CBN STATISTICAL BULLETIN VOL. 18, DEC. 2007 - EXPLANATORY NOTES.pdf

7/27/2019 CBN STATISTICAL BULLETIN VOL. 18, DEC. 2007 - EXPLANATORY NOTES.pdf

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ASSOCIATE EDITORS

EDITOR

M A NA G IN G E D IT OR

EDITOR-IN-CHIEF

E D I T O R I A L COMMITTEE

S a n i I . D o g uw a ( P h .D )Director of Statistics

Sunny N. EssienDeputy Director of Statistics

Abiodun S. BadaAssistant Director of Statistics

La w re n c e O . A k i n bo y oPrin. Statistician

Adeyemi A. AdeboyeStatistician

T h e S TAT I S T IC A L B U L LE T I N i s an an n u al p u b li cat i o n o f t h eCentral Bank of Nigeria. All enquiries, comments, and

s u gg e st i on s s h ou l d b e a d dr e s se d t o : T h e D i r ec t or , S t at i s ti c sDepartment, Central Bank of Nigeria,

P.M.B. 0187, Garki, Abuja.


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ContentsEXPLANATORYNOTES

SECTION

A FINANCIAL STATISTICS

A.1 CENTRAL BANKING

A.2 COMMERCIAL BANKING

.. .. .. .. .. .. .. .. xiii

A.1.1.1 Monetary Author ities' Analyt ical Accounts - Ass ets .. .. 3

A.1.1.2 Monetary Author ities Analytical Accounts - Li abi lit ies .. .. 5

A.1.2 Central Bank of Nigeria T reas ury Bil ls Redi scounts - Gr os s .. 7

A.1.3 Monetary Survey . . .. .. .. .. .. .. 8

A.1.4.1 Clearing Hous e Statis tics t hr ough CBN Br anches .. .. .. 10

A.1.4.2 Consol idated Bankers' Cleari ng House S tati sti cs .. .. .. 17

A. 2.1 C om me rc ia l B ank s' S ta te me nt of A ss et s a nd Li abi li ti es - A ss et s .. 1 8

A .2 .2 C om me rc i al B an ks ' S ta t em en t o f A ss e ts a nd L ia bi l it i es - L ia bi li t ie s 2 1

A . 2 .3 S ect o ral D i s t r i bu t i o n o f C o m mer ci al B an k s' To t al L o an s an d A d v ances 2 3

A.2.4.1 Money Market Inter es t Rat es (per cent) .. .. .. .. 24

A.2.4.2 Weighted Average L endi ng and Deposi t Rates o f DMBs .. .. 25

A.2.5 Maturity Str uct ure of Comme rci al Ba nks Loans and A dvance s .. 26

A .2 .6 S el ec te d F in an ci al R at io s o f C om me rc ia l B an ks ( pe r c en t) . . 2 7

A.2.7 Net Exter nal Ass ets of Commerci al Banks .. .. .. 28

A.2.8 Deposit s and Loans of Rural Branches of DMB's .. .. .. 29

A.2.9 Number of DMB's Branches i n Ni ger ia and Abroad .. .. 30

A . 2 .1 0 R at i o o f L o an s t o S m al l S cal e E n t er pr i s es t o C o m m er ci al B an k s 'Total Credit .. .. .. .. .. .. .. 31

A.2.11 Commerci al Banks' Selected Performance I ndicators .. .. 32

A.2.12 Sources a nd Application of Funds : Commer cial Banks .. .. 33


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A.2.13 Aggregate Domestic Credit of DMB's .. .. .. .. 36

A.3.1 Mer chant Banks' Statement of Assets and Li abilit ies - Assets .. 38

A .3 .2 M er ch an t B an ks ' S ta te me nt o f A ss et s a nd L ia bi li ti es - L ia bi li ti es . . 3 9

A. 3.3 S ec tor al Di st ri bu ti on of M er cha nt B ank s' L oa ns a nd Ad va nc es .. 4 0

A. 3.4 We ig ht ed Ave ra ge I nt er es t R at es o f M er cha nt Ba nk s ( pe r c ent ) .. 4 1

A .3 .5 M at ur it y S t ru ct ur e o f M er ch an t B an ks ' To ta l L oa ns a nd A dv an ce s 4 2

A.3.6 Selected Financial Ratios o f Merchant Banks ( per cent) .. .. 43

A.3.7 Net External As set s of Merchant Banks .. .. .. .. 44

A . 3 .8 R at i o o f L o an s t o S m al l S cal e E n t er pr i s es t o M er ch ant B an k s 'Total Credit .. .. .. .. .. .. .. 45

A.3.9 Number and Branches of Merchant Banks .. .. .. .. 46

A.3.10 Sour ces a nd Applicati on of Funds : Merchant Banks .. .. 47

A.3.11 Aggregate Domes tic Credit of Merchant Banks .. .. .. 48

A .4 .1 S um ma r y o f A ss e ts a nd L ia bi l it ie s o f P ri ma r y M or tg ag e I ns t it ut i on s 4 9

A. 4.2 Su mma ry o f A ss et s a nd L ia bi li ti es of D is cou nt H ou se s A ss et s .. 50

A .4 .3 S um ma ry o f A ss et s a nd L ia bi li ti es o f D is co un t H ou se s - L ia bi li ti es 5 2

A.4.4 Selected Financial Rat ios of Di scount Hous es .. .. .. 54

A.4.5 Summary of Ass ets a nd Liabil ities o f Community Banks .. .. 56

A.3 MERCHANT BANKING

A .4 DE VEL OPME NT A ND S PEC IA LI SE D F IN ANC IA L INS TI TU TIO NS

A.5 MONEY AND C APITAL MARKETS

A.4.6 Summary of Ass ets a nd L iabil ities o f Finance H ouses .. .. 57

A.4.7 Number of Development & Speci ali sed Banks /Instit uti ons .. 58

A.5.1 Value of Money Mar ket I nst ruments .. .. .. .. 59

A.5.2 Treas ury Bil ls: Is sues and Subs cri pti ons .. .. .. .. 60

A.5.3 Holdi ngs of Treasur y Bi lls Out standing .. .. .. .. 61


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A. 5.4 Tr eas ur y Certif icates : Iss ues and Subscriptions .. .. .. 62

A.5.5 Holdings of Treas ury Cer tifi cates Outs tandi ng .. .. .. 63

A.5.6 Open Market Oper ations ( OMO) Weekly sess ion .. .. .. 64

A.5.7 Holdings of Devel opment St ocks .. .. .. .. .. 65

A.5.8 Tr ansactions at t he Nigerian St ock Exchange .. .. .. 66

A.5.8.1 All Shar e Index on the Nigeri a Stock Exchange ( NSE) .. .. 67

A.5.8.2 Annual Market Capital iza tion on t he Nige ria Stock Exchange .. 68

A.6.1 Banking System' s C redit to the Domest ic Economy .. .. 69

A.7.1 Savi ngs Statis tics (Cumulative) .. .. .. .. .. 71

A . 8 .1 D i s t r i bu t i o n o f I n s u r ance C o m p an i es b y Ty p e o f B u s i nes sUndertaken .. .. .. .. .. .. .. 72

A.8.2 Structure of I nsurance I ndust ry by Type of Owner shi p .. .. 73

A. 8.3 P ai d- Up Ca pi ta l of I ns ur an ce C om pa ni es by Typ e o f O wne rs hi p .. 74

A . 8 .4 I n co me an d E x p end i t u r e o f I n s u r ance C o m p an i es i n N i g er ia:Summary by Type of Ownership .. .. .. .. .. 75

A . 8 .5 I n co me an d E x p end i t u r e o f L i f e I n s u r ance C o m p an i es i n N i g er iaSummary by Type of Ownership .. .. .. .. .. 76

A . 8 .5 . 1 I n co me an d ex p end i t u r e o f L i f e I n s u r an ce co m p ani es ( S u m mar y ) 7 7

A.8.6 Sour ces o f Income o f Life I ns urance C ompanies i n Niger ia .. 78

A.8.7 Expenditure o f Life I nsurance C ompani es i n Nigeri a .. .. 80

A . 8 .8 I n co me an d E x p end i t u r e o f N o n - Li f e I n s u r an ce C o m p an i esin Nigeri a .. .. .. .. .. .. .. .. 82

A .8 .8 .1 S um ma ry o f I nc om e a nd E xp en di tu re o f N on -L if e I ns ur an ce C oy . . 8 3

A . 8 .9 . 1 S o u r ces o f I n co me o f N o n - Li f e I n s u r an ce C o m p an i es i n N i g er i a

(All Companies) .. .. .. .. .. .. .. 84

A.6 CREDIT

A.7 NATIONAL SAVINGS

A.8 INSURANCE C OMPANIES


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A . 8 .9 . 2 S o u r ces o f I n co me o f N o n -L i f e I n s u r ance C o m p an i es i n N i g er ia(Wholl y Ni ger ian) .. .. .. .. .. .. 85

A . 8 .9 . 3 S o u r ces o f I n co me o f N o n -L i f e I n s u r ance C o m p an i es i n N i g er ia

(J oint) .. .. .. .. .. .. .. .. 86

A . 8 .9 . 4 S o u r ces o f I n co me o f N o n -L i f e I n s u r ance C o m p an i es i n N i g er ia(For eign) .. .. .. .. .. .. .. .. 88

A.8.10. Breakdown of Total Expenditure of Non-Life Insurance Business(All Compani es) .. .. .. .. .. .. .. 89

A . 8 .1 0 . 1 B r eak do w n o f To t al E x p end i t u r e o f N o n -L i f e I n s u r ance B u s i n es s(Wholly Nigeri an) .. .. .. .. .. .. .. 90

