2022 Annual Report

Central Bank of Nigeria
2022
Annual
Economic
Report
Contact:
Corporate Head Office
33, Tafawa Balewa Way
Central Business District
P.M.B. 0187
Garki, Abuja
Website: www.cbn.gov.ng
Tel: +234 (0) 700 225 5226
©2022 Central Bank of Nigeria

ISSN 1597-2976
Central Bank of Nigeria 2022 Annual Economic Report

Contents
Statement by the Governor i
Executive Summary
1
Part 1: Activities of the Bank 5
1.0 Leadership 6
1.1 CBN Vision, Mission and Strategy 6
1.2 Governance Structure 8
1.3 Governors’ Profiles 9
1.4 Non-Executive Directors’ Profiles 12
1.5 Principal Organs and Officers of the Bank 14
2.0 Mandate Operations 17
2.1 Monetary Policy 17
2.2 Currency Management 20
2.3 Foreign Exchange Management 22
2.4 Surveillance of Financial Institutions 26
2.5 Banking and Payments System 41
2.6 Developmental Functions 46
3.0 Corporate Activities 50
3.1 Administration 50
3.2 Communication and Community Engagements 61
3.3 Research and Collaborative Activities 63
Part 2: Economic Report 67
4.0 The Global Economy 68
5.0 Developments in the Real Economy 75
6.0 Fiscal Policy and Developments 92
7.0 Financial Sector Policy and Developments 106
8.0 External Sector Developments 123
9.0 International Economic Relations 141

STATEMENT BY THE GOV ERNOR
The Global output growth remained subdued in 2022, due to the headwinds that arose from the Russia-
Ukraine war, China’s zero-COVID policy, and distortions in energy and food prices, as well as the monetary
policy tightening by the advanced and emerging economies central banks. These factors collectively resulted
in energy price shocks, historically high inflation rates across several economies, and dwindling investments
in the emerging market economies.
The impact of China’s zero-COVID policy persisted, as frequent lockdowns in the major industrial cities,
continued to disrupt the global supply chain. The resultant macroeconomic uncertainties and the associated
spill overs remained high, thus increasing the risk of a global recession. In addition, capital flow reversal
from the perceived higher risk emerging market securities to the US dollar-denominated securities, with
improved yields, hindered global recovery to the pre-COVID-19 pandemic levels, particularly in the fragile
economies. Consequently, the earlier projections by the International Monetary Fund (IMF) for 2022 global
output growth was downgraded from 4.4 per cent to 3.2 per cent.
The Nigerian economy, however, showed relative resilience to global developments during the year,
especially when compared with its peers. The domestic output growth remained in the positive region, owing
to the optimal blend of fiscal and monetary policies. Data from the National Bureau of Statistics (NBS)
indicated that the Real Gross Domestic Product (GDP) grew by 3.1 per cent (year-on-year) in 2022, compared
with 3.4 per cent in 2021. The economy thus sustained the positive growth trajectories for eight consecutive
quarters, after exiting recession in 2020. Nigeria’s growth performance was driven, largely, by the growth
in the non-oil sector, particularly in the services and agricultural sub-sectors.
Headline inflation (year-on-year) increased to 21.34 per cent in December 2022, from 15.63 per cent in
December 2021, reflecting increases in both the food and core components of inflation. The persisting
upward trend in energy prices coupled with the prolonged period of scarcity of Premium Motor Spirit (PMS),
contributed to a sharp rise in transportation, logistics, and manufacturing costs, which fed through to
consumer prices. Other contributory factors included the lingering insecurity across the country; flooding in
the major food producing areas of the country; and the global supply chain disruptions arising from the
Russia-Ukraine war; among others.
The Central Bank of Nigeria (CBN) continued to collaborate with the fiscal authority to support and drive
the economy through the implementation of people-oriented growth policies, and strategic intervention
programmes. The Bank introduced the RT200 Programme in February 2022, to boost the capacity of
Nigeria’s economy for improved non-oil exports earnings. The overriding goal of the programme is to
mobilise USD$200 billion in foreign exchange repatriation, exclusively from non-oil exports, over the next 3
- 5 years. The attainment of this goal would, no doubt, improve export earnings as well as engender CBN’s
ability to achieve its mandate of maintaining price stability. In addition, the Bank continued to disburse funds
under the 100 for 100 Policy on Production and Productivity (PPP) programme to transform and catalyse
i
the productive base of the economy, with the aim of reversing the nation’s heavy reliance on imports. The
initiative is designed to create access to finance by households and enterprises with the potential to kick-
start a sustainable economic growth trajectory, accelerate structural transformation, promote
diversification, and improve productivity. The Bank disbursed the sum of N20.78 billion to nine (9) projects
in healthcare, manufacturing, and services. This brought the cumulative disbursements under the facility to
N114.17 billion in 71 projects across critical sectors of the economy at the end of 2022.
To enhance liquidity and ensure exchange rate stability, the Bank implemented various policies to curb the
demand pressures at the foreign exchange market, while sustaining its interventions in the market.
Consequently, the Naira maintained relative stability, closing at N450.71 per US$ at end-December 2022.
However, external reserves dropped by 9.1 per cent to US$36.55 billion at end-December 2022, from
US$40.23 billion at end-December 2021. The decline in external reserves position is attributed, largely, to
crude oil theft, thereby reducing foreign exchange earnings and accretion to reserves. Nevertheless, the
external reserves position covered more than 7 months of import of goods only, or 5.7 months of import of
goods and services, as against the international benchmark of 3 months of imports.
The banking industry remained sound and resilient, on the back of the effective supervisory framework and
the deployment of appropriate policy tools. Thus, the Non-Performing Loans ratio, which stood at 4.2 per
cent, at end-December 2022, remained within the regulatory threshold, but was lower than the 4.80 per
cent, at end-December 2021. This was despite the Bank’s aggressive credit expansion policies. Similarly, the
capital adequacy ratio of the banking industry stood at 13.8 per cent, at end-December 2022, higher than
the regulatory minimum, for banks with national authorization, as prescribed by the Prudential Guidelines
for Licensed Banks.
Given the growing pace of digitization, it is important that the Bank leverages digital channels to build a
robust payment system that will provide cheap, efficient, and faster means of transactions in Nigerian. Since
the launch of the e-Naira in October 2021, 33 banks have been fully integrated on the platform. About 2.2
million customers have been on-boarded with over 18,240 merchants successfully registered on the
platform across the country. As a result, over 939,000 transactions, amounting to about ₦12.40 billion, have
been recorded on the platform as at end-December 2022.
The positive economic indices highlighted above, were the result of the proactive and robust monetary and
exchange rate policies, and the development finance initiatives of the Bank designed to improve the
standard of living of the citizenry. Thus, during the year, the Bank sustained all its policies aimed at
addressing declining food security and facilitate economic development, and introduced new ones to
moderate the effects of the Russia-Ukraine war and China’s zero-COVID policy on the domestic economy.
The overall medium-term outlook for both the global and domestic economies in 2023 remain clouded by
uncertainties associated with the prolonged Russia-Ukraine war, lingering COVID-19 pandemic, and
continued lockdown of major industrial cities in China. The persistent tightening of global financial
conditions and slowing global trade are also significant pointers to a weakening global economy. However,
available data on Nigeria’s key macroeconomic indicators suggest possible rebound in output growth for
ii
2023, which may occur at a much-slower pace than earlier anticipated, in the light of unfolding domestic
and external shocks to the economy.
The domestic shocks may originate from the persisting insecurity inhibiting economic agents; rising cost of
debt and debt servicing; deteriorating fiscal balances; increased spending as the 2023 general elections
approach; and continued uptrend in inflationary pressure. Consequently, efforts toward curbing the
increasing instances of oil theft, stemming the lingering insecurity across the country, mitigating the impact
of the perennial flooding in major food producing states, addressing infrastructural deficit in the country,
and boosting the productive base of Nigeria’s non-oil sector must be intensified. These efforts would
strengthen the domestic economic base, fast-track the attainment of economic diversification, limit the
reliance on foreign products, and insulate the economy against foreign shocks.
I want to use this medium to commend the Board, Management, and staff of the Bank for their support,
ingenuity, and diligent service during the year. The various successes recorded by the Bank could not have
been attained without their cooperation and dedication to duty. I also wish to appreciate President
Mohammadu Buhari and the National Assembly for the re-appointment and confirmation of Mrs. Aishah
Ahmad and Mr. Edward Lametek Adamu as Deputy Governors of the CBN. I thank the Presidency, the
distinguished leadership of the National Assembly, Honourable Ministers of the Federal Republic, Nigeria’s
development partners, the organised private sector, and other stakeholders, for their support and
cooperation through the year 2022. We look forward to 2023 with optimism for a more prosperous
economy.
Godwin I. Emefiele, CON
Central Bank of Nigeria.
iii
EXECUTIVE SUMMARY
This Report reviews developments in the global more inclusive financial system and enhance the
effectiveness of monetary policy transmission.
and domestic macroeconomic environment,
The milestones achieved included: the integration
policy responses, and operational activities of the
of all banks and a substantial number of Payment
Central Bank of Nigeria (CBN) in 2022. The first
Service Providers (PSPs) with the eNaira platform;
part of the report focuses on the activities and
activation of one million wallets (including
operations of the Bank, while the second part
merchant wallets for major outlets); and,
evaluates the performance of both the global and
attainment of over 875,000 transactions,
domestic economies.
amounting to ₦11.83 billion, recorded on the
Part 1 – Activities and Operations of the Bank platform. The eNaira USSD Code (*997#) was also
launched to engender financial inclusion and avail
The Monetary Policy Committee Nigerians, opportunities to endless possibilities
through financial services.
The Bank’s monetary policy stance, in 2022,
focused on reining-in inflation, while supporting The Bank sustained its intervention in the foreign
economic growth. Accordingly, the Monetary exchange market to boost liquidity and ensure
Policy Committee (MPC) raised the Monetary exchange rate stability. In addition, the Race to
Policy Rates (MPR) four times by a cumulative 500 US$200 billion (RT200) programme, among
basis points to 16.50 per cent, while the others, was introduced to further diversify the
asymmetric corridor was retained at +100/-700 sources of foreign exchange inflow and increase
basis points around the MPR, for the Standing the contribution of non-oil export to external
Lending Facility (SLF) and Standing Deposit reserves.
Facility (SDF), respectively. The Cash Reserve
Ratio (CRR) was also raised by 500 basis points to As part of the Bank’s regulatory and supervisory
32.5 per cent, while the liquidity ratio was oversight of the institutions under its purview, the
retained at 30.0 per cent. parallel run of Basel II with Basel III
implementation, which commenced in November
Mandate Operations 2021, progressed to the next phase in 2022. The
Pursuant to its mandate as issuer of legal tender current phase involved: the review of feedback
currency, the Bank embarked on a currency received from banks to update the relevant CBN
Basel III Guidelines; and the review and
redesign exercise of the ₦200, ₦500, and ₦1000
banknotes. The policy was aimed at addressing adjustment of five Basel III CBN Reporting
the hoarding of banknotes, the shortage of clean Templates for full implementation of the
banknotes in circulation, and the risk of standards in Nigeria.
counterfeiting, as well as enhance monetary In 2022, the Bank issued regulatory documents
policy transmission. for compliance to strengthen the Anti-Money
The Bank sustained its effort to deepen the Laundering Countering Terrorist Financing and
adoption of the eNaira in order to promote a Countering Proliferation Financing of weapons of
1
mass destruction (AML/CFT/CPF). This was also productive export-focused economy; and a
in line with the Mutual Evaluation Report (MER) deeper & broader financial system.
issued by the Inter-Governmental Action Group
against Money Laundering in West Africa (GIABA) The Bank continued to strengthen its legal and
in 2020. regulatory framework to improve the overall
effectiveness of the financial system in line with
To further improve the payments system its mandate. To this end, several agreements,
landscape, the Bank issued new regulations and guidelines, and Memoranda of Understanding
guidelines to ensure greater security and (MoUs), were drafted and reviewed. Relevant bills
efficiency of the payments infrastructure and from the National Assembly were also reviewed.
promote interoperability. As part of efforts to
implement the Payments System Vision 2025 Part 2 - Macroeconomic Developments
(PSV2025) Strategy, the Regulatory Sandbox The Global Economy
Steering and Technical committees were set up to
provide effective governance for the initiative. Global growth slowed in 2022, induced by the
Russia-Ukraine war, China’s Zero-COVID policy,
The Bank sustained its intervention programmes and the hike in policy rates to curtail inflation. The
aimed at stimulating the economy through IMF projected the global economy to grow at a
affordable and accessible credit to priority slower pace of 3.4 per cent in 2022, down from
sectors. The year also witnessed increased efforts 6.2 per cent in 2021. Growth in the advanced
at credit recovery, following the expiration of the economies (AEs) slowed to 2.7 per cent, from 5.4
extended moratorium, which commenced in per cent in 2021. Similarly, economic activities in
2020, as part of measures to cushion the impact the Emerging Market and Developing Economies
of the COVID-19-related restrictions on economic (EMDEs), decelerated to 3.9 per cent, from 6.7 per
activity. cent in 2021.
Corporate Activities Inflation across the globe soared in 2022, owing
The Bank executed its strategic initiatives by to a combination of supply and demand factors.
leveraging information technology in the pursuit In the AEs, inflation rose to 7.2 per cent, from 3.1
of its mandate. The Bank intervened in the per cent in 2021. Also, in the EMDEs, inflation
education and health sectors of the economy in followed a similar trend, rising to 9.9 per cent,
line with its corporate social responsibility. from 5.9 per cent in 2021.
The CBN strategy 2021 – 2024 was unveiled in In response to price developments, monetary
February 2022. The Strategy focuses on policy tightening ensued throughout the year, as
strengthening and increasing the impact of the central banks in the AEs and EMDEs hiked policy
Bank's policies to promote economic growth and rates to rein-in inflationary pressures, resulting to
tight global financial conditions.
development. The strategy was aimed at closing
five key value gaps to achieve: low inflation; Complementarily, fiscal support waned in 2022,
stable exchange rate; low cost of borrowing; a as focus shifted to containing inflationary
2
pressure, particularly in countries with limited US$75.52 billion in 2022, compared with
fiscal space. US$70.30 billion in 2021, owing to the higher
incurrence of financial liabilities and depletion in
Global headwinds also influenced developments external reserves. The annual average exchange
in the commodity markets, as the average price rate of the Naira per US dollar at the Investors’ &
of the OPEC basket of 13 crude streams, rose by Exporters’ (I&E) window was ₦425.98 up from
43.4 per cent to US$69.81per barrel (pb) on the
₦408.96 in 2021.
back of increased demand, geopolitical tensions
in Europe, and supply disruptions emanating from Fiscal policy in 2022 was influenced, largely, by
the Russia-Ukraine war. Similarly, the average the lingering effects of the COVID-19 pandemic
spot price of Nigeria’s reference crude, the Bonny and the impact of the Russia-Ukraine war on
Light (34.9o API), rose by 47.5 per cent to international trade. The development impeded
US$104.62 pb in 2022, from the preceding year’s the achievement of revenue targets for the year,
average of US$70.91 pb. necessitating budget supplementation and
additional borrowings, to finance budgeted
The Domestic Economy expenditure. At ₦12,824.97 billion (6.2 per cent of
Despite developments in the global commodity GDP), provisional federally collected revenue
markets, the external sector weakened in 2022, (gross)1 improved by 19.2 per cent, relative to the
owing to the global supply chain disruptions receipts in 2021. However, it fell short of the 2022
occasioned by the Russia-Ukraine war. budget target by 30.3 per cent on account of
Accordingly, an overall balance of payments lower crude oil sales and exports. The fiscal
deficit of 0.7 per cent of GDP was recorded, operations of the general government resulted in
against a surplus of 0.1 per cent of GDP in 2021. an overall deficit of 5.1 per cent of GDP. Similarly,
The current and capital account, on the other the provisional overall deficit of the FGN was 4.4
hand, recorded a lower surplus of 0.2 per cent of per cent of GDP, compared with 4.0 per cent of
GDP, compared with 0.4 per cent of GDP in 2021, GDP in 2021. The consolidated public debt stock
due to a trade surplus and higher inflow of at end-December 2022, stood at ₦46,250.37
remittances. The financial account recorded a billion or 23.2 per cent of GDP, an increase of 16.9
lower net incurrence of financial liabilities, per cent over the level at end-December 2021.
equivalent to 1.4 per cent of GDP in 2022, relative The rise was attributed to the financing of FGN
to 1.5 per cent of GDP in 2021. legacy debt and new borrowings by both the
Federal and sub-national governments to part-
The stock of external reserves at end-December finance the deficit in the 2022 Appropriation Act
2022 was US$36.61 billion and could finance 7.5 and execute new projects.
months of imports for goods only, or 5.7 months
of import of goods and services. The International The Bank adopted a hawkish policy stance for
Investment Position (IIP) showed a higher net most parts of the year, to manage banking system
borrowing position with a financial liability of liquidity and rein-in inflationary pressure.
Nonetheless, sustained credit to support
1Earnings
lodged in the Federation Account by virtue of Section 161 of the
1999 Constitution of the Federal Republic of Nigeria, as amended.
3
businesses and households contributed to a
growth in broad money supply (M3) above the
target for 2022. Consequently, broad money
supply (M3) increased by 17.3 per cent at end-
December 2022, above the 14.2 per cent growth
at end-December 2021, owing to the growth in
net domestic assets.
The financial sector remained stable, as key

financial soundness indicators were within the
regulatory thresholds, despite the uncertainties in
the global and domestic economic environments.
The industry-level capital adequacy and liquidity
ratios exceeded the regulatory minimum. The
non-performing loan (NPL) ratio improved
marginally below its regulatory threshold.
Despite the significant headwinds, real GDP grew,

albeit at a softer pace, by 3.1 per cent, compared
with 3.4 per cent in 2021. The growth was driven
by broad-based expansion in the non-oil sector,
especially in services and agriculture. Headline
inflation (year-on-year) surged to 21.34 per cent
at end-December 2022 above 15.63 per cent at
end-December 2021, owing to the high energy
and food prices occasioned by the supply chain
disruptions.
4
PART 1:
Activities of the Bank
“The current economic and structural challenges demand a shared and urgent
focus by all stakeholders from the Government, the private sector, and the citizens.
On its part, the Bank is committed to be part of solving the fundamental economic
problems confronting the nation”
- Godwin I. Emefiele, CON
5
LEADERSHIP
CBN Strategy
Mission Core Values
“To ENSURE monetary, price, and
financial system stability as a
catalyst for inclusive growth and Integrity
CBN: 2021-2024
sustainable economic development”
Partnership
Vision Accountability
“To be a people-focused Central Courage
Bank promoting confidence in the
economy and enabling an
improved standard of living”
Tenacity
Price
stability
Empowered Integrity and

for impact soundness
Strategy Architecture Strategic

Operational Themes Future-
forward &
excellence
inclusive
Resilience
Catalyst for
against
productivity
shocks
6
Governor’s Strategic Focus (2019-2024)
“The Strategic focus of the Central Bank

of Nigeria, over the next five years is,
driven primarily by the need to support
continued growth and development of the
Nigerian economy”

Governor, Central Bank of Nigeria
Strategy
7
GOVERNANCE STRUCTURE
8
GOVERNORS’ PROFILES

Governor and Chairman, Board of Directors
Since 3 June 2014.
Prior to his appointment as the Governor of the Central Bank of

Nigeria in June 2014, Godwin I. Emefiele (CON) was the Chief
Executive Officer and Group Managing Director of Zenith Bank PLC.
With over 35 years of experience in the banking sector, he helped to
grow Zenith Bank in his executive capacities at various times,
superintending corporate banking, treasury, financial control, and
strategic planning. Before his banking career, he held teaching
appointments, first, at the University of Nigeria, Nsukka and then, the
University of Port Harcourt, where he taught finance and insurance,
respectively. He is also an alumnus of Executive Education at Stanford
University, Harvard University and Wharton Graduate Schools of
Business. Emefiele holds B.Sc. and MBA degrees in Banking and
Finance, and an Honourary Doctorate degree in Business
Administration from the University of Nigeria, Nsukka.
9
Aishah N. Ahmad (Mrs.), CFA, CAIA
Deputy Governor, Financial System Stability Board
Member
Since 23 March 2018.
Aishah Ahmad is a seasoned financial policy expert with
experience spanning over twenty years. She is an
Honorary Fellow of the Chartered Institute of Bankers of
Nigeria (CIBN) and holds the Chartered Financial Analyst
(CFA) and Chartered Alternative Investment Analyst
(CAIA) designations. She has held many leadership
positions across private wealth, investment
management, and banking in major financial
institutions, including Executive Director at the then
Diamond Bank PLC. She obtained a bachelor’s degree in
Accounting from the University of Abuja, MBA (Finance)
from the University of Lagos, and MSc. in Finance and
Management from Cranfield University, UK. She is also
an alumnus of Executive Education at Harvard Kennedy
School.
Edward L. Adamu
Deputy Governor, Corporate Services
Board Member
Since 23 March 2018.
Mr. Edward Adamu is a strategy and knowledge
management specialist with over 35 years of
professional experience. Prior to his appointment as
Deputy Governor, he was Director, Strategy
Management and Director of the Human Resources
Departments, at the Central Bank of Nigeria, having
risen through the ranks. He holds a B.Sc. degree in
Quantity Surveying from the Ahmadu Bello University,
Zaria and has received several certifications from
world-class institutions, including the Executive
Certificate in Economic Development from the
Harvard Kennedy School. Mr. Adamu is a fellow of the
Nigerian Institute of Quantity Surveyors and the
Institute of Credit Administration.
10
Folashodun A. Shonubi
Deputy Governor, Operations
Board Member
Since 17 October 2018.
Mr. Shonubi is a seasoned information technology-

driven banker with over 30 years professional experience.
Prior to his appointment, he held several positions,
including the Managing Director NIBSS PLC, and Executive
Director, Information Technology and Operations at
Union Bank of Nigeria PLC. He has worked in several
financial institutions in executive IT and Treasury roles;
He was a Director, Information Technology and
Corporate Services in Renaissance Securities Nigeria
limited with responsibility for the Group’s IT
infrastructure in Africa and was Executive Director in
Ecobank Nigeria Limited. He holds two Masters Degrees,
in Business Administration and Mechanical Engineering,
from the University of Lagos.
Kingsley I. Obiora, Ph.D

Deputy Governor, Economic Policy
Board Member
Since 2 March 2020.
Dr. Obiora is an economist with vast working experience in
regional and international institutions, including the West
African Monetary Institute (WAMI), Accra, Ghana and the
International Monetary Fund (IMF), Washington DC, USA.
Before his appointment as a Deputy Governor in the CBN,
he was on the Board of the IMF as an Alternate Executive
Director, representing the interests of 23 African Countries,
including Nigeria. Earlier in his career, he was a Special
Assistant to the President’s Chief Economic Adviser, a
Technical Adviser to the National Economic Management
Team, and the Special Adviser on Economic Matters to the
CBN Governor. Dr. Obiora holds a B.Sc. in Economics and
Statistics from the University of Benin and Masters and
Doctorate degrees in Economics from the University of
Ibadan.
11
NON-EXECUTIVE DIRECT ORS’ PROFILES
Prof. Justitia O. Nnabuko Prof. Michael I. Obadan

Non-Executive Director Non-Executive
Board Member Director
Since 7 July 2018. Board Member
Since 7 July 2018.
Professor Justitia Nnabuko
is an academic with a wealth Professor Michael Obadan
of experience having served brings to the CBN Board a
in various capacities at the University of Nigeria (UNN) since wealth of knowledge and broad experience acquired from
1983. She holds a B.Sc. in Business Education from UNN, a numerous capacities, both locally and internationally. He is
PhD from the same University and became a Professor of currently a Professor of Economics at the University of
Marketing in 2010. Prior to her appointment as a member of Benin, Edo State. In the course of his career, he held various
the CBN Board, she was the Dean of the Faculty of Business senior management position; including Director-General,
Administration at UNN. Prof. Nnabuko is a Fellow of the National Centre for Economic Management and
National Institute of Marketing of Nigeria, member of the Administration, Dean of the Faculty of Social Sciences,
Academy of Management, Nigeria, Nigerian Institute for University of Ibadan, Research Director/Adviser of New
Public Relations, Institute of Management Consultancy and Nigeria Bank Limited, and Chairman, Economic Policy
National Association of Women of Academics. Analysis and Management Network, Harare, Zimbabwe.
Professor Obadan obtained his B.Sc. and PhD degrees in
Economics from the University of Ibadan and is a fellow of
the Nigerian Economic Society (NES) and member of many
professional bodies. He is widely published and has received
numerous awards.
Adeola S. Adetunji
Non-Executive Prof. Ummu A. Jalingo
Director Non-Executive Director
Board Member Board Member
Since 7 July 2018. Since 7 July 2018.
Professor Ummu Ahmed

Mr. Adeola Adetunji holds Jalingo began her professional career in 1997 as a Lecturer
a B.Sc. degree in Economics from the University of Ife, MBA in Bayero University, Kano (BUK), where she rose to the
from the University of Pittsburgh, USA. He joined the CBN position of Professor in 2010. She was the Head of the
Board with vast boardroom and senior management Economics Department, BUK from 2009 to 2013, and is
currently the Director of the Centre for Social and Economic
experience. At various times, before his appointment, he
Research (CSER) in the Federal University, Dutse. She holds
served as the MD/CEO of Coca-Cola Nigeria Limited, MD a B.Sc. degree in Economics from BUK and a PhD in
Waveside Limited, MD Coca-Cola Sabco North & East Africa, Economics from the Usman Danfodio University, Sokoto.
among others. Mr. Adetunji is a member of the Global She is a member of many professional bodies and a recipient
Advisory Council, University of Pittsburgh, USA; Young of many awards in recognition of her contributions to
Presidents Organisation; and a Non-Executive Director at National Development.
AIH Properties, South Africa.
12
Ahmed Idris Aliyu Ahmed
Accountant Board Member
General of the
Permanent
Federation
Board Member Secretary, Federal
Since 7 July 2018. Ministry of Finance
Since 25 September
2020.
Mr. Ahmed Idris is a Non-Executive Director of the CBN

Mr. Aliyu Ahmed is a Non-Executive Director of the CBN
Board in his capacity as the Accountant-General of the
Federation. He holds B.Sc in Accountancy and a M.Sc. in Board in his capacity as the Permanent Secretary, Ministry
International Affairs and Diplomacy from the Ahmadu Bello of Finance. He holds a B.Sc. in Quantity Surveying from
University, Zaria, as well as an MBA from Bayero University, Ahmadu Bello University, Zaria, Nigeria and a M.Sc. in
Kano. He is a vastly experienced accountant, who began his Financial Economics from the University of Strathclyde,
career with the organised private sector before joining the Glasgow, United Kingdom, as well as an MBA in Finance from
Federal Public Service in 2000. Before his appointment as
the University of Lagos. Mr. Aliyu served as a Lecturer in the
the Accountant-General of the Federation Mr. Idris’ public
service experience spans various MDAs; including the Department of Economics and Management Studies
Petroleum (Special) Trust Fund, National Poverty Eradication Usmanu Danfodiyo University, Sokoto, Nigeria from 1989-
Programme, Ministry of Police Affairs, Federal Ministry of 1993 prior to his long and distinguished career in the Federal
Interior, the Nigeria Security and Civil Defense Corps, and Civil Service, which culminated in his appointment as Federal
Ministry of Mines and Steel Development. Mr. Idris is a Permanent Secretary on December 18, 2019. Mr. Aliyu also
fellow and member of many professional bodies. served on the Technical Sub-committee of the Nigeria’s
Economic Management Team from 2006-2009. Currently,
Aliyu serves on the Boards of Directors of the following
Institutions: Africa Export Import Bank, Cairo, Egypt; OPEC
Dr. Abdu Abubakar Fund for International Development (OFID) Vienna, Austria;
Non-Executive Nigeria National Petroleum Corporation (NNPC); and Asset
Director Management Corporation of Nigeria (AMCON).
Board Member
Since 4 April
2019.
Dr. Abdu Abubakar holds a First Class honours B.Sc. degree

in Quantity Surveying from the Ahmadu Bello University,
Zaria. He has over thirty years of combined experience in his
academic and non-academic careers. Dr. Abdu is an expert
in Construction Economics and Management and has served
in various capacities, including Executive Director in charge
of Banking Operations and Services at First Bank PLC. He also
held senior positions in ATM Consortium Limited,
Interswitch Limited, First Pension Custodian Nigeria Limited
and Rainbow Town Development Limited. He was also a
Special Assistant to the Honourable Minister of State for
Education and Special Adviser to the Governor of the Central
Bank of Nigeria on Private Sector and Parastatals .
13
Principal Organs and Officers of the Bank
(as of 31 December 2022)
Members of the Board of Directors of the Bank
1 Godwin I. Emefiele, CON - Governor (Chairman)
2 Aishah N. Ahmad - Deputy Governor (Financial System Stability)
3 Edward L. Adamu - Deputy Governor (Corporate Services)
4 Folashodun A. Shonubi - Deputy Governor (Operations)
5 Kingsley I. Obiora - Deputy Governor (Economic Policy)
6 Adeola S. Adetunji - Non-Executive Director
7 Ahmed Idris* - Non-Executive Director
8 Aliyu Ahmed - Non-Executive Director
9 Ummu A. Jalingo - Non-Executive Director
10 Justitia O. Nnabuko - Non-Executive Director
11 Michael I. Obadan - Non-Executive Director
12 Abdu Abubakar - Non-Executive Director
Alice Karau - Secretary to the Board
*Suspended from office by the President on 18 May 2022
Members of the Committee of Governors

Alice Karau - Secretary
Members of the Monetary Policy Committee

6 Adeola F. Adenikinju Member
7 Aliyu R. Sanusi Member
8 Robert C. Asogwa Member
9 Michael I. Obadan Member
10 Aliyu Ahmed Member
11 Mohammed A. Salisu Member
12 Momodu E. Omamegbe Member
Mahmud Hassan Secretary
14
Principal Officers of the Bank as of 31 December 2022
Departmental Directors
1 Samuel C. Okojere - Banking Services
2 Haruna B. Mustapha - Banking Supervision
3 Elizabeth O. Fasoranti - Branch Operations
4 Muhammad A. Abba - Capacity Development
5 Rashida J. Monguno - Consumer Protection
6 Osita C. Nwanisobi - Corporate Communications
7 Alice Karau - Corporate Secretariat
8 Ahmed B. Umar - Currency Operations
9 Philip Y. Yusuf - Development Finance
10 Benjamin A. Fakunle - Finance
11 Angela A. Sere-Ejembi - Financial Markets
12 Chibuzo A. Efobi - Financial Policy and Regulation
13 Joseph G. Omayuku - Governors
14 Amina A. Habib - Human Resources
15 Rakiya S. Mohammed - Information Technology
16 Lydia I. Alfa - Internal Audit
17 Sirajuddin K. Salam-Alada - Legal Services
18 Abdulkadir A. Jibril - Medical Services
19 Hassan Mahmud - Monetary Policy
20 Nkiru E. Asiegbu - Other Financial Institutions Supervision
21 Musa I. Jimoh - Payments System Management
22 Arinze A. Stanley - Procurement and Support Services
23 Michael A. Adebiyi - Research
24 Benjamin C. Nnadi - Reserve Management
25 Blaise Ijebor - Risk Management
26 Oluwakemi Osa-Odigie* - Security Services
27 Mohammed M. Tumala - Statistics
28 Clement O. Buari - Strategy Management
29 Scholastica O. Nnaji - Trade and Exchange
30 Olorunsola E. Olowofeso ** - West African Monetary Institute
31 Abubakar A. Kure*** - NIRSAL Microfinance Bank
*Retired on 6 October 2022.
**On Secondment.
***On Posting.
15
Special Advisers to the Governor as of 31 December 2022
1 Emmanuel U. Ukeje Economic Matters
2 Ebipere Clark Energy Sector
3 Yakubu Umar Islamic Finance
4 Oluwatoyin M. Fasheitan Payments
5 Aisha U. Mahmoud Sustainable Banking
Branch Controllers as of 31 December 2022

1 Daniel A. Ogbogu - Abakaliki
2 Wahab L. Oseni - Abeokuta
3 Onyeka M. Ogbu - Abuja
4 Wasiu A. Omotoso - Ado-Ekiti
5 Fatai A. Yusuf - Akure
6 Godwin I. Okafor - Asaba
7 Benedicth I.C. Maduagwu - Awka
8 Haladu A. Idris - Bauchi
9 Renner D. Jumbo - Benin
10 Mannir D. Abdullahi - Birnin-Kebbi
11 Glory U. Iniunam - Calabar
12 Gana A. Abdulkadir - Damaturu
13 Sa'adatu A. Ibrahim - Dutse
14 Chidozie E. Okonjo - Enugu
15 Shehu A. Goringo - Gombe
16 Buhari Abbas - Gusau
17 Olufolake M. Ogundero - Ibadan
18 Najimu O. Lamidi - Ilorin
19 Idirisa D. Maina - Jalingo
20 Esther C. Tinat - Jos
21 Yusuf B. Wali - Kaduna
22 Umar I. Biu - Kano
23 Musa L. Ahmed - Katsina
24 Yakubu Shehu - Lafia
25 Bariboloka G. Koyor - Lagos
26 Ahmed I. Sule - Lokoja
27 Tijani K. Lawan - Maiduguri
28 John O. Itaha - Makurdi
29 Saheed A. Mohammed - Minna
30 Ajuma D. Madojemu - Osogbo
31 Oyoburuoma B. Oruwari - Owerri
32 Maxwell O. Okafor - Port Harcourt
33 Dahiru N. Usman - Sokoto
34 Ayotunde O. Olaoba - Umuahia
35 Itohan M. Ogbomon-Paul - Uyo
36 Francis E. Asuquo - Yenagoa
37 Sanusi N. Sah - Yola
16
2.0 MANDATE OPERATIONS
2.1 MONETARY POLICY
Monetary Policy Committee (MPC) Decisions in 2022

