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Private Foreign Investment in 1964
No full textThis article examines private foreign investment in in Nigeria for the year 1964. The article stressed that the inclusion of commercial banks and insurance companies hitherto omitted, and new companies which came into operation in 1964, resulted in a higher number than the 481 covered in 1964. The response to this inquiry was 62 per cent of the 533 companies contacted. The data in previous reports have also been revised and presented in the following tables: private foreign investment in 1964; flow of foreign private capital by origin; net flow of foreign capital by country 1961-64; private foreign investment of European Economic Community in Nigeria; foreign investment by origin 1962-64; foreign investment in nigeria; analysed by type of activity-1962-64; and foreign investment in the manufacturing sector analysed by type of industry
Speech at the Bankers\u27 Committee’s First Annual Dinner of the Local Centre of the Institute of Bankers at the Ikoyi Hotel, Lagos-25th February, 1966
No full textThis is a speech by Alhaji A. Mai-Bornu, Chairman of the Bankers\u27 Committee and Governor, Central Bank of Nigeria, in response to the toast of the Bankers\u27 Committee at the First Annual Dinner of the Local Centre of the Institute of Bankers at the Ikoyi Hotel, Lagos-25th February, 1966
Central Bank of Nigeria Annual Report and Statement of Accounts for the Year Ended 31st December 1966
No full textCBN Annual Report and Statement of Accounts for 1966 discussed the economic performance of Nigeria with emphasis on inflation rate, GDP growth, exchange rate stability, banking sector performance, monetary policy, financial stability, fiscal policy, and regulatory updates. The state of the Nigerian economy in 1966 was dictated mainly by the social and political uncertainties that engulfed the country beginning in 1965. The country experienced mounting political problems in 1965, which, by the fourth quarter of that year, had become an important factor in the future investment plans of the business community. A growing burden of external debt and the slow-down in the rate of receipt of external developmental assistance also contributed to the decline in the rate of public sector investment in many of these countries. There was an estimated 9 percent expansion in world trade to $370 million at the close of 1966. This rate of growth compared with 8.6 percent in 1965. By contrast, international means of payments rose by 1.7 percent during the year compared with 2.0 percent in 1965. The monetary policy tool employed by the Bank to achieve these objectives was the \u27guideline\u27, involving the placing of a ceiling on the rate of expansion of commercial bank advances over a given period. The guideline was also designed to create relative credit scarcity and to lead, therefore, to credit rationing. By establishing sectoral preferences for commercial bank advances, the Bank sought to bring about a reallocation of loans and advances away from those sectors where they were employed primarily to finance imports of less essential consumer goods to the productive sectors. The economy itself was strong. Agriculture\u27s contribution to the GDP continued to be dominant. The growth rate of the GOP (at 1957 prices) was estimated to have fallen from about 5.5 percent in 1965 to between three and four percent. One notable achievement in the year was recorded in the external sector. Export surplus was maintained throughout the first ten months of the year. Although the inflow of new foreign capital slowed down. Although caution in private spending affected general economic activity, consumption suffered the most from the reduction in expenditure. Available estimates of production show that the industrial sector consistently registered substantial annual growth rates since 1962, ranging between 15 and 20 percent. The high rate of performance, however, did not appear to have been maintained in 1966. Manufacturing activity was at a higher level during the first six months of 1966 than in the corresponding period of 1965. Orders and deliveries of most of the companies that participated in the year-end business activity survey were also reported to have been higher than in the corresponding period of 1965. The moderation in the tempo of commercial activities brought about by the policy of credit restraint pursued by the Central Bank and supported by Government policy measures since the later part of 1964, turned contractive in 1966 under the impetus of reduced farm incomes, and subsequent political and social disturbances. Commercial bank credit also fell relative to 1965. Despite the disruption in business activity, the banking system remained calm. Despite the problems of the year, the financial system continued its organic growth. The Central Bank\u27s branch at Enugu started functioning during the year, and the building of additional branches in Benin and Kaduna was in progress. The long-planned amalgamation of the Bank of Wes Africa Limited and Standard Bank Limited was concluded. The fusion gave rise to a new bank, the Standard Bank of West Africa Limited. On a seasonally adjusted basis, the movement of money supply in 1966 was more strongly upward than in 1965. Currency outside banks declined by only £7.2 million during the seven-month down-swing, compared with £13.9 million in 1965. The movement of the banking system\u27s credit was