Banks’ lending to economy rises to N15tr

By Collins Nweze
In Nigeria
Apr 13th, 2014
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Banks’ lending to the domestic economy rose by 0.5 per cent to N15.1 trillion at the end of January, an Economic Report by the Central Bank of Nigeria (CBN) has shown.

According to the report released at the weekend, banks’ lending to the Federal Government, on month-on-month basis, equally rose by 13.9 per cent to negative N1.2 trillion, compared with the growth of 37.7 per cent at the end of the preceding month, but was in contrast to the two per cent decline at the end of the corresponding month of 2013. The development relative to the preceding month, reflected largely, the increase in banking system’s holdings of government securities.

The report said the Federal Government estimated retained revenue in January 2014 was N262.88 billion, while total estimated expenditure was N368.35 billion. Therefore, the fiscal operations resulted in an estimated deficit of N105.47 billion, compared with the estimated monthly budget deficit of N73.92 billion.

It said crude oil production, including condensates and natural gas liquids in January was estimated at 1.92 million barrels per day (mbd) or 59.5 million barrels for the month. Crude oil export was estimated at 1.47 million barrels per day (mbd) or 45.6 million barrels during the month. The average price of Nigeria’s reference crude, the Bonny Light (370 API), was estimated at $110.19 per barrel, indicating a decline of 2.6 per cent below the level in the preceding month.

The end-period headline inflation rate (year-on-year), in January 2014, was eight per cent, same as in the preceding month. Inflation rate on a 12-month moving average basis fell by 0.1 percentage point to 8.4 per cent from the level in the preceding month.

Foreign exchange inflow and outflow through the CBN in January 2014 were $2.54 billion and $4.65 billion, respectively, and resulted in a net outflow of $2.11 billion. Foreign exchange sales by the CBN to the authorised dealers amounted to $4.04 billion, showing an increase of 42.9 per cent above the level in the preceding month.

Relative to the level in the preceding month, the average naira exchange rate vis-à-vis the US dollar depreciated in all the segments (WDAS, interbank and bureau-de-change segments) of the foreign exchange market. Non-oil export receipts rose significantly by 30.1 per cent above the level in the preceding month. The development was attributed, largely, to the increase in export earnings from the agricultural sector and manufactured products.

World crude oil output in January 2014 was estimated at 90.44 million barrels per day (mbd), while demand was estimated at 90.00 million barrels per day (mbd), representing an excess supply of 0.44 mbd, compared with 90.18 and 90.93 mbd supplied and demanded, respectively, in the preceding month.

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