Monetary Policy Environment
Date of Meeting Decision
 Retained the MPR at 11.50 per cent
 Retained the CRR at 27.5 per cent
24 and 25 January  Retained the Liquidity Ratio at 30.0 per cent;
2022 and
Communiqué No. 140  Retained the Asymmetric corridor at +100/-700
Priorities of Monetary Policy
basis points around the MPR.
Drivers
 Retained the MPR at 11.50 per cent
 Ensure price and macroeconomic  Retained the CRR at 27.5 per cent
stability  Impact of the shocks of the
 Retained the Liquidity Ratio at 30.0 per cent;
Russia-Ukraine war and the 21 March 2022
 Stimulate investments to the and
Communiqué No. 141
manufacturing sector lingering effects of the COVID-  Retained the Asymmetric corridor at +100/-700
 Mitigate the downside risks of 19 pandemic basis points around the MPR.
COVID-19  Decline in global trade and
 Accessible credit to firms and  Raised the MPR to 13.00 per cent
demand  Retained the CRR at 27.5 per cent
households
 High global inflationary 23 and 24 May 2022  Retained the Liquidity Ratio at 30.0 per cent;
 Ease access to foreign exchange for Communiqué No. 142 and
small and medium enterprises, and environment and policy
 Retained the Asymmetric corridor at +100/-700
invisible transactions tightening basis points around the MPR.
 Navigating prevailing uncertainties  Increased the MPR to 14.00 per cent
 Retained the CRR at 27.5 per cent
18 and 19 July 2022  Retained the Liquidity Ratio at 30.0 per cent;
Communiqué No. 143 and
 Retained the Asymmetric corridor at +100/-700
 Raised the MPR to 15.50 per cent
 Increased the CRR to 32.5 per cent
26 and 27 September 
Instruments of Monetary Policy Implications 2022
Retained the Liquidity Ratio at 30.0 per cent;
and
The Bank deployed an array of Communiqué No. 144  Retained the Asymmetric corridor at +100/-700
conventional and unconventional The prevailing stress in the basis points around the MPR.
monetary policy instruments, during domestic economy led to:  Raised the MPR to 16.50 per cent
the review period.  Slow and fragile economic  Retained the CRR at 32.5 per cent
21 and 22 November
 Retained the Liquidity Ratio at 30.0 per cent;
 The Open Market Operations recovery; 2022
and
Communiqué No. 145
(OMO) remained the major  Capital flow reversals;  Retained the Asymmetric corridor at +100/-700
instrument for liquidity  Subdued external reserves
management, complemented level;
by:  Pressures on the exchange
 Cash Reserve Ratio (CRR); Currency Redesign Policy
rate and domestic prices;
 Liquidity Ratio (LR); Following the approval of the President, the Bank redesigned and commenced the
and
 Discount Window Operations; circulation of N200, N500, and N1,000 banknotes. The policy was implemented,
 Interventions in the foreign  Inflationary pressure – among others, to:
exchange market; 21.34 per cent in December  Rein-in currency outside the banking system and make monetary policy
 Interventions in the real 2022, from 15.63 per cent in more effective;
sector; and December 2021.  Reduce the significant hoarding of banknotes by members of the public;
 Moral suasion.  Minimise the circulation of unclean and unfit banknotes;
 Strengthen the security features and minimise the risk of counterfeiting;
and
 Promote financial inclusion and a cashless economy.
Central Bank of Nigeria 2022 Annual Economic Report 17

2.1.1 Liquidity Management ₦13,779.55 billion, ₦18,992.95 billion, and
Liquidity management in 2022 was anchored on ₦13,648.05 billion in 2021. The higher amount of
ensuring optimal banking system liquidity to OMO sales reflected the contractionary policy
achieve monetary and price stability. Banking stance to moderate banking system liquidity.
system liquidity was influenced, largely by fiscal
operations of the Federal Government, Cash Figure 2.1.1: OMO Issues and Sales, 2018 – 2022
Reserve Ratio (CRR), foreign exchange 30,000
interventions, maturity and sale of CBN and 25,000
Nigerian Treasury Bills, and monetised proceeds 20,000
N'bn
15,000
from the sale of crude oil as well as the naira
10,000
redesign policy. 5,000
0
2018 2019 2020 2021 2022
2.1.2 Monetary Operations
To ensure monetary and price stability, the Bank Subscription Sale
adopted a hawkish policy stance, for the most Source: Central Bank of Nigeria.
part of the year, aimed at managing banking

system liquidity and the persisting uptick in
2.1.2.2 Tenored Repurchase Transactions
inflation. Monetary Policy Rate (MPR), in 2022,
(Repos)
maintained an upward trend as the Bank
increased the rate four times in the course of the Transactions in tenored repo declined, reflecting
to 16.5 per cent, from 11.5 per cent in 2021. The investors’ preference for overnight facilities and
MPR was increased from 11.5 per cent to 13.0 response to higher rates. Total repo transactions
per cent in May, with further increases to 14.0 in 2022, was N11,283.38 billion, a decrease from
per cent in July, 15.5 per cent in September and N14,108.47 billion in 2021. The applicable
16.5 per cent in November. The CRR was also interest rates ranged from 14.00 per cent to
raised from 27.5 per cent to 32.5 per cent in 20.50 per cent for the 4- to 90- day tenors.
September, while the Liquidity ratio was Consequently, total interest earned on repo in
maintained at 30.0 per cent throughout the year. 2022 decreased by 45.71 per cent to ₦41.59
The asymmetric corridor of +100/-700 basis billion, from ₦76.61 billion in 2021.
points around the MPR was also maintained
throughout the year. 2.1.3 Discount Window Operations
2.1.2.1 Open Market Operations CBN Standing Facilities

Transactions in Open Market Operations (OMO) The trend at the standing facilities window
increased marginally during the review period. showed an increase in transaction. As a result of
Total CBN bills offered at the OMO was increased average net liquidity to N183.17 billion
₦13,942.64 billion, while public subscriptions in 2022 from N174.20 billion in 2021, banks
and sales amounted to ₦17,967.00 billion and deposited their excess funds at the SDF window.
₦13,892.64 billion, respectively, compared with The average daily amount of N13.98 billion was

recorded in 248 transaction days in 2022,
compared with N12.65 billion in 240 transaction Table 2.1. 1: Average Money Market Rates
days in 2021. Correspondingly, the average daily IBCR OBB NIBOR-CALL NIBOR-30 MPR
interest payments on deposits increased to 2021 (Average) 12.74 12.13 12.29 8.49 11.5
2022 (Average) 11.27 10.66 11.66 10.44 13.67

N0.002 billion in 2022, from N0.001 billion in
Jan 14.31 8.51 11.05 8.96 11.50
2021. On the other hand, average daily request
Feb 9.30 6.10 8.17 9.24 11.50
for SLF was N73.66 billion in 204 transaction days, Mar 4.50 6.62 7.91 8.19 11.50
compared with N60.52 billion in 207 transaction Apr 8.67 7.49 8.40 8.18 11.50
days in 2021, with an average daily interest of May 6.70 9.39 10.40 9.51 13.00
Jun 11.10 10.88 11.80 8.52 13.00

N0.05 billion charged relative to N0.34 billion in
Jul 13.00 14.15 14.35 11.01 14.00
2021. Aug 15.00 13.21 14.26 12.14 14.00
Sep 12.19 11.49 12.63 11.25 15.50
Oct 16.47 15.91 16.39 10.89 15.50
Nov 11.89 12.56 12.61 14.25 16.50

2.1.4 Interest Rate Policy and Developments
Dec 12.08 11.61 11.89 13.16 16.50
2.1.4.1 Money Market Rates Source: Central Bank of Nigeria.
Note: IBCR-Interbank Call Rate, NIBOR- Nigeria Inter-Bank Offered
Interbank rates declined relative to the levels in Rate, OBB – Open Buy Back, MPR- Monetary Policy Rate.
the preceding year. Average interbank call rate
(IBCR) and open-buy-back rate (OBB) shed 147 Deposit and Lending Rates
basis points, apiece, to close the review period at
The deposit and lending rates exhibited an
11.27 per cent and 10.66 per cent, compared
upward trajectory in 2022 in response to policy
with their corresponding levels in the preceding
rate hikes. The weighted average deposit rate,
year. The average NIBOR-Call rate also declined,
which started the year at 1.79 per cent, increased
by 95 basis points to 11.66 per cent, from 12.61
significantly to close the year at 3.96 per cent.
per cent in 2021.
Notably, the rate hovered below 2.0 per cent
through the first half of the year, but increased
Interbank rates were largely subdued in the first
significantly in the second half of the year, driven
half of the year with most rates trailing in the
by the Bank’s policy rate hike.
single digit region. The rates took an upward
trajectory in the second half, settling in the Similarly, average prime and maximum lending
double-digit region. The significant increase in rates both increased in 2022, to 12.34 per cent
the second half of the year followed the and 28.37 per cent, respectively, from 11.48 per
monetary authority’s sustained hawkish policy cent and 28.06 per cent in the preceding year.
stance. The spread between the maximum lending rate
and the weighted average deposit rate narrowed
by 79 basis points to 24.91 per cent in the review
period, from 25.70 per cent in 2021.

Figure 2.1. 2: Average Deposit and Lending Rates, pieces of banknotes of various denominations in
2018 – 2022 2022, to meet the needs of the economy. The
35 25.8
development represented an increase of 1.3 per
30 25.6
cent or 3.00 million pieces above the 2,485.50
25.4
25
25.2
million pieces approved in the preceding year.
Per cent
Per cent
20
25
15 Consequently, the Nigerian Security Printing and
24.8
10
24.6
Minting Company (NSPM Plc) delivered a total of
5 24.4 1,818.82 million pieces of banknotes,
0 24.2 representing 73.0 per cent of the indent as of 31
2018 2019 2020 2021 2022
December 2022. Notably, the indent of the lower
AVTD PLR MLR SPRD (rhs) denominated banknotes was fully achieved,
Source: Central Bank of Nigeria. while that of the higher denominated banknotes
(₦200, ₦500, ₦1000) was halted in Q3 2022, due
2.2 CURRENCY MANAGEMENT to the currency redesign policy.
2.2.1 Issuance of Legal Tender Currency
In light of the above, the production of the initial
2.2.1.1 Currency Redesign
order of 500.0 million pieces of the redesigned
The Bank embarked on a currency redesign
banknotes commenced in Q3 2022, of which
exercise of the ₦200, ₦500, and ₦1000
280.0 million pieces were delivered as of 31
denomination banknotes. It was launched by the
December 2022.
President on 23 November 2022. The rationale
for the currency redesign emanated from the Furthermore, 68.58 million of lower
shortage of clean and fit banknotes, denominated ‘good-over’ banknotes were
counterfeiting, and the prolong period the last delivered by NSPM Plc in 2022.
exercise was carried out.
Table 2.2.1: Naira Indents (million)

2.2.2 New Indents in 2022
Year 2018 2019 2020 2021 2022
The indent of various denominations of
banknotes, including the newly redesigned Indent 3,351.34 3,830.90 2,458.50 2,485.50 2,488.50
banknotes was approved by the Bank in 2022. The
Source: Central Bank of Nigeria.
Bank approved an indent of 2,488.50 million

Table 2.2.2: Value of Currency-In-Circulation 2018 – 2022
2018 2019 2020 2021 2022
Denomination CIC CIC
CIC CIC (Million CIC CIC CIC (Million CIC CIC (Million
CIC (₦Billions) (Million (Million
(₦Billions) pieces) (₦Billions) (₦Billions) pieces) (₦Billions) pieces)
pieces) pieces)
₦1000 1,288.22 1,288.22 1,460.44 1,460.44 1,678.27 1,678.27 1,933.23 1,933.23 2,178.18 2,178.18
₦500 722.30 1,444.60 710.64 1,421.27 922.03 1,844.07 1,001.65 2,003.30 752.10 1,504.21
₦200 120.52 602.62 145.24 726.22 170.10 850.48 245.45 1,227.24 189.85 949.23
₦100 62.02 620.16 69.35 693.50 79.26 792.63 80.93 809.33 100.99 1,009.90
₦50 22.78 455.54 25.12 502.45 24.30 486.01 24.12 482.44 29.49 589.86
₦20 20.33 1,016.68 18.69 934.30 20.28 1,014.14 22.04 1,101.83 23.00 1,149.83
₦10 8.01 801.34 7.69 768.82 7.84 783.69 10.36 1,036.38 11.19 1,118.97
₦5 2.70 540.74 2.88 576.91 3.44 688.62 5.77 1,153.66 5.80 1,160.43
₦2 0.41 204.38 0.41 204.37 0.41 204.37 0.41 204.37 0.41 204.37
₦1 0.74 736.08 0.74 736.05 0.74 736.05 0.74 736.05 0.74 736.05
TOTAL 2,248.04 7,710.36 2,441.20 8,024.33 2,906.67 9,078.32 3,324.70 10,687.83 3,291.75 10,601.03
.50K 0.34 681.48 0.34 681.48 0.34 681.48 0.34 681.48 0.34 681.48
.25K 0.09 348.23 0.09 348.23 0.09 348.23 0.09 348.23 0.09 348.23
.10K 0.03 315.58 0.03 315.58 0.03 315.58 0.03 315.58 0.03 315.58
1K 0.00 31.37 0.00 31.37 0.00 31.37 0.00 31.37 0.00 31.37
TOTAL 0.46 1,376.66 0.46 1,376.66 0.46 1,376.66 0.46 1,376.66 0.46 1,376.66
2.2.3 Currency Management Initiatives 2.2.3.2 Forensic Currency Laboratory

The Bank sustained the implementation of The Bank’s forensic currency laboratory
commenced operations on a pilot basis in the
various initiatives to improve currency
review year. The operations primarily centered
management operations in 2022.
on the identification of counterfeit and mutilated
banknotes.
2.2.3.1 Nigerian Cash Management Scheme
(NCMS) 2.2.3.3 Sustainable Banknote Disposal
In collaboration with private sector operators, In partnership with the private sector, the Bank
the Bank developed and published the successfully commenced the pilot currency
registration and operational guidelines for Bank disposal operations, employing domestically
Neutral Cash Hubs (BNCH) in 2022. The key fabricated machinery. This marked a milestone in
objective of setting up the Bank Neutral Cash the Bank’s drive for sustainable banknote
Hubs (BNCH) is to reduce the risks and cost borne disposal activities, by reducing its reliance on
by banks, merchants, and huge cash handlers in foreign sourced input and machinery. The
the course of cash management activities; introduction of local content was expected to
deepen financial inclusion; and leverage on deliver wide-ranging economic benefits to the
shared services to enhance cash management domestic industry.
efficiency.

2.3 FOREIGN EXCHANGE MANAGEMENT Figure 2.3.1: Supply of Foreign Exchange
2.3.1 Foreign Exchange Market and 6.00
Management 5.00
4.00
US$ Billion
The foreign exchange market witnessed 3.00
persistent demand pressure amid supply 2.00
shortages. Consequently, policies and 1.00
programmes were implemented by the Bank to 0.00
Feb-22
Feb-21
Sep-21
Apr-22
Sep-22
Apr-21
Aug-21
Aug-22
May-21
May-22
Jun-22
Jun-21
Jul-21
Jul-22
Mar-21
Mar-22
Jan-21
Nov-21
Jan-22
Dec-21
Nov-22
Dec-22
Oct-21
Oct-22
support the market, boost liquidity, and ensure
exchange rate stability. These policies focused
majorly on enhancing non-oil export receipts. Source: Central Bank of Nigeria.
The Bank introduced the Race to US$200 billion

(RT200) programme in February 2022, to 2.3.2 Foreign Exchange Flows
enhance and diversify foreign exchange inflow,
increase the level of contribution of non-oil
T he economy recorded a lower net foreign
export, ensure the stability and sustainability of exchange inflow, on account of dwindling foreign
foreign exchange inflow, and support export- exchange receipts in the review period. Aggregate
oriented companies to expand their operations T
foreign exchange inflow into the economy at
and capabilities. The categories in the US$71.07 billion, declined by 27.3 per cent,
programme include Value-Adding Export Facility, compared with US$97.73 billion in 2021. The
Non-Oil Commodities Expansion Facility, Non-Oil development was driven, largely, by 25.4 per cent
FX Rebate Scheme, Dedicated Non-Oil Export and 28.6 per cent decreases in inflow through the
Terminal, and Bi-annual Non-Oil Export Summit. Bank and autonomous sources, respectively.
Aggregate foreign exchange outflow, at
The RT200 rebate scheme was designed to US$40.63 billion, decreased by 2.0 per cent,
encourage the repatriation and sale of export compared with US$41.47 billion in 2021, on
proceeds into the foreign exchange market by account of the reduced outflow through the
non-oil exporters. The scheme pays N65.00 for Bank. Overall, the economy recorded a lower net
every US$1.00 repatriated and sold at the I&E inflow of US$30.44 billion, compared with
Window to Authorised Dealers (ADs) for other US$56.26 billion in 2021.
third-party use, and N35.00 for every US$1.00
repatriated and sold into I&E for own use on
Foreign exchange inflow through the Bank
eligible transactions only. In addition, the Bank
decreased by 25.4 per cent to US$29.89 billion
held the Bi-annual Non-Oil Export Summit in June and accounted for 42.1 per cent of total inflow.
and November 2022.
Inflow through autonomous sources,

representing 57.9 per cent of total inflow, fell by
28.6 per cent to US$41.18 billion, from US$57.67

billion in 2021, attributed, mainly, to the decline Figure 2.3.2b: Foreign Exchange Flows through the
in over-the-counter (OTC) purchases. CBN, 2021 - 2022 (US$ Billion)
Outflow through the Bank constituted 81.1 per 3.9

cent, while autonomous sources accounted for 36.2
US$ Billion
32.9
the balance of 18.9 per cent. A breakdown shows
40.1 29.9
that, outflow through the Bank fell by 9.0 per
-3.1
cent to US$32.94 billion, compared with
2021 2022
US$36.20 billion. However, outflow through Inflow Outflow Netflow
autonomous sources rose significantly by 45.8 Source: Central Bank of Nigeria.
per cent to US$7.69 billion, relative to the level in
2021, due to the 64.7 per cent and 44.8 per cent 2.3.3 Sectoral Utilisation of Foreign Exchange
increase in payments for visible and invisible Aggregate utilisation of foreign exchange by
import, respectively.
economic sectors rose, driven by increased visible
import. Foreign exchange utilisation by major
A net inflow of US$33.49 billion was recorded
economic sectors, rose by 4.3 per cent to
through autonomous sources, compared with
US$29.21 billion in 2022, compared with
US$52.39 billion in 2021. The CBN, however,
US$28.02 billion in 2021. The development was
recorded a net outflow of US$3.05 billion, in
attributed, mainly, to increased utilisation for
contrast to a net inflow of US$3.86 billion in 2021.
productive activities in the industrial,
manufactured products, oil, and mineral sectors.
Figure 2.3.2a: Foreign Exchange Flows through the
Economy, 2021 - 2022 (US$ Billion) Figure 2.3.3a: Sectoral Utilisation of Foreign Exchange,
2021- 2022 (US$ Billion)
80
60
US$ Billion
56.3
US$ billion
41.5 30.4 40
40.6
97.7 71.1 20
0
2021 2022 2021 2022
Inflow Outflow Netflow
Source: Central Bank of Nigeria. Visibles Invisibles Total
Source: Central Bank of Nigeria .
A disaggregation shows that US$18.37 billion or

62.9 per cent of the foreign exchange was utilised
for visible import, an increase of 17.1 per cent,
relative to US$15.69 billion in 2021. The amount
utilised for industrial sector import,

manufactured products, mineral, and oil sectors Foreign exchange utilisation for invisible
rose, by 29.4 per cent, 4.6 per cent, 137.4 per transactions at US$10.84 billion or 37.1 per cent
cent, and 33.2 per cent to US$8.66 billion, of the total, decreased by 12.1 per cent,
US$3.94 billion, US$0.70 billion, and US$1.41 compared with US$12.33 billion in 2021. The
billion, respectively, from their levels in 2021. amount utilised for financial and communication
Similarly, utilisation in the transport sector rose services fell by 24.4 per cent and 14.2 per cent to
by 11.7 per cent to US$0.56 billion, relative to US$7.50 billion and US$0.15 billion, respectively,
US$0.50 billion in 2021. However, amount below the levels in 2021. However, foreign
utilised for food products and the agricultural exchange utilised for educational, business,
sector fell by 8.5 per cent and 4.4 per cent to transport services, and ‘other services’ rose by
US$2.81 billion and US$0.29 billion, respectively, 31.6 per cent, 62.0 per cent, 109.2 per cent, and
compared with their levels in 2021. 13.7 per cent to US$1.03 billion, US$0.93 billion,
US$0.51 billion, and US$0.71 billion, respectively,
The share of foreign exchange utilised in total relative to their levels in 2021.
visible import: industrial sector import was 41.1
per cent; manufactured products, 21.5 per cent; In terms of share, financial services constituted
food products, 15.3 per cent; oil sector, 7.7 per the bulk with 69.2 per cent of the total invisible
cent; transport sector, 3.0 per cent; minerals import. This was followed by: educational
sector, 3.8 per cent; and agricultural sector, 1.6 services, 9.6 per cent; business services, 8.6 per
per cent. cent; transport services, 4.7 per cent;
communication services, 1.4 per cent; and other
services accounted for the balance.
Figure 2.3.3b: Sectoral Utilisation of Foreign Exchange
for Visible Import, 2022
Figure 2.3.3c: Sectoral Utilisation of Foreign Exchange
MINERALS OIL SECTOR for Invisible Import, 2022
3.8% 7.7%
COMMUNICATI
BUSINESS ON SERVICES
TRANSPORT SERVICES 1.4%
AGRICULTURAL SERVICES 8.6%
SECTOR 4.7%
1.6% EDUCATIONAL
INDUSTRIAL SERVICES
TRANSPORT SECTOR OTHER 9.6%
SECTOR 47.1% SERVICES NOT
3.0% INCLUDED
ELSEWHERE
MANUFACTUR 6.5%
ED PRODUCTS
21.5%
FOOD
PRODUCTS FINANCIAL
15.3% SERVICES
69.2%
Source: Central Bank of Nigeria. Source: Central Bank of Nigeria.

2.3.4 Foreign Exchange Reserves and Figure 2.3.5: Holdings of External Reserves at end
Management December 2022 (Per cent)
Federal
The stock of external reserves was adequate, as it Government, 4.0
was above the international benchmark of three
months of import cover. External reserves stood
at US$36.61 billion at end-December 2022,
compared with US$40.23 billion at end-
December 2021. The external reserves position
could cover 7.5 months of import for goods only, CBN, 96.0
or 5.7 months of import for goods and services,
compared with 8.6 months of import (goods) or
6.6 months of import (goods and services) at end- Reserve management operations in 2022 yielded
December 2021. a total of US$0.11 billion, a decrease of 44.3 per
cent, relative to the level in 2021. The decrease
Figure 2.3.4: Gross External Reserves Position and was due, mainly, to global market conditions and
Months of Import Cover, 2018 – 2022 interest rate hikes by most central banks, which
42.5
43 16 affected returns from fixed income investments.

42
13.6
40.2
14
41
12
40 At end-December 2022, the net asset value of the
38.1
US$ Billion
Months Of Import
39 10
9.2
fixed income portfolio managed by the external

8.6
36.6
36.5
38 8
7.5
6.6
37 6 asset managers stood at US$7.23 billion. Overall,

36
35
4 the portfolio recorded an absolute return of
2
34 US$0.83 billion, from inception to end-December
33 0
2018 2019 2020 2021 2022 2022.
External Reserves Months of import cover

Funds invested in different portfolios continued
to be measured against specified benchmarks.
A breakdown of external reserves by ownership The performance of the US Treasury Bonds
at end-December 2022, reveals that the share of portfolio is benchmarked against the Bank of
the CBN was US$34.98 billion, Federal America Merrill Lynch 1-3 years US Treasury
Government, US$1.62 billion, while the Index. The Global Government Bonds Short-
Federation Account accounted for the balance. Duration portfolio is benchmarked against the
Bank of America Merrill Lynch Global
Government Bond G7 1–3-year Index, ex-Italy
100% hedged into USD. The Offshore Renminbi
portfolio is measured against the FTSE DIM Sum
off-shore CNY Bond Index, while the MBS
Portfolio is benchmarked against the Barclays US
MBS Index.

2.4 SURVEILANCE OF FINANCIAL • CBN AML/CFT/CPF Regulations, 2022;
INSTITUTIONS
• Guidelines on Targeted Financial Sanctions
In the review year, the Bank sustained its Related to Terrorism and Terrorism Financing,
regulatory and supervisory oversight of the 2022;
institutions under its purview, towards promoting
• Guidelines on Targeted Financial Sanctions
a safe, stable, and sound financial system. This
Relating to Proliferation Financing, 2022;
was performed through offsite surveillance and
onsite examination, as well as the issuance of • AML/CFT/CPF Manual for licensing of Banks
relevant guidelines to banks and other financial and Other Financial Institutions;
institutions. In performing these functions, the • AML/CFT/CPF Risk Supervisory Framework;
Bank relied on the provisions of the CBN Act
2007, the Banks and Other Financial Institutions • CBN AML/CFT/CPF Risk Assessment Matrix
Act (BOFIA) 2020, and other policy guidelines. and Questionnaires for Deposit Money Banks
(Updated);
2.4.1 Banking Supervision • AML/CFT/CPF Risk Assessment Tools for Other
Financial Institutions; and
The parallel run of Basel III implementation that
commenced in November 2021 progressed to • AML/CFT/CPF Guidelines for Licensing of
the next phase, and included the following Banks and Other Financial Institutions.
processes:
Following the significant progress made by the
• Reviewed feedback from banks vis-a-vis Bank, the GIABA Review Team reviewed upwards
recent changes in the Basel Standards and some of the ratings for Technical Compliance to
updated the relevant CBN Basel III Guidelines; reflect the efforts of Nigeria to counter ML, TF
• Reviewed and adjusted five Basel III CBN and PF.
Reporting Templates, based on the feedback
and gaps observed during the parallel run; and 2.4.2 The Financial Regulations Advisory Council
• Made appropriate recommendations to the of Experts Activities
CBN Management on the full implementation In 2022, the Financial Regulations Advisory
of the standards in Nigeria. Council of Experts (FRACE) published, on the CBN
The take-off date for the full implementation of website, a Compendium of its resolutions on non-
Basel III standards in Nigeria is under interest products and services developed by Non-
consideration. interest Financial Institution (NIFIs). FRACE also
reviewed and approved the structure and
To enhance the AML/CFT/CPF in line with the transaction documents of five Sukuk issuances.
Mutual Evaluation Report (MER) of the country
issued by GIABA in 2020, the Bank issued the The Bank sustained its participation at the
following regulatory documents for compliance Governance meetings of the Islamic Financial
with the AML/CFT/CPF laws and regulations: Services Board (IFSB) and International Islamic
Liquidity Management Corporation (IILM). During

the year, the CBN Governor was appointed the The Nigeria Microfinance Platform (NMP) 2 in
Deputy Chairman of IFSB Council for 2022. The collaboration with its development partners, held
IFSB flagship publication, the Islamic Financial its 7th Symposium, with the theme “Expanding
Services Industry Stability Report 2022 was the Frontiers of Financial Inclusion Through
launched in Nigeria by the CBN Governor. Innovation: The Micro FinTech Tools”. The
purpose of the symposium was to consolidate
2.4.3 Reforms in the Other Financial Institutions
efforts toward achieving the shared goal of
The Bank sustained efforts to address credit financial inclusion, through the emerging
needs of the MSMEs, improve productive financial technology, with a focus on “grassroot”
capacity, and promote inclusive growth. population and the active poor.
Consequently, the Bank processed applications
from several MFBs that had executed their The Bank held meetings with the executives of
recapitalisation plans through the injection of the National Association of Microfinance Banks
fresh capital, and acquisition by new investors, in (NAMBs) and resolved as follows:
compliance with the deadline. The Bank  mandatory enrolment of all MFBs on the
approved the downscaling of the operations of Credit Risk Management System (CRMS) to
the MFBs that did not satisfy the requirements of comply with the credit reporting standards
the new capital regime, and issued fresh licenses to qualify for inclusion on the Global
Standing Instruction (GSI) platform;
to the institutions that met the requirements.
 board members and other stakeholders
Following the expiration of the recapitalisation were required to exhibit exemplary
deadline of 30 April 2022, the Bank conducted a leadership role, imbibe good corporate
compliance assessment of the MFBs through governance practices, and deliver superior
target examinations, capital verification, and customer service;
existence check exercises. The objective of the  absorption of fit and proper persons (staff
exercise was to confirm the existence of all the and stakeholders) into the MFB sub-sector,
MFBs and ascertain their compliance levels with considering the rapid advancement in digital
the new capital requirements for the soundness technology, and increased corporate
governance practices;
of the sub-sector.
 ensure regular and relevant training for
The knowledge capacity in microfinance was
employees for higher productivity;
enhanced at end-December 2022, as 597
candidates completed the Level II microfinance  all MFBs were required to comply with the
directive on creation of corporate e-mails to
certification examination administered by the
facilitate effective communication between
Chartered Institute of Bankers of Nigeria (CIBN) the MFBs and the CBN;
during the review period. This brought the total
 all MFBs were encouraged to introduce
number of certified candidates to 8,389, protective measures against cybercrime,
compared with 7,792 at end-December 2021. given the increased technological activities
2 such as AFOS, Enhancing Financial Innovation and Access (EFInA)

NMP membership include National MFBs, some state MFBs,
NGOs, Credit Bureaux, and international development partners, and German Agency for International Cooperation (GIZ).

within the financial services industry and the  Mechanism for communicating to the board
emerging information technology trend in and senior management of changing ML/TF
the sub-sector, with activities moving risk levels; and
towards virtual banking and financial
technology;  Compliance with consumer rights and
 all MFBs were implored to download the introduction to the National Collateral
regulatory framework and Guidelines on Registry.
Risk-Based Cyber Security from the CBN
website and ensure implementation of the
minimum requirements, therein, to To further strengthen the AML/CFT/CF
effectively mitigate cyber risk; implementation oversight and address
 all MFBs were required to conduct susceptibility in the sub-sector, the Bank
Cybersecurity Self-Assessment annually and implemented the road map for the GIABA Mutual
ensure that cyber security incidence was Evaluation Report, developed the Guidance Note
reported to the CBN within 24 hours after to detect ML/FT/PF risk, and introduced the
occurrence; and automated rendition of the AML/CFT/CPF
 the CBN to institutionalise a Sustainability returns.
Awards Program for the banking industry to
facilitate the implementation of the 2.4.4 Credit Risk Management System and
sustainable banking principles.
Private Credit Bureaux
The Bank continued to strengthen the credit
The biennial meetings of the Bank with
information and risk management architecture of
executives of Finance House Association of
the financial system by enhancing the capabilities
Nigeria (FHN) were held in the review year, with
of the CBN Credit Risk Management System
major highlights as follows:
(CRMS) and private credit bureaux. The CBN
 The review of the Finance Companies CRMS has continued to serve as a source of credit
Guidelines to further reform that segment of information and a risk management tool in the
FIs; banking industry. To enhance its capabilities and
 Inclusion of Finance Companies (FCs) on ensure effective implementation of regulation,
Credit Risk Management System (CRMS) and the Bank, in collaboration with the relevant
the Global Standing Instruction (GSI) stakeholders, commenced the enrolment of OFIs
platform; on the CRMS.
 A self-assessment report on cyber security is The total number of credit facilities on the CRMS
to be submitted to the CBN not later than database increased by 48.3 per cent to 43.32
31st March every year; million at end-December 2022, from 29.21
 Submission of all cyber incident reports to million at end-December 2021. The number of
the CBN within 24 hours; credit facilities comprised 42.23 million and 1.09
million individual and non-individual borrowers,
 Establishment of policies and procedures for respectively.
risk profiling of customers and products;

The total number of facilities with outstanding health of banks was generally sound in 2022, as
balances on the CRMS database rose by 95.6 per the industry level capital adequacy and liquidity
cent to 9.58 million at end-December 2022, from ratios exceeded regulatory minimum. The non-
4.90 million at end-December 2021, comprised of performing loan (NPL) ratio improved marginally
9.43 million and 0.15 million individual and non- during the review period below its regulatory
individual borrowers, respectively. The threshold.
improvement in credit record was attributed,
mainly, to the increased compliance by banks, As a result of a slight increase in risk weighted
following strict enforcement of the CBN CRMS assets, which outweighed the increase in the
Regulatory Guidelines. total qualifying capital, the industry capital
adequacy ratio (CAR) fell marginally to 13.76 per
Table 2.4.1: Borrowers from the Banking Sector cent at end-December 2022, compared with
(Commercial, Merchant and Non-Interest Banks) 14.53 per cent at end-December 2021. The
Description Dec-21 Dec-22
industry threshold for CAR, remained at 15.00
* Total No. of
Credit/facilities reported 29,213,129 43,320,180 per cent for banks with international
on the CRMS: authorisation and 10.00 per cent for banks with
Individuals 28,338,562 42,227,560
Non-Individuals 874,567 1,092,620
either national or regional authorisation.
* Total No. of
Outstanding Credit 4,898,075 9,579,073 The industry liquidity ratio decreased to 53.01
facilities on the CRMS:
Individuals 4,779,565 9,426,343
per cent at end-December 2022, compared with
Non-Individuals 118,510 152,730 54.88 per cent at end-December 2021, reflecting
Source: Central Bank of Nigeria. the fall in the stock of liquid assets held by banks.
* The figures include borrower(s) with multiple loans and/or credit
lines. However, the asset quality of the banking
industry, measured by the ratio of NPLs to total
The average number of credit records in the loans, improved to 4.21 per cent at end-
database of the three licenced credit bureaux December 2022, from 4.94 per cent at end-
rose by 39.3 per cent to 80.28 million at end- December 2021. The development was due,
December 2022, from 55.39 million at end- largely, to the implementation of the Global
December 2021. The increase was attributed, Standing Instruction (GSI) policy, which enhanced
mainly, to the credit growth in the banking loan recoveries, as well as write-offs, and the
sector, enhanced level of coverage of the credit disposal of pledged collateral. At that level, the
reporting system, and more awareness of the ratio was below the maximum regulatory
role of credit bureaux by the public. threshold of 5.00 per cent. Loan loss provision
stood at 94.28 per cent at end-December 2022,
2.4.5 Prudential Review and Examination compared with 95.70 per cent at end-December
The financial sector remained stable, as key 2021.
financial soundness indicators were within the

regulatory thresholds, despite uncertainties in the
global and domestic economic environment. The

