Despite the tight monetary monetary policy stance, growth in the major monetary aggregates increased in May 2017, relative to the level at end-April 2017. On month-on-month basis, broad money supply (M2), at N21,975.34 billion, rose by 1.2 per cent due, mainly, to the 17.5 per cent increase in net foreign assets of the banking system.
Over the level at end-December 2016, however, M2 fell by 6.0 per cent, reflecting the 7.4 per cent and 6.7 per cent decline in other assets (net) and net foreign assets of the banking system, respectively. Similalry, narrow money supply (M1), rose by 4.4 per cent, on month-on-month basis, due to increase in its demand deposits component.
Reserve money (RM), fell by 6.2 per cent to N5,499.2 billion at the end of the review month, reflecting the fall in both currency and bank reserves. Banks’ deposit rates generally trended downward, while lending rates rose in May 2017.
With the exception of the 7-day deposit rate, which rose above the levels in April 2017, all other deposit rates of various maturity fell from a range of 8.48 per cent – 13.08 per cent in the preceding month to 7.53 per cent – 11.33 per cent in May 2017.
The average savings and term deposit rates fell to 4.08 per cent and 8.65 per cent from 4.24 per cent and 9.10 per cent, respectively, in the preceding month. The average prime and maximum lending rates rose by 0.14 percentage point and 0.44 percentage point to 17.58 per cent and 30.75 per cent, respectively, at end-May 2017.
Consequently, the spread between the average term deposit and the maximum lending rates widened by 0.89 percentage point to 22.10 percentage points at end-May 2017. Similarly, the spread between the average savings deposit and maximum lending rates, widened by 0.16 percentage point to 26.43 percentage points at the end of the review month.
The total value of money market assets outstanding at end-May 2017 stood at N11,540.84 billion, showing an increase of 1.6 per cent, as against the 3.3 per cent decline in the preceding month.
The development was attributed to the 1.4 and 1.7 per cent increase in FGN Bonds and commercial paper outstanding, respectively. Gross Federally-collected revenue (gross) in May 2017 was estimated at N458.42 billion.
This was lower than the receipt in April 2017 by 13.4 per cent, reflecting decline in both oil and non-oil revenue components. Oil and non-oil receipts (gross), at N238.09 billion and N220.33 billion, respectively, constituted 51.9 per cent and 48.1 per cent of total revenue.
Federal Government retained revenue and estimated expenditure for May 2017 were N185.58 billion and N583.32 billion, respectively, resulting in an estimated deficit of N397.74 billion. Agricultural activities in May 2017 were dominated by planting of crops, legumes and harvesting of vegetables.
In the livestock subsector, farmers continued with the breeding of poultry and migration of cattle from the Northern states to the Southern states in search of greener pastures. Domestic crude oil production was estimated at 1.63 mbd or 50.53 million barrels (mb) in May 2017.
Crude oil export was estimated at 1.18 mbd or 36.58 mb in the review month. The average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API) fell to US$51.20 per barrel in May 2017 from US$52.89 per barrel recorded in April 2017, representing a decline of 3.20 per cent.
The end-period headline inflation (year-on-year), was 16.3 per cent in May 2017, compared with 17.2 per cent in April 2017. On twelvemonth moving average basis, headline inflation was 17.6 per cent in May 2017.
Foreign exchange inflow and outflow through the CBN in May 2017 were US$2.26 billion and US$3.02 billion, respectively, and resulted in a net outflow of US$0.76 billion. Aggregate foreign exchange flow through the economy, however, resulted in net inflow of US$2.60 billion in the review month.
Foreign exchange sales by the CBN to the authorised dealers amounted to US$2.64 billion and represented a 70.8 per cent increase above the level in April 2017. The average exchange rate of the naira at the inter-bank segment, at N305.54 per US dollar, appreciated by 0.2 per cent, compared with the level in the preceding month, but depreciated by 35.5 per cent, relative to the level in the corresponding period of 2016.
Other major international economic developments and meetings of importance to the domestic economy during the review month included: the 2017 Association of African Central Banks (AACB) continental Seminar held in Accra, Ghana from May 3-5, 2017 and the Mid-Year Statutory meeting of the Economic Community of West African states (ECOWAS) held at Monrovia, Liberia from May 25 – June 4, 2017.
Monetary and Credit Developments
Growth in broad money supply (M2) rose in May 2017. Banks’ deposit rates trended downward, while lending rates trended upward. The value of money market assets outstanding rose, owing, largely, to the increase in FGN Bonds and commercial paper, respectively.
Activities on the Nigerian Stock Exchange (NSE) were bullish in the review month. Monetary Policy remained restrictive during the review month with the monetary policy rate at 14.00 per cent. On monthon-month basis, net domestic credit and other assets (net) of the banking system fell by 2.5 and 2.4 per cent, respectively.
[post_ads_2]Net foreign assets, however, grew significantly by 17.5 per cent, reflecting increase in foreign asset holdings by both banks and the monetary authority. Consequently, on monthon-month basis, broad money supply (M2) rose by 1.2 per cent to N21,975.34 billion in the review period, compared with the growth of 1.6 per cent at the end of the corresponding period of 2016, but was in contrast to 1.4 per cent decline at the end of the preceding month.
