Economic Report from CBN

Available data from the National Bureau of Statistics (NBS) showed that estimated gross domestic product (GDP) grew by 6.7 per cent in the second quarter of 2013, compared with 6.6 per cent in the preceding quarter. The development was attributed, largely, to the increase in the contribution of the non-oil sector.

Broad money supply, (M2), fell by 0.5 per cent at end-June 2013, in contrast to the growth of 1.2 and 1.6 per cent at the end of the preceding quarter and the end of the corresponding period of 2012, respectively. The development reflected largely the fall in foreign assets (net) of the banking system, which suppressed the

growth in domestic credit (net) and other assets (net) of the banking system. Narrow money supply, (M1), grew marginally by 0.02 per cent, in contrast to a decline of 6.5 per cent at the end of the preceding quarter. Reserve money (RM) fell at the end of the preceding quarter.

Available data indicated mixed developments in banks’ deposit and lending rates. The spread between the weighted average term deposit and maximum lending rates widened by 1.34 percentage  point in the preceding quarter. The margin between the average savings deposit and the maximum lending rates, also widened by 0.43 per cent point. The weighted average inter-bank call rate rose by 0.34 percentage point in the second quarter of 2013, reflecting the liquidity condition in the inter-bank funds market.

Provisional data indicated that the value of money market assets outstanding for the second quarter of 2013 increased by 5.9 per cent, in contrast to the decline of 0.6 per cent at the end of the

preceding quarter. The development was attributed, largely, to the 5.6 per cent rise in FGN Bonds outstanding. 

Activities on the Nigerian Stock Exchange (NSE) in the second quarter 2013 indicated mixed developments. Total federally-collected revenue at the end of the second quarter of 2013 declined by 2.3 and 5.2 per cent below the receipts in the preceding quarter and the corresponding quarter of 2012,

respectively. Oil receipts, which constituted 76.5 per cent of the total, declined below the budget estimate and receipts in the preceding quarter by 6.2 and 194 per cent, respectively. The decrease in oil receipts was attributed, largely, to the fall in all components of oil revenue except domestic crude oil/gas sales during the review quarter.