2.4.6 Corporate Governance and Sustainable 2.4.7 Financial Crimes Surveillance/Anti-
Banking in the Financial Services Sector Money Laundering/Combating the
Financing of Terrorism
The Bank continued to assess the level of The Bank continued to take pragmatic steps to
compliance of licensed financial institutions with mitigate the risks of money laundering and
the corporate governance laws, codes, and terrorism financing. A general review session of
regulations. In 2022, the Bank reviewed and the draft Mutual Evaluation Exercise (MEE)
approved the Board and Board Committee Report of the Inter-Governmental Action Group
Charters of Banks and OFIs. The Bank also Against Money Laundering in West Africa
reviewed the Board Evaluation Reports of banks (GIABA)/ the Financial Action Task Force (FATF)
and undertook corporate governance scorecard on Nigeria was held to assess the implementation
assessment in July 2022. The exercise revealed progress.
that banks and their respective boards were
largely in compliance with the relevant provisions The Bank carried out three special AML/CFT spot
of the extant laws, regulations, codes, and checks in 2022, covering the areas of Beneficial
practices. Ownership and Private Banking, Know Your
Customer/Customer due diligence, and review of
The corporate governance scorecard Non-Governmental Organisation accounts on
assessments conducted, revealed that all the compliance with targeted financial sanctions
banks assessed were rated “Acceptable” and related to terrorism and terrorism financing.
implemented the recommendations in the
previous scorecard assessments. To address the deficiencies highlighted in the
Report, on 20 May 2022 the CBN gazetted the
The Bank continued to monitor the AML/CFT/CPF Regulations 2022, thereby
implementation of the Nigerian Sustainable replacing the regulations of 2013. Furthermore,
Banking Principles (NSBP) in the industry, to the CBN continued to collaborate with both
resolve implementation challenges and offer internal and external stakeholders, through the
equitable, objective, and fair basis for possible quarterly inter-departmental stakeholders’
incentives. Thus, the Bank reviewed the semi- meetings and the bi-monthly virtual meetings of
annual returns, which included: the assessment the Association of Chief Compliance Officers of
of the banks’ implementation progress of the Banks in Nigeria (ACCOBIN).
NSBP; adequacy of their Environmental & Social
risk (E&S) policies; Human rights assessment in Furthermore, the Bank along with the Inter-
business activities; and capacity building on Ministerial Committee on AML/CFT issues,
sustainability among others. participated in the review and passage, into law,
of the Money Laundering (Prevention and
Prohibition) Act (MLPPA) and Terrorism
(Prevention and Prohibition) Act (TPPA).
Similarly, the Bank participated in the conduct of

the National Inherent Risk Assessment (NIRA) for across the industry, were delivery channels and
money laundering and terrorism financing. products and services.
The Bank also organised AML/CFT/CPF Similarly, the seven risk mitigants assessed were
awareness trainings for 4,681 officers from corporate governance/board of directors, risk
4,061 financial institutions and conducted joint management, policies and procedures, internal
AML/CFT/CPF examinations of over 1,200 audit/control and external audit, compliance,
Bureaux de Change across the country. In monitoring of suspicious transactions, as well as
addition, a dedicated webpage for hosting training. The risk mitigants for all the banks were
AML/CFT/CPF content on the CBN website was generally rated “Acceptable”. Out of the 32 banks
created in the review period. examined, 14 (44.0 per cent) were rated
“Moderate Risk”, while 18 (56.0 per cent) were
rated “Above Average Risk”.
2.4.8 Routine, Special, and Target Examinations
The Joint CBN and NDIC Risk Assets Examination The focus of the 2022 AML/CFT/CPF RBS
(RAE) of 32 (commercial, merchant, and non- Examination was influenced by the findings from
interest) banks, was carried out to assess the the GIABA Mutual Evaluation Report. Areas of
quality of banks’ risk assets and ensure the concern highlighted in the report, such as
adequacy of loan loss provisioning, prior to proliferation financing, targeted financial
approval for publication of banks’ audited sanctions, terrorism financing, and non-profit
financial statements for the year ended 31 organisations were specifically assessed during
December 2021. the examination.
There was noticeable improvement in the level of

The risk-based AML/CFT/CPF examination of the compliance with extant Laws and Regulations
32 banks was carried out to assess compliance among the banks. However, some exceptions
with the ML/TF/PF risks and usage of appropriate were noted in certain areas during the
mitigants to manage identified risks. The examination, including: identification and
examination also sought to ascertain whether a monitoring of Proliferation Financing; customers’
strong AML/CFT/CPF culture had been risk-rating and profile updates; Suspicious
Transactions Reporting (STRs); and the
entrenched in the business activities of banks,
monitoring of Minors’ accounts. The affected
and the extent of compliance with previous banks were required to address these lapses and
examination recommendations. the relevant sanctions imposed as appropriate.
The inherent risks assessed were customers,

products/services, delivery channels,
geographical locations, and proliferation
financing risks. The findings from the
AML/CFT RBS Examination of Banks and Cross-
examination revealed that the significant
border Subsidiaries
activities, which pose the highest ML/TF/PF risks

A cross-border AML/CFT examination was also • the virtual meeting of the CABS Working
carried out on seven subsidiaries of Nigerian Group on Cross-border Banking Supervision of
banks in Ghana, Kenya, Rwanda, Zambia, Guinea, 5 – 6 December 2022;
and The Gambia. The RBS examinations were
carried out using the On-site Risk Assessment • completed the draft frameworks on Crisis
Methodology (ORAM) tool, which was a stop gap Management, Banking Resolution, and
FinTech Supervision by the Community of
developed by the Onsite AML/CFT Group.
African Banking Supervisors (CABS) Working
In addition, a target examination of the Asset Group on Crisis Management, Bank
Management Corporation of Nigeria (AMCON) Resolution, and Fintech, led by the CBN. The
was conducted during the year. Areas covered draft policies had been forwarded to the
included: assets under Management; disposal of Association of African Central Banks (AACB)
assets; loan administration and management of for exposure to member-central banks;
Eligible Bank Assets (EBAs); sales of shares;
• the CABS Working Group on Cross Border
earnings; statement of financial position; third
Banking Supervision (cybersecurity
party service providers; validation of collaterals;
subgroup), met on 4 November 2022. The
and regulatory compliance. Examiners’
meeting was hosted by the South African
recommendations arising from the examination
Reserve Bank (SARB);
were communicated to the Corporation for
implementation. • participated in the Crisis Simulation Exercise
(CSE) organised by the Financial Stability
2.4.9 Cross Border Supervisory Activities Institute in November 2022, to assess the
effectiveness of crisis management
The Bank continued its cross-border collaboration arrangements, cross-border cooperation and
with the relevant stakeholders to enhance the information-sharing in the event of a possible
supervision of foreign subsidiaries of Nigerian failure, and the resolution of a regional cross-
banks. border banking group; and
The Bank participated in several meetings of the
colleges of supervisors. These include: In addition, the Bank participated in the 42nd and
• the 2022 virtual Standard Chartered Global 43rd meetings of the College of Supervisors of the
College organised by the Bank of England on West African Monetary Zone (CSWAMZ), where
22 July 2022; and developments in the banking system across the
Zone, cross-border supervision issues, joint
• hosted the Colleges of Supervisors for First examination exercises, Basel II/III capital
Bank of Nigeria and United Bank for Africa requirements, and IFRS 9 & 16, as well as other
banking groups from 5 – 9 September 2022. relevant financial stability concerns of the sub-
region in line with the mandate of the College
The Bank also participated in several activities of
were reviewed.
the Community of African Banking Supervisors
(CABS) as follows: In the area of capacity building, the Bank:

• collaborated with IMF/AFRITAC West 2 and
hosted participants from 5 West African 2.4.10 Examination of Foreign Subsidiaries
Monetary Zone (WAMZ) member countries The Bank conducted on-site RBS examination of
on a 2-week professional attachment on the GTBank (UK, Kenya, The Gambia, and Ghana),
implementation of RBS and Basel II/III; Access Bank (Rwanda and DRC), UBA
• collaborated with IMF/AFRITAC West 2 and (Mozambique and United Kingdom) and FBN
hosted a delegation from the Bank of Ghana (Guinea).
on a 2-week professional attachment/study
The examination was to validate the returns
tour to build capacity on the regulation and
submitted by the parent bank and address
supervision of financial holding companies
supervisory concerns noted in the operations of
and development banks;
the offshore subsidiaries.
• hosted representatives from the National
Bank of Rwanda to understudy the quality
assurance function of the CBN from 14 – 18 2.4.11 Foreign Exchange Monitoring/
November 2022; Examination
• attended a workshop organized by the Bank of The Bank conducted routine foreign exchange
England/Bank AL Maghrib on Cyber Resilience examination of 29 Authorised Dealers (ADs)
for Central Banks at the Training Centre in comprised of 25 commercial and four merchant
Rabat, Morocco from 28 -29 November 2022; banks to ensure compliance with the extant
foreign exchange rules and regulations, and
• attended the 44th ordinary meeting of the
utilisation of foreign exchange acquired for
Association of African Central Banks (AACB)
eligible transactions, The examination was
organized by the Central Bank of the Gambia
conducted both remotely and on-site.
on 5 August 2022; and
• attended the 20th Annual meeting of the Some of the significant infractions observed
Committee of Banking Supervisors of West during the examination included: non-automaton
and Central Africa (CBSWCA) hosted by the of FX blotters; failures to repatriate unutilised FX
Central African Banking Commission (COBAC) purchases; improper maintenance of export
in N’Djamena, Chad from 24 - 25 November proceeds registers; incomplete documentation;
2022. breaches of the foreign currency trading position
(FCTP) limit; and unreconciled items in banks’
nostro accounts. The examination reports have
been issued, and appropriate penalties were
In another development, the CBN presented a
imposed, where the responses were deemed
Memorandum of Understanding (MoU) to the
inadequate.
Malta Financial Services Authority (MFSA) for
ratification. Similarly, the CBN forwarded a draft
2.4.12 Domestic Systemically Important Banks
MoU to the Bank of Ghana for ratification.

The Bank continued to provide regulatory and These tests were over a 4-quarter horizon using
supervisory oversight of Domestic Systemically deterministic assumptions around sharp fall in oil
Important Banks (D-SIBs) to ensure the safety and prices, reduced global demand for Nigeria’s
soundness of the financial system. Five banks crude oil products, decline in government
were designated as D-SIBs3 in the last assessment revenue, unfavourable current account position,
conducted at end-December 2022. The D-SIBs and decline in real output growth. Similarly, the
accounted for N44.07 trillion (60.5 per cent) of banks carried out the bottom-up solvency and
the industry total assets at end-December 2022, liquidity stress tests, in line with the ICAAP
N27.26 trillion (59.9 per cent) of total industry provisions.
deposits, and N16.79 trillion (56.5 per cent) of
Sectoral scenarios of credit exposure to oil and
the aggregate industry credit.
gas showed that the banking industry may not
withstand up to 50.0 per cent default, as the
2.4.13 Macroprudential Surveillance and
post-shock CAR stood at 9.11 per cent, slightly
Regulation
below the minimum regulatory requirement of
The CBN sustained the top-down evaluation of 10.0 per cent.
the solvency and liquidity of the banking industry
to mitigate systemic risks and vulnerabilities. The stress test for liquidity revealed that after a
one-day bank run scenario, the liquidity ratio for
2.4.13.1. Banking Industry Liquidity and Solvency the industry would decline to 29.56 per cent,
Stress Tests from the 44.12 per cent baseline position.
Similarly, under the 5-day and 30-day scenarios,
Liquidity and solvency positions of the banking the liquidity ratio for the industry declined to
industry remained robust when subjected to mild 10.89 per cent and 5.96 per cent, respectively.
and moderate scenarios of sustained adverse
economic conditions but could be vulnerable
under the severe scenario. The Bank initiated
various policy interventions in the face of
heightened global uncertainties, occasioned by
the lingering effect of the COVID-19 pandemic
and the Russia-Ukraine war, to douse their
Figure 2.4.1: Industry Liquidity Ratios at Periods 1-5
potential impact on the economy and ensure and cumulative 30-day Shocks
financial system stability.
The Bank conducted top-down banking industry

stress tests on 23 commercial and six merchant
banks to assess their resilience to systemic risks.
3 institutions could have on the overall financial system. Assessment

These banks were subjected to enhanced supervision of their
activities given the significant impact the failure of any of the of D-SIBs is conducted after every six months.

50 44
under the assumption of no intervention by the
45
40 Bank. The severity of the simulated GDP
35 30
30 25 contraction can be contained by appropriate
25 21
20 16 macroeconomic and macroprudential policies.
15 11
10 6
5 Figure: 2.4.2 Impact of GDP Contraction on CAR
0
Pre-Shock After Day 1 After Day 2 After Day 3 After Day 4 After Day 5 After cum 16
30 days 14
14
12 11
Dec-20 Dec-21 Dec-22
10 9
8 7 7
6
3.4 3
The industry baseline assets and liabilities 4
2
0.9
maturity profile at end-December 2022, revealed 2 0.2
0
that the shorter end of the market (≤90-day Baseline Q4 2022 Q1 2023 Q2 2023
bucket) was adequately funded. The cumulative
Mild Moderate Severe
position for the industry showed a mismatch of
N3.27 trillion assets over liabilities, indicating a
3.7 per cent reduction in mismatch below the
Table 2.4.3: Impact of Selected Shocks on CAR, ROA
level in the preceding period. and ROE
Banking Industry (Per cent)
Table 2.4.2: Maturity Profile of Assets and Liabilities at Baseline ROA 0.22
end-December 2022 (Billion naira) Baseline ROE 3.08
Cumulative
Bucket Liabilities Assets Mismatch
Mismatch
Impact of Downward Shift in Yield
Curve Shocks on CAR
≤30 days 36,484.28 23,213.32 13,279.12 13,279.12
500 bps downward shift in yield curve 11.84
31-90 days 4,867.78 4,012.08 867.41 14,146.54 1000 bps downward shift in yield curve 11.12
91-180 days 1,960.54 3,832.21 -1,852.22 12,294.32 Impact of Downward Shift in Yield
Curve Shocks on ROA
181-365
1,435.40 5,263.77 -3,806.62 8,487.70
days 500 bps downward shift in yield curve -0.14
1-3 years 2,272.33 5,977.89 -3,683.93 4,803.77 1000 bps downward shift in yield curve -0.5
>3 years 3,528.65 11,645.45 -8,076.28 -3,272.51
Impact of Downward Shift in Yield
Curve Shocks on ROE
Total 50,548.98 53,944.72
500 bps downward shift in yield curve -1.98
Source: Central Bank of Nigeria. 1000 bps downward shift in yield curve -7.05
Under the severe scenario of sustained
significant contraction in GDP of 2.3 per cent, 2.5 The stress test on the net position of interest-
per cent and 1.9 per cent, in the first, second, and sensitive instruments showed that the industry
fourth quarters of 2023, the banking industry CAR maintained a stable solvency position to interest
would fall to 0.9 per cent, 0.2 per cent, and 3.4 rate shock of “up to 1,000 basis points downward
per cent, respectively. The impact of these shift in yield curve”, as the post-shock CAR
scenarios on CAR of the banking industry was declined from 14.5 per cent to 11.1 per cent. It

remained above the 10.0 per cent regulatory December 2021. Six banks accounted for
threshold. The interest rate shocks, however, had ₦441.69 billion (84.4 per cent) of the total
significant adverse impact on the ROA and ROE. takings and 82.7 per cent (₦433.16 billion) of the
total placements, of which 66.7 per cent
Figure 2.4.3 Impact of Interest Rate Shocks on CAR (₦349.02 billion) was provided by the top four
16.00 14.53
placers of funds.
14.00
11.84
12.00 11.12
10.00 Figure 2.4.5: Contagion Risk at end-December 2022

8.00
6.00
4.00
2.00
0.00
Baseline CAR 500 bps downward 1000 bps downward
shift in yield curve shift in yield curve
Figure 2.4.4: Impact of Interest Rate Shocks on ROA

and ROE
4.00 3.08
2.00
0.22 -0.14 -0.5
0.00
-2.00
-1.98
-4.00
-6.00
-7.05 Network Analysis based on Interbank Exposures

-8.00
Baseline 500 bps downward 1000 bps downward
shift in yield curve shift in yield curve
Node colour representation
ROA ROE Blue = Lenders,
Deep Blue= Net Placement
Source: Central Bank of Nigeria. Red = Borrowers
Purple= Net Takings
2.4.13.2 Contagion Risk Analysis
Contagion risk analysis depicts an increase in
exposure and interconnectedness (via interbank
placements and takings). The total exposure of
the banking system increased by ₦170.72 billion
(48.4 per cent) to ₦523.58 billion at end-
December 2022, from ₦352.86 billion in

Box 1: Top-down Solvency Stress Testing 2.4.14 Examination of Other Financial Institutions
High Level Assumptions on Top-down Solvency Stress The Bank examined 3,614 OFIs in 2022 to
Testing
promote safety and soundness of the financial
In coming up with our mild to severe scenarios, and in system, as well as ensure financial system
consideration of the principle of plausibility and severity to stability. The exercise covered Anti-Money
capture tail risks, we assumed as follows: Laundering, Combating the Financing of
High level Macroeconomic Assumptions Terrorism (AML/CFT) examination of 3,150
Bureaux De Change (BDCs), target examination
1. Persistence of global inflationary pressure, and existence check of 257 Microfinance Banks
leading to prolonged contractionary policy stance
and sharp contraction on global output;
(MFBs), as well as routine Risk- Based Supervision
2. Moderate to sharp fall in global demand for crude (RBS) examination of 127 MFBs, 11 Primary
oil, leading to moderate to sharp fall in oil prices; Mortgage Banks (PMBs), and 69 Finance
3. Crude oil production remained significantly below Companies (FCs).
the approve of OPEC quota for Nigeria;
4. Decline in foreign reserves and heightened
The target examination and existence check of
exchange rate pressures;
5. Continued decline in government revenue and
257 MFBs conducted, focused on insolvent and
rising debt payments obligations; unsound MFBs. The result showed that 162
6. Increased cost of borrowing due to interest rate MFBs were active, 9 MFBs had closed shop, one
hikes and down grade of sovereign rating; was inactive, and three were undergoing
7. High inflation and rising unemployment; and
restructuring. The average liquidity ratio of the
8. Heightened insecurity and low agricultural
production. examined institutions was 70.9 per cent, which
was above the required minimum of 20.0 per
High level Satellite Assumptions cent for MFBs, while average Portfolio-at-Risk
1. Macroeconomic condition and developments
(PAR) was 11.3 per cent, above the 5.0 per cent
apply to the banking industry symmetrically; limit.
2. Severity and determination of tail risks are
historically recursive with significant likelihood; The routine RBS examination conducted on the
3. Position of banks remained unchanged, and no 127 MFBs, revealed that 122 were in active
regulatory intervention as well as management
operation, while five had closed shop. Further
action when shocks are applied on the baseline;
4. Capitalization under stress is mitigated by net analysis of the active 122 MFBs, showed that 96
income as indicated. MFBs were rated “Sound” while 26 were rated
[𝑪𝒂𝒑𝒊𝒕𝒂𝒍𝒊𝒛𝒂𝒕𝒊𝒐𝒏(𝒕) +𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆(𝒕+𝟏) ]
. “Unsound”.
𝑹𝑾𝑨𝒔(𝒕+𝟏)
The routine RBS examination conducted on the
11 PMBs, showed that all were in operation. The
average capital adequacy ratio (CAR) was 10.4
per cent; average liquidity ratio, 43.1 per cent,

and average non-performing loan (NPL), 22.1 per
cent. In addition, 10 PMBs met the minimum CAR

requirement of 10.0 per cent, while the 11 PMBs AML/CFT examination was conducted on 3,150
had liquidity ratios above 20.0 per cent. Also, five BDCs in two batches (June and September 2022).
had NPL within the maximum threshold of 30.0 The examination covered a review of corporate
per cent, while six had NPL above 30.0 per cent. governance practices, sources of foreign
exchange and utilisation, rendition of returns,
The routine RBS examination conducted on 69 adequacy of documents for foreign exchange
FCs revealed that 61 were active, seven inactive, transactions and compliance with other relevant
while the remaining one had not commenced regulations. Money Laundering and Financing of
operation. Out of the 61 active FCs, 30 met the Terrorism (ML/FT) risks were evaluated in line
minimum capital of N100.00 million, nine had with the GIABA assessment requirements. Based
capital below the minimum, while 22 were on the examination report, Supervisory Letters
insolvent. In addition, 31 FCs had CAR below 12.5 were issued to the BDCs that contravened the
per cent, but none had negative CAR. Further extant regulations.
analysis revealed that 25.0 per cent of the active
FCs had NPL ratios below the maximum of 10.0
per cent, while 75.0 per cent had NPL ratios
above 10.0 per cent. The average CAR was 7.5 per
cent and average NPL ratio was 20.0 per cent.
Table 2.4.6 RBS Examination Reports of the Systemically Important Other Financial Institutions
Composite Risk Prudential and Soundness
OFIs NPL Earnings Rating Capital Rating
Rating (CRR) Analysis
2 = Moderate Average NPL Ratio 3 = Acceptable 2 = Acceptable Average CAR and liquidity
Primary Mortgage 4 = Above Average of 22.1 per cent 3 = Needs 5 = Needs ratio of 10.4 per cent and
Banks was below the Improvement Improvement 43.1 per cent, respectively
5 =High
regulatory 5 = Weak 4 = Weak were above the regulatory
maximum of 30.0 benchmark of 10.0 per cent
per cent. and 20.0 per cent
9 = Moderate Average NPL ratio 3 = Strong 6 = Strong Average CAR was 7.5 per
Finance Companies 17 = Above of 20.0 per cent 18 = Acceptable 18 = Acceptable cent, which was below the
Average was above the 23 = Needs 10 = Needs 12.5 per cent regulatory
35 = High regulatory Improvement Improvement requirement.
maximum of 10.0 17 = Weak 27 = Weak
per cent.
3 = Moderate Average PAR was 1 = Strong 1 = Strong Average CAR and liquidity
Microfinance Banks 51 = Above 11.3 per cent 19 = Acceptable 61 = Acceptable ratio were 15.0 and 70.9 per
Average which was above 69 = Needs 25 = Needs cent, respectively. These
68 = High the regulatory Improvement Improvement were above the regulatory
maximum of 5.0 33 = Weak 35 = Weak benchmarks of 10.0 and 20.0
per cent per cent.

The Bank mandated all financial institutions to
2.4.15 Consumer Protection submit a quarterly Root Cause Analysis Report
(RCAR). The report was aimed at providing
The usage of the Bank’s Customer Complaints
insights into the nature of recurring complaints
Management System (CCMS) improved
and proactive measures to address them
significantly in 2022 and valuable feedback for
timeously. This would help in minimising
enhancing user experiences was received from
customer complaints in general, thereby
customers. The feedback led to the decision to
strengthening consumers’ confidence in the
redesign the CCMS. Areas listed for enhancement
financial system.
included, minimising server downtimes and
system lags during high-traffic access to the
Consumer protection compliance examination
portal. Consumer complaints against financial
was conducted on twenty commercial banks and
institutions (FIs) increased by 16.1 per cent to
eighteen OFIs, comprised of microfinance and
5,170, from 4,456 in 2021. A breakdown of the
primary mortgage banks. The report of the
complaints received showed that 4,800 (92.8 per
examination revealed a satisfactory compliance
cent) were against banks and 369 (7.1 per cent)
with the regulatory provisions. Non-compliant FIs
were against OFIs, while one was a miscellaneous
were directed to implement remedial actions, in
complaint.
addition to making refunds where necessary.
A total of 5,423 complaints were resolved/closed,

2.4.16 Consumer Education and Financial Literacy
including 1,215 outstanding complaints from
2021. This amounted to a total N10.01 billion and The Bank, in collaboration with the Federal
US$117,114 claims, out of which N4.88 billion Ministry of Youth, Sports and Social
and US$50,271 were refunded. Complaints on Development, and the National Youth Service
fraudulent transactions stood at 1,645 (31.8 per Corps (NYSC) implemented the National Peer
cent) and was the highest category of complaints Group Educator Programme (NAPGEP) in Lagos,
received, followed by Account Management with Delta, Abia, Jigawa, and Gombe states, and the
1,155 complaints or 22.3 per cent. FCT. A total of 205 NYSC Volunteer Corp
Members (VCM) were trained to disseminate
Other categories of complaints received knowledge on financial literacy, and to onboard
included: failed transactions, 1,154 (22.3 per other Corps Members and prospective
cent); excess charges, 254 (4.9 per cent); consumers on the eNaira service, in their
erroneous transfers, 236 (4.6 per cent); dispense respective areas of primary assignment.
error, 202 (3.9 per cent); loans, 244 (4.7 per
cent); tenored investments, 27 (0.5 per cent); Also, the “Train-of-Trainer Program” for MDAs in
Bonds and guarantee, 11 (0.2 per cent); the Federal Ministry of Finance and Faith-Based
unauthorised charges, 10 (0.2 per cent); and Organizations in Abuja, were designed to educate
“others”, 230 (4.4 per cent). their staff on financial literacy and other
consumer education. The trainings were aimed at
driving financial literacy of consumers at the

grassroots and improving their ability to take importance of savings and other financial literacy
informed decisions regarding their financial concepts amongst children, youths, and the
resources. The Bank also collaborated with key public. The School Mentoring Programme was
stakeholders to facilitate the mainstreaming of held in Abuja, Lagos, Borno, Niger, Kaduna,
Financial Education into the Nigerian Educational Enugu, and Cross River States. The Virtual Tour of
Curriculum at the Basic and Senior Secondary the CBN Currency Museum was streamed live in
levels. Kebbi, Abia, Edo, Ogun, Bauchi, and Plateau
states, with a total of 681 participants.
Furthermore, the Bank in collaboration with the
Shared Agent Network Expansion Facilities 2.4.17 The Asset Management Corporation of
(SANEF), conducted Financial Literacy Awareness Nigeria
Workshops in some selected rural areas aimed at The carrying value of Asset Management
raising awareness on consumer protection Corporation’s (AMCON) liabilities increased
initiatives of the Bank, consumer rights and marginally by 1.0 per cent to N5.59 trillion at end-
responsibilities, and the rudiments of agent December 2022, compared with N5.54 trillion at
banking and how to identify authentic SANEF end-December 2021. The Corporation’s total
Agents. assets net of impairment rose by 11.5 per cent to
N989.89 billion at end-December 2022,
The Bank developed the SabiMONI financial compared with N886.80 billion at end-December
literacy e-Learning platform to offer financial 2021.
education for persons interested in becoming
Certified Financial Literacy Trainers (CFLTs), and The carrying value of the AMCON Note remained
consumers desirous of improving their financial at N3.86 trillion, while the value of the Loan
wellbeing. (Debenture) remained at N500.00 billion plus
accrued interest of N15.00 billion. The AMCON
A Nation-wide Media Engagement session to Note will fall due for redemption on December
deepen consumer education and financial 27, 2023.
literacy was broadcast on radio and YouTube. The
sessions, driven by Subject Matter Experts from From inception of its operations to December
the Currency Operations and Banking Supervision 2022, the Corporation achieved a total recovery
Departments, dwelled on issues of consumer of N1.74 trillion made up of cash recovery of
rights and responsibilities, and public N925.49 billion and other collections (property
enlightenment on the Naira Redesign and the sale, share sales, rental income, dividend income,
Revised Cash Withdrawal Limits. and re-investment income) of N814.51 billion.
The Corporation achieved cash recoveries of
The Bank commemorated the World Savings Day N91.41 billion and other collections of N81.32
(WSD) with a School Mentoring Programme and billion during the review period.
a Virtual Tour of the CBN Currency Museum in
selected locations in the country to stress the

Contributions by banks to the Banking Sector Bank. The Bank set up Regulatory Sandbox
Resolution Cost Fund (BSRCF) for the year 2022 Steering and Technical committees to provide
amounted to N354.06 billion. This indicated an effective governance for the initiative. The
increase of 15.0 per cent at end-December 2022, Regulatory Sandbox went live on 13 December
compared with N307.97 billion in 2021. The CBN 2022 and opened for FinTech innovators via
contributes the sum of N50.00 billion annually to https://sandbox.cbn.gov.ng.
the BSRCF, while the contribution of the
participating banks was determined based on The objectives of the Regulatory Sandbox are to:
50.0 basis points of their on-balance sheet assets  Increase the potential for innovative business
and contingents. models that advance financial inclusion;
 Reduce time-to-market for innovative
The collection was invested in primary issuance products, services, and business models;
of Nigeria Treasury Bills pending utilisation in line  Increase competition, widen consumers’
with Section 60E (1)(a) of the AMCON Act 2010 choice, and lower costs;
(as amended in 2015).  Ensure appropriate consumer protection
safeguards in innovative products;
2.5 BANKING AND PAYMENTS SYSTEM  Ensure adequate regulatory provisions to
In 2022, the Bank implemented new initiatives to create an enabling environment for
further deepen and widen the payments system innovation without compromising on safety
landscape as well as to consolidate on the gains for consumers and the overall payment
presented by the COVID-19 pandemic, while system; and
contributing to the achievement of a digital  Provide an avenue for regulatory
financial inclusion system. engagement with FinTech firms in the
payment ecosystem, while contributing to
economic growth.
2.5.1 Payments System Policies
The Bank issued new regulations to ensure 2.5.1.2 Payments System Infrastructure
greater security and efficiency of the payment Financial inclusion improved, following increased
system infrastructure and its interoperability. enrolment in the Bank Verification Number (BVN).
These include: the revised Framework on Quick At end-December 2022, BVN enrolment grew by
Response Code Payment, and exposure drafts on 9.1 per cent to 56.5 million, from 51.8 million at
Operational Guideline for Open Banking and end-December 2021. A total of 127.9 million
Contactless Payments in Nigeria. bank accounts were linked with BVN following
the opening of new accounts, compared with
2.5.1.1 Payments System Strategy 81.9 million at end-December 2021. There were
The operationalisation of the Regulatory Sandbox 159.4 million active bank accounts at end-
in 2022 pushed forward the progress made in the December 2022. Also, the number of BVN on the
implementation of the PSV2025 Strategy by the watch-list for fraudulent and death reasons rose
by 73.9 per cent and 86.9 per cent to 9,300 and

13,743, respectively, from 5,347 and 7,353 Schemes declined by one apiece in the review
recorded at end-December 2021. year.
2.5.1.3 Interoperability The Bank conducted both accreditation and

compliance exercises for Cheque Printers and
The Bank issued a revised Framework for Quick
Personalisers in 2022. Consequently, the licences
Response (QR) Code Payment to widen
of three existing Cheque Printers - Superflux
interoperability options. The revised framework
International Ltd., Tripple Gee Company Plc, and
allows for both merchant- and customer-
Yaliam Press Ltd., were renewed. Kas Art Services
presented modes for payment. This was an
Ltd. and Marvelous Mike Press Ltd. had subsisting
improvement on the initial guidelines that only
licences, while the accreditation process for
allowed merchant-presented option.
Euphoria Press Ltd., Nigeria Security Printing and
To make the Open Banking initiative functional, Minting Plc., and Papi Printing Co. Ltd. were
an exposure draft on Operational Guidelines was ongoing.
issued. The operational guidelines provide clear
responsibilities and expectations for the various Similarly, following the accreditation of Cheque
market participants, ensure safeguards for Management Centers (CMCs), Personaliser
financial system stability, promote competition licences were issued to five CMCs, namely,
and enhance access to banking and other Stanbic IBTC Bank, First Bank, Ecobank, Wema
financial services, as well as maintain an Open Bank, and Providus Bank. The accreditation
Banking Registry (OBR) for regulatory oversight. process for Zenith and Keystone banks was
The initiative would promote permissioned data ongoing.
sharing for the delivery of innovative financial
products and services to bank customers.
2.5.1.4 Regulation and Supervision
To upscale the level of financial inclusion, the

Bank issued licences to new payments service
providers. The Bank issued 32 new licences to
Payments Service Providers (PSPs), bringing the
total number of PSPs to 132 at end-December
2022. Further analysis showed that 12 licences
were issued for Payments Solution Service
Providers (PSSPs), 10 for Super Agents, seven for
Switching and Processing, four for Payments
Terminal Service Providers (PTSPs), and one for
Mobile Money Operators (MMOs). However, the
number of Accredited Cheque Printers and Card

2.5.2.1 Retail Payments System
Table 2.5.1: Licensed Payments System Participants
Number The volume and value of retail e-payments
Licence -Type Dec. Dec. transactions increased significantly in 2022. In
2021 2022 terms of volume and value, total e-payments
Card Schemes 8 7 increased by 35.2 per cent and 36.4 per cent to
Switching and 22,073.6 million transactions and ₦1,476.74
9 16
Processing trillion in 2022, from 16,324.9 million
Mobile Money
16 17 transactions and ₦1,082.30 trillion in 2021,
Operators*
respectively.
Payment Solution
30 42
Service Providers
Payment Terminal A breakdown of the volume of transactions by
15 19
Service Providers channels showed that internet/web, PoS, mobile
Super Agents 16 26 apps and direct debit recorded increases of 36.3
Accredited Cheque per cent, 41.6 per cent, 123.8 per cent, and 46.2
6 5
Printers
per cent to 14,063.9 million, 3,885.8 million,
Total 100 132
Source: Central Bank of Nigeria. 1,861.4 million, and 151.0 million in 2022, from
*The data shown is for Non-Bank Licensed Mobile Money 10,321.6 million, 2,743.6 million, 831.5 million,
Operators.
and 103.3 million, respectively, in 2021.
Nevertheless, transactions on ATM terminals,
2.5.2 Trends in the Payments System USSD, and NEFT channels decreased, by 5.8 per
cent, 6.7 per cent, and 48.8 per cent in 2022,
The Nigerian payments system witnessed
from their respective levels in 2021.
significant increase in volume and value of
transactions, indicating intensified adoption and
The value of transactions across all channels
usage of e-payment options in the review period.
increased, except for the USSD channel that
Total volume of e-payments 4 rose by 35.2 per
declined, by 13.2 per cent to ₦4,494.45 billion in
cent to 22,073.9 million transactions in 2022,
2022, from ₦5,179.90 billion in 2021, due to the
from 16,325.1 million in 2021. The rise was
daily cumulative transaction limit of N100,000.00
attributed to increased adoption and usage of
per customer.
PoS, web, and mobile apps channels. Similarly,
total value of transactions increased by 34.8 per
Analysis of the retail e-payments segment
cent to ₦1,550.44 trillion in 2022, from
showed the dominance of the internet/web
₦1,150.32 trillion in 2021.
channel, which accounted for 63.7 per cent and
53.1 per cent of total volume and value,
respectively, in 2022. The volume of transactions
on PoS, mobile apps, ATMs, and USSD channels,
accounted for 17.6 per cent, 8.4 per cent, 6.8 per
4E-payments transactions includes all electronic platforms used to ATMs, PoS, MMOs, internet (web), USSD, Mobile Apps and Direct
settle financial transactions for households and businesses, such as Debits.

cent, and 2.3 per cent, respectively, in 2022. cent to 288,216 in 2022, from 287,506 in 2021.
However, NEFT channel accounted for 32.3 per Also, the value of the transactions rose by 8.0 per
cent of the total value of e-payment transactions cent to ₦73.71 trillion in 2022, from ₦68.03
in 2022. trillion in 2021.
Figure 2.5.1: Composition of e-Payments Transactions Figure 2.5.3: Volume of RTGS Transactions,
by Volume, 2022 2019 – 2022
NEFT USSD
0.4% 2.3% 290,000
288,216
287,506
Internet Mobile 288,000
286,132
63.7% App
286,000
8.4%
284,000
ATMs 282,000
6.8% 280,000
277,906 278,307
278,000
276,000
274,000
272,000
Direct Debit 2018 2019 2020 2021 2022
POS 0.7%
17.6%
Figure 2.5.2: Share of e-Payments Transaction by Figure 2.5.4: Value of RTGS Transactions, 2019 – 2022
Value, 2022 (per cent) (N’ Billion)
Mobile App Direct Debit ATMs POS 76,000
7.5% 1.8% 2.2% 2.8% 74,209.0
73,706.0
USSD 74,000
0.3%
71,373.0
72,000
N'billion
70,000
68,026.0
68,000 66,781.0
NEFT
32.3% 66,000
64,000
Internet ,
62,000
53.1%
2018 2019 2020 2021 2022

2.5.2.2 Wholesale Payments System 2.5.2.3 Cheque Transaction

The volume of cheque transactions decreased by
Transactions in wholesale payments witnessed
7.3 per cent to 16.91 million in 2022, from 18.25
increases in volume and value in the review
million in 2021, while the corresponding value fell
period. The volume of inter-bank funds transfers
by 2.3 per cent to ₦15.25 trillion, from ₦15.61
through the CBN Real Time Gross Settlement
trillion in 2021. This was attributed to increased
(RTGS) system increased marginally by 0.3 per
consumer preference for e-payment channels.

