Document Type

Statistical Bulletin

Publication Title

CBN Statistical Bulletin

Abstract

Financial data is compiled from financial statements and balance sheets, which are designed to meet legal and administrative requirements rather than economic analysis needs. The Finance and Accounts Department prepares the CBN accounting balance sheet data for the Research Department to compile the CBN analytical accounts. However, major revisions were made due to imprecise definitions, improper classification, inadequate sectorization, inaccuracies, irregular valuation procedures, and errors in data compilation on foreign assets. The Computer Services Department uses high-level computing to generate both summary and detailed analytical balance sheets based on the end-month BANKOS 302 of the CBN, Lagos branch. The consolidation of accounts of monetary authorities and deposit money banks produces monetary survey accounts. Monetary authorities usually accommodate deposit money banks' liquidity needs through direct loans and advances or discounting and rediscounting their financial claims. Monthly interest rate returns are used to compute weighted average lending and deposit interest rates. Clearing House statistics show the number and value of cheques cleared within the commercial banking system, reflecting the volume of transactions in the system.

Public sector indicators include revenue, expenditure, and public debts of the Federal, State, and Local Governments. Revenue includes current receipts from oil and non-oil sectors, taxation, and grants. Expenditure is classified into recurrent and capital. External figures are converted to naira using the annual average exchange rate of the particular year. Debt conversion is a key aspect of the program, with tables showing the total number and values of applications received from Nigerians and foreigners on a yearly basis since 1988. The total amount offered for redemption is explained by the average discount rates. Promissory Notes are legal certificates of indebtedness issued by the Central Bank of Nigeria and the Federal Ministry of Finance to Nigeria's creditors. Restructured debts are matured debts whose obligations cannot be fulfilled, and refinanced debt involves liquidating an existing loan with a new facility obtained from the same or different sources. Par Bonds carry the face value of the security instrument, with interest paid on the par value or face value.

The System of National Accounts (SNA) is a comprehensive set of macroeconomic accounts, balance sheets, and tables based on internationally agreed concepts, definitions, conventions, classifications, and accounting rules. It provides a comprehensive accounting framework for economic analysis, decision-making, and policy making. The compilation of the National Accounts statistics presented in this Bulletin follows the same principles. Table C.1.1 includes Gross Domestic Product, Gross Fixed Capital Formation, Private Consumption Expenditure, Government Consumption Expenditure, Gross Consumption Expenditure, and Gross National Savings. GDP at Current Factor Cost equals GDP at Current Market Prices less indirect taxes net of subsidies. Gross Fixed Capital Formation is expenditure on fixed assets, while Gross Capital Formation is the total change in the value of fixed assets plus change in stocks. Agricultural crops are defined in terms of staples and other cash crops, with livestock and livestock products excised from agriculture into a separate subgroup called livestock. Electricity generation and consumption are also included in Table C.1.9. Table C.1.10 is derived from data on agriculture, livestock, fish, and forestry from the Federal Officer of Statistics (FOS) agricultural survey reports. The first CPIs were computed separately for the Federal and Regional Capitals, but the Federal Bank of Nigeria (CBN) collaborated with FOS to improve the consistency of the CPIs. The Consumer Expenditure Survey (CES) was reviewed in 1957 to provide a single national CPI based on prices of commodities purchased and consumed by a representative set of households in selected centers from all over the country. The CPI adopted 1975 as the ruling base year, and the mean expenditures were revalued to account for time lag. In conclusion, the SNA provides a comprehensive accounting framework for economic analysis, decision-making, and policy making.

The external sector of the Nigerian economy has experienced significant changes, including the rapid depreciation of the naira, accumulation of payments arrears, and external debt problems. These changes are captured in the Balance of Payments (BOP) Statistics, which is a systematic record of economic and financial transactions between residents and non-residents. The BOP records transactions in goods, services, and income, changes in ownership, and claims on and liabilities to the rest of the world. Transactions involving payments by non-residents are classified as "Credit" entries, while those involving payments by the country to non-residents are "Debit" entries. The BOP Table D.2.1 carries the BOP Table from 1970 up to 1994 and is divided into five sub-sections: current account, capital account, net errors and omissions, exceptional financing, and change in reserves. The method of BOP compilation has been reviewed four times, and the fifth edition has been prepared to encompass both balance of payments flows and stock of external financial assets and liabilities. The Current Account is divided into visible and invisible sections, with visible accounts consisting of exports and imports, while invisible accounts include services and income accounts. Unrequited transfers are a unilateral transfer by the reporting economy to the rest of the world without asking for an equivalent value, classified as private or official. The fifth BOP Manual breaks down unrequited transfers into current and capital accounts, recording changes in a country's foreign assets and liabilities, capital movements, and international investment positions. Capital can be long-term, private, or public. Portfolio investment focuses on appreciating instruments, safety, and capital gains. Capital movements can occur between a reporting economy and the rest of the world through foreign loans and investments, or by recovering loans and investments. Credit entries and debit entries are included in the capital account. The double-entry accounting system ensures equal debits and credits for every transaction, but this may not always be the case. Errors and Omissions balance differences between debits and credits in the current and capital accounts. Nigeria's foreign exchange and exchange rate management has evolved from an officially pegged exchange rate system to a market-determined system.

Publication Date

6-1997

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