Document Type

Statistical Bulletin

Publication Title

CBN Statistical Bulletin

Abstract

Financial data is compiled from balance sheets and financial statistics, which are designed for various logistical and administrative requirements rather than economic analysis. Final data compilation involves aggregating the financial system's accounts to discern macroeconomic tendencies. The Finance and Accounts Department prepares the CBN accounting balance sheet data for the Research Department, using the monthly return of Assets and Liabilities (BANKOS 324) as a benchmark and the summary trial balance (BANKOS 302) as a source for detailed information. The Financial Statistics Office consolidates the accounts of monetary authorities and deposit money banks, producing monetary survey accounts. Deposit money banks are highly prone to volatility and fragility, making them susceptible to regulations and supervision. Clearing house statistics show the number and value of cheques cleared within the commercial banking system. Public sector indicators include revenue and expenditure of the Federal Government.

This research presents the Gross Domestic Product (GDP), Gross Fixed Capital Formation, Private Consumption, Gross Consumption, and Gross National Savings. GDP measures the total final domestic output of goods and services produced by residents, including indirect taxes net of subsidies. Gross Fixed Capital Formation measures the total change in value of fixed capital excluding stocks at current prices. Private Consumption Expenditure is the market value of all goods and services purchased or received as income in kind by households and non-profit institutions. Gross National Savings show the amount of domestic and foreign investment financed from domestic output, including public and private savings. Agricultural crops are classified according to the United Nations Food and Agricultural Organization (FAO) Production Year Book, which includes cereals, starchy roots, sugar, pulses, edible oil crops, nuts, fruits, vegetables, wine, cocoa, tea, coffee, livestock, and livestock products. Livestock and livestock products are excised from agriculture into a separate subgroup called livestock. Electricity generation and consumption are derived from data on agriculture, livestock, fish, and forestry from the Federal Office of Statistics (FOS) agricultural survey reports. The Consumer Price Indexes (CPIs) are designed to measure changes in the level of retail prices paid by consumers. The first CPIs were computed separately for the then Federal and Regional Capitals, but the National Consumer Expenditure Survey (CES) was revised in 1957 to reflect the need for a single national CPI based on the prices of a union market basket of commodities purchased and consumed by a representative set of households in selected centers across the country.

The Nigerian economy has experienced significant changes in recent years, including the rapid depreciation of the naira exchange rate, accumulation of payments arrears, and rescheduling of external debt obligations. These changes are captured in the Balance of Payments (BOP) compilation, which is a systematic record of economic transactions between residents and non-residents. The BOP Table from 1970 to 1994 is divided into five sub-sections, including current, capital, net errors and omissions, exceptional financing, and change in reserves. The IMF has reviewed the method of BOP compilation four times, with the fifth edition expanded to include both balance of payments flows and stock of external financial assets and liabilities. Nigeria's foreign exchange rate management has also undergone transformation, transitioning from an officially-pegged system to a market-determined system. International trade occurs between a country's residents and the rest of the world, and is divided into three sections: the Current Account, the Capital Account, and the Reserve. Transactions involving payments to a country by foreigners are classified as "Credit" entries, while those involving payments by the same country to other foreigners are "Debit" entries. The Balance of Payments records these transactions for a specific period. The Current Account is divided into three major sections: visible, invisible, and unrequited transfers. The visible accounts for exports and imports, while the invisible accounts for services and income. Credit entries are made when freight charges are collected by domestic airlines and shipping companies, while debit entries denote payments by residents to foreign airlines and shipping companies for same services. Unrequited transfers are unilateral transfers from the reporting economy to the rest of the world without asking for an equivalent value. The Capital Account records changes in a country's foreign assets and liabilities through various capital movements and investments. Capital movements may take place between a reporting economy and the rest of the world by infusion of new loans and investments into the reporting economy by foreigners. However, this equality could be defective as often either the debit or credit is understated. Errors and Omissions arise as a balancing item, as the difference between the two accounts can lead to errors in the balance of payments.

Publication Date

6-1995

Comments

The author is the Central Bank of Nigeria.

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