Table 2.5.2: Volume and Value of Electronic Payments
Dec. 2021 Dec. 2022 2021/2022 % Change
Payment No. of Value of No. of Value of
Channels No. of No. of
Transactions Transactions Transactions Transactions Terminals Volume Value
Terminals Terminals
(Millions) Table 2.5.
(Billion 1: Volume and Value (Millions)
Naira) of Electronic Payments
(Billion Naira)
ATMs 19,399 1,599.2 21,230.9 19,433 1,507.0 32,648.0 3.3 -5.8 53.8
POS 915,519 2,743.6 24,455.4 1,665,664 3,885.8 41,035.8 81.9 41.6 67.8
Internet - -
(Web) 10,321.6 545,039.7 - 14,063.9 783,660.0 36.3 43.8
RTGS - - -
Inter-Bank 0.3 68,026.0 0.3 73,706.5 0.2 8.4
NEFT - 172.8 410,171.5 - 88.5 477,366.9 - -48.8 16.4
USSD - 552.9 5,179.9 - 516.1 4,494.5 - -6.7 -13.2
Mobile - - -
App 831.5 53,208.3 1,861.4 111,122.1 123.8 108.8
Direct - - -
Debit 103.3 23,011.8 151.0 26,409.4 46.2 14.8
Total e- - - -
Payments 16,325.1 1,150,323.5 22,073.9 1,550,443.2 35.2 34.8
Retail e- - - -
Payments 16,324.9 1,082,297.5 22,073.6 1,476,736.7 35.2 36.4
Mobile - - -
(MMOs) 1,201.5 15,395.0 1,926.3 32,599.0 60.3 111.8
NIP - 3,473.2 271,959.6 - 5,134.1 387,075.9 - 47.8 42.3
e-Bills Pay - 1.2 2,278.7 - 0.7 2,547.5 - -41.3 11.8
REMITA - 58.3 28,594.4 - - - - -100.0 -100.0
NAPS - 21.1 20,127.7 - 17.4 24,262.7 - -17.3 20.5
m-Cash - 0.1 0.5 - 0.0 0.2 - -64.5 -57.8
Central - -
Pay 0.3 2.3 0.1 1.6 -60.2 -33.4
Source: CBN, Banks, NIBSS, Switches, and MMOs
Note: NIP, e-Bills Pay, REMITA, NAPS and Central Pay which were previously reported inter-scheme are now appropriately aggregated under the
internet/web channel transactions.
2.5.2.4 Mobile Money Operations 2.5.2.5 Payment Terminals
The volume and value of payments services The number of Automated Teller Machines
provided by the Mobile Money Operators (ATMs) rose by 3.3 per cent to 19,433 at end-
(MMOs) at banking agents touch points rose December 2022, compared with 19,355 at end-
significantly by 60.3 per cent and 111.8 per cent, December 2021. The number of connected Point-
respectively, in 2022. The volume of transactions of-Sale (PoS) terminals increased significantly by
increased to 1,926.3 million, from 1,201.5 million 81.9 per cent to 1,665,664 at end-December
in 2021. Also, the corresponding value rose to 2022, from 915,519 at end-December 2021.
₦32.60 trillion, from ₦15.40 trillion in 2021. The Similarly, the number of banking agents touch
boost in MMOs operations was due, largely, to points rose by 47.0 per cent to 1,474,173 in 2022,
the increase in the number of banking agents on- compared with 1,002,514 at end-December
boarded in the drive for enhanced financial 2021.
inclusion.

Bank tapered its sectoral interventions and
2.5.2.6 Payments Service Banks increased efforts at credit recovery.
The Bank granted licences to two Payments Consequently, disbursements to the priority
Service Banks (PSBs) - Momo PSB and SmartCash sectors declined by 13.8 per cent to N1,791.77
PSB, bringing their number to five at end- billion from N2,078.61 billion in 2021, while
December 2022, from three at end-December N1,686.14 billion was repaid, compared with
2021. N0.44 billion in 2021.
At end-December 2022, the number of Of the total sectoral disbursements in 2022, the
customers on-boarded grew astronomically by manufacturing/Industry sector received the
1,197.9 per cent to 8.93 million, from 0.69 million highest amount of N1,078.46 billion or 60.19 per
customers at end-December 2021. Similarly, the cent, followed by services with N214.19 billion or
number of new wallets/subscribers increased 11.95 per cent. The MSMEs sector received the
significantly by 2,301.5 per cent to 17.99 million, least at N30.67 billion or 1.71 per cent. In terms
from 0.75 million at end-December 2021. of sectoral repayments, of the N1,686.14 billion
The agent banking network base of the PSBs repaid thus far, energy/infrastructure was the
expanded by 296.2 per cent to 308,845, from highest at N1,350.13 billion or 80.01 per cent,
77,949 agents in 2021. The volume of digital followed by agriculture with N214.60 billion or
payments increased significantly by 2,763.63 per 12.73 per cent, while the health sector repaid the
cent to 21.23 million, from 0.74 million in 2021, least at N2.13 billion or 0.13 per cent.
and the corresponding value grew by 339.56 per
cent to ₦179.65 billion in 2022, compared with 2.6.2 National Financial Inclusion
₦40.86 billion in 2021.
The revised National Financial Inclusion Strategy
The significant increases in customer onboarding, (NFIS 3.0) was launched in November 2022 to
volume and value of transactions, number of new improve financial inclusion in Nigeria. The
wallets, and number of engaged banking agents Strategy provides a roadmap and a set of actions
was due, mainly, to the issuance of licences to for achieving the financial inclusion target of 95.0
Momo PSB and SmartCash PSB who leveraged on per cent by 2024 from 64.1 per cent in 2020. The
their existing large telco customer base. target is expected to be achieved through an
increased use of financial services in priority
demographics, increased financial services
2.6 DEVELOPMENTAL FUNCTIONS infrastructure and platforms, as well as improved
2.6.1 CBN Interventions coordination, capacity, and governance within
the financial inclusion ecosystem.
The Bank sustained its intervention programmes
aimed at stimulating the economy through
2.6.3 National Collateral Registry
affordable and accessible credit to the priority
sectors. Following the continued rebound of the The National Collateral Registry (NCR),
economy from the COVID-19-induced shocks, the established under the Secured Transactions in

Movable Assets Act, 2017, continued to promote (PMIs). However, 142 financial institutions (FIs)
the registration and onboarding of financial were active in 2022, comprised of, 20 DMBs, 85
institutions (FIs) on the portal, to facilitate the microfinance banks (MFBs), two (2) merchant
banks, two (2) development finance institutions
management of financial statements, searches,
(DFIs), 18 non-bank financial institutions (NBFIs),
and movable collateral databases. At end- 14 finance companies, and one (1) primary
December 2022, the number of financial mortgage bank (PMB).
institutions that registered on the NCR portal,
increased by 3.8 per cent to 744, relative to the Table 2.6.1: Classification of Registered Financial
preceding year’s level of 717. Institutions on the NCR Portal, 2022
Registered Active
FIs Category
FIs FIs
A breakdown of the registered institutions Commercial Banks and Non-Interest
26
20
Financial Institutions
revealed that there were: 24 commercial banks; Development Finance Institutions 5 2
602 microfinance banks (MFBs); four (4) Finance Companies 55 14
merchant banks; five (5) development finance Merchant Banks 4 2
Microfinance Banks 602 85
institutions (DFIs); 48 non-bank financial
Non-Bank Financial Institutions 48 18
institutions (NBFIs); 55 finance companies (FCs); Primary Mortgage Banks 4 1
two (2) non-interest financial institutions (NIFIs); Total 744 142
and four (4) primary mortgage institutions Source: National Collateral Registry.

Table 2.6.2: Disbursements and Repayments of CBN Interventions
2021 2022
Amount Number of Amount Number of
Sector/Intervention Share (%) Repayment Share (%) Repayment
Disbursed (₦' bn) Beneficiaries Disbursed (₦' bn) Beneficiaries
Agriculture 448,261,154,176 21.57 355,399,378,260 175,375,061,381.00 9.79 214,602,029,585.12
Anchor Borrowers' Programme (ABP) 417,024,881,275.71 93.03 63 Anchors 256,980,310,638 139,251,633,809.00 79.40 85 Anchors (1,230,087) 115,257,928,373.33
Commercial Agricultural Credit Scheme (CACS) 29,347,652,900.00 6.55 25 Projects 71,823,461,231 28,243,427,572.00 16.10 27 Projects 78,914,988,507.15
Paddy Aggregation Scheme(PAS) - 0.00 1 Rice Millers 4,666,666,667 6,200,000,000.00 3.54 17 Rice Millers 1,000,000,000.00
Accelerated Agriculture Development Scheme (AADS) 1,536,120,000.00 0.34 2,594,826,062 1,680,000,000.00 0.96 6,013,470,851.32
AADS - DCRR 31,666 Loans
Maize Aggregation Scheme (MAS) 352,500,000.00 0.08 1 Feed Miller 1 Project -
Rice Distribution Facility (RDF) - 0.00 1,000,000,000 -
National Food Security Programme (NFSP) - 0.00 10,084,113,663 6,415,641,853.32
Presidential Fertilizer Initiative (PFI) - 0.00 8,250,000,000 35000 7,000,000,000.00
Energy/Infrastructure 669,066,770,260 32.19 46,219,556,643 174,178,542,958.77 9.72 1,350,128,960,536.02
Nigeria Electricity Market Stabilization Facility (NEMSF) - 0.00 18,357,731,380 6,469,362,035.93 3.71 22,425,887,511.11
Nigeria Electricity Market Stabilization Facility 2 (NEMSF 2) 164,132,556,147.72 24.53 34,176,151,756.12 19.62 -
Nigeria Electricity Market Stabilization Facility 2 (NEMSF 3) 0.00 67,988,103,655.12 39.03 -

Nigeria Bulk Electricity Trading-Payment Assurance Facility (NBET- Procurement and Installation
418,028,504,806.18 62.48 26,933,355,872.99 15.46 of meters 1,300,035,103,611.14
PAF)
Intervention Facility for the National Gas Expansion Programme
39,200,000,000.00 5.86 6 35,300,000,000.00 20.27 -
(IFNGEP)
Procurement and
National Mass Metering Programme (NMMP) 32,823,599,835.87 4.91 installation of meters 3,311,569,638.61 1.90 364,160,060.59
SANEF 6,000,000,000.00 0.90 471,284,950 918,814,051.32
PAIF 1,882,109,470.09 0.28 27,390,540,313 0.00 26,384,995,301.86
SCF 7,000,000,000.00 1.05 -
MSMEs 199,884,360,864 9.62 21,913,274,908 30,668,218,485.00 1.71 8,803,259,752.84

Agribusiness/Small and Medium Enterprises Investment Scheme
79,694,242.00 0.04 10,688 Beneficiaries 4,570,345,682.00 14.90 9,761,876.41
(AGSMEIS)
Creative Industry Financing Initiative (CIFI) 2,670,510,000.00 1.34 52 Projects 277,037,523 174,300,000.00 0.57 3 Projects 583,745,477.53
Tertiary Institutions Entrepreneurship Scheme (TIES) 29,127,500.00 0.01 6 Beneficiaries 326,572,803.00 1.06 -
Micro, Small and Medium Enterprises Development Fund
13,190,755,000.00 6.60 3 Beneficiaries 14,634,945,027 10,000,000.00 0.03 7,207,328,030.79
(MSMEDF)
Targeted Credit Facility (TCF) 182,173,134,880.00 91.14 387,662 beneficiaries 3,733,443 25,587,000,000.00 83.43 387,662 beneficiaries 825,479,777.30
Nigerian Youth Intervention Fund (NYIF) 1,741,139,242.00 0.87 6764 60,000,000.00
Tradermoni 0.00 6,997,558,915 -
Youth Entrepreneurship Development Programme (YEDP) - 0.00 116,944,590.81
Manufacturing/Industry 755,635,772,951 36.35 14,526,521,257 1,078,457,331,126.00 60.19 66,104,747,756.30
100 for 100 PPP 0.00 150,668,969,363.00 13.97 1,136,708,322.21
Textile Sector Intervention Facility (TSIF) 1,292,000,000.00 0.17 10 projects 5,307,584,151 1,500,000,000.00 0.14 13,113,456,559.43
Covid-19 Intervention for the Manufacturing Sector (CIMS) 1.32 49.57 3 Power projects 3,519,557,740.40
9,990,353,200.00 60 projects 2,212,443 534,586,875,000.00
RSSF Using Differentiated Cash Reserve Ratio (RSSF-DCRR) 443,429,139,234.05 58.68 62 projects 2,050,934,446 291,701,486,763.00 27.05 121 projects 11,318,971,009.36
CBN-BOI intervention Fund - 0.00 100,000,000,000.00 9.27 -
SMERFF 300,924,280,516.46 39.82 4,211,665,468.76
RSSF - 0.00 7,165,790,217 32,804,388,656.14
Health 4,006,278,717 0.19 0 338,312,066.38 33,249,717,349.45 1.86 2,129,160,972.08
HSRDIS 50,000,000 1.25 5 approvals 14,750,478.05 0.04 5 applications -
Health Care Sector Intervention Fund (HSIF) 3,956,278,717 98.75 46 projects 338,312,066 33,234,966,871.40 99.96 137 projects 2,129,160,972.08
Export Sector 1,757,673,904.11 4,764,109,261.45 85,654,175,182.60 4.78 9,916,783,232.21
NESF 1,757,673,904.11 100.00 4,764,109,261.45 9,916,783,232.21
EFI 46,181,901,210.00 53.92 -
EDF-NEXIM 0 39,472,273,972.60 46.08 -
-
Services 214,185,380,790.17 11.95 34,452,859,951.68
Salary Bail-out Facility (SBF) 0 3,295,033,306.56
Excess Crude Account (ECA) 0 31,157,826,645.12
FGN BOND 214.185 214,185,380,790.17 100.00 -
TOTAL 2,078,612,010,871.45 100.00 443,161,152,396.70 1,791,768,427,272.99 100.00 1,686,137,801,786.25

Box 2: Race to US$200.00 billion in Foreign Exchange Repatriation
(RT200 FX Programme)
The Bank introduced the Race to US$200.00 billion (RT200) programme in February 2022. The
RT200 comprised of a set of policies, plans, and programmes for non-oil exports aimed at
attracting US$200.00 billion in foreign exchange inflow, over the next 3-5 years. It was anchored
on a five-point agenda, namely:
(i) Value-Adding Exports Facility;

(ii) Non-Oil Commodities Expansion Facility;
(iii) Non-Oil FX Rebate Scheme;
(iv) Dedicated Non-Oil Export Terminal; and
(v) Biannual Non-Oil Export Summit
Among these anchors, the non-oil FX Rebate Scheme is designed to incentivise exporters in
the non-oil sector to encourage repatriation and sale of export proceeds into the FX market.
During the review period, US$2,913.01 million was repatriated and sold on the Investors
and Exporters (I&E) window, while N137.15 billion was approved as rebate.
Non-Oil Proceeds and Rebates

Period Number USD Repatriated and Sold Rebate (N)
of Banks on the I & E Window
Q1 9 67,397,885.19 3,285,170,923.45
Q2 25 1,003,667,771.39 32,751,895,924.37
Q3 25 871,036,186.01 45,742,392,788.03
Q4 24 970,912,755.22 55,374,295,973.54
TOTAL 2,913,014,597.81 137,153,755,609.39
Source: Central Bank of Nigeria
The Maiden Edition of the Bi-Annual RT200 Non-Oil Export Summit 2022, which was jointly
organised by the Central Bank of Nigeria and the Bankers’ Committee, took place on June
16, 2022, at the Eko Hotel and Suites, Victoria Island, Lagos State. The Summit, themed
“Setting the Roadmap Toward Achieving RT200 and Non-Oil Exports for Development”,
served as a forum for policymakers, bankers, and exporters to deliberate on issues related
to the boosting of non-oil export proceeds and proffering pragmatic and workable
solutions geared toward addressing the identified issues as well as facilitating the
attainment of the policy objectives of the RT200 Scheme.
The second edition of the summit, with the theme “RT 200 Non-Oil Export: The Journey So
Far” took place on November 29, 2022, at the Eko Hotel and Suites, Victoria Island, Lagos
State. The summit provided an avenue for stakeholders to assess progress made in the
implementation of the Scheme, deliberate on identified issues impeding the repatriation
of non-oil export proceeds, and proffer pragmatic solutions to aid the achievement of the
objectives of the Scheme.

3.0 CORPORATE ACTIVITIES
The Bank fostered its strategic initiatives and Table 3.1.1: Board of Directors’ Meetings and
sustained its corporate social responsibility. Thus, Attendance
it re-invigorated its corporate strategy, upgraded No. of Meetings
S/N Member
its IT infrastructure, and enhanced the e-Naira Attended
digital currency. Furthermore, it constructed new 1 Godwin I. Emefiele, CON 3 out of 3
buildings in the Central Hospital in Delta state and 2 Aishah N. Ahmad 3 out of 3
Kano state University of Science and Technology, 3 Edward L. Adamu 3 out of 3
and provided capacity building services and 4 Folashodun A. Shonubi 3 out of 3
financial assistance to institutions, organisations, 5 Kingsley I. Obiora 3 out of 3
and individuals. 6 Abdu Abubakar 3 out of 3
7 Adeola Adetunji 3 out of 3
3.1 ADMINISTRATION 8 Aliyu Ahmed 3 out of 3
3.1.1 The Board of Directors and Other 9 Ahmed Idris 2 out of 3
10 Justitia O. Nnabuko 3 out of 3
Committees
11 Mike I. Obadan 3 out of 3
The Board of Directors held three regular 12 Ummu A. Jalingo 3 out of 3
Meetings in 2022, while the Committee of Source: Central Bank of Nigeria
Governors held 52 regular meetings. The Audit,
Financial System Stability, Finance & General- Table 3.1. 2: Committee of Governors’ Meetings
and Attendance
Purpose, Investment, Pension Fund No. of Meetings
Management, and Risk & Cybersecurity S/N Member
Attended
Committees held three meetings each, while the 1 Godwin I. Emefiele, CON 51 out of 52
Corporate Strategy, Establishment, 2 Aishah N. Ahmad 47 out of 52
3 Edward L. Adamu 47 out of 52
Remuneration, Ethics & Anti-Corruption 4 Folashodun A. Shonubi 47 out of 52
Committees held two meetings each, during the 5 Kingsley I. Obiora 49 out of 52
year. Source: Central Bank of Nigeria
The tenures of four Non-Executive Directors, 3.1.2 The Monetary Policy Committee (MPC)
namely: Adeola Adetunji, Justitia O. Nnabuko,
Mike I. Obadan and Ummu A. Jalingo expired on In 2022, the Monetary Policy Committee (MPC)
6 June 2022, but were subsequently re-appointed held its regular bi-monthly meetings in January,
by the President, effective 27 September 2022 March, May, July, September, and November.
for the final term of four years. Also, the Deputy Major developments in the global and domestic
Governor, Financial System Stability, Aishah N. economy, and financial environment influenced
Ahmad and the Deputy Governor, Corporate the decisions of the Committee. Subsequently,
Services, Edward L. Adamu, were re-appointed the decisions of monetary policy were conveyed
for a final term of five years, effective 23 March to the public through communiques and press
2023. briefings.

Monetary policy in 2022 focused on reining-in attacks, and implemented new systems and
inflation while supporting a fragile economic technologies. Developments recorded
growth. Accordingly, the Monetary Policy included:
Committee (MPC) raised the monetary policy
rate (MPR) four times by a cumulative 500 basis 3.1.4.1 Computerisation Programme
points to 16.50 per cent and the cash reserve  RTGS/ S4:
ratio (CRR) once by 500 basis points to 32.5 per The Bank embarked on an upgrade of the Real-
cent. Time-Gross-Settlement (RTGS) System and
Scripless Security Settlement System (S4) to
Table 3.1.3: Monetary Policy Committee Meetings and
Attendance reduce the risks associated with payments and
No. of Meetings settlement of transactions as well as effectively
S/N Members
Attended set the system in compliance with ISO20022
1 Godwin I. Emefiele, CON 6 out of 6 (which is the international standard for
2 Aishah N. Ahmad 6 out of 6 exchanging electronic messages between
3 Edward L. Adamu 6 out of 6 financial institutions). Some expected benefits of
4 Folashodun A. Shonubi 6 out of 6 the upgrade included: migrating from SWIFT to
5 Kingsley I. Obiora 5 out of 6
VPN for full country ownership; 24/7 system
6 Mike I. Obadan 6 out of 6
access, with regional and continental integration
7 Adeola F. Adenikinju 6 out of 6
readiness; customisation and testing to build
8 Aliyu R. Sanusi 6 out of 6
9 Robert C. Asogwa 6 out of 6 more capacity; and a richer system design,
10 Aliyu Ahmed* 3 out of 6
11 Mohammed A. Salisu** 4 out of 6  Temenos T24:
12 Momodu E. Omamegbe** 4 out of 6 The Bank’s core banking application, Temenos
Source: Central Bank of Nigeria. T24 was upgraded from version 13 to version 20.
Note: * Mr. Aliyu Ahmed was absent due to exigencies of duty **
Dr. Mohammed A. Salisu and Dr. Momodu E. Omamegbe were Some major accomplishments recorded in view
appointed as members on 6 April 2022 and attended their first of the completion were: implementation of single
meeting on 23 May 2022.
and bulk NUBAN validation; completion of
3.1.3 CBN Community Engagements General Ledger (GL) difference resolution; and
The Bank intervened in the education and health reconciliation of account balances between ERP
sectors of the economy through the construction and T24.
and delivery of a building at the Central Hospital,  Oracle ERP
Agbor, Delta State, and another at the University The Bank’s enterprise resource planning
of Science and Technology, Wudil, Kano State. software, Oracle ERP, was upgraded in line with
the ever-growing technology capabilities. The
3.1.4 Information Technology system upgrade enabled the automation of the
The Bank leveraged information technology in reconciliation process, among others.
the pursuit of its mandate. It sustained and
fortified the cyber resilience of the IT
infrastructure and services against cyber-

3.1.4.2 eNaira 3.1.5 Library Operations
The Bank marked the one-year anniversary of the The volume of books in the Library system
deployment of the first central bank digital increased to 120,349 in 2022, from 120,169 in
currency (CBDC) in Africa, the eNaira, on 25 2021, representing a 0.2 per cent increase. This
October 2022. Since its launch, significant was attributed to the diversification from print
milestones had been achieved. These included: books to the electronic book format. A total of
• Integration of all banks and a substantial 116 eBook titles were added to the eBook
number of PSPs with the eNaira holdings of the Library.
platform; The number of library materials consulted by
• Development and deployment of an app staff were 39,816, representing an increase of
and web wallets for the eNaira; 103.0 per cent from the 19,614 recorded in 2021.
• N5.00 billion worth of eNaira have been This was attributed to the increased sensitisation
minted with N2.97 billion (59.0 per cent) by the library on the resources available.
issued to financial institutions;
• 2.1 million wallets have been activated Furthermore, a total of 88,319 downloads of
amongst which were the merchant library resources were recorded in 2022,
wallets for some major outlets; compared with 18,032 in the preceding year. The
• Collaboration with the Federal Ministry downloads were from 2,181 institutions, across
of Humanitarian Affairs, Disaster 192 countries, compared with 671, across 162
Management and Social Development countries, in 2021. This represented a 69.0 per
(FMHDS), to facilitate direct cent and 18.5 per cent increase in the number of
disbursement of social intervention institutions and countries, respectively, that
funds to citizens. This partnership led to accessed the resources from the CBN Digital
the creation of additional 1.3 million Commons. The development was attributed to
eNaira wallets for the beneficiaries; the increased visibility and access to the Bank’s
• 875,000 transactions amounting to intellectual output, following the successful
N11.83 billion have been recorded on implementation of the Digital Commons,
the platform; and indexing through Google Scholar and RePEc, and
• The first ever central bank-sponsored remote authentication through the Open Athens.
hackathon held in August 2022 with
The Bank continued to provide access to
4,911 registrations and 176 teams
electronic books and journals, covering
participating at the event. The winning
economics, finance, business, and banking
use cases emanating from the event
through Springer, Elsevier, Science Direct, the
would progress to an incubator program
IMF e-Library, and the World Bank Open
from 2023, to drive innovation in the
Knowledge Repository (OKR). The following
payments system.
databases were also available: EBSCOHost;
Journal Storage (JSTOR); Access to Global Online
Research in Agriculture (AGORA); and Online

Access to Research in Environment (OARE). The The Customs And Excise Management Act, Cap
data and statistical sources provided by the C45 LFN 2004 and to enact an Act to establish The
Library were: Fitch Connect (formerly Business Nigeria Customs Service Act 2021; Money
Monitor International (BMI)); the International Laundering (Prevention and Prohibition) Bill,
Monetary Fund (IMF) Databank; and the World 2021; Proceeds of Crime (Recovery and
Bank Open Data source. Management) Bill, 2021; and Bill for an Act to
Establish the Chartered Institute of Computer
3.1.6 Legal Services Forensics of Nigeria and for Related Matters (HB.
The Bank continued to strengthen the legal and 1491).
regulatory framework to improve the overall Bills awaiting the President’s assent were also
effectiveness of the financial system in line with reviewed, including National Agricultural
its mandate. To this end, agreements, guidelines, Development Fund (Establishment) Bill 2022;
and Memoranda of Understanding (MoU) were Chartered Institute of Forensics and Certified
drafted and reviewed. These included: Review of Fraud Investigators of Nigeria (Establishment)
Oil and Gas Free Zones Authority (OGFZA), Bill, 2022; and Rice Council Bill, 2022.
proposed Guidelines for Banking Operations in
the Free Zones, a complete assessment of the The Bank was involved in 1,855 cases, out of
legal framework for free zones in other countries; which 977 were garnishee proceedings. Of the
and review of the National Operational Guideline total, 339 cases have been concluded. In line with
for Official Development Assistance Policy and Section 98 of the BOFIA, 142 cases were handled
Development Cooperative Report for in-house by the Legal Services Department.
maintenance of an impeccable record system for The Bank also rendered legal assistance to
all official development assistance received. related institutions such as: the Nigeria
Others were the review of the Offtake and Supply Commodity Exchange (NCX), the Nigerian
Agreement between the Central Bank of Nigeria Electricity Supply Industry (NESI), and the
and the Solid Minerals Development Fund- Nigerian Incentive-based Risk Sharing System for
Presidential Artisanal Gold Development Agricultural Lending Micro-Finance Bank (NIRSAL
Initiative (SMDF-PAGMI) Limited in respect of the MFB), among others.
Presidential Artisanal Gold Development Mining
Initiative (PAGMI); and the development of a 3.1.7 Security Services
Guideline to streamline and standardise the The Bank reinforced security across its locations,
requirement and process for conversion/upgrade targeting standard security requirements, and
among licence types. addressing identified security gaps to reduce
During the period, relevant bills from the vulnerability. The strategy adopted focused on
National Assembly were reviewed, including: strengthening and upgrading existing deterrent,
Securitisation of Assets-Backed Securities Bill, detection, and delay security systems in addition
2019; Factoring Assignment and Receivables to an improvement in response capabilities.
Financing Bill 2020; Nigeria Deposit Insurance
The Bank facilitated regional inter-departmental
Corporation Bill, 2022; a Bill For An Act To Repeal
and inter-agency engagement sessions with the

Branch Controllers, Risk Management 3.1.9 Risk Management
Department, Branch Operations Department, The implementation of the Integrated Risk
and Security agencies (Nigeria Police Force, Management (IRM) solution commenced in
Department of State Services, Federal Fire 2022. The IRM Solution is an Enterprise Risk
Service, among others) in the six geopolitical Management software, which enables the
zones. This was to provide a platform for automation of Risk Management processes, data
improved collaboration with the security flows, and tracking of risk indicators, while
agencies on emerging security trends peculiar to enhancing risk-informed decision-making by
each of the locations and recommend necessary Management.
measures.
The Bank also implemented the Insider Threat
and Third-Party Risk Management Frameworks in
The Bank continued its conduct of security
the review period. The Bank passed the re-
awareness training for all staff in all locations to
certification audit of its Information Security
enhance personal safety and wellbeing. It also
Management System (ISMS) in conformity with
conducted routine emergency response drills and
the ISO 27001:2013 standard. All Risk Treatment
trained a significant number of Emergency
plans were signed-off and identified gaps were
Response Team members to build capacity, and
being closed.
provide first-line support in the event of
emergency. As part of the risk governance framework of the
Bank, several meetings of the Investment, as well
3.1.8 Internal Audit as the Risk and Cyber-Security Committees, were
In 2022, 186 audits were planned for held during the review period.
Departments, Processes, and Branches,
respectively. Also, 191 currency disposal 3.1.10 Strategic Initiatives Management
operations, requiring audit witnesses, were The Bank’s strategy for 2021 – 2024 was unveiled
carried out. The Department reported critical by the Governor of the Central Bank of Nigeria in
exceptions, bordering on control weaknesses, to February 2022. The strategy focuses on
the Audit Committee of the Board to ensure strengthening and increasing the value creation
compliance and resolution of the exceptions. of the Bank's policies to promote economic
growth and developments. The areas covered
To ensure continuous learning/capacity included; job creation, infrastructure
improvement platform for improved service improvement, promotion of financial inclusion,
delivery, in-house training sessions were enhanced export, and foreign reserves accretion.
conducted for the internal auditors on the audit The development framework adopted an issue-
management software, Team-Mate, and the based approach and an agile (responsive, flexible,
Interactive Data Extraction and Analysis (IDEA) and inclusive) methodology in defining the seven
software applications. strategic priorities (themes) the Bank is focused
on, namely:

 Deliver price stability that promotes 3.1.11 Ethics, Anti-Corruption and Governance
sustainable economic development and 3.1.11.1 Ethics, Compliance, and Anti-
improved standard of living; corruption
 Foster confidence in the integrity and Seminar
The 10th CBN Annual Ethics seminar was held on
soundness of Nigeria’s financial system
6 October 2022 with the theme: "Promoting
that enhances the nation’s
Good Practices and Optimising Performance in
competitiveness;
The Workplace: The Role of Effective Ethics and
 Leverage technology and innovation to
Compliance Regime". 570 staff were in
ensure a secured, efficient, and reliable
attendance. The Seminar aimed to:
‘digital financial inclusion’ system;
 Demonstrate commitment to promote
 Facilitate finance to enhance ethics and compliance in the Bank;
productivity in targeted sectors for  Enhance capacity building of staff to
sustainable job creation and inclusive optimise their performance;
growth;  Promote good workplace practices; and
 Strengthen and maintain sustainable  Expose staff to international best
foreign reserves to build resilience practices on ethics and compliance.
against shocks;
 Excel in delivering operational excellence 3.1.11.2 The 2022 Anti-Corruption Day
in all processes and activities of the Bank; The Bank participated in activities outlined by the
and Inter-Agency Task Team (IATT) to mark the 2022
 Empowered purpose-driven team International Anti-Corruption Day (IAD) on 9
dedicated to delivering measurable December 2022. The theme was "Uniting the
impact. World Against Corruption”. The aim was to raise
These Strategic themes position the Bank to close awareness on combating and preventing
the identified value gaps in the Nigerian economy corruption with the slogan "United Against
that will ensure the Nation shifts to: Corruption."
 Low inflation;
 Stable exchange rate;
3.1.12 Compliance with the Code of Business
 Low cost of borrowing;
 Financing productive export-focused Ethics and Compliance, and the Remuneration,
economy; and Ethics, and Anti-Corruption Committee
 Deeper & broader financial system. In 2022, the Bank ascertained the level of
compliance with the Code of Business Ethics and
The Bank’s new Core Values encapsulated in Compliance (COBEC) of its strategic business
Integrity, Partnership, Accountability, Courage, units (SBUs). The Remuneration, Ethics, and Anti-
and Tenacity (I-PACT) also reinforce the Bank’s Corruption Committee (REACC) of the Board, met
working principles and beliefs that are the twice to consider issues related to the following:
foundation for its interaction with all  implementation, monitoring, and
stakeholders. enforcement of compliance with all

policies, rules, and guidelines on ethics review period showed that no suspicious
and anti-corruption, such as the COBEC, transaction was reported in the branches.
oath of allegiance and whistle-blowing;
 facilitation of the administration of the The Association of Certified Fraud Examiners
asset declaration forms; and (ACFE) Law Enforcement and Government
 Sensitisation of staff on issues of anti- Alliance (LEGA) presented a membership
corruption and ethics. certificate to the Central Bank of Nigeria.
Membership of the ACFE provides the Bank the
opportunity to benefit from the anti-fraud
3.1.13 Anti-Money Laundering and Combating experience and expertise of law enforcement
Financing of Terrorism from other countries.
As part of its effort on anti-money laundering and
combating financing of terrorism (AML/CFT), the 3.1.14 The Financial System Strategy (FSS)
CBN sustained its collaboration with both internal To achieve its strategic objectives, the CBN, in
and external stakeholders, through the quarterly collaboration with key stakeholders,
inter-departmental stakeholders’ meetings and implemented the following initiatives:
the bi-monthly virtual meetings of the  Finance Reporting Application for SMEs;
Association of Chief Compliance Officers of Banks  Business Community-Based Credit
in Nigeria (ACCOBIN). It also conducted customer Model (B2CM);
due diligence for 31 branches. Enhanced Due  Electronic Mortgage Asset Registry
Diligence (EDD) was carried out in six CBN System (e-MARS);
branches to ascertain the volume and value of  InsurTech5;
cash withdrawals over the counter by security
 Enhancing Diaspora Inflows;
agencies, ministries, departments, and agencies
 Legal and Regulatory Framework; and
(MDAs).
 Human Capital Development.
The Bank conducted the Society for Worldwide 3.1.15 The Shared Services Programme
Inter-bank Financial Telecommunication (SWIFT)
screening on 53,291 messages, and reports In 2022, the following programmes were
generated, indicating “hits” (suspected successfully carried out under the Shared
Services Initiative:
messages), were reviewed for Management
i. Compliance Audit and Remediation
consideration. AML/CFT questionnaires were Workshop for Deposit Money Banks
received from 13 correspondent banks, which
Following the release of the IT Standards
were promptly completed and returned to the
Blueprint which defined IT industry standards,
respective banks. A review of all Special Reports
the Bank, in conjunction with the Bankers’
on Funds Transactions (SRFT) and Suspicious
Committee, conducted the 2022 compliance
Transaction Reports (STR) received during the
5
Innovative use of technology in Insurance

audit for banks, which covered the following key The remaining banks were at various stages of
areas: migration.
 Swift Messaging ISO20022 iv. The Nigerian Financial Services

