed WAMI to implement the staff Provident Fund for the Institute's support
staff pending the outcome of the consultations between the Governor of the
Bank of Ghana and the Social Security and National Insurance Trust (SSNIT) of
Ghana;
·
Allocated the positions of Director at WAMI to member countries and resolved
that the Director positions would be rotated every two years; and
·
Approved the re-appointment of the Director General of WAMI, Dr. Abwaku
Englama, for another two-year period with effect from February 1, 2015.
The 8th Joint Annual Meetings of the African Union Specialised Technical Committee on
Finance, Monetary Affairs, Economic Planning and Integration and the UNECA
Conference of African Ministers of Finance, Planning and Economic Development took
place from March 25 to 31, 2015 in Addis Ababa, Ethiopia. The theme of the Conference
was “Implementing Agenda 2063 - Planning, Mobilising and Financing for
CBN’s holdings
81.4%

CBN Economic Report for the First Half of 2015
Development”. The Conference was held in view of the 2015 deadline for the MDGs
and the global negotiations on the post 2015 development agenda. The Conference
featured the inaugural lecture of the Annual Adebayo Adedeji Lecture, launched in
Abuja in 2014.
The 2015 edition of the Economic Report on Africa (ERA), “Industrialising through Trade”,
was launched during the Conference. The Report built on the key messages of the
previous editions of ERA, focusing on industrialisation and structural transformation in
Africa.
Furthermore, the caucus meeting of the African Central Bank Governors was held at
the sidelines of the Conference of Ministers' meeting. During the meeting, the
Governors identified follow-up measures on the outcomes of the Abuja 2014 meeting,
and those that would enhance the role of African Central Banks in financing industrial
development for inclusive growth and sustainable development.
The Association of African Central Banks (AACB) 2015 Continental Seminar was held
from May 13 to 15, 2015 in Nairobi, Kenya on the theme, “Monetary Policy Frameworks in
Africa in a Changing Financial Landscape”. The Seminar:
·
Advised member central banks to harmonise their monetary, financial and
payments policies for the attainment of the objectives of the African Union;
·
Urged members to consider moving towards a forward-looking monetary policy
framework, such as inflation targeting and hybrid frameworks (while taking
cognisance of country specific conditions, central bank independence,
availability of reliable and timely data), and develop inflation forecasting
models;
·
Identified the need to harmonise the monetary policy frameworks of AACB
countries in line with the on-going regional integration initiatives and taking into
consideration countries' differences by allowing some structural reforms, which
might take 3 to 10 years;
·
Recognised the need to strengthen the legal framework of central banks to
support reforms of monetary policy frameworks;
·
Recommended that member central banks should consider the adoption of the
South African Development Community (SADC)'s model law;
·
Recognised that the development of a robust payments system, growth in
micro-financing, increase in shadow banking and non-bank financial
institutions, liberalisation of capital accounts, the adoption of Islamic finance as
5.1.3
Association of African Central Banks (AACB)

CBN Economic Report for the First Half of 2015
key contributors to financial innovations in Africa; and
·
Stressed the importance of regulation, supervision and appropriate legal
framework for operational resilience and management of mobile payments.
The 2015 Annual Meetings of the Board of Governors of the African Development Bank
(AfDB) was held in Abidjan, Cote d'Ivoire from May 25 to 29, 2015. At the meeting, the
Board of Governors urged the Bank to pay more attention to poverty reduction, inclusive
and sustainable growth as well as financial inclusion. The meeting elected Nigeria's former
Minister of Agriculture and Natural Resources, Dr. Akinwumi Adesina as the 8th President
of the Bank Group.
The 2015 Spring Meetings of the Board of Governors of the World Bank Group (WBG) and
the International Monetary Fund (IMF) were held in Washington D.C., USA, from April 13 to
19, 2015. The Ministers of the Inter-governmental Group of 24, the International Monetary
and Finance Committee (IMFC) of the IMF and the Development Committee of the World
Bank held their respective meetings.
The G-24 Ministers:
·
Noted the uneven global recovery across countries and regions, and the
continued dominance of the emerging markets and developing countries
(EMDCs) as major drivers of global growth;
·
Observed the continued weak growth in the euro area and Japan, and
improvement in the US economy;
·
Expressed concern about potential effects of exchange rate and capital flow
volatility on EMDCs arising from normalisation of monetary policy in the U.S. and
divergent monetary policies among advanced economies; and
·
Noted that domestic policy efforts to improve resilience to external shocks
remained critical and should be complemented by adequate financial support
from the IMF and other international financial institutions (IFIs).
The IMFC:
·
Expressed its commitment to take further measures to lift growth and support a
more robust, balanced, and job-rich global economy;
·
Called for a mix of macroeconomic policies to promote growth, preserve fiscal
sustainability and financial stability, and accelerate the design and
5.1.4
African Development Bank (AfDB)
5.2 Multilateral Economic and Financial Institutions
5.2.1 International Monetary Fund (IMF)/World Bank Group

CBN Economic Report for the First Half of 2015
implementation of structural reforms;
·
Supported productive and efficient execution of public and private investment,
particularly in infrastructure for the recovery and lifting of growth; and
·
Advocated for urgent reforms in the product and labour markets, deepening
financial markets, improving governance, combating corruption, and tackling
inequality.
The Development Committee:
·
Noted the critical role of structural reforms in boosting business confidence,
investment, job creation, sustainable and more inclusive growth and enhanced
total factor productivity; and
·
Emphasised a stronger role for women in the economy, and better education and
training.
The outlook for the rest of the year is fairly optimistic against the backdrop of the
successful conduct of the 2015 general elections, which ushered in a new government.
With the renewed anti-corruption war, including the adoption of treasury single account
(TSA), blockage of leakages in government revenues, among others, the Nigerian
economy looks fairly promising for the rest of 2015. In this regard, there are prospects for
improvement in non-oil tax revenue predicated on expanded tax revenue base and the
efficient collection which will have significant salutary effect on the economy. However,
the continued decline in oil prices at the international market, with the attendant effect
on government revenue, coupled with the lingering insurgency in the North East part of
the country pose a threat to the growth prospects.
Premised on World Bank's forecast for marginal increase in crude oil price, the outlook for
the external sector for the rest of 2015 remains bright. Foreign exchange pressure is
expected to abate following the Bank's proactive foreign exchange management
measures and gradual accretion to external reserves. The reduction in the demand for
Nigeria's crude by the US is expected to be compensated by the rising demand from the
emerging economies, especially China.
6.0
OUTLOOK FOR THE SECOND HALF OF 2015

CBN Economic Report for the First Half of 2015

Sources
Jun-14
Dec-14
Jun-15
Agriculture
3.7
3.6
Industry
30.9
32.3
Mining & Quarrying
0.1
0.1
Manufacturing
12.8
14.2
Oil & Gas
15.9
15.3
of which DownStream, Natural Gas and Crude Oil Refining
15.9
15.3
Power and Energy
2.1
2.6
of which IPP and Power Generation
2.1
2.6
Construction
4.3
4.8
Trade/General Commerce
8.1
7.9
Government
5.7
5.2
Services
47.2
46.2
Real Estate
4.3
4.1
Finance, Insurance and Capital Market
5.9
6.0
Education
0.7
0.5
Oil & Gas
8.5
8.5
of which Upstream and Oil & Gas Services
8.5
8.5
Power and Energy
1.2
1.2
of which Power Transmission and Distribution
1.2
1.2
Others
26.7
25.9
of which: i. General
15.3
13.8
ii. Information & Communication
6.2
6.3
iii. Transportation & Storage
2.1
3.1
Total Private Sector Credit
100.0
100.0
Source: Central Bank of Nigeria
Note: /1 New template was introduced in March 2015 based on the adoption of International Financial Reporting Standard (IFRS).
Share in Outstanding (Per cent)
Table 20
DMBs' Credit to the Core Private Sector: (Percentage Share) /1

CBN Economic Report for the First Half of 2015
Table 21
Money Market Rates: First Half 2015 /1
(Per cent)

Month
MPR
Interbank Call
Rate
OBB
NIBOR: Call
NIBOR: 7 Days
NIBOR: 30 Days
Jan- 15

n. a.
13.70
Feb- 15

n. a.
15.47
Mar- 15

n. a.
15.89
Apr- 15

n. a.
15.17
May- 15

n. a.
14.61
Jun- 15

n. a.
15.45
1st Half 2015 Average

n. a.
15.05
1st Half 2014 Average

Sources: Central Bank of Nigeria and Financial Markets Dealers Association
1/ Revised
n. a. means not available
WEIGHTED AVERAGE

CBN Economic Report for the First Half of 2015
Table 22
Selected Interest Rates: First Half 2015
(Per cent)

Month
Savings
Average
Term Deposit
Prime
Lending
Maximum
Lending
Jan- 15

Feb- 15

Mar- 15

Apr- 15

May- 15

Jun- 15

1st Half 2015 Average

1st Half 2014 Average

Source: Central Bank of Nigeria

CBN Economic Report for the First Half of 2015
Table 23
Open Market Operations (OMO) Sessions

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

January
255,939.22
140,539.22

9.30
February
0.00
0.00

0.00
March
123,421.18
69,918.18

6.78
April
142,516.59
23,387.18

9.27
May
119,335.12
48,607.55

9.61
June
80,450.00
25,470.00

9.08
Total
721,662.11
307,922.13
Average
120,277.02
51,320.36

8.81
July
227,418.50
97,815.50

8.55
August
590,156.17
351,676.17

8.91
September
327,028.16
170,997.21

10.90
October
652,222.53
465,381.71

16.25
November
811,607.10
343,676.63

16.58
December
731,097.91
428,815.76

18.03
Total
3,339,530.37
1,858,362.98
Average
556,588.40
309,727.16

13.20

January
799,840.00
246,660.00

16.36
February
1,124,220.00
297,000.00

15.89
March
1,150,240.00
491,600.00

15.27
April
973,640.00
304,180.00

14.57
May
956,240.00
363,130.00

13.99
June
48,220.00
14,110.00

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

15.10
July
17,320.00
50.00

14.10
August
137,790.00
4,500.00

14.00
September
714,000.00
318,420.00

14.25
October
1,330,810.00
882,800.00

14.03
November
1,525,360.00
939,540.00

13.77
December
952,950.00
650,270.00

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

13.92

January
2,958,460.00
1,756,660.00

13.73
February
2,302,710.00
1,351,600.00

12.54
March
2,061,290.00
1,265,240.00

13.30
April
2,228,780.00
1,516,690.00

13.55
May
1,476,320.00
1,127,400.00

13.22
June
505,190.00
81,950.00

14.09
Total
11,532,750.00
7,099,540.00
Average
1,922,125.00
1,183,256.67

13.40
July
1,078,590.00
508,740.00

14.02
August
96,480.00
91,730.00

13.37
September
337,350.00
150,510.00

13.41
October
1,956,950.00
1,206,860.00

12.80
November
1,109,670.00
791,090.00

12.52
December
797,960.00
599,470.00

12.51
Total
5,377,000.00
3,348,400.00
Average
896,166.67
558,066.67

13.10

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

15.20
February
279,283.49
217,327.54

15.90
March
586,859.44
543,859.44

16.08
April
1,027,454.90
933,744.73

15.82
May
657,106.07
524,540.43

15.13
June
979,350.37
746,365.40

14.01
Total
5,167,279.18
4,261,718.48
Average
861,213.20
710,286.41

15.36
Source: Central Bank of Nigeria
Period

CBN Economic Report for the First Half of 2015
Table 24
Treasury Bills: Issues and Allotments
(Naira Million)