A.8.10.2 Breakdown of Total Expenditure of Non-Life Insurance Business(J oint) .. .. .. .. .. .. .. .. 91

A . 8 .1 0 . 3 B r eak do w n o f E x p en d i t ur e o f N o n - Li f e I n s u r an ce B u s i nes s(For eign) .. .. .. .. .. .. .. .. 92

A .8 .11 To ta l A ss et s o f I ns ur an ce I nd us tr y b y Ty pe o f B us in es s O wn er sh ip 9 3

A.8.13 Fi nanci al devel opment .. .. .. .. .. .. 96

B.1.1 Curr ent Revenue of t he Federal Gover nment .. .. .. 101

B.1.2 Functional Classification of Recurrent Expenditure of theFederal Government .. .. .. .. .. .. 105

B.1.3 Functional Classification of Capital Expenditure of the

Federal Government .. .. .. .. .. .. 106

B.1.4 Summary of Feder al Government Finances .. .. .. 107

B .1 .5 F ed er al G ov er nm en t B ud ge t E st i ma te s ( Re cu rr e nt E xp en di tu re ) . . 11 0

B .1 .6 F ed er al G ov er nm en t B ud ge t E st i ma te s ( Ca pi t al E xp en di tu re ) . . 11 3

B.1.7 Federal Government s Domesti c Debt Outs tandi ng .. .. 115

B. 1. 8 H ol di ng s o f F ed er al Go ve rnm en ts D om es ti c D eb t O ut st and ing .. 11 6

B.1.9 Domest ic Debt Out standing .. .. .. .. .. .. 117

B.1.10 Nigeria's External Debt Outs tanding .. .. .. .. 118

B PUBLIC F INANCE S TATISTICS

B.1 FEDERAL GOVERNMENT F INANCES


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B.1.11 Total Number and Value of Applications Received forDebt Conversi on .. .. .. .. .. .. .. 119

B.1.12 Number and Value of Applications Approved/Rejected in Principle

for Debt Conver sion .. .. .. .. .. .. 120

B .1 .1 3 To ta l N um be r a nd A mo un t o f A uc ti on s H el d f or D eb t C on ve r si on . . 1 21

B.1.14 Debts C ancell ed Thr ough Debt Conversi on Programme .. .. 122

B.1.15 Discount Appropriated to the Economy and Commission earned forDebt Conversi on ( in Percent age a nd Abs olute Amount) .. .. 123

B.2.1 Summary of State Governments' and Federal Capital Territory (FCT)Finances .. .. .. .. .. .. .. .. 124

B.3.1 Summary of Local Government s' Finances .. .. .. 126

B.3.2 Summary of Local Governments' Finances (Percentage ChangeOver t he Precedi ng Year) .. .. .. .. .. .. 127

C.1.1 Nati onal Account s .. .. .. .. .. .. .. 131

C.1.2 Nige ria Gross Domes tic Produc t at 1990 Consta nt Bas ic Pr ice s .. 132

C 1 . 2 .1 G r o s s D o m est i c P r o d uct at 1 9 9 0 C o n s tan t B as i c P r i ces( Percent age Dis tribut ion) .. .. .. .. .. .. 135

C . 1 .3 N i g er ia G r o s s D o m es ti c P r o d uct at C u r r ent B as i c P r i ces(By Acti vit y Sector) .. .. .. .. .. .. 138

C.1.3.1 Impl ici t Def lat or .. .. .. .. .. .. .. 143

C.2.1 Output of Major Agr icultural Commoditi es .. .. .. 147

C.2.2 Index of Agricultural Production By Type of Activity(1984=100; 1990= 100) .. .. .. .. .. .. 149

C . 2 .3 O p er ati o n s o f A g r i cul t u r al C r ed i t G u ar ant ee S ch eme F u n d(ACGSF) (Number of Loans G uar anteed by Purpos e) .. .. 151

B.2 STATE GOVERNMENTS FINANCES

B.3 LOCAL GOVERNMENTS FINANCES

C DOMESTIC PRODUCTION, CONSUMPTION A ND PRICES

C.1 PRODUCTION AND C ONSUMPTION


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C . 2 .3 . 1 O p er ati o n s o f A g r i cul t u r al C r ed i t G u ar ant ee S ch eme F u n d ( A C G SF )(Val ue of Loans Guaranteed by Pur pose) .. .. .. .. 152

C . 2 .3 . 2 O p er ati o n s o f A g r i cul t u r al C r ed i t G u ar ant ee S ch eme F u n d ( A C G SF )

(Number of Loans Guarant eed by St ate) .. .. .. .. 154

C . 2 .3 . 3 O p er ati o n s o f A g r i cul t u r al C r ed i t G u ar ant ee S ch eme F u n d ( A C G SF )(Val ue of Loan Guar ant eed by State) .. .. .. .. 157

C . 2 .3 . 4 I n d i ces o f Av er ag e Wo r l d P r i ces ( C I F ) o f N i g er ia' s A g r i cul t u r alCommodits i n Naira Per Tonne (1985=100) .. .. .. 160

C.3.1 Index of Industr ial Production (1985=100) .. .. .. 161

C.3.2 Index of Manufacturing Pr oduction (1985=100 .. .. .. 162

C.3.3 Nigeria's Average Manufacturing Capacity Uti lis ation Rate .. 164

C.3.4 Principal Solid Mi ner al Production .. .. .. .. 167

C.3.4.1 Index o f Pri nci pal Miner al Pr oduct ion ( 1985=100 .. .. 168

C. 3.4.2 Index of Principal Mineral Production .. .. .. .. 169

C.3.5 Index of Energy Consumpti on (1990= 100) .. .. .. 170

C.3.5.1 Domes tic Consumption of Petr oleum Product .. .. .. 171

C.3.5.2 Electricity Generation and Cons umpti on .. .. .. .. 172

C.3.6 Crude Oi l Producti on and Export .. .. .. .. .. 173

C.3.6.1 Inter nat ional Sport Pr ices o f Some C r ude O il Streams .. .. 174

C.3.7 Gas Production and Uti lis ati on in Nigeri a .. .. .. .. 175

C. 4. 1. R et ai l Pr ic e I ndi ce s o f Se le ct ed C on su me r I te ms i n La gos A re a .. 17 6

C . 4 .2 S u m mar y o f P r i ce I n d i ces o f O r d i nar y S h ar es L i s t ed o n t h eNigerian Stock Exchange (December 1984=100 .. .. .. 177

C.4.2.1 Summary of Value Indices of Ordinary Shares Listed on theNigerian Stock Exchange (December 1984=100 .. .. .. 178

C.4.3 Inf lat ion Rat e .. .. .. .. .. .. .. 179

C.5.1 Ocean Shipment .. .. .. .. .. .. .. 180

C.5.1.1 Carriage by Ni gerian Unity Line .. .. .. .. .. 181


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C.5.1.2 Tonnage of Goods Conveyed t o N iger ian S ea Por ts by Mode .. 182

C.5.2 Domes tic Air Transport ati on Stati sti cs .. .. .. .. 183

C.5.3 Inter national Air Transport ati on Stat isti cs - African Routes .. 184

C.5.4 Inter national Air Transport ati on Stat isti cs - Other Routes .. .. 185

C.6.1 Communication Statis tics .. .. .. .. .. .. 186

C.7.1 Industr ial Relations Stat ist ics .. .. .. .. .. 188

C.7.1.1 Registered Unemployed and Vacancies Declared(Profes sionals and Executives .. .. .. .. .. 189

C.7.1.2 Registered Unemployed and Vacancies Declared(Lower Grade Wor ker s .. .. .. .. .. .. 190

C . 8 .1 Av er ag e m i n i mu m Wag es an d S al ar i es i n M aj o r S ect o rsof t he Economy .. .. .. .. .. .. .. 191

C.8.1.1 Range of Average Wages and S alaries i n the Publi c Sector . . .. 192

C .9 .1 H ou si ng C on st ru ct io n I nd ex f or 1 99 8 C l as si fi ed b y S ta te a nd Ty pe 1 93

C.9.2 Housing Cons tructi on Index for 1999 Clas sifi ed by Type .. .. 194

C.9.3 Housing C ons tructi on Index for 2000 Clas sifi ed b y Type .. .. 195

C.9.4 Housing Cons tructi on Index f or 2001 Cl ass ified by Type .. .. 196

C.9.5 Housing Cons tructi on Index f or 2002 Cl ass ifi ed by Type .. .. 197

C.9.6 Housing Cons tructi on Index for 2003 Cl ass ifi ed by Type .. .. 198

C.9.7 Hous ing Cons tructi on Index for 2004 Cl ass ifi ed b y Type .. .. 199

C.9.8 Hous ing Cons tructi on Index for 2005 Cl ass ifi ed by Type .. .. 200

C.9.9 Hous ing Cons tructi on I ndex for 2006 Cl ass ifi ed b y Type .. .. 201

C.9.10 Nation Wide Housing Construct ion I ndex Clas sif ied by Type .. 202

C.10.1 Populat ion of Nigeria By Sex .. .. .. .. .. 203

C. 10.2 Nigeria: Area, Popul ation and Dens ity .. .. .. .. 204

C.11.1 Average Total Rain Fal l .. .. .. .. .. .. 205


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D EXTERNAL SECTOR S TATISTICS

