Document Type

Annual Report

Publication Title

Central Bank of Nigeria Annual Report and Statement of Accounts


CBN annual report and statement of accounts for 1986 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 1986. The development in 1986 were mixed. The GDP at constant 1977/78 factor cost was estimated at N25,290 million, representing a decline of 3.3 per cent and the decline was largely due to poor performance of the manufacturing, crude petroleum, wholesale and retail trade sectors. The trajectory of monetary aggregates was relatively in the download direction. Money supply indicated a 1.2 per cent decline in 1986. Credit expansion exceeded the 10.6 per cent increase observed in 1985. Mainly due to improved food supply situation and the liquidity crunch which constrained consumer demand. Unemployment situation did not improve as fresh school-leavers continued to flood the market. The underlying problem in the external sector persisted, although the balance of payments showed a larger surplus of N1,946.3 million. The agricultural production further improved in 1986 despite the late arrival of rain. The index of industrial production declined by 3.4 per cent in contrast to the increase of 15.0 per cent in 1985. The index of mineral output fell by 2.5 per cent in contrast to the increase of 7.6 per cent in 1985. The growth of monetary aggregates decelerated. The decline was traceable to the sharp drop of N6.6 million in banking system's other assets. Federal government budgetary operations were influenced by developments in the international oil market and measures adopted during the year to boost non-oil revenue. The year was also marked by budgetary discipline. The Bank also increased its lending to the Federal Government through ways and means advances which averaged N1,708.8 million a month in 1986.

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