Deposit Money
Banks
Non-Bank
Public

June

December

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

June

December

Annual Total

Annual Average


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

Item
Jun 2011
Dec 2011
Jun 2012
Dec 2012
Jun 2013
Dec 2013
Jun 2014
Dec 2014
Jun 2015 /4
(1) Domestic 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

Money Supply

Currency Outside Banks

Demand Deposits /2

Total Monetary Liabilities

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

Credit to the Private Sector

Claims on Federal Government (Net)

By Central Bank

Claims on State and Local Governments

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

Foreign Assets (Net)

Quasi-Money

Money Supply (M1)

Broad Money (M2)

Other Assets (Net)

Source: Central Bank of Nigeria
/1 Quasi-Money consists of Time, Savings and Foreign Currency Deposits of Deposit Money Banks excluding takings from Discount Houses.
/2 Demand Deposits consist of state and local government as well as parastatals deposits at the CBN on the one hand and state and local
government and private sector deposits
as well as demand deposits of non-financial public enterprises at the Deposit Money Banks.
/3 Table is revised; International Financial Reporting Standard was adopted in March 2015 for banking statistical reporting and migration of
electronic returns of banking statistics from e-FASS to FINA also took place in March 2015.
/4 Provisional

CBN Economic Report for the First Half of 2015
Table 26
Value of Money Market Assets
(Naira Million)

June
Dec
June
Dec
June
Dec
June
Dec
June
Treasury Bills

Treasury Certificates

Development Stocks

Certificates of Deposits

Commercial Papers

Bankers' Acceptances

FGN Bonds

Total

Treasury Bills

Treasury Certificates

Eligible Development Stocks

Certificates of Deposits

Commercial Papers

Bankers' Acceptances

FGN Bonds

Percentage Change of Total

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

Instrument

CBN Economic Report for the First Half of 2015
Table 27
Selected Interest Rates
(End-Period Rate)

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

Treasury Bills Issue Rate

Inter-bank Call Rate
10.92

14.10

15.26

10.56

10.42

10.50

10.50

26.15

11.19

Open Buy Back (OBB)
9.11

13.57

14.46

10.29

10.29

11.50

10.57

23.46

10.64

NIBOR 7-days
11.75

14.63

15.58

11.38

10.75

10.88

10.85

26.53

n. a.
NIBOR 30-days
12.83

15.25

16.04

12.96

11.00

11.13

12.17

15.79

15.45

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

Time Deposit Rate (3 months)

Prime Lending Rate

Maximum Lending Rate

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

CBN Economic Report for the First Half of 2015
Table 28
Federation Account Operations
(N' Billion)


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

2014 1/
2015 2/

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

Oil Revenue (Gross)

Crude oil / Gas Exports
1,007.66

959.01


PPT and Royalties etc.
1,698.91

2,160.16

2,003.29

1,713.36

898.33

1,066.16

Domestic Crude Oil / Gas Sales
1,119.63

1,190.62

785.17

748.21

607.21

354.04

Other Oil Revenue
1.86

47.82

16.64

48.78

54.76

3.82

Less:
Deductions
2,136.53

2,214.56

1,281.47

1,124.72

450.66

774.77

Oil Revenue (Net)
1,691.53

2,143.05

2,366.57

2,479.67

1,599.12

1,940.84

Non-oil Revenue
930.91

1,219.61

1,158.46

1,504.64

1,403.06

2,173.59

Corporate Tax
243.26

281.82

341.37

582.31

334.30

711.80

Customs & Excise Duties
210.57

226.97

207.20

257.91

265.67

359.13

Value-Added Tax (VAT)
307.11

352.75

379.18

407.95

398.84

641.85

Independent Revenue of Fed. Govt.
92.93

226.70

82.20

134.01

290.93

244.65

Education Tax
14.57

48.71

51.80

18.57

16.38

103.04

Customs Special Levies (Federation Account)
61.82

79.10

92.91

44.93

36.32

74.27

National Information Technology Development Fund (NITDF)
0.64

3.57

3.80

2.04

2.70

5.02

Customs Special Levies (Non-Federation Account)

Less:
Cost of Collection
36.27

41.27

43.33

217.35

48.54

101.51

Non-Oil Revenue (Net)
894.64

1,178.34

1,115.14

1,287.29

1,354.52

2,072.08

Estmiated Balances in Special Accounts for the previous year

Add Solid Mineral and Other Mining Revenue

Federally-collected revenue (Net)
2,586.16

3,321.39

3,481.71

3,766.96

2,953.64

4,029.37

Federation Account Allocation:
2,586.16

3,321.39

3,481.71

3,766.96

2,953.64

4,029.37

Transfer to Federal Govt. Ind. Revenue
92.93

226.70

82.20

134.01

290.93

244.65

Transfer to VAT Pool Account
294.82

338.64

364.01

391.63

382.88

616.18

Other Tranfers 3/
77.03

131.37

148.51

122.46

113.32

136.86

Amount Distributed
2,121.38

2,624.68

2,886.98

3,118.87

2,166.51

3,031.69

Federal Government
1,001.70

1,235.91

1,358.79

1,473.20

1,031.80

1,463.64

State Government
508.08

626.87

689.20

747.23

523.34

742.38

Local Government
391.70

483.29

531.34

576.08

403.48

572.35

13% Derivation
219.90

278.60

307.65

322.36

207.89

253.33

Vat Pool Account
294.82

338.64

364.01

391.63

382.88

616.18

FG
44.22

50.79

54.60

58.75

57.43

92.43

SG
147.41

169.32

182.00

195.82

191.44

308.09

LG
103.19

118.52

127.40

137.07

134.01

215.66

Special Funds (FGN)
77.80

96.55

107.49

116.89

81.87

116.14

Federal Capital Territory
18.61

23.10

25.71

27.97

19.59

27.78

Ecology
18.61

23.10

25.71

27.97

19.59

27.78

Statutory Stabilization
9.31

11.55

12.86

13.98

9.79

13.89

Natural Resources
31.27

38.81

43.20

46.98

32.90

46.68

FCT VAT
2.95

3.39

3.64

3.92

3.83

6.16

Overall Balance


0.00
Memorandum Items
Deductions
2,136.53


JVC Cash calls
499.35


Excess Crude Proceeds
548.29


Excess PPT & Royalty
819.83


Domestic Subsidy

DPR Cost of Collection

Others
-


Distribution from Excess Crude

Federal Government

State Government

Local Government

13% Derivation

Provisional Dist & Actual Budget (Diff)
162.90


Federal Government
74.66


State Government
37.87


Local Government
29.20


13% Derivation
21.18


Exchange Rate Gain

Federal Government

State Government

Local Government

13% Derivation

SURE-P 6/

Federal Government

State Government

Local Government

13% Derivation

NNPC Refund

Federal Government

State Government

Local Government

13% Derivation

Federation Revenue Augmentation/NNPC Additional Rev.
145.95

462.02

613.88

0.00
14.68
0.00
Federal Government
66.89

211.75

281.35

0.00
6.73
0.00
State Government
33.93

107.40

142.71

0.00
3.41
0.00
Local Government
26.16

82.80

110.02

0.00
2.63
0.00
13% Derivation
18.97

60.06

79.80

0.00
1.91
0.00
Total Excluding VAT
2,430.23

3,304.94

4,069.34

3,362.63

2,445.23

3,126.77

Federal Government
1,143.25

1,514.63

1,879.74

1,570.96

1,180.12

1,518.18

State Government
579.87

802.04

975.88

811.78

579.30

765.27

Local Government

13% Derivation

Total Statutory Revenue and VAT Distribution 3/

Federal Government

State Government

Local Government

13% Derivation


CBN Economic Report for the First Half of 2015
Table 29
Summary of Federal Government Finances
(N' Billion)

2014 1/
2015 2/

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

Share of Federation Account (Gross)
1,001.70

1,235.91

1,358.79

1,473.20

1,031.80

1,463.64

Share of VAT Pool Account
44.22

50.79

54.60

58.75

57.43

92.43

Federal Government Independent Revenue
92.93

128.56

82.20

134.01

290.93

244.65

Share of Excess Crude Account (incl. Augment.)
141.55

318.50

423.19

0.00
7.16
0.00
Share from SURE-P Distribution
27.70

32.59

97.76

97.76

0.00
0.00
Share from Excess Non-Oil

NNPC Refund (Incl. Additional NNPC Share)

Subsidy

Exchange Gain

Others 3/
0.00
135.66
(56.38)

33.20
54.72
29.10
Total Expenditure

Recurrent Expenditure

Goods and Services

Personnel Cost
832.42

869.78

775.06

753.13

860.15

915.11

Pension
54.76

76.92

66.27

73.88

96.01

145.53

Overhead Cost
348.01

162.98


Interest Payments

Foreign
20.90

21.97

29.59

36.37

35.82

29.51

Domestic 3/
204.25

286.90

361.02

441.44

556.35

447.31

Transfers

Special Funds and others 6/
86.28

134.69

243.17

153.13

114.57

122.30

Capital Expenditure & Net Lending 5/

Domestic Financed Budgets

Budgetary

Subsidy

SURE-P/ Loan to Ex Dom Naira Account

Transfers

NDDC

NJC
47.50


UBE
23.04


Refund of Signature Bonuses/Others
9.52


Balance Of Revenue And Expenditure
Primary Surplus (+)/Deficit (-)
(425.09)

(2.26)

(24.79)

230.14

(84.30)

(43.69)

Current Surplus(+)/Deficit(-)
(238.51)

348.77

245.78

270.84

(289.61)

(43.68)

Overall Surplus(+)/Deficit(-)
(650.23)

(311.13)

(415.40)

(247.66)

(676.47)

(520.50)

Financing:
723.56

311.13

415.40

247.66

676.47

520.50

Foreign(Net)
73.33


Domestic(Net)
650.23

311.13

415.40

247.66

676.47

520.50

Banking System

CBN

DMBs

Non Bank Public

Privatization Proceeds

Loans from Special Accts

Excess Crude

Other Funds

Source: Office of the Accountant-General of the Federation (OAGF)
1/ Revised
2/ Provisional
3/ Includes FGN balance of special accounts, transfers to CRF and payments to FGN and other statutory benefitsShare of Difference between Provisonal and Approved Budget.
4/ Include Ways and Means Advances
5/ Includes net deductions for loans on lent to State,local governments and Federal parastatals/companies.