generally downward in the first eight months of the year. There was, however, a reversal of this movement beginning in September. The Nigerian money and capital markets experienced increased activity in 1966. More treasury bills than in 1965 were issued and were available to market operators. There were no changes in the movements of interest rates usually reported to the Central Bank by the commercial banks. The financial resources of the Federal and Regional Governments were under extraordinary pressure in 1966. The pressures came from many directions: on the Federal level, the public debt servicing burden rose steeply-about 57.0 percent above the level in 1965. Nearly 48 percent of the increase was accounted for by external payments, the largest of which was the £6.8 million 3~ percent 1966 Exchequer Loan, which was liquidated on 1st October 1966. Only £1.6 million of this amount had accrued to the Sinking Fund by the maturity date of the loan
Nigeria\u27s External Trade in the First Quarter of 1966
No full textThe article highlights the achievements of Nigeria\u27s external trade in the first quarter of 1966 which was a result of increase in exports and decline in imports
Central Bank of Nigeria Annual Report and Statement of Accounts for the Year Ended 31st December 1965
No full textCBN Annual Report and Statement of Accounts for 1965 discussed the economic performance of Nigeria with emphasis on inflation rate, GDP growth, exchange rate stability, banking sector performance, monetary policy, financial stability, fiscal policy, and regulatory updates. Two major developments dominated the world economic scene in 1965. One was the overall slowdown of economic expansion in most industrialized countries. The other was the overall contraction in the growth rate of world trade and in the flow of international capital. Due to the problem of balance of payment disequilibrium, the industrialized countries intensified economic measures to achieve internal stability and equilibrium in the balance of payments. In I965, the overall slow-down of economic activity in the industrial countries widened the gap between supply and demand for primary exports, thus reducing further the developing world\u27s share of the benefits of international trade. By the beginning of the fourth quarter of 1964, and under the stimulus of rising wages, accelerated government deficit financing, and expanding credit to the private sector, a balance of payments crisis was no longer a potential, but real threat. Aggregate bank credit rose very sharply; money supply was on the rise; Nigeria\u27s trade imbalance at £8.3 million at the end of the second quarter, deteriorated further to £21.4 million, and the country\u27s external reserves fell to £83.9 million from the £98.0 million at the beginning of 1964. The intensification of expansionary forces in the fourth quarter of 1964 only accentuated the balance of payments problems. It was in this circumstance that the monetary and fiscal measures of late 1964 were instituted. In the sphere of fiscal policy, the federal government in August 1964 imposed higher customs tariffs on a wide range of imports. It also announced a drive to curtail government expenditures. In addition, the Central Bank undertook complementary monetary measures. However, it was recognized that under the Nigerian conditions of relatively undeveloped money and capital markets, the effectiveness of monetary policy on aggregate liquidity was limited. Agriculture, in terms of Its contribution to the GDP, remained the dominant sector. The mining sector of the economy recorded the most notable gain in 1965. Although the output of all industries In this sector rose, the most significant achievement was made by the petroleum industry. The average daily rate of crude oil production was 274.2 thousand barrels-127.4 percent more than in 1964. Ln the manufacturing sector, a high level of activity was maintained throughout the year. The agricultural sector, which includes livestock, fishing and forestry, is estimated to have accounted for 63 percent of the total GDP in 1965, as against 65 in 1960. The total output of agriculture increased by only 3 percent during the year. The recovery of trade and industry in the middle of 1963 continued through 1965. The manufacturing sector recorded 128 additional plants during the year. Nigeria\u27s financial system experienced further growth in 1965. The pace of banking development was firmly forward. The third branch of the Central Bank was officially opened in Ibadan in December. The foundation stones of two more branches, at Enugu and Benin City, were also laid during the year. The number of commercial bank branches increased by 14 in the year to 240. Bank credit to the economy aggregated £169.7 million at the end of the year-about £10.6 million or 6.7per cent larger than at the end of 1964.More than 95 percent of the net rise in credit granted went to the public sector. Money supply= rose by £4.8 million or 3.1 per cent over the year to £157.4 million at the end of December 1965. This compares with an increase of £21.0 million or 16.0 percent in 1964. Developments in the money and capital markets were mixed in 1965. The monthly issues of treasury bills and amounts outstanding averaged 12.2 and £36.8 million, respectively, compared with 10.9 and £31.4 million in 1964
Statistical Section (December 1965)