This enabled industry adoption and Network (NFSN)
readiness for the exchange of ISO 20022 The Bank, in conjunction with the Bankers
CBPR+ compliant messages for cross- Committee, approved the implementation of
border payments; and shared IT Standards and Infrastructure initiatives
to reduce operating costs and improve the
 Cloud Security ISO27017 and Cyber Security overall efficiency of the Nigerian banking sector.
ISO27032 The initiatives included: (NFSN); IT Standards
These seek to facilitate the application of Compliance Audit; the Shared Power
Information Security Controls, for the Infrastructure; and the Shared Data Centre (SDC).
provision and use of cloud services, as
well as improve the state of
cybersecurity in the Nigerian Financial v. Management Motor Vehicles and
Services ecosystem. Drivers Pooling Initiative
The Bank approved the Management Motor
ii. Compliance Audit for the National Vehicles and Drivers Pooling Initiative with a view
Microfinance Banks and Payment to optimising processes and saving costs. The
Solution Providers. initiative seeks to automate and manage all
The national microfinance banks and Payment vehicles and drivers in the Bank, using an
Solution Providers (PSPs) were incorporated into application developed by the Information
the IT Standards programme in the year under Technology Department (ITD) to drive the
review. The objective is to facilitate an end-to- initiative.
end operational standard across the Nigerian
financial services industry.
3.1.16 Medical Services
The IT Standards Governance Council approved
The Bank provided various medical interventions
the adoption of IT Standards Blueprint for the
to sustain a healthy and productive workforce,
PSPs and NMFBs.
such as: re-modelling of the surgical theatres at
the Diagnostic and Treatment Centre (DTC),
iii. Shared Data Centre Initiative Abuja, into Modular theatres; construction of an
A Master Service Agreement between the Bank extension building for the DTC Abuja; and
(on behalf of the industry) and Service Providers renovation and use of a temporary health facility
(MainOne, MTN & Rack Center) was executed to in Lagos.
guide usage of the Data Centre Services by banks.
Over 20 banks migrated their remote data The Bank’s staff clinics attended to a total of
centres to the shared Remote Data Centre (RDC). 148,394 cases, involving staff and dependants. Of
these cases, 27,883 were referred to stand-by

hospitals, while 126 staff/dependants were Figure 3.1.1: Staff Clinic Activities, 2022
treated overseas for conditions that could not be 160000
handled locally. A total of 793 adult vaccines were 140000
120000
administered to staff, while 4,254 routine
No. of attendees
100000
immunisation were administered to staff 80000
children. In addition, a total of 4,506 staff 60000
received the COVID-19 vaccination, out of which 40000
20000
3,645 were fully vaccinated while 192 were
0
partially vaccinated. Patients treated Stand by Clinics Specialist Clinic Vaccinations
at clinic received

As part of the comprehensive health care plan for
Bank’s staff, several health seminars were
conducted on topical health issues such as: Ebola Figure 3.1.2: Specialist Medical Services, 2022
Virus Disease (EVD); COVID-19 pandemic; 18000
Hepatitis B infection; HIV/AIDS; Diabetes 16000
15726
Mellitus; and Hypertension. Of the in-house

No. of Specialist Services
14000
specialty clinics, physiotherapy had the highest 12000
attendance of 15,726. This was followed by 10000
ophthalmology clinic with 6,920 patients,
8000 6920
cardiology had 4,321 patients out of which 103
6000
ECG were conducted, ante natal care (ANC) 4321 4061 4380
3563
4000
services were offered to 4,061 pregnant women,
2000 1073
ENT (ear, nose, and throat), 3,563 patients while 103
0
Endocrinology recorded the least attendance of
1,155 patients. Family planning services were
also offered to 4,380 women at the Clinic as part
of maternal health services. The Bank also Source: Central Bank of Nigeria.
sponsored comprehensive medical screening of
196 Executives. 3.1.17 Training
In line with the Bank’s manpower development
strategy, a total number of 7,563 staff
participated in various training programmes (in-
class and virtual) in the review period. Of this
number, 6,109 were locally trained, 699 attended
overseas courses, while participation at the CBN
International Training Institute (ITI) stood at 755.
A breakdown of participants at the CBN ITI by

Directorate showed that Governors recorded the
highest with 169, followed by Economic Policy

with 161; Financial System Stability, 137; Analysis of training by cadre indicated that
Operations recorded 111; Corporate Services, Executives accounted for 10.0 per cent, Senior
107; and Branches, 70 attendees. 82.0 per cent and 8.0 per cent for the Junior
category.
Figure 3.1.3: ITI Course Attendance by Directorates
and Other Organisations, 2022 Figure 3.1.5: Training Distribution by Status, 2022
180 169 EXECUTIVE
161
10%
160
137
140
JUNIOR
111
No. of attendees
120 107 8%
100
80 70
60
40
20
0
EP FSS CS OPS GOV Branches SENIOR
82%
Figure 3.1.4: Local and Foreign Training Distribution by Staff beneficiaries of various training programs
Directorates and Branches, 2022 comprised 68.0 per cent male and 32.0 per cent
2500 female.
1976
2000
Figure 3.1.6: Training Distribution by Gender 2022
1500 1306
1110
896 910
1000
610
500 32%
FEMALE
0 MALE
BRANCHES CS EP FSS GOV OPS 68%
FOREIGN LOCAL TOTAL
The local and foreign training distribution by Source: Central Bank of Nigeria.
Directorate showed that Corporate Services
recorded the highest with 1,306; followed by 3.1.18 Partnership Programmes and
Operations 1,110; Governors 910; Financial Research Project
System Stability 896; Economic Policy recorded The ITI continued to partner with foreign
610, while the branches recorded 1,976. stakeholders to gain expertise on emerging
topics at minimum cost. These stakeholders
include: the US Federal Reserve Bank (FRB),

the West African Institute for Financial and Women Association, Gwagwalada and Hospital
Economic Management (WAIFEM), the Building for Cornelian Maternity and Rural Health
United Nations Conference on Trade and Care Clinic, Gidan Mangoro, both in the Federal
Development (UNCTAD), Washington, Bank Capital Territory FCT.
for International Settlements (BIS),
Switzerland, New York Institute of Finance 3.1.22 Nigerian Sustainable Banking Initiatives
(NYIF), Institute European d’ Administration
The Bank commenced the review of the Nigerian
des Affaires (INSEAD), France, Bundesbank
Sustainable Banking Principles (NSBPs) with the
Centre for International Central Bank
UK Partnering for Accelerated Climate Transitions
Dialogue, Germany, and the Financial
(UK PACT) and the World Bank. The review is
Accreditation Agency (FAA) Malaysia, among
expected to align them with extant national and
others.
international environmental and social
3.1.19 Staff Exit regulations, such as the Nigerian Climate Change
Act (NCCA) and the Paris Climate Change
The Bank lost the services of 249 staff through: Agreement. It would also provide a framework
18 deaths; 14 dismissals; 1 end of contract for embedding sustainability in the operations,
appointment; 136 mandatory retirements; 21 activities, and processes of financial institutions
resignations; 24 voluntary retirements; 29 in Nigeria.
withdrawal of services, and 6 terminations.
3.1.23 World Environment Day
3.1.20 Staff Promotion The Bank commemorated the 2022 World

Environment Day (WED). A day established by the
The Bank appointed two Directors and promoted
United Nations General Assembly at the 1972
2,381 staff to various grades. A breakdown
Stockholm Conference to raise awareness and
indicated that 277 executives, 1,860 senior; and
coordinate global action on environmental
244 junior staff, benefited from the promotion
issues. The event was celebrated throughout the
exercise.
week of 5 – 11 June 2022 in the Bank with the
following activities:
3.1.21 Staff Social Responsibility
 A sensitisation with the theme
The staff of the Bank sustained its support for the “OnlyOneEarth” with a focus on “Living
less privileged in the society through its regular Sustainably in Harmony with Nature”
contributions to the CBN Staff Alms Fund (C-SAF), educated staff on how human activities
which supports worthy causes such as damage the earth and its inhabitants,
orphanages, educational schemes, and while suggesting ways to protect it;
healthcare. A total of N7.43 million was realised  A Meet and Greet Session between
from the monthly departmental contributions at Sustainability Champions and staff of the
end-December 2022. Two projects were initiated Bank. Staff were encouraged to dress in
with the C-SAF, namely: the construction of the green in solidarity with efforts made to
main School Building for Al-Nahda Muslim protect the environment;

 A “No Plastic Bag Day” observed in the  A Pilot Coaching and Support Programme
Head Office on 10 June 2022, where staff for female staff with 42 Volunteer
and operators of the staff canteens were Coaches who coached 352 female staff
educated on the harmful effects that selected from the Head Office and Lagos
single-use plastic bags have on the Office. Of this number, 71.6 per cent of
environment. Reusable bags were the women showed interest in “Building
distributed to staff to discourage the use Confidence”, while 21.6 per cent were
of single-use plastic bags; and interested in being coached on “Work-Life
 During the tree planting exercise, staff balance”, and 6.8 per cent were
were encouraged to plant a tree in their interested in “Excelling in Difficult Times.”
homes and post pictures with the WED
hashtag as their contribution towards Figure 3.1.7: Percentage of Women
preserving the environment. Participants in the Pilot Coaching Program
Building Confidence
3.1.24 International Women’s Day (Public
Speaking/Networkin
g etc.)
The Bank participated in the celebration of the
Work-life balance
2022 International Women’s Day (IWD) to (Goal Setting, Time
7%
commemorate the political, cultural, social, and Management etc.)
21%
economic achievements of women, while
Excelling in difficult
highlighting the challenges facing them in the times (Sexual
72%
society. The theme for the 2022 celebration was Harassment,
Working with a
“Gender Equality today for a Sustainable Difficult Boss etc.)
Tomorrow” with the hashtag #BreakTheBias. This
event was celebrated throughout the month of
March 2022 with activities such as:
 A webinar with the theme “Gender Source: Central Bank of Nigeria.
Equality Today for a Sustainable
Tomorrow” #BreaktheBias;
 A yoga session organised for over 100 3.2 COMMUNICATION AND COMMUNITY
women at the Head Office gymnasium to ENGAGEMENTS
promote the general well-being, mental 3.2.1 Communication
stability, and focus of female staff;
 A Virtual Breakfast meeting for 151 The Bank sustained transparency and
Female staff with the DG FSS. The DG FSS accountability in the conduct of its activities, by
shared her experience and urged the effectively communicating policies and
women to take ownership of their stories programmes to the public during the year. These
by confronting their fears with courage; included: dissemination of the decisions of the
and Monetary Policy Committee (MPC); the Bankers’
Committee meetings; outcomes of the Bank’s

participation at the Spring and Annual Meetings Imo, Benue, Nasarawa, Rivers, Bayelsa, Osun, and
of the IMF and the World Bank; and policy Kwara states. As part of continued effort at
positions of the Bank. expanding its reach to stakeholders on its policies
and programmes, the Bank participated at the
Approval was granted for the transmission of Kaduna, Enugu, Abuja, and Lagos International
MPC Communiqués to the Chairmen of the Trade fairs.
Banking Committees (Senate and House of
Representatives) of the National Assembly within The Bank continued its corporate social
48 hours of release by the CBN. Also, adequate responsibility through capacity building and the
briefing was provided to various committees of provision of financial and other forms of
the two chambers of the National Assembly on assistance to institutions, organisations, and
the state of the economy and the health of the individuals. A total of 573 project requests for
banking system. The Governor and other top financial assistance were received and processed
Management of the Bank made 27 appearances in the review period. Of this number, 157
at the National Assembly in 2022. projects, spread across the six geo-political zones
of the country were approved, resulting in the
As part of its strategic plans, the Bank published disbursement of N1.14 billion. Analysis of the
a book titled “The Chronicles of a Central Banker”, projects indicated that: 35 focused on
which highlights the milestones recorded by the Community Development; Health Care (31);
Bank in different sectors of the economy in the Education and Research (55); Women and Youth
past seven years. Empowerment (17); Special Donations (12);
Sports Development (6); and Environmental
In 2022, visits to the Cenbank website page Sustainability (1).
increased by 31.8 per cent to 7,073,859 from
5,367,744 in 2021, while the number of website As part of its CSR initiatives, the CBN sponsored
users increased by 34.8 per cent to 1,929,027, and organised various sporting activities aimed at
compared with 1,431,337 in 2021. There was also empowering youths across the country. These
an increase in Cenbank website visits by young included the 17th and 44th editions of the CBN
visitors (18- to 24-year-olds). The number of visits Open Tennis Championships for junior and senior
increased by 24.5 per cent in 2022 compared categories, CBN Governor’s Golf Tournament and
with an increase of 21.8 per cent in 2021. the 36th edition of the All-Financial Institutions
Football Competition. This was in addition to
3.2.2 Community Engagements capacity-building programmes organised for
journalists through Seminars for Finance
The CBN organised a sensitisation programme,
Correspondents and Business Editors.
titled, ‘CBN Fair’ bordering on consumer
protection, CBN Interventions, eNaira, and
redesigned Naira, among others. It was held
simultaneously at the following locations: Delta,
Edo, Adamawa, Taraba, Oyo, Ondo, Anambra,

3.3 RESEARCH AND COLLABORATIVE
ACTIVITIES
The Bank conducted research and collaborative
studies on the Nigerian economy and sustained
the publications of: the 2021 Annual Economic
Report; 2022 Half-Year Economic Report;
Monetary Policy Review; Financial Stability
Report; CBN Economic and Financial Review; CBN
Briefs; the 2021 Statistical Bulletin; and the CBN
Journal of Applied Statistics. Others were the
Occasional Paper Series and the CBN Bullion.
The CBN collaborated with the National Bureau

of Statistics (NBS) and the National Population
Commission (NPC) to conduct the National
Integrated Household Survey. In addition, it
partnered with the Centre for Econometric and
Allied Research (CEAR) of the University of
Ibadan, on “Oligopoly and Exchange Rate
Dynamics in Nigeria” and ”Implications of the
Russia-Ukraine War on Monetary Policy in
Nigeria” . Furthermore, the Bank honoured
requests to present papers and facilitate in
training programmes, including those from the
Federal Ministry of Finance, Budget and National
Planning, Chartered Institute of Bankers of
Nigeria (CIBN), Financial Institutions Training
Centre (FITC), the West African Institute for
Financial and Economic Management (WAIFEM),
the College of Supervisors for the West African
Monetary Zone (CSWAMZ), the Association of
African Central Banks (AACB), and the
International Monetary Fund (IMF). In addition,
staff presented papers at professional
conferences, both within and outside the
country.

BOX INFORMATION: FORECASTING INFLATION USING BIG DATA
S hocks emanating from the COVID-19 pandemic and the Russia-Ukraine war brought about
emerging complexities and uncertainties in the economy. This necessitated the upscaling of the
existing modelling toolkits in the Bank, using Big Data Analysis, to improve forecast accuracy. Big data
are large data sets, typically semi- structured or unstructured, which are unable to be processed or
stored by conventional data processing or storage tools or techniques.
Big data are expected to minimise forecast errors, as it ensures accuracy and timeliness of economic
forecasts by complementing the published data of statistical agencies through its inherent qualities of
‘volume’, ‘variety’, and ‘velocity’. Big datasets are often collected directly from companies or
consumers internet searches (i.e., google trends); media (i.e., broadcast/published news); social media
(i.e., Twitter or Facebook); and the outcome of a business transaction (i.e., payment/transactions
data).
To leverage these benefits, the Bank constructed an inflation sentiment index within the context of
text-mining algorithms using the Application Programming Interface (API) of a social media
application, Twitter. The construction of the Sentiment index was carried out in two key stages, the
data extraction and the sentiment analysis stages. In the first stage, data relating to inflation in
Nigeria was extracted from Twitter, these included both tweets and replies to ensure the robustness of
the data, based on the 'opinions' expressed about the developments and expectations of inflation in
the Nigerian economy. A total of 79, 479 tweets referencing inflation in Nigeria were extracted for the
period 2010 to 2022.
In the second stage, the sentiment index is generated after cleaning and processing the data. This
involved converting the unstructured data (extracted tweets) into structured data, using a Natural
Language Processing (NLP) system in Python software that classifies the polarity of each tweet into
positive, negative, or neutral after assigning values to each tweet using the Natural Language Toolkit
(NLTK) . The wordnet dictionary of the NLTK was employed to categorise the sentiments of the tweets,
negative words tended towards -1, neutral words were assigned a score of 0 while positive words were
assigned positive values tending towards +1. The tweets were summed for each month to obtain the
inflation sentiment index for that month.
The constructed index was included in the benchmark short-term inflation forecasting model (STIF).
Sentiment analysis uses automated tools to extract subjective information such as opinions, attitudes,
and feelings expressed in text, which are mapped into quantitative measures to produce sentiment
indices. The index is then incorporated into existing econometric forecasting models to improve
economic forecasts.

Figure 1: Relationship between Sentiment and Headline Inflation
Source: NBS and Staff Computations.
An ex-post forecast analysis was conducted to better signals future price movements in Nigeria.
ascertain the predictive power of the estimated To further test the predictive power of the ex-
model and examine if the inclusion of a sentiment post forecasts of inflation, a mean square error
index improves inflation forecasts. The findings (MSE) analysis was conducted. Findings revealed
show that inflation forecasts improved by that inflation predictions from the STIF model
including a sentiment index, as public sentiments with SA model outperformed the benchmark STIF
strongly correlate with headline inflation, model.
implying that public sentiment about inflation

Box 3
The Revised Central Bank of Nigeria Macroeconomic Model of the Nigerian Economy
(CBN-MAMONE)
The Central Bank of Nigeria (CBN) developed and operationalised the Macroeconomic Model of the Nigerian
economy (CBN-MAMONE). The Model estimates the relationships among the various sectors of the
economy, including real, external, monetary and financial, as well as fiscal sectors, with the objective of
facilitating the decision-making process of the Monetary Policy Committee (MPC). However, the CBN-
MAMONE was revised in 2016, to incorporate some observations including: the lack of sound theoretical
underpinnings for some of the equations and their linkages; unavailability of some required data to fit and
run the model; and inability to capture market and price expectations in the labour market and price variables.
In addition, due to some major developments in the global and domestic economies, the 2016 model was
further revised to address the global economic meltdown and the ongoing COVID-19 pandemic, which have
changed the structure of the world economy. Specifically, output, which was driven mainly by agriculture
and trade sectors, have changed, and is now driven by the services sector, particularly the ICT sub-sector.
Aside, the model was characterised by some weaknesses. First, there were limited policy variables exogenised
within the system of equations, implying the resulting scenario analyses provided limited policy options to
Management and MPC members. Precisely, with the exception of the Cash Reserve Ratio (CRR), policy
variables such as the anchor rate (MPR) and the asymmetric corridor rates (the standing lending and deposit
facility rates), loans to deposit ratio (LTDR), among others, were conspicuously omitted from the system.
Second, the model used data in quarterly frequency, as against the monthly frequency outputs required to
guide policy formulation during the MPC meetings. Third, the model was not codified, thus, was operated on
EViews, using dropdown manual-click operations, and all the model outputs were in the EViews interface.
The revision, undertaken in 2021, improved the model by accommodating significant changes in the
macroeconomic environment, persistent insecurity challenges, and increasing monetary policy spill-over
from other economies. The framework of the latest CBN-MAMONE has ten (10) equations, with each
equation established on sound theoretical postulation, to capture the transmission mechanism across various
sectors of the Nigerian economy. To this end, the model's critical economic sectors include the real, financial,
external, and fiscal sectors. The expansion of the equations to ten implies that the new model can now
simulate and make conditional forecasts of the ten endogenous variables, captured or represented by the ten
equations. Also, in the revised CBN-MAMONE, policy variables such as the CRR, MPR, LTDR, and
asymmetric corridor rates, are explicitly featured as exogenous variables in the system of equations. It,
however, was done with full recourse to a priori considerations, transmission channels, and the sectoral
interconnectedness of the Nigerian economy. Other exogenous variables include the US Fed Funds rate and
crude oil price (COP), which featured in the system to control external shocks that could impact the Nigerian
economy. The inclusion of the US Fed Funds rate was to capture possible spill-over effects to the Nigerian
economy, particularly, in capital and trade flows, which may result from global developments and policy
changes from leading economies of the world.
Furthermore, the model captures the effect of the COVID-19 pandemic using the Manufacturing Purchasing
Managers Index (MPMI), which effectively tracked the level of economic activity in Nigeria during the COVID-
19 pandemic lockdown. Similarly, the model captures the news effects and public sentiments about the levels
of insecurity and foreign exchange market instability using two constructed indices; the index of insecurity
and foreign exchange market pressure, using Google Trend. This revised model utilises both monthly and
quarterly frequencies to address the earlier challenges of the delays in timeliness and data frequency, to guide
policy decisions during MPC meetings. Finally, the model is codified, making its operation more technology
driven.

PART 2:
Economic Report
“… We commit to working assiduously to bringing

down inflation to single digit; while accelerating the
rate of employment…”
- Godwin I. Emefiele, CON

4.0 THE GLOBAL ECONOMY 4.1.1 Advanced Economies
4.1 GLOBAL OUTPUT
Growth in advanced economies (AEs) was weak as
The global output growth slowed in 2022, relative tight monetary conditions amid high inflation
to the level in the preceding year, owing to tight restrained demand. Thus, the forecast for output
monetary conditions and lingering supply chain growth in AEs was 2.7 per cent, against 5.4 per
disruptions. The IMF growth forecast was 3.4 per cent growth in 2021. The slowdown was more
cent in 2022, against a stronger growth of 6.2 per pronounced in the euro area and the United
cent in 2021. The slow growth was induced by States, with adverse spill over to other countries.
supply-chain disruptions caused by the impact of In the United States, the economy was estimated
the Russia-Ukraine war, the implementation of the to grow by 2.0 per cent in 2022, from 5.9 per cent
China zero-tolerance COVID-19 policy, and the in 2021.
hike in policy rates to curtail inflation.
The euro area growth forecast was 3.5 per cent,
Nonetheless, growth varied across countries and
down from 5.3 per cent in the preceding year,
regions owing to the idiosyncratic vulnerabilities
despite the European governments’ support to
of economies.
households and firms to cushion the effect of
Table 4.1.1: Changes in World Output and Prices, per energy crisis. Specifically, growth in Germany, Italy
cent and France were 1.9 per cent, 3.9 per cent, and 2.6
Country Growth Inflation
2021 2022* 2021 2022**
per cent in 2022, down from 2.6 per cent, 6.7 per
Global 6.2 3.4 4.7 8.8 cent, and 6.8 per cent in 2021, respectively. Also,
Advanced Economies 5.4 2.7 3.1 7.2
(AEs)
growth in the United Kingdom slowed to 4.1 per
United States 5.9 2.0 4.7 8.1 cent, from 7.6 per cent. The deceleration in
Canada 5.0 3.5 3.4 6.9
Euro Area 5.3 3.5 2.6 8.4
growth was due to the spill over effects of the war
Germany 2.6 1.9 3.2 8.5 in Ukraine amid the sanctions imposed on Russia.
Italy 6.7 3.9 1.9 8.7
France 6.8 2.6 2.1 5.8
In addition, fiscal and monetary tightening to
United Kingdom 7.6 4.1 2.6 9.1 moderate high inflation weighed heavily on
Japan 2.1 1.4 -0.2 2.0
growth, while high-energy prices eroded the real
Emerging Market & 6.7 3.9 5.9 9.9
Developing Economies incomes of households.
(EMDEs)
Russia 4.7 -2.2 6.7 13.8 4.1.2 Emerging Market and Developing Economies
China 8.4 3.0 0.9 2.2
India 8.7 6.8 5.5 6.9 Economic activities in EMDEs decelerated due to
Brazil 5.0 3.1 8.3 9.4
Sub-Saharan Africa 4.7 3.8 11.1 14.4 monetary tightening and weak external demand.
(SSA) Growth was projected to decline to 3.9 per cent,
Nigeria 3.6 3.0 17.0 18.2
South Africa 4.9 2.6 4.6 6.7 from 6.7 per cent in 2021. The reduction was due
7.5 5.3 6.1 7.4
Kenya
5.4 3.6 10.0 27.2
to the slow growth in the Asian economies,
Ghana
particularly in India, and some Sub-Saharan
Source: IMF, October 2022 and January 2023 World Economic
Outlook. African countries. Growth in Russia contracted to
Note: * indicates projections 2.2 per cent, from 4.7 per cent in 2021, owing to
** reflects October 2022, WEO dataset projections
the effect of the war that disrupted the supply-
chain. In China, renewed cases of COVID-19

disrupted recovery, as the economy recorded a the price level. On the demand side, the lingering
growth of 3.0 per cent, compared with 8.4 per effects of the pandemic-induced government
cent in 2021. The COVID-19 restrictions and support to households and firms, contributed to
worsening property market affected industrial inflation.
production and consumer spending. In India, the
growth forecast was 6.8 per cent, relative to 8.7 In the AEs, inflation rose to 7.2 per cent, from 3.1
per cent in 2021, due to higher financing cost and per cent in 2021 due, mainly, to supply-chain
weaker public expenditures that hampered disruptions and higher commodity prices.
economic activities. Specifically, in the United States, United Kingdom,
and the euro area, inflation rose to 8.1 per cent,
Growth in sub-Saharan Africa was 3.8 per cent, a 9.1 per cent, and 8.4 per cent in 2022, from 4.7
0.9 percentage point decline from the growth in per cent, 2.6 per cent, and 2.6 per cent in 2021,
2021, due to rising inflationary pressures, tight respectively. Japan also experienced an
financial conditions, and adverse weather accelerated inflation, rising to 2.0 per cent, from a
conditions, amid rising public debt risk. In South deflation of 0.2 per cent in 2021. The rise in
Africa, output growth was 2.6 per cent, against 4.9 inflation was driven by increased energy, food,
per cent in 2021, due to the shrinking of most and transportation costs.
sectors from agriculture to mining, occasioned by
infrastructure constraints, and electricity In the EMDEs, inflation developments followed
shortages. the trend in the AEs, rising to 9.9 per cent from 5.9
per cent in 2021. In Russia, inflation rose to 13.8
Economic activity in Kenya declined to 5.3 per per cent, from 6.7 per cent, due to the war-
cent, from 7.5 per cent the previous year, due to induced supply-chain bottlenecks. Similarly,
softened domestic and external demand, and inflation in China accelerated to 2.2 per cent, from
cost-push factors - food and fuel imports. 0.9 per cent in 2021 due, largely, to the strict zero-
Similarly, in Ghana, growth slowed to 3.6 per cent COVID policy in major cities, and adverse weather.
from 5.4 per cent in 2021, on the back of
weakened demand, elevated price pressures, In sub-Saharan Africa, inflation rose to 14.4 per
fiscal consolidation, and weaker access to credit cent, from 11.1 per cent in 2021, driven by supply-
for both businesses and the government. chain distortions and inflation spill over from the
advanced economies, which fuelled rising food
4.2 GLOBAL INFLATION and energy prices.
Inflation, across the globe, soared in 2022, owing Inflation in Kenya was propelled by adverse
to a combination of supply and demand factors, weather conditions (severe drought), currency
which triggered a cost-of-living crisis. On the depreciation, and surge in the prices of
supply side, cost of energy, transportation, and international commodities, particularly wheat and
other commodities increased, due to the gasoline occasioned by the geo-political tensions
persistent supply chain disruptions and
in Eastern Europe. Thus, inflation in Kenya
devaluation of some currencies, which affected

accelerated to 7.4 per cent, from 6.1 per cent a dampening market sentiments. In Japan, the year
year ago. Similarly, inflation in Ghana surged to an ended low as the NIKKEI225 fell by 9.4 per cent,
average of 27.2 per cent in 2022, from 10.0 per following the announcement of the adjustment of
cent in 2021, on the back of steep increases in the yield curve control policy, which caused some
food, transport, and housing costs as well as the level of volatility and heightened uncertainty in
depreciation of the cedi during the review period. the market. In contrast, the UK FTSE-100, gained
0.9 per cent at end-December 2022, owing to
Figure 4.2.1: Inflation Rates in Selected Countries greater market optimism. This was driven by
released macroeconomic data, which indicated
30.0 27.2
that economic growth was more resilient than
25.0
expected, despite the announcement of greater
20.0
13.8 14.4 fiscal consolidation.

Per cent (%)
15.0
11.1
9.9 10
9.1 8.4 8.5 8.7
10.0 8.1 7.4
7.2 6.9
5.9 6.7 6.7 6.1
3.1
4.7
2.6 3.2
5.5
4.6 In the EMDEs, equity markets performed better,
5.0 2 2.6 1.9 2.2
0.9
0.0
-0.2 closing the year higher than the level in the
EMDEs
Ghana
Russia
Kenya
AEs
United States
SSA
United Kingdom
EA
South Africa
India
Italy
China
Germany
Japan
-5.0
previous year. Notably, the Chinese Shanghai
Stock Exchange-A, the South African JSE All-Share
2021 2022
Index, and the Egyptian EGX Case 30 indices grew
Source: IMF WEO October 2022. by 2.2 per cent, 4.5 per cent and 48.6 per cent,
respectively, in 2022. The relaxation of the COVID-
4.3 GLOBAL FINANCIAL MARKETS 19 restrictions induced gains in the Chinese stock
markets, which positively impacted investors’
4.3.1 Global Financial Conditions
sentiments. In Egypt, gains were due to the
Global financial conditions tightened, as central investors’ confidence, boosted by the
banks embarked on contractionary policy government’s privatisation programme. IMF’s
measures to rein-in inflation. Stock markets approval to disburse the first tranche (US$347
exhibited mixed sentiments, closing broadly million) of the US$3 billion loan under Egypt’s
lower; government bond yields rose; and several policy reform programme also boosted
currencies depreciated against the dollar. Most confidence. In South Africa, the re-election of the
equity markets in the AEs posted losses at the end incumbent leader of the African National Congress
of 2022. In the US markets, the S&P500 and party led to a stronger Rand and a boost to local
NASDAQ fell significantly, by 19.4 per cent and investors’ confidence levels.
33.0 per cent, respectively, in 2022, as sentiments
were low in anticipation of a recession.
Similarly, the EURO STOXX 50 fell, by 11.7 per cent

at end-December 2022, as the ECB indicated
further rate hikes in 2023 and confirmed plans to
halt the rollover of maturing bonds, thus,

Figure 4.3.1: Key Global Stock Indices Figure 4.3.2: 10-year Government Bond Yields for
Selected Countries
60.00
48.55
50.00
6
40.00 5
Per cent (%)
30.00
20.00
4
10.00 4.54
0.91 2.16 3
Per cent (%)

0.00
-10.00
2
-5.05
-8.78 -9.37
-20.00 -11.74
1
-19.44
-30.00
-40.00 -32.97
0
-1
Source: Bloomberg.
2021 2022
In the bonds market, yields on long-term Source: Bloomberg
government treasury bonds in most advanced and

emerging economies were influenced by the In the foreign exchange market, the US dollar
growth prospects and monetary policy stance in strengthened remarkably, following the US Fed’s
2022. Specifically, government bond yields further aggressive rate hikes. However, most currencies in
edged upwards at the end of 2022, higher than the the AEs depreciated against the U.S. dollar, owing
preceding year, reflecting market sentiments. to country-specific peculiarities, such as the
Thus, the US Federal Reserve, Bank of England and energy crisis and political instability in Europe.
European Central Bank, hiked their rates twice in Specifically, the Canadian dollar, British pound,
the last quarter of the year, thus, maintaining their euro, and Japanese yen depreciated by 7.4 per
hawkish stance. On average, the 10-year Treasury cent, 10.9 per cent, 6.4 per cent, and 12.7 per
yields in the US and UK were 3.0 per cent and 2.4 cent, respectively.
per cent, respectively, in December 2022, a 1.5
and 1.6 percentage points increase above their Most EMDEs followed a similar trend, with marked
levels in 2021. In the EMDEs, the yields on Brazil’s depreciation witnessed in Ghana, Egypt, and
government bonds rose to 5.7 per cent, from 4.0 Argentina, by 39.2 per cent, 36.6 per cent, and
per cent in the previous year. However, in China, 42.0 per cent, respectively, due to weak economic
given the accommodative stance of the People’s fundamentals and shocks to capital flows. On the
Bank of China (PBoC), to support economic other hand, the Mexican peso and Brazilian real
recovery during the resurgence of the COVID-19 proved resilient throughout the year, appreciating
virus, yields fell modestly by 0.3 percentage point by 5.3 per cent, apiece, benefiting from the
to 2.8 per cent in 2022. relatively high yields.

Figure 4.3.3: Exchange Rates of Selected Countries production, owing to drought in Latin America,
supported the uptick in the price of soya bean and
Canada
other grains. The robust import demand for palm
United Kingdom
oil and concerns about labour shortages in
Euro area
Indonesia and Malaysia (top producers of the
Japan
commodity) continued to fuel the price surge.
China
India Moreover, rising crude oil prices continued to
South Africa support the demand for vegetable oil in the
Kenya production of biodiesel, thus, increasing the prices
Egypt of soya bean and groundnut. High coffee and
Ghana
cotton prices were influenced by unfavourable
Mexico weather conditions in producing regions with the
Brazil
attendant rally in demand.
Argentina However, following improved global supply of
-70 -50 -30 -10 10 30 cocoa and rubber, their respective prices
moderated by 1.4 per cent and 8.1 per cent,
YTD 2022 Oct-Dec compared with their levels in 2021.
Source: Bloomberg.
Table 4.4.1: Price Index of Selected Agricultural Export

Commodities (Dollar Based) (Jan.2010=100)
4.4 GLOBAL COMMODITY DEMAND AND COMMODITY 2018 2019 2020 2021 2022
PRICES (4) & (5)
1 2 3 4 5 7
Agricultural commodity prices continued to surge All Commodities 75.77 74.16 78.66 97.53 23.99
76.61
on account of supply disruptions following the Cocoa 74.96 76.50 79.31 78.20 -1.39
77.45
Russia-Ukraine war, unfavourable weather Cotton 54.40 46.36 60.24 77.36 28.42
42.82
conditions, and COVID-19 resurgence in China. All- Coffee 90.11 78.18 95.50 110.18 15.37
73.04
commodities price index rose by 24.0 per cent to Wheat 68.49 65.80 102.84 140.28 36.40
75.55
97.5 index points, from 78.7 index points in the Rubber 29.17 30.08 35.80 32.91 -8.09
28.37
preceding year, due to price increases in most of Groundnut 96.16 97.47 113.30 114.25 0.83
133.95
the commodities, which ranged from 0.8 per cent Palm Oil 51.73 48.71 91.57 103.35 12.86
60.89
for groundnut to 36.4 per cent for wheat. Soya Beans 72.27 67.60 106.83 123.76 15.84
74.51
Notably, price pressures exacerbated on account Sources: (1 ) World Bank Pink Sheet
of supply disruptions that accompanied the

Russian invasion of Ukraine – as both countries
dominated the production and supply of key
agricultural commodities and inputs, especially
wheat and fertiliser. In addition, stronger demand
from China for soya bean amid reduced

Crude Oil Prices
Crude oil prices rose, due largely to investors’ Crude Oil Supply and Demand
sentiments, arising from the geopolitical tensions Crude oil supply and demand rose due to
in Europe. The average spot price of Nigeria’s
increased economic activities in non-OECD
reference crude, the Bonny Light (34.9o API), rose
countries. World crude oil supply rose by 4.5 per
by 47.7 per cent to US$104.91 per barrel (pb) in
cent to 99.98 million barrels per day (mbpd),
2022, from the preceding year’s average of
compared with the level in 2021. The
US$71.05 pb. The average price of the UK Brent
development was due, largely, to an increase of
crude, Forcados, and West Texas Intermediate
3.07 mbpd in non-OECD supply, especially from
(WTI) exhibited similar trend with the Bonny Light,
OPEC-member countries, on account of the
recording higher prices at US$103.98 pb,
upward adjustment of production quota from
US$105.64 pb and US$96.20 pb, relative to the
January to October 2022.
corresponding levels in 2021. Furthermore, the
average price of the OPEC basket of 13 crude
Crude oil supply by OPEC averaged 34.2 mbpd in
streams rose by 43.4 per cent to US$69.81 pb,
2022, 7.98 per cent higher than the 31.65 mbpd in
from the level in the preceding year.
2021. The rise in OPEC supply was driven by the
The rise in crude oil prices was due, majorly, to increase in its crude oil portion to 28.68 mbpd in
increased demand by oil investors following the 2022, resulting from the OPEC+ decision to adjust
heightened political tension in Eastern Europe, the production level upwards.
which culminated in the Russia-Ukraine war in
February 2022. Specifically, concerns about the Similarly, average world crude oil demand rose, by
likely impact on crude oil supply, amid sanctions 2.3 per cent to 99.83 mbpd, from 97.54 mbpd in
imposed by European countries on the 2021. The demand from non-OECD countries
importation of Russian crude oil, drove the surge averaged 53.75 mbpd, representing 53.8 per cent
in demand. of the total world demand, while OECD countries
accounted for the balance. Demand in non-OECD
Figure 4.4.2: Average Monthly Spot Prices of the Bonny countries was, largely attributed to higher crude
Light, 2021 and 2022 oil imports, especially from India. However, the
140 increase in the non-OECD region was partly offset
120 by lower crude oil demand in China, on account of
100
US$ per barrel
its strict COVID-19 control measures in most

80
months of 2022. Demand in OECD countries was
60
due, mainly, to the higher consumption of diesel
40
20
and Premium Motor Spirit (PMS) in the region, as
0 demand for the petroleum products recovered to
Jan
Apr
Aug
Feb
Sep
Jul
Nov
Oct
Dec
Jun
May
Mar
pre-pandemic levels.
2021 2022
Source: RefinitivEikon (Reuters).