CBN Economic Report for the First Half of 2015
Table 30
Functional Classification of Federal Government Recurrent and Capital Expenditure
(Naira Billion)

Half - Year

Half - Year

Half - Year

Half - Year 1/

Half - Year 1/
TOTAL EXPENDITURE
1,958.34

2,213.14

2,375.56

2,131.31

2,259.66

A. RECURRENT EXPENDITURE
1,546.61

1,553.24

1,714.39

1,610.20

1,872.80

A1. ADMINISTRATION
600.99

571.48

626.12

512.59

607.41

General Administration
281.14

280.46

313.47

203.22

206.57

Defence
109.47

109.88

117.52

112.80

150.73

Internal Security
210.38

181.14

195.14

196.57

250.12

A2. ECONOMIC SERVICES
195.35

172.59

178.34

106.50

123.33

Agriculture
15.99

22.09

19.01

19.33

23.28

Roads & Construction
20.57

19.21

21.31

20.53

23.47

Transport & Communications
43.33

47.29

46.72

46.29

53.98

Others
115.46

84.00

91.30

20.35

22.61

A3. SOCIAL & COMMUNITY SERVICES
287.08

288.70

300.67

293.52

339.31

Education
130.42

138.57

138.21

136.39

158.83

Health
57.63

70.29

64.80

64.55

76.78

Others
99.02

79.83

97.66

92.58

103.69

A4. TRANSFERS
463.20

520.48

609.26

697.60

802.75

Public Debt Charges (Int)
225.15

308.87

390.61

477.80

592.17

Domestic
204.25

286.90

361.02

441.44

556.36

Foreign
20.90

21.97

29.59

36.37

35.82

Pensions & Gratuities
54.76

76.92

66.27

66.66

96.01

FCT & Others
86.28

134.69

152.38

153.13

114.57

Contingencies (Others)
-

-

-

-

-

External Obligations
-

-

-

-

-

Extra-Budgetary Expenditure
-

-

-

-

-

Deferred Customs Duties
-

-

-

-

-

Unspecified Expenditure
-

-

-

-

-
Others
97.02

-

-

-

-
B. CAPITAL EXPENDITURE
303.62

291.84

499.69

353.15

274.53

B1. ADMINISTRATION
116.13

110.38

176.19

136.65

106.64

General Administration
75.05

68.16

110.77

86.20

66.72

Defence
15.99

16.45

26.41

19.89

15.80

Internal Security
25.09

25.77

39.01

30.56

24.12

B2 ECONOMIC SERVICES
118.89

130.41

221.44

142.68

112.05

Agriculture & Natural Resources
19.30

20.79

38.22

26.04

21.20

Manuf., Mining & Quarrying
7.81

5.72

12.23

8.53

6.48

Transport & Communications
28.21

29.21

51.97

36.65

29.51

Housing
-

-

-

-

-
Roads & Construction
36.08

36.38

71.15

47.40

38.30

National Priority Projects
-

-

-

-

-

JVC Calls/NNPC Priority Projects
-

-

-

-

-

PTF
-

-

-

-

-

Counterpart Funding
-

-

-

-

-

Others
27.50

38.30

47.86

24.06

16.55

B3 SOCIAL & COMMUNITY SERVICES
54.85

39.62

79.11

57.90

43.48

Education
17.90

19.57

30.32

23.23

18.53

Health
14.97

15.68

24.82

18.96

15.03

Others
21.98

4.37

23.97

15.71

9.92

B4 TRANSFERS
13.75

11.43

22.94

15.92

12.36

Financial Obligations
-

-

-

-

-

Capital Repayments
-

-

-

-

-

Domestic
-

-

-

-

-

Foreign
-

-

-

-

-

External Obligations
-

-

-

-

-

Contingencies 2/
-

-

-

-

-

Capital Supplementation
10.60

8.19

17.99

12.06

9.31

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

-

-

-

-

Grants to States
-

-

-

-

-

Others
3.15

3.23

4.95

3.86

3.05

C. STATUTORY TRANSFERS
108.10

368.06

161.49

167.96

112.33

NDDC

NJC

UBE

Others

Sources: Federal Ministry of Finance, Office of the Accountant-General of the Federation
and Central Bank of Nigeria
1/ Provisional

CBN Economic Report for the First Half of 2015
Source: Federation Account Allocation, Federal Ministry of Finance.
1/ Provisional
2/ Includes the share of Oil-producing states from the excess crude
Gross Stat.
Alloc.
Deductions
13%
Derivation
Total Net Stat.
Alloc.
Augmentation
VAT
Total Gross Alloc. Total Net Alloc. Gross Stat. Alloc.
Deductions
13% Derivation Total Net Stat.
Alloc.
Augmentation Exchange
Gain
Excess
Crude 2/
NNPC
Refund
SURE-P
VAT
Total Gross
Alloc.
Total Net Alloc. Gross Stat.
Alloc.
Deductions
13%
Derivation
Total Net Stat.
Alloc.
Augmentation
Excess
Crude 2/
NNPC
Refund
SURE-P
VAT
Total Gross
Alloc.
Total Net
Alloc.
Gross Stat. Alloc.
Deductions 13% Derivation
Total Net Stat.
Alloc.
NNPC Refund
1 ABIA