D.1 TRADE S TATISTICS

D.2 BALANCE O F PAYMENTS

D.3 EXCHANGE R ATE S TATISTICS

D.4 EXTERNAL ASSETS

D.1.1 Foreign Tr ade .. .. .. .. .. .. .. 211

D.1.2 Value of Maj or Import Groups b y S.I.T.C Sect ions .. .. 213

D.2.1 Nigeria's B alance o f Payments - Anal yti cal Stat ement .. .. 214

D. 2 .1( b) Nigeria's B alance o f Payments BOPSY Pres ent ati on .. .. 224

D. 2.1( c) Inter national Investment Posit ion of Nigeria .. .. .. 226

D.2.2 Nigeria's Total External Res erves Posi tion .. .. .. .. 227

D . 3 .1 M o n t hl y Av er ag e O f f ici al E x ch ang e R at e o f t h e N ai r a v i s - - vi sthe United St ates Dollar .. .. .. .. .. .. 228

D . 3 .2 M o n t hl y Av er ag e ( A F E M/ D A S ) E x ch an g e R at e o f t h e

Naira vis--vis the United States Dollar (Central Rate .. .. 230

D.3.3 ( a) Average Nair a Cr oss Exchange Rates .. .. .. .. 231

D.3.3(b) Average AFEM Nair a Gr oss Exchange Rat es .. .. .. 232

D.3.4(a) Naira Off icial Cr oss E xchange R ates ( End o f Period ) .. .. 233

D.3.4(b) Nair a AFEM Cross E xchange R at es ( End of Period) .. .. 234

D.3.4(C) Monthl y Offi cial Exchange R ates ( End of Period) . . .. .. 235

D . 3 .5 N o m i nal E f f ect i v e N ai r a E x ch ang e R at e I n d i ces f o r N i g er i a(Trade Weighted) .. .. .. .. .. .. .. 236

D.3.6 Foreign Exchange Budget & Disbur sement .. .. .. 238

D.3.7 Demand and Suppl y of Foreign Exchange .. .. .. .. 239

D. 3.8 Exchange Rate Movements .. .. .. .. .. 240

D.4.1 International Liquidity: International Reserves and RelatedForeign Accounts .. .. .. .. .. .. .. 241


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D.4.2 Nigeria's External Reser ves .. .. .. .. .. 242

D.5.1 Flow of Non oil Foreign Privat e Capit al by Origin . . .. .. 243

D.5.2 Components of Net Capit al Fl ow by Origin .. .. .. 246

D.5.3 Cumul ati ve Foreign Pri vat e Invest ment in Niger ia by Ori gin .. 252

D . 5 .4 C u m ul at i v e F o r ei gn P r i v at e I n v est m en t i n N i g er ia A n al ys ed b yType of Activity) .. .. .. .. .. .. .. 257

D.5.5 Foreign Private Investment (Cumulative) in Manufacturing &Process ing Sector Analysed by Type of Industry) .. .. .. 265

D.5.6 Fixed Assets at Book Value for Industries in Manufacturing &Process ing Sector .. .. .. .. .. .. .. 273

D.5.7 Fixed As set s at Cos t ( Tot al ) .. .. .. .. .. 277

D.5.8 Fixed As set s at Cos t ( Mini ng & Quarrying ) .. .. .. 278

D.5.9 Fixed As set s a t Cos t ( Manufacturing & Pr ocess ing) .. .. 279

D.5.10 Fixed As set s a t Cost ( Agricult ure, Forestr y & Fisheri es .. .. 280

D.5.11 Fixed As set s at Cost ( Transpor t & Communi cat ion .. .. 281

D.5.12 Fixed As set s at Cost ( Building & Cons tructi on .. .. .. 282

D.5.13 Fixed As set s a t Cost ( Trading and Busi nes s S ervi ces .. .. 283

D.5.14 Fixed As set s at Cost ( Mi scellaneous Act ivi ties .. .. .. 284

D.5.15 Fi xed As set s at Book Value (Total .. .. .. .. .. 285

D.5.16 Fi xed As set s at Book Value ( Mini ng & Quarr ying .. .. .. 286

D.5.17 Fi xed As set s at Book Value (Manufacturing & Process ing .. .. 287

D.5.18 Fi xe d As set s a t Book Value (Agri cul tur e, For est ry & Fisher ies .. 288

D.5.19 Fi xed As set s at Book Value (Trans port & Communication .. 289

D.5.20 Fi xed As set s a t Book Value ( Building & Constr uct ion .. .. 290

D.5.21 Fi xed As set s at Book Value (Tradi ng and B usi ness Services .. 291

D.5.22 Fi xed As set s a t Book Value ( Miscell aneous Activities .. .. 292

D.5 FOREIGN PRIVATE I NVESTMENT


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D.5.23 Components of Paid- Up Capital Analysed by Hol der ( Total .. 293

D.5.24 Components of Paid-Up Capital Analysed by Holder(Mining & Quarrying .. .. .. .. .. .. 295

D . 5 .2 5 C o m po n en ts o f P ai d - Up C ap i t al A n al ys ed b y t y p e o f H o l d er (Manuf actur ing & Processi ng) .. .. .. .. .. 297

D.5.26 Components of Paid-Up Capital Analysed by Holder(Agr iculture, Fores try & Fi sheries) .. .. .. .. 299

D.5.27 Components of Paid-Up Capital Analysed by Holder(Transport & Communicati on) .. .. .. .. .. 301

D.5.28 Components of Paid-Up Capital Analysed by Holder

(Bui ldi ng & Cons truction) .. .. .. .. .. .. 303

D . 5 .2 9 C o m po n en ts o f P ai d - Up C ap i t al A n al ys ed b y H o l d er (Trading & Busi ness Services) .. .. .. .. .. 305

D.5.30 Components of Paid-Up Capital Analysed by Holder(Mis cellaneous Acti vit ies ) .. .. .. .. .. .. 307


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Explanatory Notes

EXPLANATORY NOTES

SECTIONA: FINANCIALSTATISTICS

S E C T IO N B : G O V ER N M E NT F I N A NC E S TAT I S T I CS

F i na n ci a l d a ta a r e n or m a ll y c o mp i le d f r om b a la n ce s h ee t s a n d f i na n ci a l s t a te m en t s w h ic h a r eprimarily designed to meet a variety of legal and administrative requirements, as well as thes p eci f ic n eed s o f eco n om i c an al y si s . F i n anci al d at a co m p i lat i o n i n v o lv es t h e ag g r egat i o n o f t h ef in an ci al s y st em 's a cc ou nt s t o t he l ev el a t w hi ch g en er al m ac ro ec on om ic t en de nc ie s a rediscernible.

T h e c o ns o li d at e d ac c ou n t o f t he m o ne t a ry a ut h or i t ie s , w h ic h i s s h ow n in Ta b le s A . 1. 1 .1 a ndA . 1 .1 . 2 i s d er i v ed f r o m d i f fer en t s u b - acco u n ts o f t h e C B N o p er at io n s . T h e F i n an ce D ep ar t men tprepares the CBN accounting balance sheet which serves as the initial input for the compilationo f t he C B N a n al y ti c a l ac c ou n ts b y t he R e s ea r c h De p ar t me n t. T h e m a jo r i n pu t s a r e , th e m o nt h lyr e tu r ns o f A s s et s a n d L i ab i li t i es , o t he r wi s e k n ow n a s O r a cl e E R P w h ic h s e r ve s a s a b e nc h ma r k,

a nd t he s um ma r y t r ia l ba la nc e w hi c h s e rv es a s a s ou rc e f or d et a il e d i nf or ma t io n on v ar io usacco u nt s . H o w ever , b ecau se o f t h e p r o b lem s o f i m p r eci s e d ef i n i ti o n s , i m p r o per cl as s i f i cat i o n ,i n ad equ at e s ect o r i sat i o n , i n accu raci es i n ad d it i o n s , ir r eg u lar v al u ati o n p r oced u r es an d er r or s i nt h e c o mp i la t i on of da t a o n f o re i gn as s e ts , m a jo r r e vi s i on s w e re c a r ri e d o u t i n t h e f o rm of c l as s if i ca t io ns a nd pr es e nt at i on of fo rm at s f or th e b al a nc e s he e ts o f t he C BN a nd t he d ep os i tm o n ey b an ks i n 1 9 9 2. T h e s u m m ary an d d et ai l ed an al y t ical acco u nt s , as w el l as t h e en d - m on t hg en er al l edg er b al ances f r o m t h e 2 2 C B N o u t s t ati o n s , p ro ces s ed S tat em en t o f A cco un t C u r r entf r o m B r an ch O p er ati o n s D ep ar t men t an d th e M ai n A cco un t s ( n et ) f r o m t h e F i n ance D ep ar t men ta r e u s ed fo r th e p r e pa r a ti o n o f t h e m o ne t a ry a u th o ri t i es ' an a ly t ic a l b a la n ce s h ee t . T h e 2 2 C B No ut s ta t io ns d at a a re r ep ro ce ss e d i n gr os s f or m an d us e d t o ad ju st f or t he b ra nc he s d at a i n t hes u m m ary an al y t i cal accou n t O r acl e E R P o b t ain ed f r o m t h e I T D .

T h e c o ns o li d at i on o f t h e a c c ou n ts o f t h e m o ne t a ry a u th o ri t i es a n d t h e d e po s it m o ne y b a nk s( Tab l es A . 2 .1 , A .2 . 2 , A . 3 .1 an d A . 3. 2 ) p r o d uces t h e m o n etar y s u r v ey acco un t s , t h e s u m m ary o f w h i ch i s p r es ent ed i n t ab l e A . 1 . 3. T h e acco m mo d at i on o f t h e d ep os i t m o n ey b an k s' li q u i di t yn eed s b y t h e m o n etar y au t h or i t i es n o r m al l y o ccu r s ei t h er b y p r o v id i n g d i r ect l o an s an d ad v ancest o t h em o r b y d i s co un t i n g an d r ed i s cou n t i ng t h e f i n an ci al cl ai m s t h at t hey ho l d ( Tab l es A . 5 .1 -A.5.7).