No full textThe article contains statistical section which provides data for central banking, currency, commercial banking, money and capital market, public finance, other financial institutions, national savings, foreign exchange reserves, international trade, production and fuel and power for the year 1960 - 1965
Central Bank of Nigeria Annual Report and Statement of Accounts for the Year Ended 31st December 1964
No full textCBN annual report and statement of accounts for 1964 covers economic performance including key economic indicators such as inflation rate, GDP growth, exchange rate stability, banking sector performance, monetary policy, financial stability, fiscal policy, and regulatory updates for 1964. Export earnings of the developing countries rose during 1964, reflecting a continuing upswing in economic activity in the industrial countries. The rate of increase, however, was somewhat slower than in 1963. The share of the developing countries in total world exports in 1964, however, amounted to 22.1 per cent as compared with 22.9 per cent in 1963. World exports rose substantially during the year. Most of the increase in exports was accounted for by trade among the industrial countries. The GDP of Nigeria, measured in constant prices, was projected in the National Development Plan: 1962-68 to grow at a minimum compound rate of 4 per cent per annum over the six years of the Plan. Nigeria\u27s public and private consumption and investment outlays in 1964 exceeded the current domestic product. The developments in 1964, however, belonged to a chain of events that date back to 1955. Throughout this period, Nigeria has persisttly consumed more than its current output. The economy of Nigeria experienced an accelerated tempo of activity in 1964 - a continuation of the recovery which started in early 1963. There was further growth of investment in the private sector; and amongst expatriate enterprises, a continuing shift from mercantile to industrial undertakings. Substantial gains were made in most sectors of the economy, especially milling, manufacturing and commerce. In addition, Government budgetary policy continued to be expansionary. Money supply stood at £158.8 million. This represented an increase of £24.4 million or 18.2 per cent during the year, as compared with increases of 6.4 and 3.8 per cent in 1963 and 1962, respectively. The money market was under pressure during the year, mainly because of the financial requirement of the governments. In January 1964, the Central Bank, on behalf of the Federal Government, floated the Federal Republic of Nigeria First Development Loan of £20 million. This was the fifth and the largest internal loan so far raised in this country. The most significant features of Nigeria\u27s balance of payments in 1964 were the widening deficits on both the trade and services accounts and a much larger inflow of foreign capital on both private and official accounts. These movements represented a marked departure from the patterns established in earlier years. A narrowing of the trade gap has been a feature of the trade accounts for the past three years, but in 1964 the deficit widened significantly. Net payments on the services account were estimated to have continued lo grow in line with the trend established in recent years. The annual rate of reserve loss declined sharply in 1964
Central Bank of Nigeria Annual Report and Statement of Accounts for the Year Ended 31st December 1963
No full textCBN Annual Report and Statement of Accounts for 1963 discussed the economic performance of Nigeria with emphasis on inflation rate, GDP growth, exchange rate stability, banking sector performance, monetary policy, financial stability, fiscal policy, and regulatory updates. Nigeria\u27s economy made significant gains in 1963. The tempo of activity advanced in most sectors of the economy, giving indications of some recovery from the slackened pace of the preceding year. Despite this improvement, however, the performance of the economy did not meet expectations, nor were existing resources fully utilized. In 1962-63, gross income received by producers of agricultural export commodities rose by 13 per cent over the 1961-62 level. The substantially larger output of groundnuts, cotton, soya beans and palm kernels mainly accounted for this outcome, rather than increases in prices paid by marketing boards. Solid gains were also recorded in the mining sector, as production of petroleum, tin ore and limestone rose considerably above the levels attained in 1962. Industrial production rose further during the year, although the rate of advance cannot be estimated with accuracy. The number of manufacturing plants beginning operations in 1963 was nearly double that in the preceding year. Despite the increase in output, manufacturing firms in most lines were still operating at levels well below full capacity. Compared with the year before, gross investment was just barely maintained. The moderate growth of real investment in industry and trade was mostly offset by a decline in new construction, due in part to a sharp drop in building demands from governmental authorities. The rate of Government spending under the National Development Plan, however, was stepped up, particularly in the spheres of administration and social overhead. Activity in wholesale and retail trade showed signs of moderate recovery from the sluggishness that prevailed over most of I962. Yet, except for the usual seasonal rise in sales toward the end of the year, the tempo was not brisk and in some well-established lines