Currency-in-circulation at N1, 978.88 billion, fell by 0.8per cent in the month of February, compared with 8.5 per cent decline at the end of January 2017.
This was according to the data released by the Central Bank of Nigeria yesterday. The development was as a result of the decline in its currency and demand deposit components. Total deposits at the CBN amounted to N11, 541.19billion, indicating a decline of 6.2per cent below the level at the end of the preceding month.
The development could be explained by the decline in private sector and banks ‘deposits. Of the total deposits at CBN, the shares of the Federal Government, banks and the private sector were 48.8, 30.9 and 20.4 per cent, respectively.
Reserve money, on month-on-month basis, fell by 1.6 per cent to N5, 542.22billion at end-February 2017, reflecting the 11.0percent decline in net foreign assets of the CBN. The corresponding fall in CBN’s liabilities resulted from the respective decline of 0.8 per cent and 2.1 per cent in currency-in-circulation and bank reserves.
Analysis of the data also showed that there was a rise in oil receipts, which pushed up Federally-collected revenue (gross) in February 2017 by 20.4 per cent to N545.05 billion. Although the apex bank attributed the increase relative to the preceding month level to the rise in receipts from both oil and non-oil components, it stated that the increase reflected the significant rise in receipts from domestic crude oil/gas sales and PPT/Royalties.
The report, however, noted that the N545.05 billion fell short of the 2017 provisional monthly budget estimate of N792.71 billion by 31.2per cent. “Gross oil receipts, at N292.82 billion or 53.7per cent of total revenue also fell below the provisional monthly budget which was estimated by 0.6, but was 37.9 per cent higher than the receipts last January.
At N252.24billion or 46.3per cent of the total revenue, gross non-oil revenue was below the 2017 provisional monthly budget estimate of N498.14 billion by 49.4 per cent. It, however, exceeded the receipts in January 2017 by 4.9 per cent,” the report said. The banking watchdog stated that the poor performance relative to the provisional budget: “reflected the shortfall in most of the components due to the low economic activities in the country during the review period.”
It added that the estimated Federal Government retained revenue for the month of February 2017, at N194.38 billion, was below the 2017 provisional monthly budget estimate of N337.48 billion and the receipts in January 2017 by 42.4per cent and 5.9per cent, respectively. Of the total receipt, Federation Account accounted for 68.5per cent, while Exchange Gain, FGN Independent Revenue, Value Added Tax (VAT), Excess Crude, and NNPC refund accounted for 11.6, 6.5, 5.4, 4.7, and 3.3per cent, respectively.