T h e m o nt h ly i n te r e st r a t e r e t ur n s ( M BR 2 5 0) a r e u s ed t o c om p ut e t h e w e i gh t ed a v er a ge l e n di n ga n d d e po s it ra t e s, u s in g a s w e ig h ts , t h e l o an s a n d a d va n ce s ( n et ) a n d t o ta l de p os i t or s f u nd s ,r es p ect iv el y. T h e d ep o si t r at es : cu r r ent acco u nt , s av i n gs , cal l , an d t i m e d ep os i t s o f v ar i o usm at ur i ti e s r an gi ng f ro m 7 d ay s t o ov er 1 2 m on th s a r e a l so c om pu te d (Ta bl e s A .2 .4 .1 a ndA . 2 . 4. 2 ) . T h e l i q u i di t y, cr ed i t al l o cat i on , m at u r it y s t r u ct u r e o f f i n an ci al as s et s , et c. ar e co v er ed i nTablesA.2.5, - A.2.8 and A.3.3 - A.3.7.

C le a ri ng h ou se s t at i st ic s s ho w t he n um be r a nd v al ue o f c he qu es c l ea r ed w it hi n t he b an ki ngs y st e m . S u ch d a ta a s i n di c a te d i n t ab l es A . 1. 4 .1 - A .1 . 4. 5 s ho w t h e e x te n t t o wh i ch c h eq u es a r eu s ed as a p ay m en t i ns t r u m ent .

T he p ub li c s ec to r i nd ic at or s a re t he r ev en ue , e xp en di tu re , a nd p ub li c d eb ts ( do me st ic a nde x te r na l ) o f t h e F e de r a l, S t a te a n d L o ca l G o ve r nm e nt s . R e ve n ue i s a n i n fl o w o f r e s ou r ce s o r

m o ne y i n to t h e g o ve r nm e nt s e c t or f r o m o t he r e c o no m ic u n it s / se c t or s . I t i n cl u de s a l l n on -


14/23

Explanatory Notes

xiv

r e pa y ab l e r e c ei p ts a n d g r an t s a n d i s d i vi d ed i n to c u rr e nt a n d c a pi t a l. W h il e c u r re n t r e ve n uec o mp r is e s t a x a nd n o n- t a x r e c ei p ts w i th i n a g i ve n p e ri o d, c a p it a l r e ve n ue a r e r e c ei p ts f r om n o n-f i na n ci a l a s s et s u s ed i n p r od u ct i on p r o c es s f o r m o re t h a n o ne y e ar. G r a n ts a r e n o n- c om p ul s or y,n o n -r ep ay abl e u n r equ i t ed r ecei p ts f r o m o t h er g o v ern m en ts an d i n t er nat i o n al i n s t i tu t i o ns .

E xp en di t ur e i s a n o ut f lo w o f r e so ur c es f r om go ve r nm en t t o o th er se c to rs o f t he e c on om yw h et her r eq u i t ed o r u n r equ i t ed . I t i s d i v i ded i n t o r ecu r r en t an d cap i t al ex p en di t u r es . W h i l er e c ur r e nt e x p en d it u re s a r e p a ym e nt s f o r t r an s ac t i on s w i th i n o ne y e ar, c a p i ta l e x pe n di t ur e s a r epayments for non-financial assets used in production process for more than one year.

T h e d i f f er en ce b et w een g o v ern m en t p ay m en t s f o r ex p end i t u r e an d t o t al r ecei p ts f r o m r ev en ue,c o ul d e i t he r b e s u r pl u s o r d e fi c i t. I f r e v en u e i s g r ea t e r t h an e x pe n di t ur e , t h e re i s a s u rp l us , b u twhen e xpe nditure is gre ate r t ha n revenue, we have a defic it. Financing repre sentsg o ve r nm e nt ' s s o ur c e s o f m e e ti n g d e fi c i t o r u t il i s in g s u rp l us . S o ur c e s o f f i na n c in g a r e d i vi d edi n t o d o me s t ic a n d f o re i gn . D e bt ( do m es t i c a n d e x te r na l ) i s a s t o ck o f l i a bi l i ti e s w i th d i ff e r en tt en u r e accu m ul at ed b y go v er nm en t op er at i on s i n t he p as t an d s ch ed u led t o b e f u l l y r ep ai d b y

g o v ern m en t in t h e f u t u r e. I t co v er s o n l y r eco g ni zed di r ect f i nan ci al ob l i g ati o n s o f g o ver n m ento n w hi c h g ov er nm en t p ay s i nt er e st on r e de m pt i on . E xt e rn al d eb t f i gu re s i n t he t a bl e s a r eco n v ert ed t o N ai r a u s i n g an n u al av er ag e ex ch ang e r at e o f t h e p ar t i cul ar y ear.

T hi s t ab le s ho ws t he t ot al n um be r an d va lu e o f ap pl ic at io ns r ec ei ve d fr om N ig er ia ns a ndf o re i g ne r s o n a y e ar l y b a s is s i nc e t h e i n ce p ti o n o f t h e p r og r am m e i n 1 9 8 8.

T h is t a bl e i n di c a te s t h e t o ta l n u mb e r a nd v a l ue o f a pp r ov e d a nd r e j ec t e d a p pl i c at i on s o n a y e ar l ybasis. However, the total number of applications received in a year may not tally with the totaln um be r o f ap pl i ca t io ns g ra nt e d a nd r e je c te d in t he s a me y ea r, b ec a us e s om e a pp li c at i on s a r eu s u al l y car r ied o v er i n t o t h e s u b s equ en t y ear f o r p r o ces s i ng .

T h is t a bl e e x pl a i ns t h e t o ta l a mo u nt o ff e r ed b y t h e p r og r am m e f o r re d em p ti o n on a y e ar l y b a si s .T h e a v e ra g e d i sc o un t r at e s s h ow : ( i) t he a v er a ge f o r t h e y e ar o f t h e h i gh e st d is c ou n t q u ot e d a teach au ct i o n ; (i i ) t h e av er ag e f o r t h e y ear o f t h e l o w es t di s co u nt o f fer ed at each auct i o n ; an d ( i i i)t h e a v er a ge f o r th e y e ar o f t he d i sc o un t ( ma r gi n al ) r a te , t he r a t e b e in g d e fi n ed a s t h e r a t e a t w hi c h

the amount offered for redemption is exhausted at each auction.

D e bt s c a nc e l le d ou t of a uc t i on a re d e bt s p r oc e s se d wi t ho u t a u c ti o ns m a de t h ro u gh b id d in g .S uc h pr i vi l eg es a re g ra nt e d o nl y in r ar e c a se s t o me e t th e e xp ed ie nt f in an ci a l n ee ds o f th ebenefiting organisations. Prices of such conversions are, however, determined by the weightedav er ag e o f d i s co un t s q u o t ed b y s u cces sf u l b i d der s ' at t h e m o s t r ecent au ct i o n.

P r om i ss o ry no t es - Th e se a r e l e ga l ce r ti f i ca t e s o f i n de b te d ne s s i s s ue d b y b o th t he C B N a n d t h e

F e de r a l Mi n is t r y of F i n an c e o n b e ha l f o f t he F e de r a l G ov e r nm e nt o f N i ge r i a t o N i ge r i a' s

Debt Conversion:

Ta b le B . 1 . 11

Ta b le B . 1 .1 2

Ta b le B . 1 .1 3

Ta b le B . 1 .1 4

Ta b le B . 1 .1 5


15/23

xv

Explanatory Notes

C r ed i to r s i n di c a ti n g t h e a m ou n t o f th e i n de b te d ne s s , a s w e ll a s t h e c o nd i ti o ns p e rt a i ni n g t o t h er e de m pt i on of t he d e bt s . R e st r uc t ur e d d e bt s a r e m a tu r ed de b ts w h os e o b li g at i on s c o ul d n ot bef u lf i ll e d . To e x te n d t h e p e ri o d o f l i qu i da t i on o f s u c h l o an s , n e w a r r an g em e nt s a r e n o rm a l lyen t er ed i n t o w i t h t h e cr ed i t or s . S u ch ar r an gem en t s m ay t ak e t h e s h ap e o f n ew i n t er es t r at es . O n

t h e o t he r h a n d, r e f in a nc e d d e bt m e a n s t h e l i qu i da t i on o f a n e x i st i ng l o an , d u e f o r m a tu r it y, w i t h an e w l o an o b t ai n ed m o s tl y f r om t h e s a m e s o ur c e o f c r e di t , a d i ff e r en t s o ur c e o r a c o mb i na t io n o f t he se s ou rc es . T he n ew f ac il it y s o o bt ai ne d co me s w it h a d if fe re nt s et o f re qu ir em en ts a ndo bl i ga t io ns . T he P ar B on ds c ar r y t he f a ce v al ue o f th e S ec ur it y i ns t ru me nt i rr e sp ec ti ve o f an ypremium or discount that the instrument may be accorded in the market. Interest as stipulated int h e b o nd i s su e i s t h us p a id o n th e P a r va l ue o r f ac e v a lu e o f t he d e bt i n st r um e nt .

H o w ever , o f t h e cat eg or i es o f d eb t s can cel led , t h e m o s t p o p ul ar h as b een t h e p r o mi s s o r y n o t es .T h e r e s tr u ct u re d a nd r e f in a nc e d l oa n i ns t r um e nt s c e a se d t o be i n o pe r a ti o n a f t er 1 9 91 , a s t h ed eb t s w er e co n v er t ed t o Par B o n ds .