trading was slow. Aside from certain imported goods, on which duties had been raised, domestic prices were generally stable over the year. At the same time, as measured by the low-income consumer price index, in which locally produced foodstuffs weigh heavily, the cost of living declined somewhat. From December 1962 to the close of 1963, the money supply expanded by 6.5 percent, the largest increase since 1960. Total commercial bank credi rose by 16.1 percent over the volume outstanding at the end of 1962, reflecting the sustained expansion of credit demands from agriculture, industry, and commerce. Through the issue of Development Stocks, and net additions to the volume of Treasury bills outstanding, the Federal Government augmented these demands, and one effect was a sharp increase in Central Bank credit. The volume of / hire-purchase credit outstanding also rose steeply by about 50 percent. 3 The value of exports rose markedly during the year, both as a consequence of the larger physical volume and higher world prices for the major commodities sold. On the other hand, imports rose only slightly, with the result that the trade deficit was further reduced from £36.2 million in 1962 to £18.0 million in 1963. Net capital inflows fell sharply during the year. This development, along with the continued deficit in trade and invisible transactions, contributed to a further large decline in the external assets of the country
Central Bank of Nigeria Annual Report and Statement of Accounts for the Year Ended 31st December 1961.
No full textCBN Annual Report and Statement of Accounts for 1961 discussed the economic performance of Nigeria with emphasis on inflation rate, GDP growth, exchange rate stability, banking sector performance, monetary policy, financial stability, fiscal policy, and regulatory updates. Economic activity, which had been at a relatively high level during the year of independence, expanded further during 1961. The production of most of the agricultural export commodities attained high levels during the 1960-1961. Mineral production varied widely among individual products but on balance activity was considerably higher in 1961 than in the previous year. Industrial production continued to grow, reflecting both the rising output of existing plants and the bringing of new factories into production. The volume of new construction reached a new peak and was widely distributed over the country, a reflection of accelerated activity in the construction of Government and commercial structures, schools, factories, residential buildings and engineering projects. The general trend of international prices for Nigeria\u27s export crops during much of 196 I was toward lower levels, but prices of some commodities recovered late in the year. The decline was particularly large in the case of cocoa and the lower prices were in effect during the period when the 1960-1961 crop was marketed. However, the price turned upwards in October and at the yearend was above that prevailing a year earlier. The value of Nigeria\u27s external trade during the first nine months of 1961 showed an increase in both imports and exports._Aggregate imports during the nine months amounted to £162.8 million, which was £6.2 million higher than in the same period o f 1960. The rise in exports, including re-exports, totalled £7.0 million, bringing the total for the first nine months o f 1961 to £136.8 million. The commercial banking system in Nigeria continued to expand during 1961 both in the volume of business handled and throu gh the provision of extended services. The total currency in circulation in the country amounted to £86.9 million, roughly the same level as it was a year earlier, but there was a marked variation in the month-to-month movements or currency and in the composition o f the circulation during the two years. on public debt operations of the CBN, the Minister of Finance authorised the Central Bank of Nigeria to float, in March 19, a Second Development Loan for an amount of £10 million. The year also witnessed a broadening of the money and capital markets and improvement of the mechanism through which they operate. The Balance Sheet and Profit and Loss Account of the Central Bank reflect for the first time the results of the Bank\u27s activities over an operational period o f a complete yea
Central Bank of Nigeria Annual Report and Statement of Accounts for the Period Ended 31st December 1960
No full textCBN annual report and statement of accounts for 1960 covers economic performance including key economic indicators such as inflation rate, GDP growth, exchange rate stability, banking sector performance, monetary policy, financial stability, fiscal policy, and regulatory updates. The banking system was relatively well developed with increase in bank deposits to 70 million Pounds. Also, the number of bank branches increased from 44 to 200. The development indicated growth and broadening of the banking system. The domestic publicly issued debt of the Federal Government consists of 300,000 Pounds. Nigeria Government Registered Stock 1956/61 which was due to be redeemed in December 1961 was 400,000 pounds while the Federation of Nigeria Development Stock was 600,000 pounds. The report also xrayed some developments in the Nigerian economy including the budget speech of the 4th April 1960, measures to expand the production base, reasonable stability of prices and the maintenance of the purchasing power of the national currency