Precious Metal Prices curbing further fall in the yuan. The policy rate was
The annual average price of gold rose by 0.2 per lower in 2022 by 20 basis points.
cent to US$1,801.93 per ounce from US$1,798.82 Table 4.6.1: Monetary Policy Rates of Selected
per ounce in 2021. The development was due to Countries, 2020-2022 (per cent)
the heightened inflation concerns and geopolitical Country 2020 2021 2022
tensions, which made gold attractive to investors United States 0.13 0.25 4.50
Euro Area 0.00 0.00 2.50
as a safe haven asset. United Kingdom 0.10 0.10 3.50
China 3.85 3.85 3.65
In contrast, the annual average prices of platinum Russia 4.25 8.50 7.50
and palladium fell by 11.8 per cent and 12.0 per India 4.00 4.00 6.25
cent to US$959.87 per ounce and US$2,106.26 per Brazil 2.00 9.25 13.75
Indonesia 3.75 3.50 5.50
ounce in 2022, from US$1,087.92 per ounce and Chile 0.50 4.00 11.25
US$2,393.59 per ounce, respectively, in 2021. South Africa 3.50 3.75 7.00
Falling demand from the automobile industry Kenya 7.00 7.00 8.75
affected the demand for platinum and palladium, Source: Various Central Bank Websites.
both of which are used in the manufacture of

catalytic converters in automobiles. 4.7 FISCAL POLICY MEASURES
Fiscal support waned in 2022, as the focus shifted
4.6 MONETARY POLICY STANCE to rein-in inflationary pressures, particularly in
countries with limited fiscal space. Fiscal policy
Monetary policy tightening was maintained
remained largely supportive through tax cuts,
throughout the year, as the AEs and EMDEs hiked
subsidies, loans, and trade measures to mitigate
policy rates to rein-in inflationary pressures. The
the impact of high food and energy prices, albeit
US Federal Reserve and Bank of England raised
at a reduced pace. This largely slowed the need for
policy rates by a cumulative 425 basis points and
fiscal consolidation post-COVID, and exposed
340 basis points, respectively, in 2022, to tackle
vulnerabilities of economies with high debt
inflationary concerns and widening output gap.
servicing costs and foreign-currency-denominated
The Central Bank of Brazil increased its key policy
debt, especially considering policy rate increases
rate to 13.75 per cent at end-December 2022,
by many central banks.
from 9.25 per cent at the end of 2021, to fight
soaring inflation. The South African Reserve Bank
increased its policy rate by 325 basis points, to
7.00 per cent in 2022 from 3.75 per cent, to
moderate inflation and encourage capital flows.
However, the PBoC had a more accommodative
stance with a mix of policy cuts and holding phases
during the year, in a bid to strike a balance
between shoring up a COVID-19-hit economy and

5.0 THE DOMESTIC ECONOMY Figure 5.1. 1: Real GDP Growth Rate 2018-2022 (per
cent)
10.0
5.1 THE REAL ECONOMY
5.0 2.27
The economy grew at a softer pace, by 3.1 per cent 1.91
3.4 3.1
0.0
compared with 3.4 per cent in 2021, driven mainly 2018 2019 2020 -1.92 2021 2022
-5.0
by a broad-based expansion in the non-oil sector,
particularly in the services and agriculture sub- -10.0
sectors. Despite the drag by the oil sector, growth -15.0

was achieved on account of increased
-20.0
consumption activities buoyed by sustained
monetary and fiscal policy support. Inflationary -25.0 Total GDP Oil GDP Non-Oil GDP
pressures remained elevated in 2022, owing to Source: National Bureau of Statistics (NBS).
high energy and food prices, and supply chain
disruptions. As such, headline inflation (year-on- Output growth was supported by sustained fiscal
year) surged to 21.34 per cent from 15.63 per cent and monetary policy measures, which spurred
in 2021. consumption by households. Also, higher crude oil
prices and normalisation of economic activities
since the removal of the COVID-19 related
5.1.1 Domestic Output restrictions, contributed to the growth outturn.
Despite significant headwinds, the economy Nevertheless, the economy grew at a slower pace
sustained its growth momentum in 2022, on the compared with the preceding year on account of
heels of a broad-based rebound of economic continued production challenges in the oil sector,
activities in the non-oil sector. Real Gross Domestic higher value shortfall recovery for PMS, supply
Product (GDP) grew by 3.1 per cent to N74.6 chain disruptions following the Russia-Ukraine
trillion in 2022, from N72.4 trillion in 2021. Growth war, and tighter global market financing
was driven, largely, by improvement in the non-oil conditions.
sector, which contributed 4.5 percentage points
to output growth. However, the oil sector
contracted, dragging down overall output growth
by 1.4 percentage points.

Table 5.1.1: Sectoral6 Contribution to the Growth Figure 5.1.2: Sectoral Shares in GDP, 2019-2022
Rate of Real GDP (2018-2022) (percentage (per cent)
points)
58.7
Activity sector 2018 2019 2020 2021 2022
53.6
52.6
52.6
52.4
Agriculture 0.5 0.6 0.6 0.6 0.5
Crop Production 0.5 0.6 0.5 0.5 0.5
Industry 0.3 0.5 -1.3 -0.1 -1.0
27.1
26.2
25.9
25.2
25.1
22.2
22.3
20.6
Crude Petroleum 0.1 0.4 -0.8 -0.7 -1.4
21
14.2
Construction 0.1 0.1 -0.3 0.1 0.2
Service 1.1 1.1 -1.2 2.9 3.6
Trade -0.1 -0.1 -1.4 1.3 0.8
Information & 2018 2019 2020 2021 2022
1.1 1.1 1.7 1.0 1.5
Communications
Non-Oil GDP 1.8 1.9 -1.1 4.1 4.5 Agriculture Industry Services
Total (GDP) 1.9 2.3 -1.9 3.4 3.1 Source: National Bureau of Statistics.
Source: National Bureau of Statistics.
5.1.1. Developments in Economic Sectors

The non-oil sector sustained the growth a. Agriculture
momentum with a broader-based growth
witnessed in 44 activity sectors, from 41 activity The agriculture sector grew at a slower pace in
sectors in 2021. The sector expanded faster by 4.8 2022, on account of continued security challenges,
per cent in 2022, compared with a growth rate of floods, and higher fertiliser costs, owing to supply
4.4 per cent in the preceding year. disruptions from the Russia-Ukraine war. The
sector grew by 1.9 per cent, on account of
The shares of services and agriculture sectors continued policy support by the government and
increased in 2022, indicating higher concentration development partners to improve productivity in
of economic activities in the sectors. The services the sector. Crop production (which remained the
sector continued its dominance of economic main driver of growth in agriculture) grew by 2.0
activities, accounting for 58.7 per cent of per cent, while forestry, livestock, and fishery
aggregate economic activities. This was followed grew by 1.6 per cent, 0.6 per cent, and 0.5 per
by agriculture sector, which accounted for 27.1 cent, respectively. The increase in construction
per cent. However, the share of industry sector activities and the rising switch to firewood and
declined to 14.2 per cent compared with 20.6 per charcoal for cooking and heating, given the high
in 2021. prices of cleaner energy products, supported the
growth witnessed in the forestry sub-sector. In the
fishery subsector, the continued growth in fish
farming and industrial (trawling) coastal fish, and
shrimp segments, supported its growth, although
6
The table presents the major sectoral contributors to real
GDP growth.

activities in artisanal inland river and lakes catches
declined. Figure 5.1.4: Index of Industrial Production, (2010=100)
250.0 110.0
108.4 108.0
The index of agricultural production also 200.0 105.4 106.0
104.0
corroborated the trend in the agriculture GDP that 150.0 102.7
101.5 102.0
100.0
the sector grew at a slower pace than in the 100.0 98.0
96.3 96.0
preceding year. The aggregate index stood at 50.0 94.0
150.5 index points (2010=100), indicating a 1.8 per 0.0
92.0
90.0
cent growth relative to 2.1 per cent in 2021. Crop 2018 2019 2020 2021 2022
production grew the highest at 2.0 per cent, Manufacturing (LHS) Mining (LHS)
followed by Forestry at 1.6 per cent, and fishery, Electricity (LHS) Industry(RHS)
0.7 per cent. Source: Central Bank of Nigeria.
Table 5.1.2: Index of Agricultural Production by Type of

Activity (2010=100) The contraction in the industrial sector output was
Sub- 2018 2019 2020 2021 2022 Change
sector (1) (2) (3) (4) (5) (4&5) on account of the poor performance of the mining
Crops 139.3 142.8 146.0 149.4 152.4 2.0 and quarrying subsector, which declined by 18.2
Staples 140.9 144.5 146.6 149.1 151.8 1.8 per cent. The poor performance of mining and
Other
crops
141.3 142.7 143.7 144.5 150.3 4.0 quarrying was driven by the crude petroleum &
Livestock 128.5 128.7 131.2 132.0 133.8 0.6 natural gas sector, which shrunk by 19.2 per cent.
Fishery 143.8 148.3 148.7 150.4 151.1 0.5 The significant decline in the oil sector was on
Forestry 133.4 136.9 139.1 141.1 143.3 1.6
account of continued production and technical
Aggregate 138.3 141.6 144.6 147.7 150.5 1.9
Source: Staff computation based on data from National Bureau of
challenges, which led to the shut-in of oil wells
Statistics. from fields evacuating crude oil through the
Nembe creek Trunk line and, the declaration of
b. Industry Sector force majeures by Shell and Eni on Bonny and
Activities in the industrial sector were lull, partly Brass terminals.
due to continued production and technical
challenges in the oil sector, as well as intermittent Consequently, average crude oil production,
disruptions in electricity supply. Consequently, the excluding condensates, was 1.27 million barrels
industry sector contracted further by 4.6 per cent per day (mbpd) or a total annual production of
from 0.5 per cent in 2021. The development was approximately 463.60 million barrels (mb). This
corroborated by the 6.7 per cent contraction represented a decline of 13.01 per cent, below the
realised in the average industrial production index average production of 1.46 mbpd or 532.90 mb in
at 94.7 (2010=100) points in 2022. the preceding year.

Figure 5.1.5: Bonny Light Crude Production for 2021 The solid mineral sub-sector grew by 25.5 per cent
and 2022 compared with 19.7 per cent recorded in 2021, on
1.6
account of reforms in the sector. Data from the
Ministry of Mines and Steel Development revealed
Crude Oil Production (mbpd)
1.4
1.2
that a total of 93.49 million tons of solid minerals
1
0.8 were produced in 2022, representing a 0.89 per
0.6 cent increase, from the 92.66 million tons
0.4
0.2
produced in 2021. Further analysis showed that
0 non-metallic minerals rose by 1.11 per cent to
Sep
Jul
Nov
Dec
Jun
Feb
May
Oct
Mar
Jan
Apr
Aug
92.02 million tons with granite increasing,
significantly, to 48.80 million tons from 14.35
2021 2022
million tons in 2021. In contrast, carbonaceous
Source: Refinitiv Eikon (Reuters).
minerals, particularly coal, fell by 8.36 per cent to
1.37 million tons, from 1.49 million tons in 2021.
Similarly, gas production and utilisation decreased
The production of metallic minerals also fell, by
in 2022, on account of low crude oil production.
43.60 per cent to 10,179.51 tons, from 18,048.46
Total volume of gas produced decreased by 7.4
tons in the preceding year, with significant decline
per cent to 2,542.41 billion cubic feet (bcf), from
observed in the production of lead/zinc ore and tin
2,744.31 bcf in 2021. Of the total gas produced,
ore to 49,753.01 tons and 2,788.14 tons in 2022,
2,346.34 bcf, representing 85.5 per cent, was
from 87,048.87 tons and 24,873.47 tons,
utilised, while the balance was flared.
respectively, in the preceding year. The decline
was due to illegal mining activities during the year.
Figure 5.1.6: Gas Production and Utilisation
(Trillion scf) Public utilities sub-sector grew by 2.6 per cent on
account of continued investments in public water
3.0
facilities by the government and development
2.5
partners. Within the subsector, water supply,
2.0
sewage & waste management subsector grew by
1.5
1.0
13.6 per cent, while activities in the electricity, gas
0.5
steam & air conditioner subsector contracted by
- 2.2 per cent in 2022.
2018 2019 2020 2021 2022
Gas Produced Gas Utilised Gas Flared The average electricity generation decreased by
Source: Nigerian National Petroleum Company (NNPC) Limited. 5.6 per cent to 3,916.46 MW/h, from 4,078.26
MW/h in 2021, due to the vandalism of
transmission and distribution networks, recurring
technical faults, reduction in gas supply, and low
water level. This was despite the increase in

installed 7 electricity generation capacity, which Figure 5.1.7: Selected Electricity Based Indicators
rose marginally by 0.2 per cent to 14,906.4 MW,
Composition Of Electricity Generation
from 14,873.4 MW in 2021.
Hydro, 13.7%
Similarly, the average electricity consumption

decreased, by 8.9 per cent to 3,182.16 MW/h,
from 3,494.94 MW/h in 2021. The decrease in
electricity consumption was on account of the Thermal,
86.3%
shutdown of transmission and distribution
infrastructure, due to the frequent upgrade and
maintenance of the networks across the country, Composition by Holding
NIPP
while energy loss moderated to 7.9 per cent in 31% Successor
48%
2022 from 14.0 per cent in 2021.
Lagacy
21%
Electricity Power Generation

3500
3000
2500
2018 2019 2020 2021 2022
Electricity Consumption, (MW/h)
4200.0
4000.0
mh/h
3800.0
3600.0
3400.0
2018 2019 2020 2021 2022
Source: Transmission Company of Nigeria and the Nigeria

Electricity Regulatory Commission
Source: Transmission Company of Nigeria and the Nigerian Electricity

Regulatory Commission.
7A disaggregation of the installed capacity shows that hydro

and thermal energy sources constituted 13.7 per cent and
86.3 per cent, respectively.

Efforts to improve the adoption and use of Figure 5.1.8: Index of Manufacturing Production
renewable energy was also deepened, as the Rural 200 179.4 180.8 175.7 181.6 184.5
Electrification Agency (REA) sustained its ongoing 60
150
and completed projects under the Rural
55
Electrification Fund (REF), the Capital Project (CP),
Index
100
and the Nigerian Electrification Project (NEP). 50
50
The total number of off-grid solar power projects 45
(REF, CP, and NEP) in 2022 deployed and ongoing 0 40

were 126 and 305 projects, respectively, while the 2018 2019 2020 2021 2022
total installed and available capacity of the off-grid Manufacturing (LHS) Capacity Utilisation (RHS)
solar power - installed and ongoing - were Source: Staff estimate.
22,991.72 KW and 4,025 KW, respectively. Also,
the total number of existing connections to the
mini-grid and solar home system completed and The construction subsector grew by 4.5 per cent
ongoing were 636,493 and 365,651, respectively. owing to investments by the government and the
private sector, reflecting the continued
The manufacturing sub-sector grew on account of
implementation of the Infrastructure for Tax
strong domestic demand, as well as continued
Credit Scheme (Executive Order 007).
fiscal and monetary policy measures, which
buoyed capacity utilisation. The sub-sector grew
by 2.5 per cent from 3.4 per cent recorded in the c. Services Sector
preceding year. This performance was
The services sector had the largest contribution to
corroborated by the index of manufacturing
output growth, reflecting sustained improvements
production, which rose by 2.9 per cent to 184.5
in demand since the removal of the COVID-19
index points from 181.6 index points in 2021. The
induced restrictions, amid investments by public
average estimated capacity utilisation increased,
and private sectors to improve the business
as manufacturers sustained production due to rise
environment. The sector grew by 6.7 per cent,
in new orders, arising from increased consumer
compared with 5.6 per cent in the preceding year.
demand. The estimated average manufacturing
Within the services sector, the finance & insurance
capacity utilisation increased by 0.3 percentage
subsector grew fastest at 16.4 per cent, reflecting
point to 54.8 per cent, from 54.5 per cent in 2021.
increased credit by financial institutions, owing to
increased economic activities and the sustained
implementation of the loan-to-deposit ratio policy
of the Bank.
The transportation & storage subsector grew on
the back of increased economic activities amid
continued institutional support. The sub-sector
grew by 15.2 per cent, contributing 0.2
percentage point to overall output growth. A

further analysis shows that road, rail, water, and Also, marine transport grew on account of
air transport grew by 15.1 per cent, 2.2 per cent, increased business activities as reflected in higher
14.1 per cent, and 26.2 per cent, respectively, in ship traffic at the nation’s ports. Consequently, a
2022, compared with their growth rates of 17.1 total of 4,100 ocean going vessels berthed at the
per cent, 37.0 per cent, 7.8 per cent, and 19.7 per Nigerian ports, compared with 3,957 vessels in
cent, respectively, in 2021. 2021. Cargo throughput stood at 79.9 million
The lower growth of rail services was occasioned metric tons in the same period, compared with
by the security challenges on some railway routes, 75.3 million metric tons recorded in 2021.
which led to an eight-month suspension of rail Furthermore, the ICT sub-sector grew, due to the
transport services on the Abuja-Kaduna rail line continued investment in the sub-sector, licensing
from March 2022. Consequently, passengers and deployment of the 5G broadband network in
transported via rail declined, by 5.5 per cent to the country, as well as increase in the demand for
3,211,864, from 3,399,902 in 2021. Also, freight ICT services. The sub-sector grew by 9.8 per cent
volume declined, by 17.9 per cent to 138,168 tons, in 2022, exceeding the 6.6 per cent growth in the
from 168,359 tons in the preceding year. preceding year. The sub-sector was also the
Despite the harsh operating environment for largest driver of overall growth, accounting for
domestic airlines on account of increased cost and about half (1.5 percentage points) of realised
aviation fuel and foreign exchange challenges, air growth in 2022. Specifically, the number of active
transport grew, as the number of passengers telephone lines increased by 13.87 per cent to
airlifted in the country increased by 2.4 per cent to 222.6 million at end-December 2022, compared
17,325,423, from 16,912,044 in 2021. The with 195.5 million at end-December 2021.
development reflected the increase in the number Teledensity also rose, to 116.60 lines per 100
of international bound passengers, which surged inhabitants at end-December 2022, from 102.40
by 56.7 per cent to 3,627,305 in 2022. This lines per 100 inhabitants at end-December 2021.
contrasted with the observed 6.2 per cent decline The number of internet users also increased, to
in the number of domestic bound passengers, 154.8 million at end-December 2022, compared
which stood at 13,698,118 passengers in 2022. Of with 143.6 million at end-December 2021. This
the total number of passengers airlifted in 2022, was due, largely, to the increase in online trading,
79 per cent travelled within the country. However, social, and entertainment activities. Broadband
the number of aircraft movements declined by 5.8 internet penetration also rose to 47.36 per cent at
per cent to 269,469 aircraft movements in 2022, end-December 2022, compared with 40.88 per
due, largely to the 9.3 per cent decline in the cent at end-December 2021, inching closer to the
number of domestic bound aircraft movements to country’s set target of 70.0 per cent broadband
229,918. Similarly, the number of cargo penetration by 2025.
movements by air transport declined, by 29 per
cent to 154.6 million kg in 2022, while mail
movements increased to 76.2 million kg from 74
million kg in 2021.

Figure 5.1.9: Fixed Wired, Teledensity and Active the education sub sector output grew slower, by
Mobile Lines 1.4 per cent in 2022, from 1.8 per cent in 2021.
250,000 150 The government also sustained efforts to improve
200,000 access to tertiary education by granting approvals
100 for the establishment of additional private
No.
150,000
universities and the conversion of selected
%
100,000 colleges of education and polytechnic to
50
50,000 universities.
0 0 The human health subsector remained resilient
2018 2019 2020 2021 2022
following continued Federal Government support
Fixed (LHS)
Active Mobile Lines (Thousands) (LHS) and proactive strategies by health authorities.
Teledensity (RHS) Health sector output grew by 4.2 per cent,
Source: Nigerian Communication Commission.
compared with a growth of 4.9 per cent in 2021,
on account of sustained government support.
Further analysis indicates that the wireless Global
Consequently, vital health performance measures
System for Mobile (GSM) communication segment
such as immunisation rate across various
continued to dominate market share, accounting
categories tendered upwards. In this regard, 60.6
for 154.3 million lines in the telecom sub-sector at
per cent of one year old children were fully
end-December 2022, while the number of Fixed
immunised compared to 57.5 per cent in 2021.
Wired and VoIP stood at 15,904 and 349,814,
respectively. Among the GSM networks, Mobile Similarly, the Nigeria Centre for Disease Control
Telecommunications Network (MTN) had the (NCDC), and the Federal Government continued
largest share of the market with approximately periodic surveillance to manage the spread of
65.6 million subscribers, higher than the 58.8 COVID-19 infections. This led to a significant
million active subscribers in the corresponding decline in the number of confirmed cases. For
period of 2021. This was followed by Globacom instance, the number of confirmed cases fell
with 43.1 million, compared with 39.5 million markedly to 24,210 cases, from 154,734 cases in
subscribers in 2021, and Airtel with 41.2 million, 2021. Also, death tolls arising from the pandemic
higher than the 37.5 million subscribers in the fell significantly to 124, from 1,742 incidences in
corresponding period of 2021. However, 9mobile the preceding year.
recorded a decrease in active subscribers to 4.4 In addition, data from the National Primary Health
million, compared with 5.8 million in 2021. Care Development Agency (NPHCDA) showed that
at end-December 2022, 56.6 per cent of the target
The social services sub-sector grew, though at a population had been fully vaccinated against the
slower pace, mainly on account of the long COVID-19 infection, compared with 4.0 per cent in
disruption in the education sector. Despite the the corresponding period of 2021. The partially
removal of the COVID-19 induced restrictions and vaccinated population stood at 11.0 per cent, as
suspension of an eight-month industrial action by against 9.2 per cent at end-December 2021.
the Academic Staff Union of Universities (ASUU), Following the continued vaccination drive and

recommendations from the NCDC, the Federal as saving US$350.00 million annually from import
Government lifted the nationwide COVID-19 bills and creating 10,000 new jobs. Sub-national
restrictions imposed in 2020. Also, the formal governments also sustained efforts to improve
restrictions on movement within the country and agriculture in their states. The support largely
all limitations on air travels were lifted. involved the distribution of crop seedlings like
wheat, tomato, palm oil, and cocoa, as well as
Other subsectors within the services sector that
other inputs by the Sokoto and the Ondo states
grew at a faster pace in 2022 include: Trade (5.1
governments.
per cent); Arts, Entertainment & Recreation (4.3
per cent); and Accommodation and Food services
In addition, the development partners, the Food
(4.2 per cent).
and Agriculture Organisation (FAO), the United
States of America and governmental & non-
Table 5.1.3: Sectoral Growth Rates of Real GDP (2018- governmental organisations, supported
2022) (per cent) smallholder farmers with inputs such as seeds and
Activity Sector 2018 2019 2020 2021 2022 fertilisers. Small holder farmers also benefited
Agriculture 2.1 2.4 2.2 2.1 1.9
Crop Production 2.3 2.5 2.2 2.3 2.0
from various training programmes to improve
Livestock 0.3 0.2 1.9 0.6 0.6 productivity.
Forestry 3.1 2.6 1.6 1.4 1.6
Fishery 1.6 3.3 0.3 1.2 0.5
Industry 1.6 2.3 -5.9 -0.5 -4.6 To further boost livestock production and control
Mining & Quarrying 1.1 4.4 -8.5 -7.8 -18.2
Crude Petroleum 1.0 4.6 -8.9 -8.3 -19.2 the frequent farmer-herder clashes across the
Solid Minerals 10.1 -5.0 15.7 19.7 25.5 country, the Federal Government commenced the
Utilities 7.3 -1.9 -0.8 24.6 2.6
Manufacturing 2.1 0.8 -2.8 3.4 2.5 National Pasture Development Programme
Construction 2.3 1.8 -7.7 3.1 4.5
(NAPDEP) at the Paikon Kore Grazing Reserve,
Services 1.8 2.2 -2.2 5.6 6.7
Trade -0.6 -0.4 -8.5 8.6 5.1
Gwagwalada Area Council of the FCT. Similarly, the
Transport and Storage 13.9 10.7 -22.3 16.3 15.2 Federal Government, in collaboration with the
Information and
9.7 9.2 13.2 6.6 9.8
Communications Yobe State Government, constructed three
Accommodation &
Food 1.8 2.9 -17.8 -0.5 4.2 livestock development centres across the three (3)
Services
Finance and Insurance 2 2.6 9.4 10.1 16.4
senatorial districts of the State, covering a total of
Real Estate -4.7 -2.4 -9.2 2.3 4.0 332,600 hectares of land.
Human Health & Social
-0.3 0.3 2.2 4.9 4.2
Services
Total (GDP) 1.9 2.3 -1.9 3.4 3.1
Oil GDP 1.0 4.6 -8.9 -8.3 -19.2 In the Fisheries sub-sector, the European Union
Non-Oil GDP 2.0 2.1 -1.3 4.4 4.8
supported Nigeria with the sum of US$1.4 billion
to finance fish and wastewater projects. The
funding was expected to support about 60
5.1.2 Policy Support in the Real Sector
projects through 2027.
a. Agriculture
The Federal Government approved the Phase II of b. Industry

the National Sugar Master Plan, aimed at making To improve the demand and encourage patronage
Nigeria self-sufficient in sugar production, as well of domestically produced automobiles, boost

activities, and create jobs, the Federal 27,600 households, and impact over 138,000
Government, through the National Automotive Nigerians in two years.
Design and Development Council (NADDC),
initiated a N200.00 billion vehicle financing b.2. The Extractive Industry:
scheme for the purchase of new vehicles. i. Crude Oil
The Nigerian National Petroleum Company
The Central Bank of Nigeria, in collaboration with (NNPC) Limited was officially unveiled, marking
the African Export-Import Bank and Deutsche the formal transformation of the previously state-
Gesellschaft fur international Zusammenarbeit run oil corporation into a Limited Liability
(GIZ), initiated a ‘factoring’ programme as an Company, in line with the provisions of the
alternative financing instrument for micro, small, Petroleum Industry Act (2021). In addition, the
and medium enterprises. This is expected to Federal government concessioned the
increase MSMEs’ contribution to GDP, create surveillance of petroleum products’ pipelines to
employment opportunities, and improve access to private security outfits to address the issue of
international markets. vandalism of the asset.
Similarly, the Nigeria Start Up Bill was signed into To increase crude oil output in the country, crude
law by the President to encourage both local and oil exploration was flagged-off in Northern
foreign investment in the country. The Bill would Nigeria, following the discovery of the commodity
govern how start-ups and regulatory bodies in commercial quantity. The well, located on the
operate, thereby creating an enabling boundary of Bauchi and Gombe States, has over 1
environment for Nigerian start-ups to launch and billion barrels of crude oil reserve and 500 billion
scale their products without setbacks. standard cubic feet of gas. The well would be
Furthermore, as part of Federal Government's expected to produce 50,000 barrels of crude per
effort to improve the quality of electricity supply, day.
a €25.00 million grant agreement was signed In response to the transportation challenges
between the Nigerian government and the French associated with the distribution of Premium
Development Agency (AFD). The funding would Motor Spirit (PMS) across the country, the Federal
provide more than 800 km of 330 kV double circuit government approved a 25.0 per cent increase in
transmission line and upgrade substations, freight rate for petroleum products, raising it to
thereby strengthening the power grid across the ₦11.87 per litre from ₦9.50 per litre.
North-western zone.
ii. Natural Gas
Also, electricity supply to rural communities in the To deepen gas penetration across the nation, an
country received a boost with a €9.30 million Energy Park consisting of a modular refinery,
Interconnected Mini-grid Acceleration Scheme power plants, gas plants, and a data center was
(IMAS) grant agreement, signed between the unveiled in Egbokor, Edo State. The Facility, which
Federal government and eight indigenous Solar is owned by Duport Midstream Company Limited
Mini-grid developers. The scheme is expected to (DMCL), would be financed by First City
generate a 5.4-kilowatt peak to connect about Monument Bank (FCMB) Limited. The Park hosts a

10,000 barrels per day refinery, a 60 million current and potential investors in the mining
standard cubic feet (scf) gas processing facility, a subsector.
10 million scf compressed natural gas (CNG)
facility, a 50-megawatt power plant, and a data c. Services
center. c.1. Transport
In addition, the Nigerian Liquefied Natural Gas Road Transport
Limited (NLNG) commenced the supply of 100.0
per cent of the company's Liquefied Petroleum The government sustained the implementation of
Gas (LPG) production (propane and butane), the Road Infrastructure Development and
which is about 400,000 metric tons, to the Refurbishment Investment Tax Credit (RITC)
domestic market. This would meet approximately Scheme, which was introduced in 2019. The
Scheme helped to bridge the infrastructure
40.0 per cent of the country’s LPG demand, which
financing gap through public-private sector
stood at 1.04 million metric tons in 2021.
partnerships.
iii. Solid Minerals Furthermore, the Federal Government continued
Advanced exploration and mining of gold, silver, to leverage on the Sovereign Sukuk investment
and lead commenced in Baba Tsauni area of instrument to fund the construction and
Gwagwalada, Federal Capital Territory (FCT). The rehabilitation of critical road infrastructure across
development is expected to boost non-oil revenue the country. Consequently, three government
and create more employment opportunities. outfits – Ministry of Works and Housing, Ministry
The Ministry of Mines and Steel Development of Federal Capital Territory, and the Ministry of
facilitated a partnership between Dukia Gold and Niger Delta Affairs – were allocated Sukuk
proceeds of N250.0 billion for the construction
Philoro Global Trading Company, to produce world
and completion of major road projects under their
class gold bars and coins. This would ensure that
locally mined gold, refined and traded by Dukia purview across the country.
Gold, meets international standards set by the The completed Nigeria-Cameroon border bridge
Organisation for Economic Co-operation and and joint border post was commissioned as part of
Development (OECD) and the London Bullion the ongoing Nigeria-Cameroon Multinational
Market Association (LBMA). Highway Transport Facilitation Programme.
Also, the Nigerian Mining Cadastre Office (NMCO) Air Transport
launched the Electronic Mining Cadastral Plus
In a bid to improve operational efficiency and build
(eMC+) platform to enhance the digital
resilience against adverse economic shocks, six
administration and management of mineral titles
domestic airlines formed an interline alliance to
in the country. With the launch of the eMC+
mutually provide technical support among
platform, it is expected that the mining licence
themselves. The airlines include Air Peace, Azman
application system would become more
Air, United Nigeria Airline, Arik Air, Aero
transparent, and information accessible to both
Contractors, and Max Air.