2.29

14.29

2.14

3.01

19.67

19.43

15.11

0.30

2.30

17.11

2.59

0.27

0.42

0.55

0.40

3.48

25.12

24.82

16.61

0.46

4.94

21.09

3.44
1.73

0.55

1.20

3.76

32.23

31.76
18.45

0.87

3.81

21.39
0.37
2 ADAMAWA

-

12.96

1.93

3.17

18.77

18.06

16.87

1.97

-

14.90

2.89

0.31

0.47

0.62

0.44

3.63

25.22
23.25

18.54

0.05

-

18.49

3.84
1.94

0.62

1.33

3.91

30.18

30.12
19.63

0.46

-

19.17
0.41
3 AKWA IBOM

55.39

70.09

11.08

4.08

84.38

85.25

17.06

6.17

99.61

110.50

2.92

0.31

0.47

0.61

0.45

4.44

125.88

119.70

18.76

4.93


121.52

135.35

3.88
1.96

0.61

1.35

4.74


152.82

147.89
19.81

2.44

106.46

123.82
0.41
4 ANAMBRA


-

13.51

1.95

3.53

19.29

18.99

17.04

0.10

-

16.93

2.92

0.31

0.47

0.62

0.45

4.04

25.84
25.74

18.73

0.23


-

18.50

3.88
1.96

0.62

1.35

4.34

30.87

30.64
19.59

0.58

-

19.02
0.41
5 BAUCHI


-

14.63

2.26

3.62

21.90

20.51

19.76

2.45

-


17.31

3.39

0.36

0.55

0.69

0.52

4.13

29.40
26.94

21.73

1.44


-

20.28

4.50
2.27

0.69

1.56

4.47

35.22

33.78
23.57

2.71

-

20.86
0.46
6 BAYELSA


42.77

41.26

9.12

2.78

65.64

53.16

13.52

14.53

69.26

68.26

2.32

0.24

0.38

0.48

0.36

3.29

89.85
75.32

14.88

11.43


95.92

99.36

3.08
1.55

0.48

1.07

3.76

120.74

109.30
17.44

14.01

69.07

72.50
0.32
7 BENUE


-

12.58

2.09

3.47

20.32

18.14

18.21

2.31

-

15.90

3.12

0.33

0.51

0.66

0.48

4.08

27.40
25.09

20.03

2.12


-

17.90

4.15
2.09

0.66

1.44

4.27

32.64

30.51
22.10

3.11

-

18.99
0.44
8 BORNO


-

16.21

2.30

3.50

22.09

22.02

20.10

1.37

-

18.73

3.44

0.36

0.56

0.70

0.53

4.05

29.75
28.39

22.10

0.20


-

21.89

4.58
2.31

0.70

1.59

4.25

35.52

35.32
24.48

0.25

-

24.23
0.47
9 CROSS RIVER


2.27

14.71

2.20

3.05

20.35

19.96

15.83

1.60

2.86

17.10

2.71

0.29

0.44

0.58

0.42

3.54

26.67
25.07

17.41

0.92


0.32

16.81

3.60
1.82

0.58

1.25

3.85

28.83

27.91
19.82

1.52

0.29

18.59
0.38
10 DELTA


44.56

56.35

10.79

4.09

73.26

71.23

17.05

9.51

80.23

87.77

2.92

0.31

0.47

0.62

0.45

4.99

107.05

97.54

18.75

7.81


95.47

106.40

3.88
1.96

0.62

1.35

4.72

126.74

118.92
20.01

8.80

74.20

85.40
0.41
11 EBONYI


-

7.84

1.60

2.90

15.83

12.34

13.98

3.65

-


10.34

1.92

0.25

0.39

0.52

0.37

3.34

20.77
17.13

15.37

2.93


-

12.45

3.18
1.60

0.52

1.11

3.54

25.33

22.40
17.63

3.68

-

13.95
0.35
12 EDO


3.88

15.82

2.65

3.38

22.81

21.85

15.92

3.98

6.90

18.84

3.20

0.29

0.44

0.61

0.42

4.01

31.79
27.81

17.50

3.49


9.35

23.36

3.62
1.83

0.61

1.26

4.14

38.31

34.82
18.43

4.93

8.80

22.29
0.41
13 EKITI


-

11.29

1.62

2.89

15.94

15.79

14.11

2.94

-

11.17

2.42

0.26

0.39

0.52

0.37

3.35

21.41
18.47

15.51

2.22


-

13.29

3.21
1.62

0.52

1.12

3.62

25.59

23.37
17.62

3.63

-

13.99
0.35
14 ENUGU


-

12.73

1.82

3.23

17.95

17.78

15.91

0.62

-

15.30

2.73

0.29

0.44

0.57

0.42

3.72

24.08
23.47

17.50

0.08


-

17.42

3.62
1.83

0.57

1.26

3.98

28.75

28.68
19.82

0.64

-

19.18
0.38
15 GOMBE


-

11.70

1.71

2.90

16.74

16.31

14.96

3.14

-

11.82

2.30

0.27

0.42

0.53

0.39

3.35

22.22
19.07

16.45

2.43


-

14.01

3.41
1.72

0.53

1.18

3.58

26.86

24.43
18.56

3.16

-

15.40
0.35
16 IMO


2.51

13.16

2.36

3.42

22.06

18.95

16.99

2.75

4.04

18.28

3.17

0.31

0.47

0.61

0.45

3.93

29.97
27.22

18.68

2.22


5.09

21.56

3.87
1.95

0.61

1.34

4.27

35.81

33.59
20.49

2.98

3.54

21.05
0.40
17 JIGAWA


-

14.98

2.14

3.63

20.90

20.75

18.66

1.04

-


17.63

3.20

0.34

0.52

0.67

0.49

4.10

27.98
26.95

20.52

0.36


-

20.16

4.25
2.14

0.67

1.48

4.47

33.53

33.17
22.04

0.65

-

21.39
0.45
18 KADUNA


-

15.43

2.44

4.20

23.87

22.07

21.27

1.82

-

19.45

3.64

0.39

0.59

0.75

0.56

4.97

32.18
30.36

23.38

1.94


-

21.45

4.84
2.44

0.75

1.68

5.17

38.27

36.33
25.82

3.10

-

22.72
0.50
19 KANO


-

21.17

3.05

5.62

30.28

29.84

26.66

1.95

-

24.71

4.57

0.48

0.74

0.92

0.70

6.47

40.54
38.59

29.31

0.58


-

28.73

6.07
3.06

0.92

2.11

6.92

48.38

47.81
31.26

1.34

-

29.92
0.61
20 KATSINA


-

15.76

2.32

4.03

22.78

22.11

20.27

0.22

-

20.05

3.47

0.37

0.56

0.72

0.53

4.63

30.56
30.34

22.29

0.53


-

21.76

4.62
2.33

0.72

1.60

4.92

36.47

35.94
24.22

0.73

-

23.49
0.48
21 KEBBI


-

13.51

1.94

3.21

18.89

18.66

16.96

2.02

-

14.93

2.91

0.31

0.47

0.60

0.45

3.73

25.41
23.39

18.64

0.21


-

18.43

3.86
1.95

0.60

1.34

3.98

30.37

30.15
20.81

0.72

-

20.08
0.40
22 KOGI


-

12.80

1.94

3.30

18.95

18.04

16.92

1.21

-

15.71

2.90

0.31

0.47

0.60

0.45

3.82

25.46
24.25

18.60

0.09


-

18.51

3.85
1.94

0.60

1.34

3.97

30.29

30.20
21.78

1.37

-

20.41
0.40
23 KWARA


-

12.39

1.77

2.93

17.19

17.09

15.41

0.09

-

15.32

2.64

0.28

0.43

0.55

0.41

3.35

23.07
22.98

16.95

0.09


-

16.85

3.51
1.77

0.55

1.22

3.58

27.57

27.48
17.54

0.78

-

16.76
0.36
24 LAGOS


-

15.89

2.76

26.34

48.62

44.99

24.08

3.77

-

20.31

4.13

0.44

0.67

0.87

0.63

30.01

60.82
57.06

26.47

8.93


-

17.54

5.48
2.76

0.87

1.90

32.69

70.18

61.24
26.40

14.54

-

11.85
0.58
25 NASARAWA


-

10.22

1.65

2.69

16.05

14.56

14.44

2.17

-

12.27

2.47

0.26

0.40

0.52

0.38

3.07

21.55
19.38

15.88

1.79


-

14.09

3.29
1.66

0.52

1.14

3.34

25.83

24.04
18.17

1.79

-

16.38
0.34
26 NIGER


-

13.82

2.26

3.39

21.63

19.46

19.73

2.99

-

16.74

3.38

0.36

0.55

0.70

0.52

3.91

29.13
26.15

21.69

1.88


-

19.81

4.49
2.26

0.70

1.56

4.19

34.89

33.01
23.34

3.71

-

19.63
0.46
27 OGUN


-

13.10

1.89

3.39

18.64

18.39

16.49

0.13

-

16.36

2.82

0.30

0.46

0.59

0.43

3.95

25.04
24.91

18.12

0.11


-

18.01

3.75
1.89

0.59

1.30

4.20

29.86

29.74
18.31

0.47

-

17.83
0.39
28 ONDO


7.52

19.55

3.25

3.27

26.85

26.06

15.81

3.32

13.50

25.99

2.71

0.29

0.44

0.58

0.42

3.88

37.62
34.30

17.38

2.71


18.02

32.69

3.60
1.81

0.58

1.25

4.03

46.67

43.96
18.34

5.63

14.13

26.84
0.38
29 OSUN


-

12.41

1.79

3.25

17.71

17.45

15.64

0.36

-

15.28

2.68

0.28

0.43

0.56

0.41

3.73

23.74
23.38

17.19

2.69


-

14.50

3.56
1.79

0.56

1.24

4.01

28.36

25.67
17.97

6.25

-

11.72
0.38
30 OYO


-

14.88

2.26

4.17

22.39

21.30

19.70

0.64

-

19.05

3.38

0.36

0.55

0.70

0.52

4.60

29.80
29.16

21.66

0.38


-

21.28

4.48
2.26

0.70

1.56

4.97

35.64

35.25
22.10

1.25

-

20.85
0.47
31 PLATEAU


-

12.80

1.89

3.18

18.49

17.88

16.54

0.40

2.20

18.34

2.83

0.30

0.46

0.60

0.44

3.71

27.08
26.68

18.19

0.48


6.60

24.31

3.77
1.90

0.60

1.31

4.08

36.44

35.96
20.58

1.39

5.50

24.69
0.40
32 RIVERS


55.98

68.81

12.03

5.46

88.47

86.30

18.49

1.58

88.99

105.89

3.17

0.33

0.51

0.66

0.49

5.74

118.38

116.79

20.33

0.80


104.06

123.59

4.21
2.12

0.66

1.46

7.01

139.87

139.06
21.25

7.68

68.21

81.79
0.44
33 SOKOTO


-

14.12

2.01

3.41

19.68

19.54

17.59

1.03

-

16.56

3.01

0.32

0.49

0.63

0.46

3.88

26.39
25.36

19.34

0.26


-

19.08

4.00
2.02

0.63

1.39

4.19

31.57

31.31
21.72

0.91

-

20.80
0.42
34 TARABA


-

13.45

1.91

2.86

18.27

18.22

16.66

0.03

-

16.63

2.85

0.30

0.46

0.59

0.44

3.33

24.64
24.61

18.31

0.29


-

18.03

3.79
1.91

0.59

1.32

3.54

29.46

29.17
18.98

0.45

-

18.53
0.39
35 YOBE

-

13.17

1.89

2.95

18.24

18.01

16.53

0.57

-

15.96

2.83

0.30

0.46

0.58

0.44

3.37

24.51
23.94

18.18

0.11


-

18.07

3.76
1.90

0.58

1.31

3.57

29.29

29.18
19.57

0.25

-

19.32
0.38
36 ZAMFARA


16.02

10.97

14.76

16.29

12.83

13.82

11.33

12.90

11.43

12.90

12.13

13.77

15.13

17.24

21.61

16.43

13.74

13.71

12.49

19.52

11.71

15.99

13.36

12.81

12.67

15.97

13.41

14.99

14.25

13.50


1.39

12.48

2.18

0.07

0.40

2.03

3.50

0.96

0.14

0.17

0.42

3.12

0.15

1.81

0.44

0.67

0.24

0.91

0.10

3.63

1.48

2.17

0.26

0.78

0.26

1.09

0.60

2.16

0.14

0.05
0.23
0.93

-

12.51

1.90

3.12

18.46

17.53

16.58

3.59

-


12.99

2.84

0.30

0.46

0.60

0.44

3.70

24.91
21.32

18.23

0.37


-

17.86

3.78
1.90

0.60

1.31

4.01

29.83

29.46
19.61

0.65

-

18.96
0.40
37 Disputed Deriv.

Rivers/Akwa
Disputed Fund

S/N
STATES
First Half 2011
First Half 2012
First Half 2013
First Half 2014
TOTAL


Table 31
Summary of Statutory & VAT Revenue Allocation to State Governments 1/
(Naira Billion)

CBN Economic Report for the First Half of 2015
State
Fed. Acct.
Excess
Crude
Budget
Augment
ation
Exchange
Gain
NNPC
Refunds
SURE-P
VAT
Total
Fed. Acct.
Excess
Crude
Budget
Augment
ation
Exchange
Gain
NNPC
Refunds
SURE-P
VAT
Total
Fed. Acct.
Excess
Crude
Budget
Augment
ation
Exchange
Gain
NNPC
Refunds
SURE-P
VAT
Total
Fed. Acct.
Excess
Crude
Budget
Augment
ation
Exchange
Gain
NNPC
Refunds
SURE-P
VAT
Total
Fed. Acct.
Excess
Crude
Budget
Augment
ation
Exchange
Gain
NNPC
Refunds
SURE-P
Additiona
l Revenue
VAT
Total
1 Abia
8.17
-
1.15