Av e ra g e p r ic e o f t h e d e bt i n s t ru m en t s a s q u ot e d i n U . S. D o l l ar m e a n s t h e a v er a ge m a r ke t p r i ce o f t h e v ar i o us i n s t r u men t s at t h e s eco n dar y m ar k et .

T h e S y s t em o f N at i on al A cco un t s ( S N A ) is a co n s i s ten t , coh er ent an d i nt eg r at ed s et o f m acr o -eco n o mi c acco u nt s ; b al an ce s h eet s an d t ab l es b as ed o n a s et o f i n t er nat i o n al l y agr eed co n cept s ,d ef i n it i o n s , co n v en t i o ns , cl as s i f icat i o ns an d acco u nt i n g r u l es . I t p r o vi d es a co m p reh en s iv ea c c ou n ti n g f r a me w or k w it h in w h ic h e co n om i c d a ta c a n b e c o mp i le d a nd p re s e nt e d i n a f o rm a tt h at i s d e si g ne d f o r p u rp o se s o f e c on o mi c a n al y si s , d e ci s i on t a ki n g a n d p o li c y m a ki n g. T h e

c o mp i la t i on o f t h e N a t io n al A c co u nt s s t a ti s t ic s p r es e nt e d i n t h is b ul l e ti n a r e b a s ed o n t h e s a m eprinciples.

T hi s t ab le i s m ad e u p o f t he G ro ss D om es t ic P ro du ct , Gr os s F ix ed C a pi t al F or ma t io n, P ri va t eC o n s um p t i on E x p end i t u r e, G o v ern m en t C o n s um p t i on E x p end i t u re, G r o s s C o n s um p t i onE x p end i t u re an d G r o s s N at i o nal S av i n g s .

i T h e G r os s D o me s t ic P r od u ct ( G DP ) i s t h e m o ne y v a lu e o f g o od s a n d s e r vi c e s p r od u ce di n a n e c on o my du r in g a p e r io d o f t i m e i r re s p ec t i ve o f t h e n a ti o na l i ty o f t h e p e op l e w h oproduced the goods and services. It is calculated without making deductions for

depreciation.

i i G D P at C u r r ent B as i c P r i ces ( i . e. N o m i nal G D P ) eq u als G D P at C u r r ent M ar k et P r i cesl es s i n d i rect t ax es n et o f s ub s i d i es.

i ii . G DP a t 19 90 C on st ant Ba si c P ri ce s ( ot he rw is e kno wn as t he r ea l G DP ) e qua ls G DP a t1 9 9 0 Mar k et P r ices l es s i n d i r ect t ax es n et o f s u bs i d i es .

i v. G DP a t Cu rr ent M ar ke t Pr ic es e qua ls G DP a t Cu rr ent B as ic P ri ce s i ndi re ct t ax es n et o f s ub si di e s. T hi s i s G DP v al ue d a t th e m a rk et p ri c es w hi ch p ur ch as e rs p ay f or t h e g oo dsa n d s e r vi c e s t h ey a c qu i re o r u s e .

Table B.1.16

SECTION C: NATIONALACCOUNTS

Table C.1.1


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Explanatory Notes

xvi

v. G DP a t 19 90 Ma rk et Pr ic es e qua ls GD P a t 1 99 0 B as ic Pr ic es pl us i ndi re ct t ax es ne t of subsidies.

vi. Gross Fixed Capita l Formation is e xpendit ure on fi xed ass ets ( such as building,

machinery) either for replacing or adding to the stock of existing fixed assets.

v ii . G ro ss C ap it a l F or ma t io n ( i .e . G ro ss D om es t ic I nv es tm e nt ) i s t he t ot a l c ha ng e i n t he v al ueo f f i x ed as s et s p l u s ch an ge i n st o ck s .

v ii i . P ri va t e C o n su mp ti on -H ou se ho ld F i na l C on su mp ti onH o u s eho l d act u al f i n al co n s um p t i on co n s i s ts o f t h e co n s um p t i on o f g o o ds o r s er v i cesa c qu i re d b y i n d iv i du a l h o us e ho l ds b y e x pe n di t ur e s o r t h r ou g h s oc i a l t r a ns f e rs i n k i nd ,r e c ei v ed f r o m g ov e rn m en t u n it s o r N o n- P ro f it I n s t it u ti o ns S e rv i ng H o u se h ol d s( N PI S Hs ) . Th e v a lu e o f h ou s eh o ld a c tu a l fi n al c o ns u mp t io n i s g i ve n b y t h e s u m of t h etwo components:

a. The value of hous ehold expenditures on cons umpt ion goods or ser vicesi n cl u di n g ex p end i t u r es o n n o n - mar k et g o o ds o r s er v i ces s o l d at p r i ces t h at ar enot economically significant.

b. The value of the expenditures incurred by the NPISHs, on individualco n s u mp t i o n go o d s o r s er v i ces p r o v id ed t o h o us eh o l ds as s o ci al t r an s f er s i n k i n d.

i x. G ov er nm en t F in al C on su mp ti on E xp en di tu reT hi s c on si st s o f e xp en di t ur e , in cl ud in g i mp ut e d ex pe nd it ur e i nc ur r ed b y g en er a lg o ve r nm e nt o f b o t h i nd i vi d ua l c o ns u mp t io n g oo d s a n d s er v ic e s a n d c ol l e ct i ve

co n s u mp t i o n s er v i ces . T hi s ex p end i t u re m ay b e d i v i ded i n t o:

a . G ov er nm en t e xp en di tu re o n i nd iv id ua l c on su ma bl e g oo ds a nd s er vi ce

b. Government expenditure on collection consumption

x. (x) Gros s Consumpti on Expenditure i s equal to Pr ivate Cons umpti on Expenditureplus Government Consumption Expenditure.

x i. G ro ss N at io na l S av in gs s ho w t he a mo un t o f d om es ti c a nd fo re ig n i nv es tm en t f in an ce df r om d om es t ic o ut pu t, c om pr is i ng p ub li c a nd p ri va t e s a vi ng s. I t i s g ro ss d om es t ici n v es t men t p l us t h e n et ex po r t s o f g o od s an d n on - f act or s er v i ces.

x ii . G DP a t 19 90 B as ic P ri ce i s t he GD P a t 19 90 Pr odu ce rs Pr ic e l es s t ax es o n e xpe ndi tur eplus subsidies.

x ii i. G DP a t Cu rr en t Ba si c P ri ce s i s t he G DP a t Pr od uc er s P ri ce l es s t ax es o n ex pe nd it ur e p lu ssubsidies.

T h is t a bl e c o mp r is e s a g ri c u lt u ra l c ro ps . A c co r di n g to t he c l a ss i f ic a t io n by t h e U n it e d N a ti o nsFood and Agricultural organization (FAO) Production Year-Book, agriculture includes cereals,

s t ar ch y r o ot s , s u g ar, p u l s es , ed i b le o i l cr o p s , n u t s , f r u i ts , v eg et ab les , w i n e, co co a, t ea, co ff ee,

Table C.2.1


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Explanatory Notes

l i v es t ock an d l i v es t ock p r o d uct s . A l s o i n cl u ded i n t h e g r o u p ar e i n d us t r i al o i l s eeds , t o b acco ,f i br e s , v e ge t a bl e a n d r u bb e r. H o we v e r, f o r t h e p u rp o se o f t h e b u ll e t in , a g ri c ul t ur e i s d e fi n ed int er ms o f t he t wo su b- s ec t or s o f s t ap le s a nd ot he r ( c as h) cr op s. T he s t ap le s c om pr is e m ai ze ,millet, sorghum, rice, wheat, acha, beans, cassava, potato, yam, coco-yam, plantain, vegetables

w h i l e o t h er ( cas h ) cr o ps i n cl u de m el o n, g r o u nd n u t , ben n i s eed , co con u t , s hean u t s, s o y abean s ,cotton seed, palm kernel, palm oil, groundnut oil, cocoa, coffee, rubber, sugar cane, palm winea n d to b ac c o. T h is d e fi n it i on i s i n t un e w i th w h at i s a v ai l a bl e g e ne r a ll y i n t h e c o un t ry.

I t sh ou ld be n ot e d t ha t, u nl ik e t he FA O d ef i ni t io n, l iv es to ck a nd l iv es t oc k pr od uc t s w er er em o ved f r o m ag r i cu lt u r e i n t o a s ep ar at e s u b g ro u p cal l ed l i v est o ck .

T h is t a bl e i s d e r iv e d f r om d at a o n a g ri c ul t ur e , l i ve s t oc k , fi s he r y an d f o re s t ry f r om t he N a t io n alB u r eau o f S t at i s ti cs ( N B S ) ag r i cul t u r al s u r v ey r ep o r ts . T h e N B S s eas o nal d at a o n cr o p s ar econverted to annual data (i.e. Calendar Year) by assuming that 70 per cent of the production in

o n e s eas o n t o ok p l ace b et w een A pr i l an d D ecem b er , an d t h e r em ai n in g 3 0 p er cen t f r o m J an u aryt o M ar ch . T h i s w ay t h e s eas o nal d at a w er e b r o k en p r o - r ata t o q u ar t er s , f r o m w h i ch t h e cal en d ar y ear d at a w er e d er i v ed .

L i v es t ock d at a f r o m NB S an d FA O an n ual l i v es to ck pr o d u ct i o n r eco r ded i n l i v es t ock u ni t w er ec o nv e rt e d t o c ar c a ss w e ig h ts b y a s su m in g , t h at t h e p r op o rt i on o f t h e l i ve s t oc k p op u la t io n k e pt ,r ep r es ent s t h e p r o d uct i o n fi g u r es f o r t he p ar t i cul ar y ear .F i s h ou t p u t d at a ar e p r o v id ed by t h e F ed er al D ep ar tm en t o f F i sh er i es w i t h n o adj u s t m ent s m ad e.S o ur c e s o f F or e s tr y d a ta a r e FA O , A n nu a l Ye a r B oo k o f F or e s t Pr o du c ts w i t h no a d ju s tm e nt smade.