Similarly, narrow money supply (M1) rose by 4.4 per cent to N10,184.90 billion, reflecting the 6.3 per cent increase in demand deposits, which more than offset the 5.4 per cent fall in its currency component (Figure 1, Table 1).
Over the level at end-December 2016, money supply (M2) fell by 6.0 per cent in May 2017, compared with the decline of 7.2 per cent at end-April 2017, but was in contrast to the 5.0 per cent increase at the end of the corresponding period of 2016.
The development reflected the 6.7 per cent and 7.4 per cent decline in foreign assests (net) and other assets (net) of the banking system, respectively. Similarly, narrow money supply (M1) fell by 8.0 per cent, compared with the decline of 11.8 per cent at the end of the preceding month and reflected increase in its currency and demand deposit components .
Quasi-money fell by 1.4 per cent to N11, 790.44 billion at endMay 2017, compared with the decline of 1.0 and 2.3 per cent at the end of the preceding month and the corresponding period of 2016, respectively.
The development was due to the fall in time and savings deposit of banks. Over the level at end-December 2016, quasi money declined by 4.3 per cent, compared with the decline of 3.0 per cent and 1.1 per cent at the end of the preceding month and the corresponding period of 2016, respectively.
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Employment seeking girl steals N108k from her prospective employer
Opportunity comes but once, this young girl believes as she stole N108k from her prospective employer. A female jobseeker has been captured for taking One Hundred and Eight Thousand Naira amid her prospective employee meeting in Delta State.
It was accumulated that the businessperson at the organization had ventured out to get something, leaving the suspect in the workplace. The young lady professedly utilized the chance to take N108k and fled.
Good fortune, be that as it may, ran out on her, days after the fact, while going through the road where the workplace is found. She was expeditiously caught and dragged to her home where the rest of the cash was recovered.
Lagos tenant uses Landlord’s apartment to dupe house appliance vendors of N50 million
Hey peepz, I have a gist tho I don’t know if it’s true or not..But I will say it Sha. I was just walking on the street 2receive fresh air when I saw a couple. d man was telling his wife about an incident. I kukuma slowed down an walked behind them to hear d full gist.
It was more like a scam story. A certain man walked up to a Landlord in our area and requested to rent his apartment for 2 months, with the excuse that he was traveling to Canada and just came to Lagos for the Visa Processing.. They agreed on 150K.
The man paid and took ownership of the apartment.He then went out to Vendors in town and negotiated to buy expensive items on lease. With installment payment plans.. He was said to have collected home appliance worth N50,000,000 from various vendors.
He then took them all to the apartment one by one to build trust. At least once they know he lives there, they can easily come around and pack their stuffs if he defaults, these people didn’t know what would hit them was going to be deadlier than Tsunami.
As agreed with the Landlord, the man packed out even earlier than expected… Left with all the items, of which he had not finished the payment..and the Landlord was so happy to have struck a better deal He immediately rented out the apartment to another family.
One by one, the creditors began to come in and same story was relieved to them.. Some fainted, some threatened hell fire …. To cut the long story short, Baba Ijebu was arrested alongside the new tenant.. You know Naija now… #POLICE no wan hear wuen
They were only saved after a Landlord intervened. He is a legal practitioner and took up the case. But sincerely speaking. I wonder how some people feel at rest knowing fully well their victims would suffer. I guess it all centers on lack of conscience. This is bad #dojon
It was more like a scam story. 🙆 A certain man walked up to a Landlord in our area and requested to rent his apartment for 2 months, with the excuse that he was traveling to Canada 🍁 and just came to Lagos for the Visa Processing.. They agreed on 150K.
— Diary of a Jobless Nigerian Youth (@wenogetjob) May 15, 2018
How a middle-aged man died after withdrawing N100,200 from the bank will shock you
What could have taken the life of a middle-aged man, identified only as Muyibi, who collapsed and died in a commercial cab in the Ojota area of Lagos State.
PUNCH Metro reports that Muyibi boarded the cab after withdrawing money from a United Bank for Africa branch in the Ogudu area. Then the driver had turned to to take his fee from Muyibi when he realized the man had become motionless. After reaching the terminus, a resident told Punch’s correspondent that the driver alighted from the cab to slightly push Muyibi, who was cold.
The resident, who did not want to be identified, said,
“The driver had picked some other passengers along the way, and they had all paid and dropped off at their various bus stops.
“When the victim did not respond when they got to the terminus, the driver parked the cab to rouse him, but he was cold.
The driver raised the alarm, which drew the attention of commuters and passersby to the scene. People checked him and discovered that the man was dead.”
Policemen from the Ogudu division were said to have been alerted to the incident. The driver’s vehicle was impounded just like that, while the man’s body was deposited in a morgue.
A source person at the terminus who spoke with Punch newspaper confirmed the incident, saying:
“It happened around 3pm on Friday. The man went to withdraw some money in UBA. The Ogudu Divisional Police Officer was compassionate; she pitied the cab driver, who had become jittery.
Although the man was not detained, his cab was impounded at the station pending when the deceased’s family would show up,” he added.
Lagos state Police Public Relations Officer, SP Chike Oti, said the police recovered N100,200 from the victim’s bag.
“The man was on his way to Ojota when he collapsed and died. We recovered the sum of N100,200 from his bag.
He also had a phone, which had a new SIM card. There is no contact on the phone and nobody has called him. We have a lead as to where he could be living.
His body has been deposited in a morgue for autopsy.”
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