-

-

-


1.7
0.18

0.36

0.27


2.3
-

0.36

0.80

2.2
17.9
11.96

-

-

-

0.24

0.80

2.4
15.4
8.37

0.06

-

0.78

-

-

0.05

2.4
11.6
2 Adamawa
10.51
-
1.49

-

-

-


2.2
0.23

0.48

0.34


2.9
-

0.48

1.03

2.7
22.8
15.08

-

-

-

0.32

1.03

2.8
19.3
10.56

0.07

-

0.99

-

-

0.07

2.8
14.5
3 Akwa-Ibom
13.86
-
1.96

-

-

-


2.9
0.31

0.58

0.45


3.8
-

0.58

1.35

4.0
30.5
20.09

-

-

-

0.39

1.35

3.9
25.7
14.07

0.10

-

1.32

-

-

0.09

4.0
19.6
4 Anambra
10.42
-
1.47

-

-

-


2.2
0.23

0.50

0.34


2.9
-

0.50

1.02

3.0
23.0
15.16

-

-

-

0.33

1.02

3.2
19.7
10.62

0.07

-

0.99

-

-

0.07

3.1
14.9
5 Bauchi
12.05
-
1.70

-

-

-


2.5
0.27

0.49

0.39


3.3
-

0.49

1.18

3.0
25.9
17.21

-

-

-

0.33

1.18

3.2
21.9
12.06

0.08

-

1.13

-

-

0.08

3.2
16.5
6 Bayelsa
4.43
-
0.63

-

-

-


0.9
0.10

0.19

0.14


1.3
-

0.19

0.43

1.4
10.1
7.01

-

-

-

0.13

0.43

1.5
9.0
4.91

0.03

-

0.46

-

-

0.03

1.2
6.7
7 Benue
12.25
-
1.73

-

-

-


2.6
0.27

0.55

0.40


3.6
-

0.55

1.20

3.1
26.8
18.73

-

-

-

0.37

1.20

3.4
23.7
13.12

0.09

-

1.23

-

-

0.09

3.2
17.8
8 Borno
14.08
-
1.99

-

-

-


3.0
0.31

0.61

0.46


3.9
-

0.61

1.37

3.4
30.3
20.34

-

-

-

0.40

1.37

3.7
25.8
14.24

0.10

-

1.33

-

-

0.09

3.6
19.3
9 Cross-River
8.75
-
1.24

-

-

-


1.9
0.20

0.40

0.28


2.5
-

0.40

0.85

2.4
19.3
13.11

-

-

-

0.27

0.85

2.6
16.8
9.18

0.06

-

0.86

-

-

0.06

2.5
12.7
10 Delta
11.57
-
1.63

-

-

-


2.4
0.26

0.53

0.38


3.2
-

0.53

1.13

3.5
25.7
16.80

-

-

-

0.36

1.13

3.7
21.9
11.77

0.08

-

1.10

-

-

0.08

3.6
16.7
11 Ebonyi
6.24
-
0.88

-

-

-


1.3
0.14

0.28

0.20


1.9
-

0.28

0.61

1.8
13.9
9.70

-

-

-

0.18

0.61

1.9
12.4
6.79

0.05

-

0.63

-

-

0.04

1.8
9.3
12 Edo
8.76
-
1.24

-

-

-


1.9
0.20

0.43

0.28


2.5
-

0.43

0.85

2.6
19.4
12.85

-

-

-

0.29

0.85

2.7
16.7
9.00

0.06

-

0.84

-

-

0.06

2.6
12.6
13 Ekiti
7.13
-
1.01

-

-

-


1.5
0.16

0.32

0.23


1.9
-

0.32

0.70

2.1
15.7
10.21

-

-

-

0.21

0.70

2.1
13.3
7.15

0.05

-

0.67

-

-

0.05

2.1
10.0
14 Enugu
8.44
-
1.19

-

-

-


1.8
0.19

0.37

0.27


2.5
-

0.37

0.82

2.4
18.8
13.06

-

-

-

0.24

0.82

2.6
16.7
9.15

0.06

-

0.85

-

-

0.06

2.6
12.7
15 Gombe
6.16
-
0.87

-

-

-


1.3
0.14

0.26

0.20


1.7
-

0.26

0.60

1.6
13.4
8.95

-

-

-

0.17

0.60

1.7
11.4
6.27

0.04

-

0.59

-

-

0.04

1.7
8.6
16 Imo
12.22
-
1.73

-

-

-


2.6
0.27

0.52

0.40


3.3
-

0.52

1.19

3.4
26.7
17.50

-

-

-

0.35

1.19

3.6
22.6
12.26

0.09

-

1.15

-

-

0.08

3.5
17.1
17 Jigawa
12.82
-
1.81

-

-

-


2.7
0.29

0.56

0.42


3.5
-

0.56

1.25

3.5
28.0
18.39

-

-

-

0.37

1.25

3.9
23.9
12.88

0.09

-

1.20

-

-

0.08

3.7
17.9
18 Kaduna
13.76
-
1.94

-

-

-


2.9
0.31

0.61

0.45


3.9
-

0.61

1.34

3.7
30.2
20.68

-

-

-

0.41

1.34

4.0
26.4
14.48

0.10

-

1.35

-

-

0.09

3.9
19.9
19 Kano
22.57
-
3.19

-

-

-


4.8
0.50

0.97

0.73


6.3
-

0.97

2.20

6.6
49.8
32.92

-

-

-

0.64

2.20

7.1
42.8
23.06

0.16

-

2.16

-

-

0.15

6.9
32.4
20 Katsina
16.50
-
2.33

-

-

-


3.5
0.37

0.73

0.54


4.8
-

0.73

1.61

4.4
36.4
25.06

-

-

-

0.48

1.61


1.64

-

-

0.11

4.8
24.2
21 Kebbi
10.25
-
1.45

-

-

-


2.2
0.23

0.45

0.33


3.0
-

0.45

1.00

2.7
22.6
15.82

-

-

-

0.30

1.00


1.04

-

-

0.07

2.8
15.1
22 Kogi
10.63
-
1.50

-

-

-


2.2
0.24

0.45

0.35


3.1
-

0.45

1.04

2.7
23.3
16.35

-

-

-

0.30

1.04


1.07

-

-

0.07

2.8
15.5
23 Kwara
8.16
-
1.15

-

-

-


1.7
0.18

0.37

0.27


2.2
-

0.37

0.80

2.0
17.6
11.57

-

-

-

0.25

0.80


0.76

-

-

0.05

2.1
11.1
24 Lagos
13.71
-
1.94

-

-

-


2.9
0.31

0.65

0.45


3.8
-

0.65

1.34

19.3
45.5
19.71

-

-

-

0.43

1.34


1.29

-

-

0.09

20.6
35.9
25 Nassarawa
6.53
-
0.92

-

-

-


1.4
0.15

0.29

0.21


2.0
-

0.29

0.64

1.6
14.4
10.32

-

-

-

0.19

0.64


0.68

-

-

0.05

1.7
9.7
26 Niger
13.23
-
1.87

-

-

-


2.8
0.30

0.58

0.43


3.6
-

0.58

1.29

3.2
28.5
19.10

-

-

-

0.39

1.29

3.4
24.2
13.38

0.09

-

1.25

-

-

0.09

3.4
18.2
27 Ogun
9.79
-
1.38

-

-

-


2.1
0.22

0.44

0.32


2.6
-

0.44

0.96

2.8
21.4
13.63

-

-

-

0.30

0.96

2.9
17.8
9.55

0.07

-

0.89

-

-

0.06

3.0
13.5
28 Ondo
9.04
-
1.28

-

-

-


1.9
0.20

0.40

0.29


2.5
-

0.40

0.88

2.5
19.8
13.02

-

-

-

0.27

0.88

2.7
16.8
9.12

0.06

-

0.85

-

-

0.06

2.6
12.7
29 Osun
12.32
-
1.74

-

-

-


2.6
0.28

0.58

0.40


3.4
-

0.58

1.20

3.5
27.0
17.63

-

-

-

0.39

1.20

3.8
23.0
12.35

0.09

-

1.15

-

-

0.08

3.6
17.3
30 Oyo
15.75
-
2.23

-

-

-


3.3
0.35

0.70

0.51


4.2
-

0.70

1.54

4.4
34.4
22.24

-

-

-

0.46

1.54

4.7
29.0
15.58

0.11

-

1.46

-

-

0.10

4.8
22.0
31 Plateau
9.02
-
1.27

-

-

-


1.9
0.20

0.39

0.29


2.7
-

0.39

0.88

2.4
19.9
13.94

-

-

-

0.26

0.88

2.6
17.7
9.76

0.07

-

0.91

-

-

0.06

2.5
13.3
32 Rivers
11.81
-
1.67

-

-

-


2.5
0.26

0.51

0.38


3.3
-

0.51

1.15

4.7
27.3
17.28

-

-

-

0.34

1.15

4.5
23.3
12.10

0.08

-

1.13

-

-

0.08

4.1
17.5
33 Sokoto
11.32
-
1.60

-

-

-


2.4
0.25

0.50

0.37


3.3
-

0.50

1.10

3.0
25.0
17.41

-

-

-

0.34

1.10

3.3
22.1
12.19

0.08

-

1.14

-

-

0.08

3.1
16.6
34 Taraba
9.01
-
1.27

-

-

-


1.9
0.20

0.39

0.29


2.5
-

0.39

0.88

2.0
19.2
13.05

-

-

-

0.26

0.88

2.1
16.3
9.14

0.06

-

0.85

-

-

0.06

2.1
12.2
35 Yobe
8.74
-
1.23

-

-

-


1.8
0.20

0.39

0.28


2.5
-

0.39

0.85

2.1
19.0
13.12

-

-

-

0.26

0.85

2.2
16.5
9.19

0.06

-

0.86

-

-

0.06

2.2
12.3
36 Zamfara
8.20
-
1.16

-

-

-


1.7
0.18

0.34

0.27


2.3
-

0.34

0.80

2.2
17.8
11.85

-

-

-

0.23

0.80

2.2
15.1
8.30

0.06

-

0.78

-

-

0.05

2.2
11.4
37 FCT Abuja
3.49
-
0.49

-

-

-


0.7
0.08

0.14

0.11


1.0
-

0.14

0.34

5.6
12.3
5.23

-

-

-

0.09

0.34

6.5
12.2
3.67

0.03

-

0.34

-

-

0.02


-

-

-

103.19

550.25

483.29

13.44

82.81

8.75

17.31

12.74

118.51

736.86

531.34

55.46

110.02

-

17.31

38.23

127.40

879.76

576.08

-

-

-

11.54

38.23

137.07

762.92

403.48

2.80

-

37.71

-

-

2.63

134.01

580.63
Source: Federation Account Allocation, Federal Ministry of Finance.
1/ Revised
2/ Provisional
VAT: Value Added Tax
LGA: Local Governments Areas
TOTAL
1st Half 2011
1st Half 2012
1st Half 2013
1st Half 2014 1/
1st Half 2015 2/
Table 32
Allocation to Local Governments from the Federation and VAT Pools Accounts
(Naira Billion)

CBN Economic Report for the First Half of 2015
Table 33
Domestic Debt of the Federal Government
(Naira Billion)
Source: Debt Management Office
1/ Revised
2/ Provisional
3/ Includes holdings of Discount Houses

First Half 2011
First Half 2012
First Half 2013
First Half 2014 1/
End-Dec 2014 1/
First Half 2015 2/
1. Composition of Debt
i Treasury Bills
1,561.42

2,084.59

2,483.29

2,735.87

2,815.52

2,824.95

ii Treasury Bonds
372.90

353.73

334.56

315.39

296.22

271.22

iii Development Stocks

iv FGN Bonds
3,276.11


v Promissory Note

Total
5,210.44

6,152.87

6,850.75

7,421.10

7,904.03

8,396.59

2. Holders
i Banking System
3,917.38

3,824.81

3,928.45

4,694.35

6,073.67

6,040.09

a. Central Bank
313.32

439.62

243.74

466.83

880.73

948.97

b. Deposit Money Banks /3
3,604.06

3,385.19

3,684.71

4,227.52

4,826.44

5,091.12

ii Non-Bank Public
1,141.75

2,166.11

2,760.05

2,542.68

1,830.35

1,961.60

iii Sinking Fund
151.30

161.95

162.25

184.07

366.50

394.90

Total Debt Outstanding
5,210.43

6,152.87

6,850.75

7,421.10

7,904.02

8,396.59

CBN Economic Report for the First Half of 2015
Table 34
Domestic Debt Service Payments of the Federal Government by Instruments
(Naira Billion)
Source: Debt Management Office
Note: Debt Service excludes sinking fund charges
1/ Provisional

1st Half 2011
1st Half 2012
1st Half 2013
1st Half 2014
2nd Half 2014
1st Half 2015 1/
i Treasury Bills
73.38

173.60

170.34

173.08

127.19

191.04

ii Treasury Bonds
18.75

18.75

18.75

18.75

35.01

43.75

iv Development Stocks
0.23

-

-

-

-
-

v FGN Bonds
136.24

156.55

234.13

247.35

264.43

293.74

Total
228.61

348.90

423.22

439.18

426.63

528.54

CBN Economic Report for the First Half of 2015


Source: Debt Management Office
1/ Provisional
2/ Includes ABEDA, IDB and EDF
3/ Exim Bank of Korea and Nig. ICT Infrast. Backbone Project.
4/ Includes Papalanto & Omotosho, ZTE, Arcatel and SBI Holdings.
1st Half 2011 1st Half 2012 1st Half 2013 1st Half 2014
EndDecember

1st Half
2015 1/
1st Half 2011 1st Half 2012 1st Half 2013 1st Half 2014
EndDecember

1st Half
2015 1/
MULTILATERAL

IBRD

IDA

IFAD
85.04
77.58

83.70

91.57

90.64

94.80

13.04

12.22


ADB Group
430.22
426.97
559.50

748.24

736.53

946.53

65.96

67.25


ADB
79.91
41.40

21.20

150.00

150.00

350.00

12.25

6.52


ADF
350.31
385.57
538.30

598.24

586.53

596.53

53.71

60.73


Others 2/
127.29
117.78
118.10

117.87

114.24

100.08

19.51

18.55


BILATERAL
161.02
507.76
845.40

1,140.79

1,412.08

1,583.95

24.69

-


Exim Bank of China
-
-

825.40

1,031.84

1,293.13

1,388.87

-

-


French Devt. Agency (AFD)
-
-

20.00

108.95

118.95

140.25

-

-


Others 3/

COMMERCIAL 4/

EUROBOND

Total Debt Outstanding

Holder
US$ Million
Naira Billion
Table 35
External Public Debt Outstanding

CBN Economic Report for the First Half of 2015
Table 36
External Debt Service


Source: Debt Management Office, The Presidency, Abuja.
1/ Provisional
2/ Includes ABEDA, IDB and EDF
3/ Exim Bank of Korea and Nig. ICT Infrast. Backbone Project.
4/ Includes Papalanto &Omotosho, ZTE, Arcatel and SBI Holdings.
5/ Includes Bank of England and CITIbank Lazards agency fees and Oil warrants
1st Half 2011 1st Half 2012 1st Half 2013 1st Half 2014
EndDecember