T h es e t a bl e s s h ow t h e c o mp o si t e , u r ba n a n d r u ra l C o ns u me r P r i ce I n di c e s ( C PI s ) r e s pe c t iv e ly.T he CP Is a re d es igne d t o me as ur e a ve ra ge c ha nge s i n t he l eve l of r et ai l pr ic es pa id b yc o ns u me r s . T h e C P I c o mp u te d f o r N i ge r i a b y N B S m e a su r es a v e ra g e c h an g es i n t h e l e ve l o f r e t ai l pr i c es o f go o ds a n d s e r vi c e s c o ns u me d by h ou s e ho l ds l i vi n g i n a l l pa r t s ( b ot h u r ba n an drural) of the country.

T h e f i r s t C P I s w er e co m p ut ed s ep ar at el y f o r t h e t h en F ed er al an d R eg i on al C ap i t als . T h e i n d i cesf o r La g os a n d Ib a da n , Ka d un a a n d E n ug u h a d 1 9 53 a n d 1 9 57 a s b a s e y e ar s , re s pe c t iv e ly. T h eC BN i n c ol la bo ra ti on w it h F OS (no w NB S) fe lt th at the s epa ra te i nd ic es h ad som ed i sa d va n ta g es . T h e C o ns u me r E x pe n di t ur e S u rv e y ( CE S ) c on du c t ed i n 1 95 7 w a s r e vi e we d t or e f le c t th e f e l t n e ed f or a s i ng l e n a ti o na l C PI b a se d on t he p r ic e s o f a u n io n ma r ke t ba s k et o f co m m od i t i es p u r chas ed an d co n s u med by a r ep r es en t at i v e s et of h o us eh o l ds i n s el ect ed cen t r esf r om a l l o ve r t he c ou nt r y, e s pe c ia l ly s in ce t he i nd ic e s f ro m o ne c e nt r e t o a no th er m ad ec om pa ra bi li ty di ff ic ul t. A m or e s er io us l im it at io n o f t he i nd ex t he n, wa s t he a bs en ce o f ac om po si t e c on su me r p ri c e i nd ex t o m ea s ur e a ve r ag e c ha ng e i n t he p ri c e o f g oo ds a nd s e rv ic e spurchased by the specified groups of consumers. Because of this limitation, a common base wasd er i v ed f o r al l - ci t i es i n d ex b y av er agi n g p r i ces i n 1 9 6 0. I n d o i ng t h i s , i n s el ect i ng ev er yc o ns u me r i t em , t he p r ic e i n de x f or a n y g i ve n p e ri o d wa s a d ju s te d o n t h e b a si s t h at t h e a v er a geprice index for the same item in 1960 is 100. Therefore, indices in the tables from 1970 to 1975h a ve 1 9 60 a s t h e B a se Ye a r.

Table C.2.1

Ta b le C . 4 .1 , C . 4 . 2, C . 4 . 3


18/23

B e ca u se c o ns u mp t io n p at t e rn s c h a ng e o ve r t i me , a s e t o f i te m w e ig h ts o b ta i ne d i n a p a rt i c ul a r ( C E S ) p r o g res s i v ely b eco me o u t d at ed . T h e ch an gi n g co n s um p t i on p at t er n o f h o u s eh o l d s i sm ir ro re d in t he r e su lt s o f CE S ta ke n at r e gu la r i nt er va l s w hi c h gi ve r i se t o ne w m ar ke t s a ndco n s t it u t e i t em w ei g ht s . W it h t h e N at i o nal C o n s um er E x p end i t u r e S u r v ey ( N C E S) co n d uct ed

by FOS (now NBS) in 1974/75 which provided expenditure data from which item weights wered e ri v ed f o r u r ba n a n d r u ra l i n di c e s, t h e C P I a d op t ed 1 9 75 a s t h e r u li n g b a se y e a r. T h er e f or e ,i n d i ces f r o m 19 7 6 to 1 9 88 h av e 1 9 7 5 as b as e y ear.

H o w ever , C P I i s co n t in u al l y u p d at ed an d r eb as ed an d t h at i n f o r med t he u p d ati n g o f t he b as eperiod to 1985 with the CES of 1980/81. The CES was updated in view of the time lag betweent he p er i od o f t he s ur ve y a nd t he t i me t he d et ai l ed a na ly si s w as c om pl e te d ( 19 86 ). T he m e ane x pe n di t ur e s w e re c o ns e qu e nt l y r e va l ue d t o t ak e a c c ou n t of t h e t i m e l a g. R e l at i ve p r ic e c h an g esbetween 1980 and 1985 were employed to update the CES estimates to 1985 values. Suchr e l at i ve p r ic e c h a ng e s w e re d e r iv e d f ro m t h e 1 9 75 C P I f o r c o nc o rd a nc e i t e ms , i . e . i te m s t h at a r eco m m on t o b ot h t h e 1 9 7 5 an d 1 98 5 C P I bas k et s w h en con s i d ered s t at e b y s t at e. F o r ent i r el y new

i t e ms , a s n e w i t em s a n d c l a s si f i ca t i on w e re i n tr o du c ed , r e l a t iv e p r ic e c h an g es w e re c o mp i le d a n du t i l i zed f o r t h e u p d ati n g .

F i n al l y, t he b as k et o f th e 1 9 8 5- b as ed C P I h as b een r es t r u ctu r ed t o in d i cate co m m od i t y g r o u pss u ch as m ed i cal car e an d h eal t h ex p ens es , r ecr eat i on , en t er t ai n m ent , edu cat i on and cul t u r als e r vi c e s w h ic h w e re n o t c l a ss i f ie d w h en 19 7 5 b a se w a s u s e d. H o we v er , d a ta p r ov i de d f r om1 9 88 t o J un e 2 0 03 h a ve 1 9 85 a s b a se p e ri o d. D u e t o c h an g es i n c on s um p ti o n pa t t er n s o ve r t i me ,F O S co n du ct ed an o th er C E S b et w een M ar ch 1 9 9 6 an d A p r i l 1 9 97 , an d i t em w ei g ht s d er i vedf r om t h e s u rv e y da t a w e r e u p da t e d t o M ay, 2 0 03 , t h e p r ic e r e f er e nc e b a se d p er i od o f t he n e w C P Is e r ie s . T h e b a sk e t f o r t h e s u rv e y w a s a r e s tr u ct u re d ve r s io n o f th e f o rm e r b a sk e t, be c a us e t h ecl as s i f i cat i o n o f i n d i vi d u al co n s u mp t i o n b y p u r p os e ( C O I CO P ) w as ad o pt ed . I t co n s i st s o f

t w el v e m aj o r co m mo d i t y g r ou p s an d ei g h t y- f i v e s u b g ro u p i n d ices .

Ta b les C . 8 . 1 a n d C . 8 . 1 . 1

Ta bl e C .8 .1 sh ow s t he s a la r y r an ge i n t he f ol l ow in g s e ct or s : A gr ic ul t ur e , M an uf a ct ur i ng ,B u i l di n g an d C o n s tr u ct i on , F i n an ci al I n s t i t u t io n s an d I n s u ran ce, M i n i st r i es an d D ep ar t men t ,T r an s p o rt an d C o m mu n i cat io n , T rad i n g an d Bu s i n ess S er v i ces , M i ni n g an d Qu ar r y in g , an dO th er s : w hi le Ta bl e C .8 .1 .1 s ho ws t he s a la r y r a ng e i n t he P ub li c S ec t or ( i. e. M in is tr i es o nl y)incorporating information collected from National Salaries, Incomes and Wages Commission onh a rm o ni s e d pu b li c s e r vi c e s a l ar y s tr u ct u re , 1 97 4 -1 9 92 . Ta b le C . 8. 1 i s c o mp i le d o n t he b a s is o f a n nu a l s u r ve y s c o nd u ct e d p r im a ri l y t o g a t he r i n f o rm a t io n o n n a t io n al w a g e w h ic h i s a v i ta l i n p uti nt o t he D -m et r ic s ys t em o f c ur r en cy m a na ge me nt m o de l a do pt ed b y th e C en tr a l Ba nk o f

Nigeria. The data collected from the responding organisations are analysed on sectoral basis ino r de r t o m ea s ur e t h e v a ri a b il i t y o f t he r e m un e ra t i on i n e a c h s e c to r. C o ns i d er i ng t h e n a tu r e o f t hed a ta , t h e r a ng e w a s t h e m o st a pp r op r ia t e s t a ti s t ic , c o mp a re d w i th ot h er st a t is t i ca l m e a su r es o f s p re a d o r d is p er s i on s u c h a s t h e m e an d e v ia t i on , i n te r -p e rc e nt i l e r a n ge , t h e q u ar t il e d e vi a t io n ,etc.