To strengthen ties, improve operations, and To diversify the mode of transport in Lagos
maximise gains in the industry, the Federal through increased use of rail transport services,
Government approved a Bilateral Air Service the Lagos State Government completed the first
Agreement (BASA) with Canada. The agreement phase of the Lagos Blue Line rail service. The Blue
covers mutual sharing of rights and privileges line is part of the proposed Lagos integrated
between the two countries in critical areas of transport system, spanning a 27km distance from
aviation, such as safety standard certificates and Marina, Iganmu, Mile 2, Alaba, and Okokomaiko.
licences, security, capacity building and The completed phase covers 13km of rail tracks
consultations, custom duties and other charges, and is projected to transport about 250,000
availability of aviation facilities and services, passengers daily.
among others.
Water Transport
Prospects for the operationalisation of the Maritime security architecture was bolstered on
proposed national carrier received a boost as the account of the acquisition of special mission
Federal Government approved the lease of three vessels, interceptor boats, special mission aircraft
aircrafts from Airbus and Boeing. Also, the and helicopters as well as unmanned aerial
proposed national carrier received the Air vehicles and armoured vehicles to enhance
Transport Licence (ATL) from the Nigerian Civil maritime surveillance.
Aviation Authority (NCAA), to provide scheduled
and non-scheduled flight services to various The first phase of the Lekki Port, Nigeria’s first
destinations. deep seaport, was completed and expected to
The domestic aviation industry was further commence full operations by the first half of 2023.
The Port is envisaged to help in decongesting the
deepened, with the entrance of a new airline,
Lagos main port and facilitate trade.
ValueJet. The airline commenced commercial
operations with daily flights to Abuja, Port The Nigerian Maritime Administration and Safety
Harcourt, Asaba, and Jos. Agency (NIMASA) renewed its Memorandum of
Understanding (MoU) with the World Maritime
University (WMU), Malmo, Sweden. The
Rail Transport
collaboration is expected to advance the growth
The FEC approved US$328.87 million for Railway of Nigeria’s maritime sector, while addressing the
Consultancy Supervision Services nationwide to changing needs of the industry based on
ensure operational efficiency in delivering sustainable capacity development.
standard rail services. The contracts were
approved for consultancy services for the
supervision of the various railway projects in the c.2. Information and Communications Technology
country, for a period of 36 months. It covers the To support the growth and development of the ICT
following rail projects; Abuja to Warri rail project, sector, the Federal Government approved N17.40
Port Harcourt to Maiduguri railway, and Kano- billion for the provision of broadband
Katsina-Jibia-Maradi Rail-line. infrastructure for micro, small and medium

enterprises as well as institutions of higher years of teachers to 65 years, from 60 years, and
learning across the six geo-political zones. The extended their period of service from 35 to 40
project also includes the supply of IT years. The law also introduced bursary awards,
communication equipment and furniture for special rural posting allowances, and other items
communication centres by the Ministry of that will encourage brilliant Nigerians to take up
Communications and Digital Economy. teaching jobs.
The Nigerian Communications Commission (NCC) To increase access to tertiary education, the
provided N232.00 million as telecommunications Federal Government approved the issuance of
research and development grant to 16 Nigerian provisional licences for the establishment of 12
universities. The grant would fund research in five private universities and three new federal
emerging technology areas. The areas include: 5G polytechnics located in Umunnoechi in Abia State,
Deployment; Innovative Clean Energy; Advanced Orogun in Delta State, and Kabo in Kano State.
Method of Quality of Service (QoS)/Quality of
Efforts to improve the quality of skilled manpower
Experience Management and Test Mechanism;
in the aviation sector received a boost as the
IoT Low Power Wide Area Network (LPWAN)
Federal Government established a Pan-African
Technology; and Monitoring and Localising of
university, known as the African Aviation
Drones. The grant consists of three professional
Aerospace University. The University, which would
chair endowments of N20.00 million each, and
be an aviation specialised school, would offer two
N17.02 million to 13 universities for research
courses (BSc Aviation Business and BSc
projects.
Meteorology), for both online and on-site
To deepen internet penetration in the country, students.
the NCC offered two slots in the 3.5 gigahertz
Furthermore, the United States launched a
(GHz) spectrum band for the deployment of the
US$48.80 million investment in Nigeria’s
fifth generation (5G) network to MTN Nigeria and
education sector tagged ‘Leveraging Education
Mafab Communications Limited in February 2022.
Assistance Resources in Nigeria (LEARN) Read
The NCC also granted operational licence to Activity’. The programme encourages school
Starlink to provide internet service in Nigeria. The children and youths to gain foundational skills,
Low Earth Orbit satellite network has the potential such as literacy and numeracy.
to provide high-speed and low-latency broadband
internet access. The deployment of the service
c.4. Health
would help to achieve a near 100 per cent
penetration in the country. To deepen health insurance services, the
President signed the National Health Insurance
c.3. Education Authority Bill, 2022, into law, which repealed the
National Health Insurance Scheme Act, 2004. The
To incentivise and motivate academic staff in the law would strengthen state governments’ health
teaching profession, the President signed into law, insurance schemes by empowering them to
a Bill increasing the retirement age and the service

accredit primary and secondary healthcare Power/CBN Empowerment Scheme, also called
facilities, and ensure the enrolment of more the NEXIT/CBN Agri-Business Small and Medium
Nigerians in the Scheme. Enterprises Investment Scheme (AGSMEIS), for
exited N-Power beneficiaries. Consequently, out
The country received 3.2 million Pfizer COVID-19 of the over 400,000 trainees, 75,600 were
vaccines from the United States; 859,600 doses of shortlisted to participate in the first phase of the
AstraZeneca vaccines from the Japanese
orientation programme and eligible to access
Government; and 4.4 million doses of Johnson & loans of up to N3.00 million from the CBN.
Johnson COVID-19 vaccines from Spain in 2022.
c.8. Environment
c.5. Housing and Urban Development
The United Nations Children's Emergency Fund
The Federal Government enacted regulations (UNICEF) and the Nigeria Red Cross disbursed a
allowing citizens to access their pension total sum of N175.00 million to 5,000 households
contributions for residential mortgages. These
in three LGAs in Kaduna State, as part of measures
regulations permit an eligible retirement savings
to mitigate the impact of flood in 2022. Similarly,
account (RSA) holder to apply for 25.0 per cent of the United Nations released the sum of US$10.50
the total RSA balance to fund equity contribution million to help people affected and left vulnerable
for residential mortgage.
by floods across the country, including those
c.6. Employment and Job Creation already ravaged by insurgency in the North-East.
The Government approved the opening of an To tackle the negative impact of climate change,
employment and job creation portal called the the Bank of Industry (BoI) signed a pact with the
Nigerian Labour Exchange (NILEX). The platform French Development Agency (AFD) for a 100-
would take records of job vacancies and skills of million-euro 10-year credit facility, to expand
job seekers in the country and in the Diaspora. green project financing in Nigeria and promote
climate smart agricultural technologies. The
Furthermore, the Federal Government set up a Project is under the AFD’s Transforming Financial
₦10.00 billion Investment Fund for young Systems for Climate (TFSC) Programme with the
innovators and made provision for incentives and Green Climate Fund (GCF).
tax holidays to encourage local innovators. The
Fund is expected to deepen innovation by In addition, the World Bank, in partnership with
providing a legal and strategic framework for the Federal Ministries of Environment, Agriculture
innovators to make contributions in the country. & Rural Development, and Water Resources,
established the Agro-Climatic Resilience in Semi-
c.7. Social Intervention Arid Landscapes (ACReSAL) project to restore one
million hectares of degraded land in Northern
As part of efforts towards poverty eradication and Nigeria. The Project, with a proposed financing of
sustenance of the National Social Investment US$700.0 million and implementation period of six
Programme (NSIP), the Federal Government, in years, was in continuation of the elapsed Nigeria
collaboration with the CBN, flagged off the N-

Erosion and Watershed Management Project March and 15.75 per cent in June. It rose further
(NEWMAP). to 17.60 per cent in September and 18.49 per cent
in December.
5.1.2 Consumer Prices Food inflation rose consistently throughout the
Inflationary pressures remained elevated in 2022, year, except in February and December. The rate
due to high energy and food prices, occasioned by surged to 23.75 per cent in 2022, compared with
supply chain disruptions. Headline inflation, year- 17.37 per cent in the preceding year. Food prices
on-year (y-o-y) in 2022, rose consistently and surged from 17.13 per cent in January to 17.20 per
ended the year at 21.34 per cent, reversing the cent in March, 20.60 per cent in June, and 23.34
declines recorded in the preceding year. The rate per cent in September. It rose further to 24.13 per
rose from 15.60 per cent in January to 15.92 per cent in November, before moderating marginally
cent in March. It rose further to 18.60 per cent in to 23.75 per cent in December 2022.
June, 20.77 per cent in September, and 21.34 per
Marked increases were observed in the prices of
cent in December 2022. The development
processed food and farm produce, as well as
mirrored changes in food prices, which was the
imported food. Commodities such as garri, meat,
major driver of headline inflation.
yam, and fish, recorded the highest price increases
during the year. Price developments were
Figure 5.1.2.1: Trends in Inflation (y-o-y) (per cent) influenced, largely, by higher input costs following
30
elevated energy and fertiliser prices; floods that
25 devastated farmlands, food processing companies
20 and market routes; and continued security
15 challenges, which restrained farming activities.
10
5 To rein in inflation, the Bank, like most central

0 banks, hiked the policy rate four consecutive times
in 2022 to 16.50 per cent from 11.50 per cent. The
hikes helped to slow the inflation spiral and anchor
Headline Core Food market expectations, as reflected in the month-
Source: National Bureau of Statistics. on-month inflation rate. Headline inflation on a
month-on-month basis, decelerated to 1.71 per
Cost-push factors such as the effect of scarcity and cent in December 2022, from 1.82 per cent in
high prices of petroleum products, pass-through December 2021. The price pressures moderated
effect from higher global inflation, foreign from July, in response to the contractionary
exchange constraints, and continued security monetary policy stance, which started in May.
challenges - with disruptions to transport and
business activities, pushed up core inflation in
2022. Sustained increases were observed from
13.87 per cent in January to 13.91 per cent in

Figure 5.1.2.2: Trends in Inflation (m-o-m) (per cent) Agricultural Prices
The prices of all monitored agricultural
2.50
2.00 commodities maintained an upward trend,
1.50 largely, on the back of persistent security
1.00 challenges, increased cost of inputs such as
0.50 energy and fertiliser, floods, high transportation
0.00
cost and logistics. The prices of all the
Dec-21
Dec-22
Jun-22
Aug-22
Mar-22
May-22
Feb-22
Sep-22
Apr-22
Jul-22
Nov-22
Oct-22
Jan-22
commodities monitored increased, relative to

2021. The highest increases were recorded for
Headline Core Food
edible oils - groundnut oil, vegetable oil, and palm
oil at 39.3 per cent, 37.9 per cent, and 37.1 per
cent, respectively. In contrast, garri (yellow and
white sold loose) had the least price increase at
9.4 per cent and 8.4 per cent, respectively.

Table 5.1.2.1: Prices of Selected Domestic Agricultural Commodities
2018 2019 2020 2021 2022 % Change % Change
UNIT 1 2 3 4 5 (3) & (5) (4) & (5)
Agric eggs medium size 1kg 497.52 466.04 474.29 569.17 719.25 51.6 26.4
Beans: brown, sold loose " 401.82 339.57 299.19 440.37 544.76 82.1 23.7
Beans: white black eye,

" 356.10 306.96 272.73 414.96 527.64 93.5 27.2
sold loose
Gari white, sold loose " 201.96 159.03 207.69 294.00 318.60 53.4 8.4
Gari yellow, sold loose " 244.34 176.68 234.55 316.55 346.32 47.7 9.4
Groundnut oil: 1 bottle,

" 590.04 570.69 616.72 769.17 1071.10 73.7 39.3
specify bottle
Irish potato " 287.68 279.57 310.32 353.85 475.54 53.2 34.4
Maize grain white, sold

" 181.83 146.94 179.26 253.36 305.39 70.4 20.5
loose
Maize grain yellow, sold
" 186.39 149.22 181.02 257.24 306.78 69.5 19.3
loose
Onion bulb " 247.89 223.02 260.30 314.83 397.76 52.8 26.3
Palm oil: 1 bottle, specify

" 494.10 461.60 489.10 651.70 893.75 82.7 37.1
bottle
Rice agric, sold loose " 325.69 331.17 407.13 456.40 526.59 29.3 15.4
Rice local, sold loose " 279.53 292.47 363.35 406.47 463.37 27.5 14.0
Rice, medium grained " 318.81 327.38 406.90 454.03 516.18 26.9 13.7
Rice, imported high

" 370.34 377.99 490.85 551.31 643.61 31.1 16.7
quality, sold loose
Sweet potato " 145.63 139.92 158.95 180.42 244.13 53.6 35.3
Tomato " 299.51 241.54 283.23 329.17 428.13 51.2 30.1
Vegetable oil: 1 bottle,

" 540.97 501.68 572.18 748.57 1032.30 80.4 37.9
specify bottle
Wheat flour: prepackaged

2kg 656.52 668.83 709.63 840.49 1088.79 53.4 29.5
(Golden Penny)
Yam tuber 1kg 260.56 198.34 231.42 285.25 382.60 65.3 34.1
Sources: Staff computation based on data

from National Bureau of Statistics

6.0 FISCAL POLICY & DEVELOPMENTS
MNDP 2021-2025 and SRGIs
Fiscal policy in 2022 was, largely, influenced by the
Russia-Ukraine war and the lingering effects of the
COVID-19 pandemic, which impeded revenue •Medium Term National Development Plan 2021-
2025 is a multisectoral strategy to achieve:
outcomes. This necessitated additional accelerated growth; economic diversification;
investment in critical infrastructure; strengthened
supplementary budget spending, and new security; and good governance.
borrowings to bridge the financing gap. Thus, the
fiscal operations of the three tiers of government •Strategic Revenue Growth Initiatives embodies
major tax reforms (conveyed in the 2021 Finance
(general government) resulted in a provisional Act) to enhance public financial management and
deficit of 5.2 per cent of GDP. The consolidated diversify government revenue base.
public debt at 22.9 per cent of GDP at end-

December 2022, was within the 40.0 per cent debt-
MTEF/FSP 2022-2024, MTDS 2020-2023
GDP threshold.
•Medium Term Expenditure Framework and Fiscal
Strategy Papers 2022-2024: Highlights the
6.1 FISCAL POLICY THRUST IN 2022 macroeconomic objectives of the government in
2022-2024; with broad objectives of accelerated
Fiscal policy in 2022 was aimed at attaining economic growth, job creation, structural
transformation, poverty reduction, and lower
macroeconomic stability, food security, energy income inequality.
sufficiency, and job creation. Thus, the FGN budget,
•Medium Term Debt Strategy 2020-2023: States the
tagged ‘Budget of Economic Growth and borrowing plan of the FGN in the medium term
Sustainability’, was reflective of the medium-term including: setting limits on public debt and
optimising government’s debt portfolio mix, based
expenditure framework and fiscal strategy paper, on costs and risk tradeoffs.
the Finance Act 2021, and the Strategic Revenue
Growth Initiatives (SRGIs). Collectively, they
provided the supporting framework for the
implementation of reforms in the 2022 budget to 2022 FGN Budget and the Finance Act 2021
boost revenue collection, curtail wastages and
promote efficiency in spending. The 2022 FGN Budget was anchored on the
MTEF/FSP 2022-2024 and MTDS 2020-2023, to
accelerate the pace of economic recovery, social
inclusion, and deliver on the goals of the National
Economic Sustainability Plan and the Medium Term
National Development Plan (2021-2025).
•The highlights of the Finance Act, as initiatives under

the SRGIs include to: raise revenues; support fiscal
equity; align domestic tax laws with global best
practices; and support MSMEs with the ease of
doing business reforms.

6.2. FEDERATION REVENUE Figure 6.2.1: Composition of Oil Revenue
Revenue outcomes improved in 2022 relative to (per cent)
2021, but remained below target, largely, on Domestic

Other Oil
Crude Oil
Revenue
account of low oil earnings. At N12,655.27 billion or Sales
2.0%
8.6%
6.3 per cent of GDP, provisional federally collected
revenue (gross) improved by 17.7 per cent relative
to the earnings in the preceding year. However, it
fell short of the 2022 budget by 31.2 per cent,
PPT and
largely on account of lower domestic crude oil sales Royalties
etc.
and exports. Of the total federally collected 89.4%
revenue, oil and non-oil revenues, were 50.4 per Source: Office of the Accountant-General of the Federation
cent and 10.7 per cent short of the budget, and and the Federal Ministry of Finance, Budget, and National
Planning.
constituted 37.2 per cent and 62.8 per cent,
respectively.
ii. Non-oil Revenue
6.2.1 Components of Federation Revenue and
The implementation of the Finance Act 2021, with
Distribution
increased economic activities, buoyed non-oil
i. Oil Revenue revenue. Thus, non-oil revenue at N7,944.57 billion
or 3.9 per cent of GDP was 24.2 per cent above the
Despite recovery in the average price of crude oil in
level in 2021. The increase was driven by the boost
2022, following a rebound in global demand, oil
in receipts from Corporate Tax, Customs & Excise
earnings were dampened on account of lower
Duties, and Value Added Tax (VAT), reflecting
domestic production levels. Gross provisional oil
improvements in economic activities. However,
revenue 8 , at N4,710.70 billion or 2.3 per cent of
non-oil revenue was 10.7 per cent short of the 2022
GDP, was below its benchmark by 50.4 per cent.
benchmark.
The development was attributed to low domestic
crude oil production, owing to oil theft and pipeline Figure 6.2.2: Composition of Non-Oil Revenue
vandalism. Consequently, crude oil production (per cent)
averaged 1.27 million barrels per day (mbpd), FGN Other
Independent Transfers
compared with the benchmark of 1.88 mbpd in the Revenue 0.5%
2022 Appropriation Act 9 . In addition, the rising 14.1%
Value- Corporate
Added Tax Tax
import bill of premium motor spirit (PMS) amidst 31.0% 33.2%
low domestic refining capacity, contributed to the

lower oil earnings in 202210. Customs &
Excise Duties
21.2%
Source: Office of Accountant-General of the Federation and the
Federal Ministry of Finance, Budget, and National Planning.
8Oil transaction contracts take about 90 days to fully materialise. Consequently, 9 However, as part of the revision of the 2022 Appropriation Act in April 2022,
oil revenue receipts in the current period are reflective of the benchmark oil production was lowered to 1.60 mbpd to reflect the
developments in the domestic and global economies, three months preceding challenges in domestic production.
the current period of analysis. 10 As oil prices soared on the back of the Russia-Ukraine war, provision for PMS
subsidy in the 2022 budget was revised upward by N442.72 billion to N4.00
trillion from N3.557 trillion to capture the burgeoning PMS import bill.

Figure 6.2.3: Structure of Gross Federation Revenue (per Table 6.2.1: Federally Collected Revenue and Distribution
cent) (N Billion)
2021 2022 Budget
Federation Revenue (Gross) 10,755.40 12,824.97 18,399.96
41.9 Oil 4,358.27 4,710.70 9,500.43

46.0 49.0 Crude Oil & Gas Exports 34.53 0.00 810.85
59.5 63.3 PPT & Royalties 3,070.84 4,212.76 6,370.94
Domestic Crude Oil/Gas Sales 1,129.46 403.69 504.53
Others 123.44 94.25 1,814.11
58.1 54.0 51.0 40.5 36.7 Non-oil 6,397.11 8,114.28 8,892.59
Corporate Tax 1,783.10 2,640.70 1,987.78
2018 2019 2020 2021 2022 Customs & Excise Duties 1,297.96 1,687.65 1,858.57
Value-Added Tax (VAT) 2,042.95 2,462.26 2,441.80
Independent Revenue of Fed. 1,190.08
Oil Revenue Non-Oil Revenue 1,288.50 2,216.22
Govt.
Source: Office of Accountant-General of the Federation and the Federal Others* 83.05 35.16 959.29
Ministry of Finance, Budget, and National Planning.
Total Deductions/Transfers** 3,379.95 4,604.35 4,196.90
Federally Collected Revenue
7,375.45 8,220.63 13,728.85
Less Deductions & Transfers
iii. Distribution of Federation Revenue
Plus:
Disbursements to the three tiers of government Additional Revenue 375.66 516.07 677.02
Excess Oil Revenue 0.00 0.00 0.00
increased to N8,736.69 billion from N7,751.10 Excess Non-Oil Revenue 279.86 325.30 677.02
billion in 2021. Consequently, the sums of Exchange Gain 95.80 190.77 0.00
N3,412.85 billion, N2,747.72 billion, and N2,033.29 Total Distributed Balance 7,751.10 8,736.69 14,405.88
Federal Government 3,127.56 3,412.85 6,109.07
billion were allocated to the Federal, State, and State Governments 2,392.12 2,747.72 4,146.46
Local Governments, respectively. The balance of Local Governments 1,776.79 2,033.29 3,109.05
N542.83 billion was distributed among the oil 13% Derivation 454.58 542.83 1,041.30
Source: Office of the Accountant-General of the Federation and
producing states as 13% Derivation Fund. Central Bank of Nigeria Staff Estimates.
Note:
* Includes Education Tax, Customs Special Levies (Federation
Account), National Technology Development Fund, Customs
Special Levies, Solid Mineral & Other Mining revenue, and other
Non-regular earnings.
** Deductions include cost of revenue collections and JVC cash
calls, while transfers entail provisions for FGN Independent
revenue and other non-Federation revenue.

Table 6.2.2: Sources of Revenue to the Three Tiers of Government, 2022 (N Billion)
FGN SGs
Grand
Source LGs
FG's Sub- Sub- Total
FCT States 13%
Share Total Total
Table 5.4.1: Sources of Revenue to the Three Tiers of Government (N’ Billion)
Statutory Allocation 2,784.28 53.88 2,838.16 1,439.55 540.22 1,979.77 1,109.83 5,927.77
Additional: Share from Excess Oil Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Additional: Excess Non-Oil Revenue (Excess Bank

129.14 2.50 131.64 111.47 0.00 111.47 82.19 325.30
Charges, etc)
Additional: Share from Exchange Gain 97.24 1.88 99.12 50.28 2.61 52.89 38.76 190.77
Table 6.2. 3: Sources of Revenue to the Three Tiers of Government
Share of VAT 321.00 22.93 343.93 1,146.43 0.00 1,146.43 802.50 2,292.86
Table 5.4.1: Sources of Revenue to the Three Tiers of Government (N’ Billion)
FG Independent Revenue 1,288.50 0.00 1,288.50 0.00 0.00 0.00 0.00 1,288.50
Internally Generated Revenue 0.00 0.00 0.00 767.83 0.00 767.83 34.33 802.15
Less State Allocation to LG 0.00 0.00 0.00 24.43 0.00 24.43 0.00 24.43
Net Internally Generated Revenue 0.00 0.00 0.00 767.83 0.00 767.83 34.33 802.15
Grants 0.00 0.00 0.00 75.33 0.00 75.33 13.32 88.66
Share of Stabilization Fund 0.00 0.00 0.00 3.30 0.00 3.30 0.00 3.30
State Allocation to LG 0.00 0.00 0.00 0.00 0.00 0.00 39.47 39.47
Others 993.85 0.00 993.85 0.00 0.00 0.00 5.64 999.49
TOTAL 5,614.02 81.18 5,695.20 3,594.18 542.83 4,137.01 2,126.05 11,958.27
Source: Office of the Accountant-General of the Federation, Federal Ministry of Finance, Budget, and National Planning and Central Bank of
Nigeria Staff Estimates.
Table 6.3.4.1: General Government Fiscal Balance 2022 (N Billion)

2020 2021 2022
Aggregate revenue 10,024.04 10,571.49 11,878.95
Aggregate expenditure 17,397.53 19,135.56 22,445.64
Recurrent expenditure 12,539.68 13,848.77 16,714.05
Capital expenditure 3,825.86 4,030.94 4,669.08
Transfers 1,031.99 1,255.85 1,062.51
Primary balance -3,974.59 -4,214.82 -4,769.75
Overall balance -7,355.49 -8,564.07 -10,566.69

Source: Office of Accountant-General of the Federation, the Federal Ministry of Finance, Budget, and National Planning
and Central Bank of Nigeria Staff Estimates.

6.3 GENERAL GOVERNMENT FINANCES 11 6.3.3 Consolidated Fiscal Balance and Financing
6.3.1 Aggregate Revenue of the three tiers of Fiscal operations of the general government
Government deteriorated on account of higher expenditure
The revenue of the three tiers of government outlay in 2022. General government operations
increased in 2022, on account of improved non-oil resulted in an estimated primary and overall
receipts. Provisional aggregate revenue of the deficits of N4,769.75 billion or 2.4 per cent of GDP
general government, at N11,878.95 billion or 5.9 and N10,566.69 billion or 5.2 per cent of GDP,
per cent of GDP included: The Federation Account, compared with N4,214.82 billion or 2.4 per cent of
N5,927.77 billion; VAT Pool Account, N2,292.86 GDP, and N8,564.07 billion or 4.9 per cent of GDP,
billion; Excess Non-oil Revenue12, N325.30 billion; respectively, in 2021. The deficit was financed by
and Exchange Gain, N190.77 billion13. borrowing, mainly from domestic sources.
6.3.2 Aggregate Expenditure 6.3.4 Consolidated Expenditure on Primary

Aggregate expenditure by the general Welfare Sectors14
government increased, due, largely, to the pre- Consolidated general government spending on
general elections spending, flood relief support, the primary welfare sectors in 2022 increased by
and rising debt service payments. Aggregate 8.8 per cent to N3,153.52 billion or 1.6 per cent of
provisional expenditure, at N22,445.64 billion or GDP, from N2,897.19 billion in 2021.
11.1 per cent of GDP, was 17.3 per cent above the
Figure 6.3.2: General Government Expenditure on Key
level in 2021. A breakdown showed that recurrent
Primary Welfare Sectors (per cent of total and GDP)
expenditure, at N16,714.05 billion or 8.3 per cent
of GDP, accounted for 74.5 per cent of the total; 7.0 6.6
6.0
while capital expenditure at N4,669.08 billion or
5.0 4.5
2.3 per cent of GDP; and transfers, N1,062.51
4.0
billion or 0.5 per cent of GDP, represented 20.8 3.0
3.0
per cent and 4.7 per cent of the total, respectively. 2.0
0.7 0.5
1.0 0.3
Figure 6.3.1: Composition of General Government -
Expenditure, 2022 Education Health Agriculture
Transfers
4.7% Recurrent Total GDP
74.5% Source: Central Bank of Nigeria Staff Estimates.
Capital
20.8%
Source: Central Bank of Nigeria Staff Estimates.
11 Consolidated fiscal operations of the three-tiers of government. 13 Includes additional Excess crude/PPT payment to the three-tiers of
12 Includes other memorandum sharing such as Excess Bank Charges government.
14 Classification for identifying poverty-reducing expenditures
96
6.4 FISCAL OPERATIONS OF THE FEDERAL billion or 2.8 per cent of GDP was 11.3 per cent
GOVERNMENT above the 2021 receipt, but was 43.7 per cent
6.4.1 Federal Government Fiscal Balance short of its benchmark, reflecting persisting
Despite improved revenue outcomes, increased revenue challenge. Notable increases of 20.6 per
spending outlay induced an expansion in the fiscal cent and 49.0 per cent were recorded in the FGN
deficit. Provisional data indicated that the overall share of VAT and other revenue sources
deficit of the FGN, at N9,330.37 billion, exceeded (including, transfers from special accounts, Nigeria
the budgeted deficit of N7,350.21 billion by 26.9 Liquified Natural Gas Dividend, and signature
per cent, and widened by 31.1 per cent, relative to bonuses), respectively, relative to their 2021
the level in 2021. The deficit, at 4.6 per cent of levels.
GDP, overshot the Fiscal Responsibility Act (FRA)
2007 and WAMZ primary convergence criterion Table 6.4.3: FGN Retained Revenue (N Billion)
thresholds of 3.0 per cent of GDP apiece, and the 2021 2022 Benchmark
3.4 per cent target for the 2022 Fiscal Year. FGN Retained
5,045.44 5,695.20 9,969.18
The larger fiscal deficit reflected higher and new Revenue
Federation
government spending on flood-related 2,647.34 2,838.16 4,330.71
Account
interventions, preparations for the 2023 general VAT Pool Account 285.12 343.93 316.69
elections, combating unfolding security FGN Independent
1,190.08 1,288.50 4,344.61
challenges, and critical infrastructure, among Revenue
others. Excess Oil Revenue 0.0 0.0 0.0
Excess Non-Oil 147.43 131.64 0.0
Exchange Gain 47.66 99.12 0.0
Table 6.3.4.2: Fiscal Balance 2022 (N Billion) Others* 727.81 993.85 977.17
Source: Office of the Accountant-General of the Federation and
2021 2022 Budget Central Bank of Nigeria Staff Estimates.
Retained revenue 5,045.44 5,615.88 9,969.18

Aggregate
12,164.15 14,946.25 17,319.39 6.4.3 Federal Government Expenditure
expenditure
Primary balance -2,897.05 -3,673.79 -3,664.83 The pursuit of fiscal consolidation reforms by the
Overall balance -7,118.71 -9,330.37 -7,350.21 government was hampered by the lingering
security challenge, nationwide flooding, and the
Deficit-to-GDP -4.0 -4.6 -3.4
2023 election cycle, which necessitated higher
Source: Office of Accountant-General of the Federation, the Federal
Ministry of Finance, Budget, and National Planning and Central Bank
social welfare and capital spending. Provisional
of Nigeria Staff Estimates aggregate expenditure, at N14,946.25 billion or
7.4 per cent of GDP, was 22.9 per cent above the
6.4.2 Federal Government Retained Revenue level in 2021, but was 13.7 per cent below the
The retained revenue of the FGN improved, 2022 budget benchmark.
relative to 2021 on the back of higher non-oil
revenue. This was indicative of the boost in
economic activity and increased accountability by
Government-Owned Enterprises and MDAs, sequel
to the implementation of the Finance Act 2021.
Provisional FGN Retained Revenue, at N5,615.88

Table 6.4.4: FGN Expenditure (N Billion) cent and 14.7 per cent increase in interest
2021 2022 Budget
Aggregate Expenditure 12,164.15 14,946.25 17,319.39
payments and personnel cost, respectively.
Recurrent: 9,145.15 11,002.31 10,697.38
Personnel Cost 3,046.47 3,494.37 4,273.49
Pension &Gratuities 356.12 387.32 577.86
Figure 6.4.2 FGN Fiscal Operations
Overhead Cost 1,055.38 1,152.03 822.73
Interest Payments 4,221.65 5,656.58 3,685.38 20,000
Domestic 3,275.37 4,464.92 2,562.15
External 946.29 1,191.66 1,123.23
Special Funds 465.53 312.00 1,337.92 10,000
Capital Expenditure 2,522.47 3,133.82 5,467.40
Transfers 496.53 810.12 1,154.61
0
Source: Central Bank of Nigeria Staff Estimates. 2018 2019 2020 2021 2022
-10,000
Non-debt expenditure was below the benchmark Revenue Expenditure Fiscal Balance
by 23.8 per cent and constituted 35.8 per cent of Source: Office of the Accountant-General of the Federation and
total expenditure, while interest payments Central Bank of Nigeria Staff Estimates.
amounted to N5,656.58 billion or 37.8 per cent of

Provisional aggregate expenditure on primary
total expenditure.
welfare sectors amounted to N2,400.75 billion or
Figure 6.4.1: Composition of FGN Expenditure 1.2 per cent of GDP and was 16.1 per cent of total
expenditure. Further analysis revealed that
Capital expenditure on roads and construction increased
21.0%
by 20.6 per cent to N699.03 billion, relative to the
level in 2021. Furthermore, outlay on agriculture
and natural resources, education, and health
Transfers increased by 21.1 per cent, 14.9 per cent, and 15.6
5.4%
per cent, respectively, compared with their levels
in 2021.
Recurrent
73.6%
Table 6.4.4: Economic Classification of Government
Source: Office of the Accountant-General of the Federation and Expenditure 2022
Central Bank of Nigeria Staff Estimates. Percentage share
Expenditure
Economic Social
(N billion) Admin. Transfers
Recurrent expenditure, at N11,002.31 billion or services services
5.4 per cent of GDP, maintained its dominance in Recurrent 11,002.31 22.3 5.1 14.8 57.8
total spending, accounting for 73.6 per cent of the Capital 3,133.82 25.2 43.7 12.0 19.1
total expenditure. Capital expenditure, 15 Transfers 810.12 - - - -
N3,133.82 billion and transfers, N810.12 billion, Source: Central Bank of Nigeria Staff Estimates.
constituted 21.0 per cent and 5.4 per cent,
respectively. The rise in expenditure, relative to
the level in 2021 was attributed to the 34.0 per
15Represented 56.0 per cent of the FGN retained revenue in 2022. This was
above the West African Monetary Zone’s (WAMZ) minimum benchmark of
20.0 per cent.

Figure 6.4.3: Federal Government’s allocations at N2,033.65 billion rose by 10.4 per
Expenditure on Key Primary Welfare Sectors, 2022 (per cent relative to the level in 2021 and accounted
cent of total and GDP)
for the bulk of states’ total revenue at 48.2 per
GDP Total
cent. This was followed by VAT, N1,169.36 billion
6.0
5.6 (27.7 per cent); and IGR, N767.83 billion (18.2 per
5.0
4.7 cent); while Excess Non-oil Revenue, Exchange
4.0
3.8 Gain, share of stabilisation fund, and Grants &
3.0
Others constituted the balance.
2.0 2.0
1.0 0.4 0.3 0.3 0.2 Figure 6.5.1: Composition of States and FCT revenue,
0.0 2022 (N Billion)
Education
Construction
Health
Agriculture&
Resources
Roads &
Nat.
Grants/
Internally
Others
Generated
Source: Office of the Accountant-General of the Federation and 1.9%
VAT Revenue
Central Bank of Nigeria Staff Estimates. 27.7% 18.2%
6.5 SUB-NATIONAL GOVERNMENT FISCAL Excess

Federation
Non-Oil
Account
ANALYSIS Revenue
48.2%
2.7%
Exchange
Gain
6.5.1 State Governments and FCT Finances16 1.3%
6.5.1.1 Overall Fiscal Balance and Financing Sources: Office of Accountant-General of the Federation, the Federal
Ministry of Finance Budget and National Planning and Central Bank
of Nigeria Staff Estimates.
The fiscal deficit of state governments contracted
marginally due to higher revenue, which offset the
impact of the expenditure rise. Provisional data on 6.5.1.3 Expenditure
state governments’ finances (including the FCT), The total expenditure of State governments rose,
indicated that fiscal deficit contracted by 2.4 per reflecting an expansionary fiscal policy stance.
cent, to N1,428.17 billion or 0.7 per cent of GDP, Total expenditure increased by 8.5 per cent to
compared with a deficit of N1,463.77 billion or 0.8 N5,646.37 billion or 2.8 per cent of GDP, relative
per cent of GDP in 2021. The deficit was financed, to 2021. A breakdown revealed that, at N4,456.22
mainly, from domestic borrowing. billion or 2.2 per cent of GDP, recurrent
expenditure was 11.1 per cent above the level in
6.5.1.2 Revenue 2021 and accounted for 78.9 per cent of the total
expenditure. However, capital expenditure, at
State governments revenue improved in 2022
N1,190.15 billion, or 0.6 per cent of GDP was 0.4
owing to higher VAT and Federation account
per cent below the level in 2021 and constituted
allocations. At N4,218.20 billion or 2.1 per cent of
21.1 per cent of the total.
GDP, aggregate revenue of state governments
increased by 12.7 per cent relative to collections
in 2021. In line with the trend, statutory
16 Provisional data.

Table 6.5.2: State Governments’ and the FCT Revenue 2022 (N Billion)
2021 2022
Amount (N’ b) Share of: Share of:
Item
Revenue GDP Revenue GDP
(%) (%) Amount (N’ b) (%) (%)
Federation Account 1,842.33 49.0 1.1 2,033.65 48.4 1.0
Excess Oil Revenue 0.00 0.0 0.0 0.00 0.00 0.0
Excess Non-Oil
Revenue 77.58 2.1 0.4 113.97 3.3 0.1
VAT 969.41 25.8 0.6 1,169.36 27.8 0.6
Internally Generated
Revenue 764.80 20.3 0.4 767.83 18.3 0.4
Exchange Gain 30.35 0.8 0.0 54.77 0.2 0.0
Grants & Others 77.17 2.1 0.0 78.63 1.9 0.0
Total 3,761.63 100.0 2.5 4,218.20 100.0 2.1
Source: Federal Ministry of Finance, Budget and National Planning, Office of the Accountant-General of the Federation and Central Bank
Note: Internally generated revenue and Grants & Others are provisional
Figure 6.5.1: State Governments’ Expenditure Figure 6.5.2: State Governments’ Expenditure in Key
(% GDP) Primary Welfare Sectors, 2022 (% Total Expenditure)
7.0 6.4
4.0
6.0
3.5 5.2
4.9
3.0 5.0
2.5 4.0
Per Cent
Per Cent
2.0 3.0
1.5
2.0 1.5
1.0 0.9
1.0
0.5
- 0.0
2018 2019 2020 2021 2022 Education Health Agriculture Water Housing
Supply
Recurrent Expenditure Capital Expenditure
Total Expenditure Source: Central Bank of Nigeria Staff Estimates.
Source: States’ Office of the Accountant-General and Central Bank
Aggregate expenditure on primary welfare

sectors by state governments amounted to
N1,067.51 billion. This represented 0.5 per cent
of GDP and 18.9 per cent of total expenditure.
Education received the highest share at N363.54
billion and accounted for 34.1 per cent of the
total expenditure on primary welfare.