1st Half
2015 1/
1st Half 2011 1st Half 2012 1st Half 2013 1st Half 2014
EndDecember

1st Half
2015 1/
MULTILATERAL

IBRD

IDA

IFAD

ADB Group
33.97
16.82

18.96

18.75

7.50

7.60

5.20

2.65


ADB
30.21
12.84

11.97

11.76

0.69

0.79

4.63

2.02


ADF
3.76
3.98

7.00

7.00

6.81

6.80

0.58

0.63


Others 2/
24.34
24.09

3.21

3.40

4.87

3.86

3.73

3.80


BILATERAL
25.10
27.71

19.48

23.17

25.76

29.43

3.79

4.37


Exim Bank of China
24.74
27.38

-

22.79

24.30

26.65
3.79

4.32


French Devt. Agency (AFD)
-
-

0.04

0.37

1.46

1.83

-

-


Others 3/

COMMERCIAL 4/

EUROBOND

OTHERS 5/

Total Debt Service Payments

Holder
US$ Million
Naira Billion

CBN Economic Report for the First Half of 2015
Table 37a
Consolidated Debt of the Federal Government
(Naira Billion)
Holders
End-June 2011
End-June 2012
End-June 2013
End-June 2014
End-December 2014 End-June 2015 1/
External Debt
827.58

870.65

1,077.81

1,460.30

1,631.52
2,031.90
Domestic Debt
5,210.43

6,152.87

6,850.75

7,421.10

7,904.03
8,396.59
Total Consolidated Debt
6,038.01

7,023.52

7,928.56

8,881.40

9,535.55
10,428.49
Table 37b
Consolidated Debt Service
(Naira Billion)
Holders
End-June 2011
End-June 2012
End-June 2013
End-June 2014
End-December 2014 End-June 2015 1/
External Debt
26.98
23.99

22.98

28.03

27.36
30.91
Domestic Debt
228.61
348.90

423.22

439.18

426.63
528.54
Total Consolidated Debt

Source: Debt Management Office (DMO)
1/ Provisional

CBN Economic Report for the First Half of 2015
First Half 2013
First Half 2014
First Half 2015 1/
1. Agriculture
6,116.03

6,394.42

6,654.44

20.64
20.28
20.47
(a) Crop Production
5,388.69
5,627.04
5,840.32

18.19
17.85
17.96
(b) Livestock
490.42
515.37
547.96

1.66
1.63
1.69
(c) Forestry
73.62
77.85
81.09

0.25
0.25
0.25
(d) Fishing
163.29
174.17
185.08

0.55
0.55
0.57
2. Industry
6,503.08

6,886.47

6,550.29

21.95
21.85
20.15
(a) Crude Petroleum & Natural Gas
3,602.43
3,558.05
3,291.61

12.16
11.29
10.12
(b) Solid Minerals
38.44
45.12
49.28

0.13
0.14
0.15
(c) Manufacturing
2,862.22
3,283.30
3,209.41

9.66
10.42
9.87
3. Construction
1,160.50
1,322.85
1,437.57

3.92
4.20
4.42
4. Trade
5,085.72
5,376.27
5,686.39

17.16
17.05
17.49
5. Services
10,766.85

11,543.29

12,185.25

36.33
36.62
37.48
(a) Transport
339.25
351.05
366.48

1.14
1.11
1.13
(b) Information and Communication
3,333.06
3,579.50
3,857.96

11.25
11.36
11.87
(c) Utilities
196.38
189.15
165.58

0.66
0.60
0.51
(d) Accommodation and Food Services
228.37
282.12
312.49

0.77
0.89
0.96
(e) Finance & Insurance

(f) Real Estate

(g) Professional, Scientific & Technical Services

(h) Administrative and Support Services Bussiness Services

(i) Public Administration

(j) Education

(k) Human Health & Social Services

(l) Arts, Entertainment & Recreation

(m) Other Services

TOTAL (GDP)

NON-OIL (GDP)

TOTAL GDP GROWTH RATE (%)
4.94
6.38
3.14
OIL GDP GROWTH RATE (%)
(13.77)
(1.23)
(7.49)
NON-OIL GDP GROWTH RATE (%)
8.18
7.44
4.50
Growth in Total GDP
Agriculture (%)
2.52
4.55
4.07
Industry (%)
(0.85)
5.90
(4.88)
Construction (%)
13.96
13.99
8.67
Trade (%)
5.91
5.71
5.77
Services (%)
8.82
7.21
5.56
Source: National Bureau of Statistics
1/ Provisional
Activity Sector
First Half 2013
First Half 2014
First Half 2015 1/
Share of Total GDP (Per Cent)
Table 38
Gross Domestic Product at 2010 Constant Basic Prices
(Naira Billion unless otherwise stated)

CBN Economic Report for the First Half of 2015
Table 39
Gross Domestic Product at Current Basic Prices /1
(Naira Billion unless otherwise stated)

First Half 2013
First Half 2014
First Half 2015 1/
1. Agriculture
6,797.24

7,225.24


(a) Crop Production

(b) Livestock

(c) Forestry

(d) Fishing

2. Industry
8,660.49

9,530.21


(a) Crude Petroleum & Natural Gas

(b) Solid Minerals

(c) Manufacturing

3. Construction

4. Trade

5. Services
14,367.62

16,092.79


(a) Transport

(b) Information and Communication

(c) Utilities

(d) Accommodation and Food Services

(e) Finance & Insurance

(f) Real Estate

(g) Professional, Scientific & Technical Services

(h) Administrative and Support Services Bussiness Services

(i) Public Administration

(j) Education

(k) Human Health & Social Services

(l) Arts, Entertainment & Recreation

(m) Other Services

TOTAL (GDP)
38,226.65

41,904.61


NON-OIL (GDP)
33,142.75

36,659.21


TOTAL GDP GROWTH RATE (%)
11.79

9.62

4.76

OIL GDP GROWTH RATE (%)
(11.36)

3.18

(40.19)

NON-OIL GDP GROWTH RATE (%)
16.46

10.61

11.20

Growth in Total GDP
Agriculture (%)
5.92

6.30

8.34

Industry (%)
1.90

10.04

(21.77)

Construction (%)
22.05

19.67

12.92

Trade (%)
15.45

5.51

14.90

Services (%)
19.09

12.01

13.37

Source: National Bureau of Statistics
1/ Provisional
Activity Sector
First Half 2013
First Half 2014
First Half 2015 1/
Share of Total GDP (Per Cent)

CBN Economic Report for the First Half of 2015
Table 40
Selected Real Sector Indicators
(Per cent, except otherwise indicated)

2014 /1
2015 /2
First Half
First Half
First Half
First Half
First Half
Agricultural Production Index (2010 = 100)
Aggregate

Crops

Staples

Other Crops

Livestock

Fishery

Forestry

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

Cocoa

Coffee

Cotton

Palm Oil

Copra

Soya Bean

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

Crops

Staples

Other Crops

Livestock

Fishery

Forestry

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

Cocoa

Coffee

Cotton

Palm Oil

Copra

Soya Bean

Industrial Production Index (2010 = 100)
Industrial Production Index

Manufacturing Production Index

Mining Production Index

Electricity Production Index

Capacity Utilization Rate (%)

Inflation Rate (12-Month Moving Average)

Inflation Rate (Year-on-Year)

Food Inflation Rate (Year-on-Year)

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

1/Revised
2/Provisional
Item

CBN Economic Report for the First Half of 2015
Table 40 cont'd
Selected Real Sector Indicators
(Per cent, except otherwise indicated)

2015 2/
First Half
Second Half
First Half
Second Half
First Half
(1)
(2)
(3)
(1) & (3)
(2) & (3)
(1) & (3)
(2) & (3)
World Crude Oil Production
million barrels per day (mbd)
OPEC

Crudes

NGLs and condensates

Total non-OPEC

Total World Supply

Demand
OECD

Non-OECD

Total World Demand

Nigeria
Output

Exports

Domestic Consumption

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

West Texas Intermediate (WTI)

Bonny Light

Forcados

OPEC Basket

Gas Activities
(MMm
3)
Gas Produced
28.98
34.35
36.43
Gas sold to Industries
Gas sold for LNG
Gas used as Fuel
Gas Reinjected
Gas Lift
Gas Converted to NGLs
Total Gas Utilised
22.77
27.76
29.62
Gas Utilised as % of Gas Produced
78.55
80.82
81.31
Gas Flared
6.22
6.59
6.81
Gas Flared as % Gas Produced
21.45
19.18
18.69
Sources: OPEC, NNPC, Reuters & CBN Estimates
1/ Revised
2/ Provisional
Item

Absolute Change
Between
Percentage
Change Between
2014 1/

CBN Economic Report for the First Half of 2015
Table 41
Composite Consumer Price Index
(November 2009=100)
Monthly
Index
Inflation
y-o-y(%)
12-Month
Average
Index
Inflation
12-Month
Average(%)
Monthly
Index
Inflation
y-o-y(%)
Inflation
12-Month
Average(%)
Monthly
Index
Inflation
y-o-y(%)
Inflation
12-Month
Average(%)

January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

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

CBN Economic Report for the First Half of 2015
Table 42
Urban and Rural Consumer Price Index
(November 2009=100)
All Items
(Headline)
Monthly Index
Headline
Inflation
y-o-y(%)
All Items less Farm
Produce (Core)
Monthly Index
Core
Inflation
y-o-y(%)
Food
Monthly
Index
Food
Inflation
y-o-y(%)
All Items
(Headline)
Monthly Index
Headline
Inflation
y-o-y(%)
All Items less Farm
Produce (Core)
Monthly Index
Core
Inflation
y-o-y(%)
Food
Monthly
Index
Food
Inflation
y-o-y(%)