SECTION D: INTERNATIONAL TRADE STATISTICS

Ta b le D . 1 .1 a n d D . 1 . 2

I n te r na t i on a l t r a de t a ke s p l ac e b e t we e n r e s id e nt s i n t h e r e po r ti n g e c o no m y a n d t h e r e s t o f t h ew o rl d . I n te r na t i on a l Tr a d e S t at i s ti c s ( I T S) t h e r ef o re m e as u re t h e q u an t it i e s a n d v al u e s o f g o od s

t h at m ov e i n t o o r ou t o f a co u n tr y. I n o t h er w o r d s, I T S r ef er t o i m p or t s an d ex po r t s u n ad ju s t ed f or


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xix

Explanatory Notes

B a la n ce o f P ay m en t s ( B OP ) . T h ey a r e c o mp i le d f ro m c us t om s B i l ls o f En t ry w h ic h a re u s ua l l yco m p let ed b y i m p o rt er s an d ex p o rt er s , i n d i cati n g t h e q u ant i t i es an d v al u es o f g o o ds i m p o rt edi n t o o r ex p or t ed o u t o f t h e co m p i ler eco n om y. I T S can al s o b e d er i v ed f r o m r eco r ds o f t r an s act i o n s i n f o r ei gn ex ch ang e w h er e cu s t o ms d at a ar e n o t av ai l abl e.

F o r a n al y ti c a l p u rp o se s , N i ge r i a' s I T S i s p r es e n te d u s in g t h e S t an d ar d I n te r na t i on a l Tr a deC l as s i fi cat i o n ( S I T C) f o r m at w h i ch h as 1 0 m ain g r ou p i n gs w i t h cod es 0 - 9 . T h es e ar e:

0. Food and Live Animal s;1. Beverages a nd Tobacco;2. Crude M aterials, Inedible;3. Mineral Fuels ;4. Animal and Veget able O ils;5. Chemi cal s;6. Manufactured Goods;

7. Mac hinery a nd Tra ns por t Equipment ;8. Mis cel laneous Manufactured goods and9. Mis cel laneous T ransactions

T he B al a nc e o f Pa ym en ts ( BO P) i s d ef i ne d as a s ys te ma t ic r e co rd o f ec on om ic a nd f in an ci alt r an s a ct i on s f o r a g i ve n p e ri o d b et w e en r e s id e nt s o f a n e c on o my a n d n on - re s i de n ts ( t he r e s t of t h e w o rl d ). T h es e t r a ns a c ti o ns i n vo l ve t h e p r ov i si o n an d r ec e i pt s o f r ea l r e so u rc e s a n d ch a ng e si n cl ai m s o n , an d l i ab i l it i es t o , t h e r es t o f t h e w o r l d. S p eci fi cal l y, it r eco r d s t r an s act i o n s i n g o o ds ,

s e r vi c e s a n d i n co m e, a s w e ll a s c h a ng e s i n o w ne r s hi p a n d o t he r h o ld i ng s o f m o ne t a ry go l d,S p eci al D r aw i ng R i g h ts ( S D R s ) an d cl ai m s o n , an d l i ab i l it i es t o , t h e r es t o f t h e w o r l d . T h e B O Pal s o r eco r d s t h e u n r equ i t ed o r u ni l at er al t r an s f er s - t h e p r o v is i o n o r r ecei p t of an eco n om i c v al u ewithout the acceptance or relinquishing of something of equal value, or quid pro quo.

G e ne r a ll y, t r a ns a c ti o ns i n vo l vi n g p a ym e nt s t o r e s id e nt s o f a n e c on o my by no n -r e s id e nt s a r ec l a ss i f ie d a s " C re d i t" e n tr i e s w h il e p a ym e nt s b y t he r e s id e nt s o f a n e co n om y t o n o n- r e si d en t s a r e" D eb i t" en t r i es . Tab l e D . 2 .1 pr es en t s t h e B O P t ab l e f r o m 1 9 7 0 u p t o 20 0 7 .

T h e m e th o d o f BO P c o mp i la t io n ha s b e en r e vi e we d f o ur t i me s b y th e I n te r n at i on a l Mo ne t a ryF u n d ( I M F ) . T h e f i f t h ed i t i on o f t h e B O P co m p il at i o n M an u al (B P M 5 ) p r o v id es an ex p and ed

co n cept u al f r am ew o r k t o en co m p as s b o t h b alan ce o f p ay men t s f l o w s ( t r an s act i o n s ) and s t o ck o f e xt e rn al f in an ci a l a s se t s a nd l ia bi l it i es o th er wi s e c a ll ed t he I nt er na t io na l I nv es tm en tPosition,(IIP).

H o we v er , t h e e d it i on s o f th e M a nu a l p r ov i de f l ex i bi l it y i n t h e s e n se t h at a lt h ou g h m o re d e ta i l sar e p r o v id ed f or i n r evi s ed ed it i o n s , t h e o v er al l p r es ent at i o ns d o n ot ch an ge s i g n i fi can t l y. T heB O P t ab l e D . 2 . 1, p r o v id es i n f o r mat i o n o n v i t al co m p on en t s o f t h e acco u nt ad o p ti n g t h e v ar i o usch an ges i n p r es en t at i on s as h i g hl i g h t ed b y t he ed i t i on o f t he m an u al i n u se.

B a s ic a l ly, t h e B O P t a bl e i s u s ua l l y d i vi d ed i n to t w o s e c t i on s , n a me l y; t h e C u rr e nt A c co u nt , a n dthe Capital and Financial Account.

BALANCE OF PAYMENTS

Table D.2.1


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Explanatory Notes

xx

The Current Account

Capital and Financial Account

T h e C u rr e nt A c co u nt i s d i vi d ed i nt o tw o m a j or s ec t i on s ; v i si b le a n d i n vi s i bl e . T h e v i si b leacco u nt con s i s t s o f ex p o r ts an d i m p o rt s w h i ch ar e t an g i bl e p h y s ical co m m od i t i es , m o v emen t o f w hi ch co ns t it ut es m er c ha nd is e t ra de . E xp or ts a re " Cr e di t " e nt r ie s a s n on -r e si de nt s a c qu ir i ngg oo ds h av e t o pa y t he e xp or ti ng c ou nt r y. I mp or t s a r e " De bi t " e nt ri e s a s t he i mp or t er h a s t o us eu p h i s s t o ck of f o r ei gn cu r r enci es t o p ay f or t h e i m p o rt ed g o o ds .

I n t h e b al an ce o f p a ym en ts t a bl e , t he v al ue o f e xp or ts a nd i m p or t s i s r e co rd ed " fr e e- on -b oa r d"( F. O . B .) t o s h o w t h e act u al co s t s o f t h e g o o ds w i t h ou t i n s u r an ce an d f r ei g ht , bo t h o f wh i ch ar et re a te d i n t h e i nv is i bl e s e ct i on o f t h e c ur r en t a c co un t. T he i nv is i bl es i nc lu de s er vi c es i nc om eacco u nt an d cu r r ent t r an sf er. T h e s er v i ces i n cl ud e t r an s p or t , f r ei g h t , t r av el s, i n s ur an ce an d o t h er business services.E n t r ies w o u ld ei t h er b e cr ed i t or d eb i t d ep end i n g o n w het h er th e ch ar ges ar e r ecei v ed o r pai d b ythe reporting economy.

T he I nv es t me nt In co me a sp ec t o f i nv is i bl e s r e fe r s t o a c cr ue d i nc om e o n e xi s ti ng f or ei gnf i n an c ia l a s s et s . T h is i n co m e m a y b e p r of i t s, i n te r e st , d i vi d en d s a n d r o ya l t ie s p a id t o d i re c ti n v es t or s . I t m ay al so b e i n t er est an d co m m it m en t char g es o n l o an s ( O t h er In v es t men t I n co m e) .

T h e " c ur r e nt Tr a ns f e rs " i s t h e f o ur t h s u b- a c co u nt un de r th e C u rr e nt A c c ou n t. I t i s a u n il a te r a lt r a ns f e r b y t h e r e p or t i ng e c on o my to th e r e s t o f t h e w o rl d w i th o ut an eq u iv a le n t v a lu e i ne x c ha n ge . I t i s u s ua l l y c l a ss i f ie d a s p r iv a te ( o th e r s e c to r ) o r o ff i c ia l g o ve r nm e nt . P r iv a tet r a ns f e rs i n cl u de h o me r e m it t a nc e s b y m i gr a nt wo r ke r s o r p r iv a te s e c to r g r an t s t o e d uc a t io n ali n s ti t ut i on s e t c . O f fi c i al t r a n s fe r s a r e b y w a y o f g r a nt s , s u b sc r i pt i on s , t e c hn i ca l a s s i s ta n ce e t c t og o ve r nm e nt s a n d ot h e r of f ic i a l ag e nc i e s. T ra n sf e r s r e c ei v ed a r e r e c or d ed a s c r e di t i t em s w h il e

o u t f l ow s ar e d eb i t s t o t h e r ep o r ti n g eco n om y.

T he s um to ta l o f t he b al a nc e s o f t he s e s ub a c co un ts n am el y: Go od s, Se rv ic e s, In co me a ndC u r r ent T r ans f er s m ak e u p t h e C u r r ent A ccou n t .

T h e c a pi t a l an d f in a nc i a l a c c ou n t r e c or d s c h a ng e s i n a c o un t ry ' s f o re i gn a s se t s a n d li a bi l i ti e s ,cap i t al m o v emen t s an d ch an ges i n in t er n at i o n al i n v es tm en t p o s i t io n . C ap i t al m ay b e l o n g o r s h o r t -t er m , an d p ri v at e o r p ub l i c ( g o ver n m ent ) . F ur t h er mo r e i n v es tm en t , as a m aj o r co m p on en to f f in an ci al acco u nt i s D i r ect i f i t cr eat es o r est ab l i s hes a p er m anen t co n t r ol l i n g i n t er est i n anen t er pr i s e. H o w ever , i n v es t men t i n l o n g t er m b o n ds an d co r p or at e eq u i t y co n s t it u t es " P o r tf o l i oInvestment".

