The Central Bank of Nigeria (CBN) has released its economic report for February 2015, showing that growth in the key monetary aggregate decelerated further.
The report which was released yesterday stated that broad money (M2) declined by 1.6 per cent, compared with the 0.1 per cent decline recorded in January.
The apex bank explained that the development relative to the level at the end of the preceding month was due, to the 6.4 and 4.3 per cent fall in foreign assets (net) and other assets (net) of the banking system, respectively.
According to the report, narrow money supply (M1) slipped by 5.1 per cent, compared with the level at the end of the preceding month, due to the 6.6 and 4.7 per cent decline in its currency and demand deposit components, respectively.
“Over the level at end-December 2014, (M2), broad money supply fell by 1.70 per cent. Reserve money (RM) rose by 4.1 per cent from its level in the preceding month.
“Available data indicated that interest rates generally rose during the review month. All other deposit rates of various maturities rose from a range of 3.57 – 10.79 per cent,” it said.
The economic report stated that in February, the average prime lending and maximum lending rates went northward.
It indicated that the spread between the weighted average term deposit and maximum lending rates was down by 0.23 percentage point to 17.08 percentage points at the end of the month under review.
“Similarly, the margin between the average savings deposit and maximum lending rates widened by 0.25 percentage point to 22.74 percentage points at the end of the review month.
The weighted average inter-bank call rate rose to 12.90 per cent above 7.49 per cent in the preceding month, reflecting the liquidity condition in the inter-bank funds market,” the report further declared.
There was a 1.1 per cent increment in total value of money market assets outstanding in February 2015, which stood at N7,868.2 billion, compared with the increase of 1.5 per cent at the end of the preceding month.
The CBN attributed this to the 46.7 and 1.6 per cent increase in Bankers’ Acceptance and FGN Bonds outstanding, respectively, adding that the developments in the Nigerian Stock Exchange (NSE) were mixed during the review month.
“Federally-collected revenue (gross) in February 2015 was estimated at N560.84 billion, showing decline of 38.1 and 21.1 per cent below the receipts in the preceding month and the corresponding period of 2014, respectively.
At N359.73 billion, oil receipts (gross), which constituted 64.1 per cent of the total revenue, was lower than the receipts in the preceding month and the corresponding period of 2014, by 39.8 and 26.0 per cent, respectively.
The fall in oil receipts relative to the level in the preceding month, was attributed to the decline in revenue from crude oil and gas exports, occasioned by the drop in the price of crude oil in the international market,” the report claimed.
In the month under review, non-oil receipts stood at 35.9 per cent of the total was 10.4 per cent lower than the receipts in the preceding month and the corresponding month of 2014, respectively.
The report explained, “The development reflected, largely, the fall in receipts from National Information Technology Development Fund (NITDEF) and independent revenue of the Federal Government.