January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

July

August

September

October

November

December


January

February

March

April

May

June

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

CBN Economic Report for the First Half of 2015
Table 43
Balance of Payments Analytic Presentation
(US$ Million)
1st Half 2014 /1
2nd Half 2014 /1
1st Half 2015 /2
CURRENT ACCOUNT
3,027.91
-1,749.22
-7,000.01
Goods
13,625.95
7,366.42
120.09
Exports (fob)
44,789.95
37,796.17
25,385.25
Oil and Gas
41,061.05
35,454.26
22,904.70
Non-oil
3,728.90
2,341.90
2,480.55
Imports (fob)
-31,164.00
-30,429.74
-25,265.16
Oil
-7,635.29
-6,170.74
-5,193.31
Non-oil
-23,528.71
-24,259.00
-20,071.85
Unrecorded(TPAdj)
0.00
0.00
0.00
Services(net)
-11,737.94
-10,728.17
-7,469.75
Credit
1,008.00
983.35
926.77
Transportation
397.42
376.96
387.03
Travel
275.15
267.98
201.98
Insurance Services
19.35
2.81
3.34
Communication Services
26.64
27.00
33.12
Construction Services
0.00
0.00
0.00
Financial Services
6.73
7.41
5.38
Computer & information Services
0.00
0.00
0.00
Royalties and License Fees
0.00
0.00
0.00
Government Services
242.03
241.88
241.90
Personal, cultural & recreational services
0.00
0.00
0.00
Other Bussiness Services
40.68
59.32
54.01
Debit
-12,745.94
-11,711.52
-8,396.52
Transportation
-4,205.44
-4,573.50
-3,270.06
Travel
-3,809.65
-1,502.63
-2,135.64
Insurance Services
-147.89
-187.17
-164.75
Communication Services
-370.93
-502.90
-314.01
Construction Services
-45.17
-24.83
-85.77
Financial Services
-563.39
-677.91
-465.87
Computer & information Services
-469.10
-229.66
-192.28
Royalties and License Fees
-126.42
-126.42
-126.42
Government Services
-803.86
-923.70
-372.39
Personal, cultural & recreational services
-22.73
-278.78
-124.04
Other Bussiness Services
-2,181.35
-2,684.01
-1,145.30
Income(net)
-9,813.90
-9,351.67
-9,704.43
Credit
796.35
836.69
426.53
Investment Income
697.11
735.85
327.16
Compensation of employees
99.24
100.84
99.37
Debit
-10,610.25
-10,188.37
-10,130.96
Investment Income
-10,601.59
-10,176.35
-10,123.97
Compensation of employees
-8.67
-12.01
-6.99
Current transfers(net)
10,953.81
10,964.20
10,054.08
Credit
11,315.89
11,484.84
10,978.60
General Government
887.67
988.52
803.54
Other Sectors
10,428.22
10,496.33
10,175.06
Workers Remittance
10,318.59
10,480.42
10,156.12
Debit
-362.08
-520.64
-924.52
General Government
-3.20
-60.26
-150.65
Other Sectors
-358.89
-460.38
-773.87
Workers Remittance
-13.80
-23.64
-389.46
CAPITAL AND FINANCIAL ACCOUNT
2,355.28
10,773.62
4,300.99
Capital account(net)
0.00
0.00
0.00
Credit
0.00
0.00
0.00
Capital Transfers(Debt Forgiveness)
0.00
0.00
0.00
Debit
0.00
0.00
0.00
Capital Transfers
0.00
0.00
0.00
Financial account(net)
2,355.28
10,773.62
4,300.99
Assets
-8,863.95
1,344.90
-798.88
Direct investment (Abroad)
-776.56
-837.74
-735.71
Portfolio investment
-1,916.28
-1,532.86
-929.36
Other investment
-11,698.41
790.34
-4,969.74
Change in Reserve
5,527.31
2,925.16
5,835.94
Liabilities
11,219.23
9,428.71
5,099.87
Direct Invesment in reporting economy
2,508.62
2,185.21
1,348.35
Portfolio Investment
2,974.83
2,317.94
1,769.20
Other investment liabilities
5,735.78
4,925.57
1,982.32
NET ERRORS AND OMISSIONS
-5,383.19
-9,024.40
2,699.02
Memorandum Items:
1st Half 2014 /1
2nd Half 2014 /1
1st Half 2015 /2
Current Account Balance as % of G.D.P
1.12
-0.60
-3.12
Capital and Financial Account Balance as % of G.D.P
0.87
3.59
1.92
Overall Balance as % of G.D.P
-2.04
-0.99
-2.60
External Reserves - Stock (US $ million)
37,330.03
34,241.54
28,335.21
Number of Months of Imports Equivalent
7.73
7.30
6.73
External Debt Stock (US$ million)
9,377.11
9,711.45
10,316.82
Debt Service Due as % of Exports of Goods Non Factor Services
Effective Central Exchange Rate (N/$)
156.02
158.52
189.02
Average Exchange Rate (N/$)
157.29
159.81
189.75
End-Period Exchange Rate (N/$)
157.29
169.68
196.95
Source: Central Bank of Nigeria
1/ Revised
2/ Provisional

CBN Economic Report for the First Half of 2015
Table 44
Balance of Payments Analytic Presentation
(N' Million)

1st Half 2014 /1
2nd Half 2014 /1
1st Half 2015 /2
CURRENT ACCOUNT
472,418.61
-286,352.57
-1,382,807.73
Goods
2,125,930.22
1,153,294.43
23,642.14
Exports (fob)
6,988,156.66
5,968,498.29
5,013,995.55
Oil and Gas
6,406,372.32
5,598,110.73
4,524,062.92
Non-oil
581,784.33
370,387.57
489,932.63
Imports (fob)
-4,862,226.44
-4,815,203.86
-4,990,353.42
Oil
-1,191,261.50
-972,530.29
-1,025,767.01
Non-oil
-3,670,964.94
-3,842,673.57
-3,964,586.41
Unrecorded(TPAdj)
0.00
0.00
0.00
Services(net)
-1,831,360.57
-1,697,652.02
-1,475,411.93
Credit
157,269.06
155,556.53
183,053.11
Transportation
62,005.72
59,622.73
76,445.93
Travel
42,929.09
42,394.73
39,894.17
Insurance Services
3,018.52
443.72
660.10
Communication Services
4,156.39
4,270.93
6,541.72
Construction Services
0.00
0.00
0.00
Financial Services
1,050.65
1,172.83
1,062.88
Computer & information Services
0.00
0.00
0.00
Royalties and License Fees
0.00
0.00
0.00
Government Services
37,761.74
38,259.02
47,779.85
Personal, cultural & recreational services
0.00
0.00
0.00
Other Bussiness Services
6,346.94
9,392.57
10,668.47
Debit
-1,988,629.63
-1,853,208.55
-1,658,465.04
Transportation
-656,135.52
-724,040.92
-645,874.68
Travel
-594,383.89
-237,396.42
-421,825.89
Insurance Services
-23,074.62
-29,618.35
-32,542.49
Communication Services
-57,872.26
-79,598.90
-62,020.58
Construction Services
-7,047.46
-3,882.03
-16,944.05
Financial Services
-87,900.72
-107,138.79
-92,022.54
Computer & information Services
-73,189.71
-36,416.91
-37,980.45
Royalties and License Fees
-19,724.13
-19,996.21
-24,970.19
Government Services
-125,419.21
-145,956.13
-73,552.63
Personal, cultural & recreational services
-3,546.36
-44,109.05
-24,502.43
Other Bussiness Services
-340,335.77
-425,054.84
-226,229.10
Income(net)
-1,531,171.13
-1,476,705.25
-1,916,908.57
Credit
124,246.45
132,446.93
84,247.05
Investment Income
108,763.03
116,487.75
64,620.70
Compensation of employees
15,483.42
15,959.18
19,626.34
Debit
-1,655,417.58
-1,609,152.18
-2,001,155.62
Investment Income
-1,654,065.47
-1,607,254.93
-1,999,775.05
Compensation of employees
-1,352.11
-1,897.25
-1,380.57
Current transfers(net)
1,709,020.10
1,734,710.27
1,985,870.63
Credit
1,765,512.44
1,817,029.91
2,168,473.48
General Government
138,495.17
156,247.79
158,713.01
Other Sectors
1,627,017.26
1,660,782.12
2,009,760.47
Workers Remittance
1,609,912.30
1,658,267.73
2,006,019.89
Debit
-56,492.34
-82,319.64
-182,602.85
General Government
-498.48
-9,449.80
-29,753.83
Other Sectors
-55,993.85
-72,869.85
-152,849.03
Workers Remittance
-2,153.08
-3,760.37
-76,916.55
CAPITAL AND FINANCIAL ACCOUNT
367,474.67
1,716,739.74
849,944.16
Capital account(net)
0.00
0.00
0.00
Credit
0.00
0.00
0.00
Capital Transfers(Debt Forgiveness)
0.00
0.00
0.00
Debit
0.00
0.00
0.00
Capital Transfers
0.00
0.00
0.00
Financial account(net)
367,474.67
1,716,739.74
849,944.16
Assets
-1,382,953.96
234,316.80
-157,378.15
Direct investment (Abroad)
-121,158.64
-132,551.06
-145,315.44
Portfolio investment
-298,979.79
-242,847.63
-183,575.01
Other investment
-1,825,192.83
136,205.10
-981,365.06
Change in Reserve
862,377.30
473,510.39
1,152,877.37
Liabilities
1,750,428.63
1,482,422.94
1,007,322.30
Direct Invesment in reporting economy
391,396.64
345,371.34
266,328.22
Portfolio Investment
464,133.04
358,336.88
349,388.86
Other investment liabilities
894,898.95
778,714.72
391,605.23
NET ERRORS AND OMISSIONS
-839,893.28
-1,430,387.17
532,863.58
Memorandum Items:
1st Half 2014 /1
2nd Half 2014 /1
1st Half 2015 /2
Current Account Balance as % of G.D.P
1.12
-0.60
-3.12
Capital and Financial Account Balance as % of G.D.P
0.87
3.59
1.92
Overall Balance as % of G.D.P
-2.04
-0.99
-2.60
External Reserves - Stock (US $ million)
37,330.03
34,241.54
28,335.21
Number of Months of Imports Equivalent
7.73
7.30
6.73
External Debt Stock (US$ million)
9,377.11
9,711.45
10,316.82
Debt Service Due as % of Exports of Goods Non Factor Services
Effective Central Exchange Rate (N/$)
156.02
158.52
189.02
Average Exchange Rate (N/$)
157.29
159.81
189.75
End-Period Exchange Rate (N/$)
157.29
169.68
196.95
Source: Central Bank of Nigeria
1/ Revised
2/ Provisional

CBN Economic Report for the First Half of 2015
Table 45
Foreign Exchange Flows Through the Economy
(US$ Million)

