Document Type

Annual Report

Publication Title

Central Bank of Nigeria Annual Report and Statement of Accounts


CBN 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's 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.

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