Naija Lo Wa

Here are the major points from the recently released Central Bank of Nigeria’s April 2010 Economic Report.:

1. Moderation in the major monetary aggregates in April 2010
2. General decline in banks’ deposits and lending rates
3. Oil and non-oil receipts were than budgeted
4. Inflation rate was at 12.5% at the end of April 2010
5. Oil receipts accounted for 73.8% of total government receipts
6. Exchange rate was at N149.98 to $1

You can read an excerpt from the summary section below:

Growth  in  major  monetary  aggregates  moderated  in  April 2010  relative  to  the  level  in  the  preceding  month.  Broad money (M 2) contracted by 0.5 per cent, relative to the preceding month. The decline in M 2 was due wholly, to the 3.3 per cent decline in foreign asset (net) of the banking system. Narrow  money  (M1),  however,  increased,  by  1.6  per  cent, over  the  level  in  the  preceding  month. Reserve  money  (RM) contracted  by  16.3  per  cent  from  the  level  at  the  end  of March 2010.

Available data indicated a general decline in banks’ deposit and   lending   rates.   The   spread   between   the   weighted average term deposit and maximum lending rates narrowed marginally,  from  15.94  percentage  points  in  the  preceding month  to  15.77  percentage  points.  The margin  between  the average  savings  deposit  and  maximum  lending  rates  also narrowed  from  19.68  percentage  points  in  March  2010  to 19.54   percentage   points   during  the   review   period.   The weighted  average  inter-bank  call  rate  fell  to  1.27  per  cent from  1.50 per  cent  in  the  preceding  month,  reflecting  the liquidity conditions in the interbank funds market.
 
The value of money market assets outstanding rose by 2.5 per cent  over  the  level  in  March  2010  to  N3,397.1  billion.  The development was attributed to the increase in FGN Bonds. Activities on the Nigerian Stock Exchange (NSE) were bullish as all the major market indicators trended upward during the review month.  Total   federally-collected   revenue   in   April   of   2010   was estimated at N537.74 billion, representing a shortfall of 19.9 per cent from the proportionate monthly budget estimate, but an increase  of  12.3  per  cent  over  the receipts  in  the  preceding month.  At  N396.89  billion,  oil  receipts,  which  constituted  73.8 per  cent  of  the  total,  fell  short  of the  proportionate  monthly budget  estimate  by  18.6  per  cent,  but  rose  by  11.4  per  cent over     the     receipts     in     the    preceding     month.    

The underperformance in oil receipts relative to the proportionate monthly  budget  estimate  resulted  from  the  fall in petroleum profit  tax,  royalties  and  crude  oil  and  gas  export  receipts during the month.  Similarly, non-oil receipts, at N140.85 billion or 26.2 per cent of the total was 23.2 per cent lower than the proportionate budget estimate, but higher than the receipts in the  preceding  month and  the  level  in  the  corresponding period  of  2009,  by  14.8  and  38.8  per  cent,  respectively.  The improved   performance   relative  to   the   preceding   month reflected  largely  the  rise  in  all  the  components  namely, customs  and  excise  duties,  value-added  tax,  and company income  tax  and  other  taxes  as  well  as  “others”.  Federal Government estimated retained revenue for April 2010 was N135.65billion, while total estimated expenditure was N289.99 billion.  Thus,  the  fiscal  operations  of  the  Federal  Government resulted  in an  estimated  deficit  of  N153.29  billion,  compared with  the  budgeted  deficit  of  N126.83  billion  for  the  review month.

The major agricultural activities during the month of April 2010 were clearing and planting operations.  Nigeria’s  crude  oil production, including  condensates  and  natural  gas  liquids, was  estimated  at  2.10  million  barrels  per  day  (mad)  or  63.0 million  barrels  for the month.  Crude  oil  export  was  estimated at  1.65  mbd  or  49.5  million  barrels  for  the  month,  while deliveries to the refineries for domestic consumption remained at  0.45  mbd  or13.5  million  barrels.  The average price of Nigeria’s   reference   crude,   the   Bonny Light   (370   API), estimated at US$85.51 per barrel, rose by 0.6 per cent over the level in the preceding month. 

The  end-period  headline  inflation  rate  (year-on-year),  for  the month of April of 2010, was 12.5 per cent, compared with 11.8 per  cent recorded  at  the  end  of  the  preceding  month. Inflation  rate  on  a  twelve-month  moving  average  basis  for April  2010  was  11.8  per cent,  compared  with  11.9  per  cent recorded in the preceding month.  Foreign  exchange  inflow  and  outflow  through  the  Central Bank  of Nigeria  (CBN)  amounted  to  US$2.02  billion  and US$2.98  billion,  respectively,  resulting  in  a  net  outflow  of US$0.96  billion  during the review  month.  Foreign  exchange sales  by  the  CBN  to  the  authorized  dealers  amounted  to US$2.15 billion in April 2010.
 
The  average  Naira  exchange  rate  vis-à-vis  the  US  dollar, depreciated  by  0.04  per  cent  to  N149.89  per  dollar  at  the WDAS. In the bureaux-de-change segment of the market, the naira also depreciated by 0.1 per cent to N152.00 per dollar, while at the interbank segment it depreciated from N150.08 per US dollar in March 2010 to N150.38 per dollar.  Non-oil   export   earnings   by   Nigerian   exporters   declined sharply,  by  66.2  per  cent,  from  the  level  in  the  preceding month  to  US$112.4  million.  The development was attributed largely to the fall in the prices of all the commodities traded at the international commodities market during the period.  World crude oil output in April 2010 was estimated at 85.87 million barrels per day (mbd), while demand was estimated at 85.16 mbd, compared with the respective levels of 85.65and 85.13 mbd supplied and demanded in the preceding month.

You can download the report in full below:
CBN – April 2010 Economic Report