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

2014 /2
2014 /2
2015 /3
INFLOW
50,257.07

55,548.08

72,277.13

75,643.39

81,058.61

52,124.57

A. Through the Central Bank
19,574.33

22,170.74

19,747.39

22,888.76

23,692.32

15,283.04

1. Oil
18,140.18
21,298.36

18,971.59

21,027.88

17,597.45

9,237.67

2.Non-oil
1,434.14

872.37

775.80

1,860.88

6,094.88

6,045.36

(i) Drawings on Loans/Grants
-

-

-

-

-

-

(ii) RDAS/WDAS Purchases
-

-

20.00

270.00

509.00

645.04

(iii) Swaps
-

-

-

500.00

3,525.05

4,060.00

(iv) Interest on Reserves & Investments
112.56

89.19

30.32

79.07

72.28

70.41

(v) Interest Repatriated from overseas
-

0.72

0.29

0.12

32.80

0.24

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

-

-

-

-

(vii) Eurobond proceeds -fixed income securities)
7.40

1.58

1.34

(viii) Returned Payments [Wired/Cash]
11.21

81.75

10.56

(ix) Untilised funds from DAS
134.02

124.49

94.00

(x) Recovered Funds
226.39

22.11

(xi) Other official Receipts
1,321.59
782.46

725.19

632.67

1,725.81

1,163.78

B. Through Autonomous Sources
30,682.74

33,377.34

52,529.74

52,754.63

57,366.29

36,841.53

1. Non-oil exports
1,355.60

2,007.62

1,898.23

3,650.25

6,873.25

2,431.21

2. Capital Inflow
9.83

110.57

151.82

271.85

62.61

41.17

3. Invisibles
29,317.31

31,259.15

50,479.70

48,832.53

50,430.43

34,369.15

OUTFLOW
21,402.28

20,204.63

18,964.82

29,092.93

27,160.59

21,837.26

A. Through the Central Bank
20,530.52

19,355.49

18,763.71

28,501.99

26,327.39

21,070.35

1. WDAS/RDAS Utilisation
17,002.27

16,687.61

15,440.47

25,172.86

22,883.56

18,273.40

(i) WDAS/RDAS Sales
14,638.04

10,414.10

10,711.04

17,233.85

15,330.84

3,184.55

(ii) WDAS Forward
536.51

679.99

-

1,075.86

2,235.97

1,339.82

(iii) BDC Sales
1,827.72

3,455.82

2,263.61

3,518.15

932.17

1,825.41

(iv) Inter-bank Sales
-

1,612.70

2,461.50

3,345.00

4,384.58

9,673.62

(v) Swaps
-

525.00

4.33

-

-

2,250.00

(vi) Invisibles IFEM
-

-

-

-

-

-

2. Drawings on L/C
902.43

291.63

204.13

194.70

150.13

142.62

3. External Debt Service
176.46

152.16

150.09

178.18

186.94

207.16

(i) Principal
127.63

118.26

94.35

95.88

78.62

90.99

(ii) Interest
8.49

5.38

5.25

5.21

-

-

(iii) Others 1/
40.34

28.52

50.49

77.09

108.31

116.17

4. Professional fees/Commission
-

0.06

-

-

-

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

-

-

135.55

-

-

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

50.64

33.33

42.52

25.84

91.00

7. Other Official Payments
2,413.51

2,173.38

2,885.14

2,427.90

3,077.56

1,847.36

(i) Int'l Organisations & Embassies /4
244.32

126.47

308.03

176.51

219.44

290.44

(ii) Estacode
-

42.85

57.62

106.26

392.86

522.96

(iii) Parastatals
592.42

350.58

545.56

458.29

521.13

120.20

(iv) NNPC/JV Cash Calls
1,475.16

1,628.69

1,932.07

1,564.81

1,825.30

892.52

(v) Miscellaneous (CBN Uses)
101.61

24.79

41.85

122.02

118.84

21.24

8. Bank Charges
-

-

0.55

0.05

0.12

0.04

9. NSIA Transfer
50.00

-

-

-

10. Funds returned to remitters
0.23

0.76

45.96

11. 3rd Party MDA Transfer
350.00

2.48

462.79

B. Through Autonomous Sources
871.76

849.14

201.11

590.94

833.20

766.92

1. Imports
847.53

837.48

179.91

577.23

782.89

385.05

2. Invisibles
24.24

11.66

21.21

13.71

50.31

381.87

NETFLOW THROUGH THE CBN

NETFLOW

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 2015
Table 46
Nigeria's Gross External Reserves
(US$ Million)

Month

January
42,075.67

33,131.83

34,136.57

45,824.44

40,667.56

32,385.71

February
41,410.10

33,246.07

33,857.37

47,295.85

36,923.61

29,566.99

March
40,667.03

33,221.80

35,197.44

47,884.12

37,399.22

29,357.21

April
40,322.01

32,835.33

36,660.89

47,903.09

37,105.27

29,829.75

May
38,815.79

32,100.81

36,839.53

47,702.88

35,398.10

28,566.54

June
37,468.44

31,890.91

35,412.50

44,957.00

37,330.03

28,335.21

July
37,155.19

32,521.71

36,285.32

45,834.11

39,065.42

August
36,769.65

32,914.97

39,509.81

45,428.84

38,705.71

September
34,589.01

31,740.23

40,640.40

44,108.48

38,278.62

October
33,597.02

32,594.69

42,167.41

44,155.11

36,280.25

November
33,059.30

32,125.22

42,568.26

43,414.20

35,248.66

December
32,339.25

32,639.78

43,830.42

42,847.31

34,241.54

Source: Central Bank of Nigeria

CBN Economic Report for the First Half of 2015
Table 47
Nigeria's Foreign Exchange Cross Rates
Naira per Unit of Foreign Currency (Monthly 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.

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

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


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

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


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

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


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

Feb

Mar

Apr

May

Jun

1st Half Average

Jul

Aug

Sep

Oct

Nov

Dec

2nd Half Average


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

Feb

Mar

Apr

May

Jun

1st Half Average


CBN Economic Report for the First Half of 2015
Table 48
Monthly Average Exchange Rate Movements
(N/US$ 1.00)

Source: Central Bank of Nigeria
CBN closed the RDAS segment of the FOREX market on February 18, 2015.

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

WDAS
Interbank
BDC
Jan
158.39
161.31
164.62
Feb
157.87
158.59
160.85
Mar
157.59
157.72
159.41
Apr
157.33
157.44
159.37
May
157.28
158.46
159.67
Jun
157.44
162.33
163.43
1st Half
157.65
159.31
161.22
End-Period
157.50
162.85
164.00
Jul
157.43
161.33
163.32
Aug
157.38
158.97
162.24
Sep
157.34
157.78
159.80
Oct
157.32
157.24
159.00
Nov
157.31
157.58
159.32
Dec
157.32
157.33
159.26
2nd Half
157.35
158.37
160.49
End-Period
157.33
157.25
159.50

W/RDAS
Interbank
BDC
Jan
157.30
156.96
159.12
Feb
157.30
157.52
158.70
Mar
157.31
158.38
159.80
Apr
157.31
158.20
159.81
May
157.30
158.02
159.57
Jun
157.31
160.02
160.98
1st Half
157.30
158.18
159.66
End-Period
157.31
162.60
162.00
Jul
157.32
161.12
162.43
Aug
157.31
161.15
162.28
Sep
157.32
161.96
163.14
Oct
157.42
159.83
165.00
Nov
157.27
158.79
167.14
Dec
157.27
159.05
171.40
2nd Half
157.32
160.32
165.23
End-Period
157.26
159.90
172.00

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

CBN Economic Report for the First Half of 2015
Table 49
Demand and Supply of Foreign Exchange
(US$ Million)

Year/Month
RDAS
BDC
RDAS -
RDAS - Forward Interbank
Total
Supply
RDAS
BDC
RDAS -
Demand
Demand
Forward
Demand
(Disbursement
on Maturity)
Sales
Swaps
Demand
Demand
Forward
Demand
January
6,236.67

556.30

31.15

6,824.12

2,989.43

556.30

-

493.00

-

4,038.73

4,874.63
184.67
-

5,059.30

1,987.40

184.67

623.28

791.80

-
3,587.15
February
4,096.46

567.05

140.26

4,803.77

3,101.87

567.05

10.50

2,575.00

-

6,254.42

3,773.50
371.40
-

3,136.56
7,281.46

1,197.14

371.40

121.04

2,334.90

500.00
4,524.48
March
4,320.04

560.95

333.33

5,214.32

3,151.59

560.95

101.96

277.00

-

4,091.50

Closed
301.62

-

14,709.35

15,010.97

Closed
301.62

140.00

1,866.06

500.00
2,807.68
April
3,045.49

712.80

81.87

3,840.16

2,663.92

712.80

261.11

-

-

3,637.83

Closed
370.44

-

14,390.30

14,760.74

Closed
370.44

120.00

1,375.72

500.00
2,366.16
May
2,805.74

619.84

-

3,425.58

2,928.49

619.84

271.31

-

-

3,819.63

Closed
309.93

-

22,896.44

23,206.37

Closed
309.93

311.13

1,856.64

250.00
2,727.71
June
3,401.41

501.22

-

3,902.63

2,398.55

501.22

430.98

-

-

3,330.75

Closed
287.36

-

33,930.52

34,217.88

Closed
287.36

24.37

1,448.50

500.00
2,260.22
First Half
23,905.81

3,518.16

586.62

28,010.58

17,233.85

3,518.16

1,075.86

3,345.00

-

25,172.86

8,648.13
1,825.41
-

89,063.17


July
2,784.93

184.94

2,969.86

2,494.76

184.94

274.41

-

-

2,954.10

August
3,661.36

169.08

3,830.44

3,201.10

169.08

280.00

3,650.18

September
4,132.26

143.24

4,275.50

2,598.45

143.24

325.00

492.00

3,558.68

October
4,570.64

178.86

130.39

4,879.88

3,498.48

178.86

340.00

897.00

-

4,914.34

November

December

Second Half

Source: Central Bank of Nigeria
Total supply includes W/R DAS spot sales, W/R DAS forward disbursement at maturity, BDC and Interbank sales as well as Swaps.
CBN closed the RDAS segment of the FOREX market on February 18, 2015 WDAS Demand BDC Demand
RDAS
Sales
BDC
Sales
Total
Supply

Total
Demand
RDAS
Sales
BDC
Sales
Total
Demand

Interbank
Sales
Swaps
RDAS - Forward
(Disbursement
on Maturity)
Interbank
Demand

CBN Economic Report for the First Half of 2015
Table 50
Sectoral Utilization of Foreign Exchange
(US Dollar)

(1)
(2)
(3)
(1) & (3)
(2) & (3)
(1) & (3)
(2) & (3)
A. Imports
14,462,883,365.74 14,523,652,340.45

16,631,013,170.43


Industrial Sector

Food Products

Manufactured Products

Transport Sector

Agricultural Sector

Minerals

Oil Sector

B. Invisibles

Business Services

Communication Services

Construction and Engineering

Distribution Services

Educational Services

Environmental Services

Financial Services

Health Related and Social Services

Tourism and Travel Related Services

Recreational, Cultural and Sporting Services

Transport Services

Other Services not Included Elsewhere

TOTAL (A+B)
26,941,561,119.10 28,300,326,178.25

32,905,811,687.40


Source: Central Bank of Nigeria
1/ Provisional
2nd Half 2014
1st Half 2015 /1
Percentage Change
2nd Half 2013
1st Half 2014
SECTORS
1st Half 2013
Absolute Change

CBN Economic Report for the First Half of 2015
Table 51
Total External Assets of Financial Institutions
(Naira Million)

First Half 2014 1/
First Half 2015 2/
1. Monetary Authorities
6,724,347.45

7,646,654.46

Foreign Assets
6,724,347.45

7,646,654.46

Gold
19.01

19.01

IMF Tranche
22.62

22.62

Foreign Currencies
57,913.74

50,119.83

Demand Deposits at Foreign Banks
6,264,354.82

7,132,975.63

of which: Domicilliary Accounts
716,973.32

216,467.10

Treasury Bills of Foreign Governments
51.36

702.76

SDR Holdings
401,985.90

462,814.61

2. Semi Official Institutions
-

-

i) BOI
-

-

ii) Others
-

-

3. Deposit Money Banks
2,216,156.13

1,748,403.66

Total Assets
8,940,503.58
9,395,058.12
Total Assets (US$' Million)
56,841.87
47,702.76
Exchange Rate (End-period)
157.29
196.95
Source: Central Bank of Nigeria
1/ Revised
2/ Provisional

CBN Economic Report for the First Half of 2015