Document Type

Annual Report

Publication Title

Annual Report 2014


Annual Report and Financial Statements of the Central Bank of Nigeria (CBN) for the year ended 31st December, 2014. In general, 2014 has been a very eventful and challenging year for the Bank, the country, and the world at large. In the course of the year, the Bank underwent significant changes in its governance composition. In 2014, the global economy witnessed considerable vulnerabilities characterized by fragile growth and weak economic outlook. Global growth recovery was modest and continued to be threatened by strong downside risks, as a result of sharp drop in commodity prices, escalating geo-political tensions, and heightening threats to financial markets that resulted from the reversal of monetary stimulus in the US. Aside from the elevated risks to capital flows following the end of the US Federal Reserve's Quantitative Easing Program, the key concern for the Nigerian economy was associated with the significant decline in global oil prices. During the year under review, the spot price of Nigeria's crude oil fell by over 50 per cent, from a peak of US$114.17 per barrel in June 2014 to US$63.19 per barrel by end-December 2014. This exerted a downward pressure on Nigeria's external reserves with an attendant loss in value from US$42.84 billion in January to US$34.24 billion at the end of the year. The latent and direct effects of the uncertainty associated with increases in oil price volatility raised speculative activities in the domestic foreign exchange market and thereby intensified demand pressure that caused a weakening of the Naira in all windows during the course of the year.

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