C a pi t a l m o ve m e nt s m a y ta k e p l ac e b e tw e en a r e po r ti n g e c on o my a nd t h e r e s t o f t he w o rl d b yi n je c t io n o f n e w l o an s a n d i n ve s t me n ts i n to t h e r e po r ti n g e c on o my b y f o re i gn e r s. T h ism o ve m en t m a y t a ke t h e f o rm o f i n c r e as e s i n f o r ei g n o wn e d d e po s it s i n t h e b a nk s o f t h e d o me s t ic( r ep o rt i n g ) eco n o my. T h e l at t er m ay d eci d e t o reco v er i t s l o an s an d i n v es t men t s , as w el l as b an k d e po s i ts a b ro a d. T h es e a r e e x am p le s o f c r e di t e n tr i e s. C a pi t a l F l ow s t h ro u gh n e w l o an s , a n di n cr eas es i n d ep o si t s i n f o r ei gn b an k s b y t h e r ep o r ti n g eco n om y, co n s t it u t e " d eb it en t r i es" . T h ec a pi t a l tr a ns f e rs c o mp o ne n t of u n re q ui t t ed t r an s f er s i s i n c lu d ed i n t he c a pi t a l ac c ou n t of t h ebalance of payments.

I n g en er al, u n d er t h e d o u bl e- en t ry acco u nt i n g s y s t em , al l d eb i t an d cr ed i t en t ri es s h o u ld b e eq u al .


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xxi

Explanatory Notes

I f t hi s h ap p en s t o al l t he i t em s i n bo t h t h e cu r r ent an d cap i t al acco u nt s , it w il l be eas y t o as cer t ai nt h e n e t c h an g e i n as s e ts a n d l i a bi l it i e s o f th e r e po r ti n g e c on o my by e s t ab l is h in g t h e b a la n c e o nboth current and capital accounts. However, this equality does not always hold as either thed eb i t o r cr ed i t i s u s u al ly u n d ers t at ed . T h u s p r o vi s i o n i s m ad e i n t h e er r o r s an d o m i s s i on s

D i ff e r en c e s b e tw e e n d e bi t s a n d c r e di t s i n t h e c u rr e nt a nd t he c a pi t a l a n d f i na n ci a l a c c ou n ts a r ebalanced through the Errors and Omissions component of the BOP.

D at a f ro m b ot h si de s o f a s in gl e t ra ns ac ti on a ri se f ro m in de pe nd en t so ur ce s l ea di ng t od i s cr epan ci es . I n ad d it i o n , di f f er en t v al u es m ay b e g i v en to t h e s am e i t em at each v al u at io n p oi n ta n d t h e i t e m m a y b e c o mp l et e l y o m it t e d a t o n e o f t h e v a lu a ti o ns . A c r e di t b a la n ce o n t h e n ete rr or s a nd o mi ss io ns a cc ou nt s ho ws t ha t t he c re di t i te ms w er e u nd er es ti ma te d w hi le a d eb itbalance indicates an understatement of debit items.

T h e f o re i gn e x c h an g e a n d e x ch a ng e r a t e m a na g em e nt i n N i ge r i a h a s u n de r go n e t r a ns f o rm a ti o no v er t h e y e ar s . I t h a s m o ve d f r om o ff i c ia l l y pe g ge d e xc h an g e r a t e s y s te m b et w ee n 1 97 0 a nd1 9 85 t o a m a rk e t- d et e r mi n ed s y st e m s i nc e 1 9 86 . T h e n a ir a e x ch a ng e r a t e i s n o w d e t er m in e dt hr ou gh t he f or ei gn e xc ha ng e m ar ke t o n t he b as is o f d em an d a nd su pp ly. T he d ol la r i s t hei nt e rv en ti on c ur re nc y i n t he m ar ke t w hi l e t he e xc ha ng e r a te s o f o th er c u r re nc i es a r e b as e d onc r o ss r e f er e nc e t o t h e n a ir a - d o l la r e x c ha n ge r a t e.

T h i s t ab l e car r i es t r ad e- wei g h ted N o m i nal E f f ect i v e E x ch an g e R at e ( N E E R) in d i ces f o r N i g er ia.

The NEER f or N iger ia r epr ese nt s the value of t he Nai ra i n te rms of a we ighte d basket o f c ur r en ci e s. T he w ei gh ts r ep re s en t th e r el a ti ve i mp or t an ce o f e a ch cu rr e nc y to t he N ig er ia ne c o no m y. I n ot h er w or d s, i t r e pr e s en t s t h e s h a re o f ea c h o f th e s e l ec t e d c o un t ri e s i n Ni g e ri a ' st ot a l t r ad e. T he r ef or e , t he N EE R i nd ex me a su re s t he a ve r ag e c ha ng e o f th e N ai r a' s e xc ha ng er at e ag ai n s t al l o t h er cu r r en ci es .

I n c o ns t r uc t i ng t h e N E ER i n de x , t he g e om e tr i c a p pr o ac h w a s a d op t ed , w hi l e 1 0 m a jo r t r ad i ngpartners which control about 76.0 per cent of Nigeria's trade with the rest of the world weres e l ec t e d. T h es e a r e : B e l gi u m, F r a nc e , I t a ly, J a pa n , T h e N e th e rl a n ds , S p ai n , S w it z e rl a nd ,Germany, United Kingdom and the United States of America.

T h e t a bl e s i n t h is s e c ti o n p re s e nt d a t a o n t h e i n fl o w a n d o ut f l ow o f n o n- o il f o r e ig n i n ve s t me n t i nNigeria on current and cumulative basis. The data is compiled from responses obtained from theco l l abo r at i v e C B N / NB S / N CC an n u al s u r v ey o f N i g er i an co mp an i es w i t h i mp o r t ed cap i t al asw el l as s t af f es ti m at es .

T he t a bl e s a r e c om pi le d o n t he b as i s o f c ou nt r ie s o f o ri gi n o f f or ei gn c a pi t al an d t he t yp e o f business activity engaged in. The former is broken down into four regions, namely, UnitedK i n g do m , Un i t ed St at es , Wes t er n Eu r o pe ( ex cl u di n g U K) an d ' O t h er' u n s peci f i ed co u n tr i es ,

w h il e t h e c o mp o ne n t s o f t he l a t te r a r e M i ni n g a n d Qu a rr y in g ; Ma n uf a c tu r i ng a n d Pr o ce s s in g ;

Errors and Omissions

Tables D.3.1 and D.3.2

Table D.3.5

Section D.5

Non-Oil Foreign Private Capital


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Explanatory Notes

xxii

Tr a di n g a nd B u s in e ss S e rv i ce s ; A g ri c ul t ur e , F or e s tr y a n d Fi s hi n g a nd B u i ld i ng a n dConstruction.

T h e m o st i m po r ta n t e n d- p ro d uc t o f t h e a n a ly s is i s t h e N e t C a pi t a l f l ow. T h is g i ve s a p i ct u re o f

t h e n et i n f l o w o r o u t f l ow o f f o r ei gn cap i t al d u r i ng a g i v en p er i o d. I t i s co m p os ed o f t h e f o l l o wi n gitems.

(a) Unr emitt ed Prof its

T hi s i s t he f or ei gn i nv es t or 's s ha re o f t he u nd is t ri bu te d p ro fi t s p lo ug he d b ac k i nt o t hebusiness as additional investment.

(b) Cha nges in For eign Shar e C apit al

T hi s i s t he y ea r ly d if fe r en ce i n t he e qu it y h ol di ng s o f t he f or e ig n s ha r eh ol de r s i n d ir e ctinvestment enterprises.

(c) Trade and Supplier s' Credit

T hi s i s a m ea su re o f cr ed it f ac il it ie s a nd d ef er re d pa ym en ts f or g oo ds a nd s er vi ce spurchased from abroad. However, suppliers' credit is more of a pre-arranged proceduret h ro u gh w hi c h i m po r te r s c a n g e t s h ip m en t of g oo d s f i na n ce d by t he s u pp l ie r s w i thpayment deferred to an agreed date in the future.

(d) Liabili ties to Head Office

T h i s i s t h e am o u nt o f cap it al t r an sf er r ed bet w een th e p ar en t co m p any ( H ead O f f i ce) an di t s o ve r s ea s a f fi l i at e d u ri n g a p e ri o d.

(e) Other Foreign Liabil ities

T hi s i nv ol ve s t he f i na nc i al c om mi t me nt s o f a d ir ec t in ve st me nt e nt er pr i se t o f or ei gns ou rc es o f c a pi t al o th er t ha n p ar en t/ a ff i li a te s ou rc es . T hi s o ft e n t a ke s t he f or m o f e x te r na l b or r ow i ng s ( f r om f o re i gn b a nk s ), m o rt g a ge s p a ya b l e, t a x t o h om e c o un t ry i nrespect of capital exportation etc.

F ix ed a ss et s a r e c la s si f ie d in to f iv e c om po ne nt s , v iz R ea l Es t at e ( fr e eh ol d a nd l ea se ho ld ),M ach i ner y an d E q u i pm en t , Fu r n i t ur e an d F i x t ur es , M o to r Veh i cl es an d O th er as s et s. T h ey areas s et s h el d f or u s e i n b u si n es s r at h er t han f o r r e-s al e.

T h i s i s t h e v al u e o f f ix ed as s et s b as ed o n th ei r acq u i si t i o n p r i ce.

T h is i s f i xe d a s s e t s a t c o s t l e s s c u mu l at i ve d e pr e c ia t i on .

P ai d - up cap i t al p l u s r es er v es as u s ed i n t ab l e D . 5 . 3 an d D . 5 . 4. r ep r es en ts t h e s u m o f u n r em it t ed

profits (reserves) and the changes in foreign share capital (simply referred to as changes in paid

Fixed Assets

Fixed Assets at Cost

Fixed Assets at Book Value

Paid-Up Capital plus Reserves


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