Figure 6.5.3: State Government Expenditure in Key included: Grants & Others, N13.32 billion (0.6 per
Primary Welfare Sectors (% GDP) cent), and ‘Others’, N5.64 billion (0.3 per cent).
0.2
0.2
0.2 There was a remarkable increase in the IGR of local
0.1
0.2 0.1 governments by 30.0 per cent, compared with the
0.1
level in 2021, reflecting the effectiveness of the
0.1
Per cent
0.1
ongoing tax reforms and thriving business
0.1 activities at the local governments. Local
0.1 0.0 0.0 governments in Lagos State recorded the highest
0.0
aggregate IGR of 14.0 per cent, while Kwara State
0.0
- had the lowest, at 0.4 per cent.
Education Health AgricultureWater Supply Housing
Figure 6.5.4: Local Governments Revenue and Overall
Source: Central Bank of Nigeria Staff Estimates.
Balance (% GDP)
0.03 1.50
0.03
6.5.2 Local Governments’ Finances17
0.02 1.00
6.5.2.1 The Overall Fiscal Balance and Financing 0.02
Fiscal operations of the local governments (LGs) 0.01 0.50
improved, resulting in a surplus balance. The 774 0.01
local governments recorded an aggregate surplus - -
2018 2019 2020 2021 2022
of N5.75 billion in 2022, compared with a deficit of
N0.60 billion in 2021. The surplus reflected Internally Generated Revenue (left axis)
Sources: Federal Ministry of Finance, Budget and National
improved revenue outcome, on account of higher
Planning, Office of the Accountant-General of the
federation revenue and VAT allocations. Federation and Central Bank of Nigeria Staff Estimates.
6.5.2.2 Revenue
Provisional aggregate revenue of the 774 LGs rose
by 15.7 per cent, on account of higher receipts
from the Federation Account. Aggregate revenue
of the LGs stood at N2,126.05 billion or 1.1 per
cent of GDP, with the largest share of N1,109.83
billion or 52.2 per cent of total revenue from
Federation Account allocation. This was followed
by VAT, N802.50 billion (37.7 per cent); Excess
Non-Oil Revenue, N82.19 billion (3.9 per cent);
State Allocation, N39.47 billion (1.9 per cent);
Exchange Gain, N38.76 billion (1.8 per cent), and
Internally Generated Revenue (IGR 18 ), N34.33
billion (1.6 per cent). Other revenue sources
18Including fees and fines, local licenses, earnings from commercial

17 Provisional undertakings, rent on LG property, interest payments, and dividends, among
others.

Table 6.5.3: Local Government Revenue 2022 (N Billion)
2021 2022
Share of: Share of:
Item
Amount Revenue Amount Revenue GDP
GDP (%)
(N' b) (%) (N' b) (%) (%)
Federation Account 1,035.22 56.3 0.6 1,109.83 52.2 0.6
VAT 665.28 36.2 0.4 802.50 37.7 0.4
Internally Generated Revenue 26.40 1.5 0.0 34.33 1.6 0.0
Excess Non-Oil Revenue 57.65 3.1 0.0 82.19 3.9 0.0

Excess Oil Revenue - - 0.0 - - 0.0
Exchange Gain 18.64 1.0 0.0 38.76 1.8 0.0
Grants & Others 2/ 34.13 1.9 0.0 58.44 2.8 0.0
Total 1,837.32 100 1.0 2,126.05 100 1.0
Source: Federal Ministry of Finance, Budget and National Planning, States’ Office of the Accountant-General and Central Bank of
Nigeria Staff Estimates.
1/Provisional, 2/Including Allocation from states and other miscellaneous revenue.
6.5.2.3 Expenditure A breakdown of recurrent expenditure showed

that personnel cost was N1,368.88 billion (77.1
Provisional data indicated that aggregate per cent) of the total, while overheads and
expenditure of the 774 LGs in Nigeria rose in 2022, consolidated revenue fund charges and ‘Others’
on the back of higher recurrent, capital, and social amounted to N185.59 billion (10.5 per cent) and
transfer outlays. At N2,120.30 billion or 1.0 per N220.72 billion (12.4 per cent), respectively. A
cent of GDP, expenditure at the Local government disaggregation of capital expenditure by function
level increased by 15.4 per cent, relative to 2021. revealed that administration accounted for
The impact of the nationwide flood necessitated N123.09 billion (35.7 per cent), while social &
new spending at all levels of government to community services, economic services, and
cushion its effects on households, and businesses, transfers, accounted for N97.89 billion (28.4 per
and restore public infrastructure. cent), N72.71 billion (21.1 per cent), and N51.42
billion (14.9 per cent), respectively.
In addition, inflationary pressures also raised
administrative and overhead costs at the local Analysis of spending on primary welfare sector
governments. Consequently, recurrent showed that the sum of N563.27 billion or 0.3 per
expenditure, at N1,775.19 billion or 83.7 per cent cent of GDP expended, was 3.9 per cent below the
of total expenditure, was 16.5 per cent higher than level in 2021. Spending on the primary welfare
the level in 2021, while capital expenditure at sectors accounted for 26.6 per cent of aggregate
N345.11 billion or 16.3 per cent of total expenditure in 2022. Expenditure on health
expenditure, was 9.9 per cent higher than the increased by 302.2 per cent, due to the Lassa
level in 2021. fever-induced expenditure. Similarly, expenditure
on housing, agriculture, and water supply,

increased significantly, compared with their levels end-December 2022, stood at ₦46,250.37 billion
in 2021. However, expenditure on education fell or 22.9 per cent of GDP, an increase of 16.9 per
by 47.9 per cent. cent over the level at end-December 2021. The
rise was attributed to the issuance of promissory
Figure 6.5.5: Local Governments Expenditure on notes to meet contractual obligations of the FGN
Primary Welfare Sectors, 2022 (per cent of total and new borrowings by both the Federal and sub-
expenditure)
60.0 national governments to partially fund the deficit
50.0
48.0 in the 2022 Appropriation Act and project
execution.
40.0
27.5
Per cent
30.0
The FGN owed 84.1 per cent of the total
17.0
20.0 outstanding debt, while State governments
10.0
2.9 4.6 accounted for the balance of 15.9 per cent. The
0.0 FGN guarantees external borrowing by States, in
Education Health Agriculture Housing Water
Supply
line with section 47 (3) of the Fiscal Responsibility
Source: States Ministries of LGs and Central Bank of Nigeria Staff Act, 2007, therefore, the latter’s share of external
Estimates. debt remained a contingent liability of the FGN.
Figure 6.5.6: Local Governments Expenditure on Table 6.6. 1: Total Public Debt (₦ Billion)
Primary Welfare Sectors, 2022 (per cent of GDP) Type 2020 2021 2022
0.16 External Debt 12,705.62 15,855.23 18,702.25
0.14
0.14 Of which:
0.12 FGN 10,948.18 13,884.76 16,703.35
0.10 0.08 States and FCT 1,757.44 1,970.47 1,998.90
Per cent
0.08 Domestic Debt 20,209.90 23,700.80 27,548.12

0.05 Of which:
0.06
FGN 16,023.89 19,242.56 22,210.36
0.04
0.014 States and FCT 4,186.01 4,458.24 5,337.75
0.02 0.01
Total 32,915.51 39,556.03 46,250.37
0.00 Source: Debt Management Office.
Education Agriculture Water Supply
Source: States Ministries of LGs and Central Bank of Nigeria Staff

Estimates. 6.6.2 Federal Government Debt
6.6 PUBLIC DEBT STRATEGY AND The 2020-2023 MTDS, which details the
SUSTAINABILITY borrowing plan, limit, and composition of
6.6.1 Total Public Debt government borrowing, specifies an optimal
domestic-external debt ratio of 70:30 and a long-
Public debt was consistent with the Medium-Term to-short-term domestic debt ratio of 75:25.
Debt Strategy (MTDS, 2020-2023) and remained Consequently, domestic debt at 54.3 per cent of
within the 40 per cent debt-GDP threshold, though the total, was lower than the 70.0 per cent target,
widening deficits necessitated new borrowings. while external debt was 15.7 per cent above the
The consolidated public debt, consisting of both 30.0 per cent threshold.
the Federal and State Governments’ liabilities, at

The consolidated debt stock of the FGN at end- Total debt service in 202220 was ₦3,639.75 billion
December 2022, at ₦40,912.62 billion or 28.7 per or 1.8 per cent of GDP. At this level, debt service
cent of GDP, was within the 40.0 per cent of GDP was 24.4 per cent above the level at end-
threshold specified in the MTDS, and was 16.6 per December 2021. The increase was due to the
cent above the 2021 level. significantly higher domestic principal
repayments.
Figure 6.6.1: Composition of FGN Debt Stock
(₦ Billion) Debt service obligations accounted for 64.8 per
cent of FGN retained revenue, 68.1 per cent of
2022
non-debt expenditure, and 28.8 per cent of gross
2021
revenue in 2022.
2020
2019
Figure 6.6.2: Breakdown of External Debt Stock (US$
2018
Billion)
0 5000 10000 15000 20000 25000
45,000 45,000
40,000 40,000
Foreign Domestic
35,000 35,000
Source: Debt Management Office. 30,000 30,000
25,000 25,000
Analysis of the domestic debt portfolio revealed a 20,000 20,000
preference for longer-tenored instruments, with 15,000 15,000
FGN bond retaining dominance at 73.9 per cent of 10,000 10,000

5,000 5,000
the total domestic debt portfolio, followed by
- -
Promissory Notes / FGN Sukuk (5.7 per cent); and 2018 2019 2020 2021 2022
others 19 (0.4 per cent), while the short-tenored
Multilateral Bilateral
Treasury Bills constituted 19.9 per cent. The debt
Source: Debt Management Office.
portfolio mix was in tandem with the FGN’s
objective to hold more long-term domestic debt
instruments than short, to guide against
refinancing risk. The holdings of external debt
revealed that Multilateral, Commercial, and
Bilateral loans accounted for 48.5 per cent, 39.4
per cent, and 12.2 per cent of the total,
respectively. The mix was influenced, largely, by
cost of funds, tenor, and borrowing terms and
conditions.
19This includes Treasury bonds (0.2 per cent), Green bond (0.1 per finances table that indicates contributions to the external creditors’
cent), and Special FGN Savings bond (0.1 per cent). fund (a fund dedicated for External Debt Service Payment
20Represents actual
Obligations).
debt service payments by the Debt Management
Office which may differ from the figures in the Federal Government

Figure 6.6.3: Breakdown of Total Debt Service
3,000 3,000
2,500 2,500
2,000 2,000
billion naira
$US Million
1,500 1,500
1,000 1,000
500 500
0 -
2018 2019 2020 2021 2022
Domestic Debt (N' Billion) External ($US Million)

Source: Debt Management Office.

7.0 FINANCIAL SECTOR DEVELOPMENTS
Figure 7.1. 1: Banks’ Branch Network
6000
7.1 INSTITUTIONAL GROWTH AND 5492 5450
DEVELOPMENTS 5000 4594 4571 4617
The number of licensed financial institutions under 4000
Number
the CBN regulatory purview increased to 6,760 at 3000
end-December 2022, from 6,715 in 2021. The
2000
increase was due to the licensing of two (2)
commercial banks, 30 MFB, 11 FCs, and two (2) 1000
Payment Service Banks (PSBs), in the review 0

period. 2018 2019 2020 2021 2022
The licensed institutions comprised 23

commercial banks (of which, five (5) are holding The number of offshore subsidiaries of Nigerian
companies), three (3) non-interest banks, six (6) banks reduced to 55 at end-December 2022, from
merchant banks, 34 Primary Mortgage Banks 59 at end-December 2021. The number of
(PMBs), 896 MFBs, 111 FCs, seven (7) representative offices, affiliates, international
Development Finance Institutions (DFIs), five (5) branches, and agents of Nigerian banks, remained
PSBs, and 5,675 BDCs. at four (4), one (1), three (3), and one (1),
respectively, same as in 2021, thus, bringing the
Table 7.1.1: Number of Licensed Financial Institutions total number of offshore entities to 64 in 2022,
Number of Number of
Newly
S/
Institution Institution
Licensed
from 68 in 2021.
Type of Institutions s at end- s at end-
N Institution
December, December,
s
2021 2022
7.2 DEVELOPMENTS IN OTHER FINANCIAL
1 Commercial Banks 21 23 2
INSTITUTIONS
2 Non-interest Banks 3 3 0
3 Microfinance Banks 866 896 30

The Other Financial Institutions (OFIs) sub-sector
4 Merchant Banks 6 6 0 continued to promote financial inclusion and
5
Primary Mortgage
Institutions
34 34 0 inclusive economic growth through the provision
6 Finance Companies 100 111 11 of financial services to micro, small and medium-
Development Finance
7
Institutions
7 7 0 size enterprises during the review period. Total
Source: Central Bank of Nigeria. assets of the OFIs excluding the BDCs, increased,
due largely, to the rise in net loans and advances,
and investments, occasioned by the increase in
Out of the 32 banks (commercial, non-interest,
and merchant banks), seven (7) banks had capital and deposits at end-December 2022.
international authorisation, while 20 and five (5) Similarly, placements and cash & bank balances
banks had national and regional authorisations, increased. On the liability and capital side, the
respectively. The number of bank branches increase in share capital and reserves, accounted
for the rise in shareholders’ funds. Borrowings and
increased to 4,617 at end-December 2022,
compared with 4,571 in 2021. deposits also increased, while other liabilities
decreased.

Table 7.1.2: Balance Sheet of OFIs Excluding BDCs Table 7.1.3a: Balance Sheet of DFIs
2021 2022 % 2021 2022
% Change
N’Billion N’Billion
N’Billion N’Billion Change
Cash and Bank Balances 0.97 45.35 4,575.26
Cash and Bank Placements 428.81 540.25 25.99
227.37 295.31 30 Investments 909.04 1,437.98 58.19
Balances Net Loans and Advances 1,585.39 1,614.04 1.81
Placements 671.07 810.48 21 Other Assets 60.14
Fixed Assets 62.25 76.72 23.25
Investments 1,015.71 1,548.32 52 Assets 3,054.33 3,774.49 23.58
Paid-up Capital 238.78 238.87 0.04
Net Loans and Reserves 214.46 246.94 15.15
2,930.06 3,147.52 7 Shareholder's Funds 453.24 485.8 7.18
Advances
Deposits 514.85 600.09 16.56
Fixed Assets 142.79 176.89 24 Borrowings 1,582.32 2,259.31 42.78
Deposits Due to other
11.42 1.47 87.13
Other Assets 236.66 262.04 11 Banks
Other Liabilities 438.6 372.58 15.05
Assets 5,223.66 6,240.55 19 Long-Term Loans 53.9 55.23 2.47
Share Capital 466.88 494.91 6 Source: Central Bank of Nigeria.
Reserves 219.59 246.95 12

Shareholder's Funds 686.47 741.86 8
Deposits 1,106.79 1,289.65 17
A disaggregation of DFIs’ total assets by
Borrowings 1,819.87 2,513.66 38
institution, reveals that the BoI, DBN, and Federal
Deposits Due to Mortgage Bank of Nigeria (FMBN) accounted for
49.57 62.85 27
other Banks 63.2 per cent, 13.7 per cent, and 13.0 per cent,
Other Liabilities 979.72 884.22 -10 respectively, while the Nigeria Export Import Bank
Long-Term Loans 581.25 748.30 29 (NEXIM), NMRC, Bank of Agriculture (BOA), and
Source: Central Bank of Nigeria. The Infrastructure Bank (TIB), accounted for the
balance. In terms of total net loans and advances,
the BoI, DBN, and FMBN, accounted for 48.8 per
7.2.1 Development Finance Institutions cent, 22.9 per cent and 17.8 per cent, respectively,
while NEXIM, NMRC, BOA, and TIB accounted for
Although the number of development finance
the balance.
institutions (DFIs) remain unchanged, its total
assets increased, reflecting higher loans and
advances, placements, and investments. Total Table 7.1.3b: Share of Total Assets and Net Loans and
assets increased to N3,774.49 billion, from Advances (%)
Assets Net Loans and Advances
N3,074.33 billion at end-December 2021. On the
liability side, deposits, long-term loans, and BOI 63.2 48.8
borrowings, also increased. Aggregate DBN 13.7 22.9
FMBN 13.0 17.8
shareholders’ funds increased, due to accretion to NEXIM 6.4 7.9
reserves by the Bank of Industry (BoI), NMRC 2.3 1.5
BOA 1.3 1.2
Development Bank of Nigeria (DBN), and Nigeria TIB 0.1 -
Mortgage Refinance Company (NMRC). Source: Central Bank of Nigeria.

7.2.2 Microfinance Banks Investible funds at end-December 2022 amounted
Total assets of Microfinance Finance Banks to N488.62 billion. The funds were sourced mainly
increased, owing to a significant rise in net loans from increases of N340.55 billion in other
and advances, and balances with banks, following liabilities, N95.89 billion in deposits, N23.55 billion
the increase in capital, other liabilities, and in fresh capital injection, and takings of N19.86
deposits. Total assets of MFBs rose by 16.23 per billion from other banks. The funds were utilised
cent to N1,512.10 billion, from N1,301.00 billion mainly to increase net loans and advances,
at end-December 2021. The increase was due investments, and placements by N129.35 billion,
largely to net loans and advances, fueled by the N10.39 billion, and N13.98 billion, respectively.
significant rise in other liabilities and deposits. The analysis of prudential ratios of the MFBs at
In addition, the licensing of six Tier-1 Unit and end-December 2022, showed that the industry
eight Tier-2 Unit MFBs in 2022, contributed to the CAR (15.0 per cent) and LR (70.9 per cent) were
increase in total assets. Thus, the total number of adequate, while the industry PAR was above the
MFBs in operation increased to 896, compared 5.0 per cent limit.
with 866 at end-December 2021.
Also, placements and investments, shareholders’ Table 7.1. 4b: Maturity Structure of Assets and
funds, other liabilities, and takings from other Liabilities of Microfinance Banks (MFBs), 2021 - 2022
banks increased at end-December 2022, relative 2021 2022
Loans and Loans and
to their levels at end-December 2021. Tenor/Period
Advances
Deposits
Advances
Deposits
0-30 days 21.1 40.2 9.7 27.6

Table 7.1.4a: Balance Sheet of MFBs
31-60 days 7.7 7.7 3.5 9.9
2021 2022
% Change 61-90 days 7.9 11.3 4.7 13.2
N’Billion N’Billion
Cash and Bank 91-180 days 22.6 15.4 10.8 14.6
173.2 194.8 12.5
Balances 181-360 days 19.5 11.6 12.3 15.5
Placements 126.5 140.4 11.0
Investments 28 38.3 36.8 Short-Term 78.7 86.2 41.1 80.8
Net Loans and Above 360
901.7 1031 14.3 21.3 13.8 58.9 19.2
Advances days
Fixed Assets 14.7 31.5 115.3 Total 100 100 100 100
Assets 1301 1512.1 16.2 Source: Central Bank of Nigeria.
Paid-up-Capital 93.7 117.3 25.2
Reserves 66.1 65.0 -1.6 Long-term credit (of over 360 days) maturity
Shareholder's Funds 159.9 182.3 14.0 dominated the assets of the microfinance bank
Deposits 411.7 507.6 23.3
Deposits Due to sub-sector in 2022. At end-December 2022, loans
16.6 36.5 119.9
other Banks above 360 days maturity accounted for 58.9 per
Long-Term Loans 448.4 448.4 0.0
cent of the total, compared with 21.3 per cent at
FSIs 2021 2022 Benchmark end-December 2021, representing an increase of
CAR 15.4 15.0 10 37.6 percentage points. Short term loans
LR 78.1 70.9 20
accounted for 41.1 per cent, compared with 78.7
PAR 5.9 11.3 5
Source: Central Bank of Nigeria. per cent at end-December 2021. However, the
Note: FSIs are financial soundness indicators . deposit structure was majorly short-term, as
deposits of less than 0ne-year maturity accounted
for 80.8 per cent, though with a decrease of 5.4

percentage points, compared with 86.2 per cent The analysis of prudential ratios of the FCs at end-
at end-December 2021. On the other hand, December 2022, showed that the average CAR fell
deposits of over one-year maturity accounted for to 7.5 per cent from 11.1 per cent, while industry
19.2 per cent, reflecting an increase of 5.4 NPL was 19.9 per cent. The decline in CAR was due
percentage points, compared with 13.8 per cent largely to the increase in loans and advances,
at end-December 2021. which led to substantial increase in Risk Weighted
Assets as against a decline in shareholders’ fund
7.2.3 Finance Companies during the review period.
The assets of finance companies increased due,
largely, to the rise in placements, net loans and 7.2.4 Primary Mortgage Banks
advances, and other assets, occasioned mainly by The total assets of primary mortgage banks
the injection of capital by the newly licensed FCs. (PMBs) increased, due largely, to the increase in
Total assets of the FCs increased, due mainly to net loans and advances and placements with
the increase in placements and net loans and banks. Total assets of the PMBs, at N537.07
advances. Other assets and fixed assets also billion, reflecting an increase of 6.2 per cent from
increased, while investment decreased. Similarly, N505.61 billion, at end-December 2021. This was
borrowings, long-term loans, and other liabilities driven, largely, by the increase in net loans and
increased. advances and placements with banks. On the
Investible funds at end-December 2022 amounted liability side, shareholders’ funds increased,
to N62.98 billion. The funds were sourced mainly owing, largely, to increased paid-up capital.
from increases in borrowings, long-term liabilities, Similarly, deposit ‘due to other banks’, long term
and other liabilities. The funds were utilised mainly loans, and other liabilities, increased by 15.6 per
to increase loans and advances and placements, as cent, 9.7 per cent, and 8.3 per cent, respectively,
well as absorb N3.15 billion loss recorded in the above their levels in 2021.
review period.
Table 7.2.1: Balance Sheet of FCs
2021 2022 % Change
Cash and Bank Balances 29.69 30.41 2.4
Placements 41.89 49.62 18.5
Investments 19.76 14.38 -27.2
Net Loans and Advances 166.98 204.41 22.4
Other Assets 58.15 70.24 20.8
Fixed Assets 46.15 47.84 3.7
Assets 362.62 416.9 15.0
Paid-up Capital 25.65 26.52 3.4
Reserves 15.19 12.04 -20.7
Shareholder's Fund 40.84 38.56 -5.6
Deposits - -
Borrowings 237.55 254.35 7.1
Deposits Due to other Banks - -
Long-Term Loans 1.85 3.47 -12.4
FSIs 2021 2022 Benchmark
CAR 11.12 7.53 12.5
NPL 19.91 19.96 10.0

Table 7.2.2: Balance Sheet of PMBs per cent, from 15.5 per cent at end-December
2021 2022
N Billion N Billion
% Change 2021. Further analysis on financial savings showed
Cash and Bank
23.52 24.78 5.4
that, banks (commercial, merchant, and non-
Balances
Placements 73.93 80.18 8.5
interest banks) remained the dominant depository
Investments 45.41 49.82 9.7 institutions in the financial system, accounting for
Net Loans and
Advances
276.03 298.05 8.0 93.9 per cent of total financial savings. Other
Fixed Assets 19.74 20.78 5.3 savings institutions, comprised of PMBs, MFBs, life
Assets 505.61 537.07 6.2
insurance companies, pension fund custodians,
Reserves -76.18 -77.04 -1.1
and the Nigerian Social Insurance Trust Fund
Shareholder's Fund 32.53 35.20 8.2
Deposits 180.2 181.93 1.0 (NSITF), accounted for the balance of 6.1 per cent.
-
Deposits Due to other 21.57 24.93 15.6 7.4 MONETARY AND CREDIT DEVELOPMENTS
Banks
The Bank, in the first four months of 2022,
194.26 210.45 8.3
Other Liabilities
maintained an accommodative monetary policy
77.06 84.55 9.7
Long-Term Loans stance to boost productivity and support domestic
FSIs
2021 2022 Benchmark growth recovery. However, heightened
CAR 10 10.4 10.00 inflationary pressures, prompted the Bank to
LR 43.7 43.13 20.00
NPL 29 22.07 30.00 switch to a hawkish policy stance, which spotlights
Source: Central Bank of Nigeria. its commitment to ensure price stability.
Nonetheless, the Bank continued to intensify
Analysis of prudential ratios of PMBs at end- interventions in the real sector, providing credit to
December 2022, showed that the industry CAR, key sectors of the economy to support growth and
LR, and NPL, were within the regulatory employment. These initiatives, among others,
thresholds. propelled the growth of broad money supply (M3)
above the target for 2022 fiscal year.
7.2.5 Bureaux-De-Change
The number of licensed BDCs remained the same
7.4.1 Reserve Money
as in the preceding year. This was due to
Management’s suspension of the licensing of new Reserve money increased on account of the
institutions since July 2021. growth in the Bank’s liability to Other Depository
Corporations (ODCs). Reserve money grew by 20.6
7.3 INSTITUTIONAL SAVINGS per cent at end-December 2022 to N16,032.05
Financial savings rose, reflecting increased billion, from a growth of 1.4 per cent at end-
accumulation of capital stock for investment to December 2021. The significant growth in reserve
stimulate economic growth. Aggregate financial money was due to the 30.6 per cent rise in
savings increased by 18.3 per cent to N31,780.37 liabilities to ODCs, arising from the increase in
billion, compared with N26,868.76 billion at end- CRR. On the other hand, currency-in-circulation
December 2021. The increased savings could be (CIC) moderated the growth in reserve money, as
attributed to the impact of the Naira redesign it contracted by 9.4 per cent, owing to increased
policy and attractive interest rates. The ratio of adoption and usage of electronic payment
financial savings to GDP rose marginally to 15.9 channels, coupled with increased deposits of the

old design higher denomination banknotes, cent to N28,523.73 billion, from N23,735.76
ensuing from the currency redesign policy. billion at end-December 2021, and constituted
42.9 per cent of the total domestic claims. Claims
At end-December 2022, broad money multiplier on the other financial corporations grew by 12.1
remained unchanged at 3.3, relative to the level at per cent, against a contraction of 5.3 per cent at
end-December 2021, but resulted in a higher end-December 2021.
monetary expansion, given the 20.1 per cent
growth in reserve money in 2022. Table 7.4.1: Reserve Money (N Billion)
Dec-18 Dec-19 Dec-20 Dec-21 Dec-22
Monetary Base 7,180.01 8,680.95 13,107.92 13,295.15 16,032.05

7.4.2 Broad Money Supply Currency-in-
2,329.71 2,442.99 2,908.46 3,325.16 3,012.06
Circulation
The growth in net domestic assets overshadowed Of which:
the decline in net foreign assets, propelling the Naira and
2,329.71 2,442.99 2,908.46 3,324.22 3,009.51
Coins
growth in broad money. Broad money supply (M3) eNaira - - - 0.94 2.55
increased by 17.3 per cent to N52,140.94 billion at Liabilities to
4,850.31 6,237.97 10,199.46 9,969.99 13,019.99
ODCs
end-December 2022, from the 14.2 per cent Reserve Money
10.74 20.90 51.00 1.43 20.59
Growth (%)
growth at end-December 2021. The growth in M3 Source: Central Bank of Nigeria.
exceeded the 2022 indicative target (14.92 per Note: Numbers for December 2022 are provisional.
cent) by 2.4 percentage points, and was driven by

On the liability side, the expansion in broad money
the 36.5 per cent increase in net domestic assets
(M3) was driven largely, by the 19.9 per cent and
(NDA), which outweighed the 54.5 per cent
17.7 per cent rise in transferable deposits and
decline in net foreign assets (NFA). Increase in
other deposits, respectively. The growth in M3
foreign loans and deposits accounted for the rise
was, however, moderated by the 12.7 per cent
in liabilities to non-residents, resulting in the
decline in currency outside depository
contraction of NFA.
corporations (CODC), which mirrored the early
The growth in NDA was driven by the rise in gains from the Bank’s naira redesign policy. This
domestic claims, which grew by 36.3 per cent, also reflected in the decline in the ratio of CODC
compared with the 17.8 per cent growth at end- to total deposits, which stood at 5.2 per cent, from
December 2021. Domestic claims increased on 7.1 per cent at end-December 2021.
account of the combined impact of the 78.2 per
Other deposits constituted 63.2 per cent of the
cent and 19.7 per cent growth in net claims on
total deposit liabilities, following the rise in savings
central government and claims on other sectors,
and time deposits of the DCs. Foreign currency
respectively. The growth in net claims on central
deposit increased by 19.6 per cent to N10,029.15
government was due, largely, to increased loans
billion at end-December 2022 and constituted
and securities holdings by the ODCs.
32.3 per cent of other deposits of DCs, compared
Of the claims on Other Sectors, credit to public with 31.79 per cent at end-December 2021.
non-financial corporations and claims on state &
local government grew by 40.9 per cent and 32.5
per cent, respectively. This was followed by credit
to the private sector, which expanded by 20.2 per

Table 7.4.2: Growth in Monetary Assets and Liabilities Claims on other sectors accounted for 15.5
2018 – 2022 (per cent) percentage points of the growth in broad money
Dec Dec Dec Dec Dec
Item 2018 2019 2020 2021 2022 supply, largely on account of sustained credit to
Net Foreign Assets 7.9 -49.8 51.0 4.2 -54.5
Net Domestic Assets 20.8 38.3 -0.4 21.9 36.5
the private sector at 10.8 percentage points,
Domestic Claims 9.6 29.0 12.7 17.8 36.3 which underscored the Bank’s concerted effort
Net Claims on Central
Government 32.4 105.4 13.8 20.4 78.2 towards the growth of the real sector of the
Claims on Other Sectors 5.8 13.1 12.3 16.8 19.7
Claims on Other Financial economy.
Corporations 34.4 -1.0 8.0 -5.3 12.1
Claims on State and Local
Government 16.8 7.1 10.6 20.6 32.5 Table 7.4.3: Contribution to the Growth in M3 2018 -
Claims on Public Nonfinancial
Corporations 328.3 1.8 -0.7 3.4 40.9 2022 (percentage point)
Claims on Private Sector -10.4 22.9 15.2 26.8 20.2 Dec- Dec- Dec- Dec- *Dec-
Broad Money Liabilities 15.0 6.5 11.6 14.2 17.3 Item
18 19 20 21 22
Currency Outside Depository
Net Foreign Assets 3.03 -18.00 8.48 0.97 -11.47
Corporations 7.0 6.0 23.4 17.7 -12.7
Net Domestic Assets 12.62 24.45 2.58 16.22 28.79
Transferable Deposits 10.4 1.5 54.7 13.3 19.9
Domestic Claims 8.77 25.24 18.18 18.96 39.82
Other Deposits 11.0 13.6 20.6 20.0 17.7
Net Claims on
Of Which Foreign 4.23 15.83 8.57 6.03 24.34
Central Government
Currency Deposit 11.6 22.3 9.8 37.4 19.6
Claims on Other
Total Deposits 10.8 9.4 31.6 17.5 18.5 4.54 9.41 9.61 12.93 15.48
Sectors
Deposits In National Currency 10.6 6.5 37.3 13.3 18.2
Claims on Other
7.01 -0.24 -0.39 -1.14 2.15
Financial Corporations
Monetary Base 10.7 20.9 51.0 1.4 20.6
Claims on State
Currency-in-Circulation 8.0 4.9 19.1 14.3 -9.4 0.88 0.38 0.74 1.10 1.82
and Local Government
Liabilities to Other Claims on Public
Depository Corporations 12.1 28.6 63.5 -2.3 30.6 Nonfinancial 2.06 0.04 -0.95 0.07 0.74
Corporations
M1 9.7 2.4 48.7 14.0 14.6
Claims on Private
M2 10.5 9.2 31.0 17.5 16.4 -5.41 9.23 10.21 12.91 10.77
Sector
M3 15.0 6.5 11.6 14.2 17.3 Monetary Assets 14.98 6.45 8.99 14.24 17.32
Source: Central Bank of Nigeria. Currency Outside
Note: Numbers for December 2022 are provisional. Depository 0.44 0.35 1.94 1.14 -0.84
Corporations
Transferable Deposits 2.80 0.40 14.27 4.56 6.76
Narrow money (M1) grew by 14.6 per cent to Other Deposits 5.58 6.65 12.37 11.30 10.52
Of Which Foreign
1.66 3.10 0.45 5.87 3.69
N20,686.48 billion at end-December 2022, Currency Deposit
Total Deposits 8.38 7.05 26.64 15.86 17.27
compared with the growth of 14.0 per cent at end- Deposits in National
6.72 3.95 26.19 10.00 13.58
Currency
December 2021, on the heels of the increase in Securities Other than
6.16 -0.95 -19.59 -2.76 0.88
Shares
transferable deposits (19.9 per cent). Monetary Liabilities 14.98 6.45 8.99 14.24 17.32

Note: *Numbers for December 2022 are provisional.
Drivers of Growth in Broad Money
Domestic claims remained the major driver of the
growth in broad money supply. Domestic claims Net foreign assets dragged down growth in
contributed 39.8 percentage points to the growth referenced monetary aggregate by 11.5
in broad money, 20.9 percentage points higher percentage points, due to the significant increase
than its contribution in the preceding year. The in the liabilities to non-residents over its claims.
significant contribution of domestic claims to Currency-to-reserves ratio decreased by 1.9 to 5.2
monetary growth was attributed to the net claims in 2022, compared with 7.1 in the preceding year.
on central government, which contributed 24.3 The velocity of broad money decreased slightly to
percentage points to the growth in broad money 3.8, compared with 3.9 in 2021.
supply.

Table 7.4. 4: Currency reserves, reserve ratio, Multiplier Figure 7.4.2: Consumer Credit, 2018 – 2022
and Velocity of M3 2,500,000 7
6
Item 2018 2019 2020 2021 2022 2,000,000
5
Currency Ratio 7.8 7.5 7.1 7.1 5.2 1,500,000
₦ Million
Per cent
4
3
Reserve Ratio 19.8 23.2 28.9 24.0 26.5 1,000,000
2
M3 Multiplier 4.6 4.0 3.0 3.3 3.3 500,000
1
Velocity of M3 3.9 4.1 3.9 3.9 3.8 0 0
Source: Central Bank of Nigeria. Dec-18 Dec-19 Dec-20 Dec-21 Dec-22
Consumer Credit (LHS)

Figure 7.4.1: Money Multiplier, Currency Ratio and
Reserve Ratio
5.0 35.0
4.5 28.9 7.4.4 Maturity Structure of Banks’ Loans and
26.5 30.0
4.0
23.2 24.0 Advances, and Deposit Liabilities
3.5 25.0
19.8
3.0
20.0 Short-term deposits and loans maintained their
Per cent
Ratio
2.5
2.0 15.0 dominance in banks’ portfolio. Deposit liabilities,
1.5 7.8 7.5 7.1 7.1 10.0 with maturity of one year and below, at 89.8 per
1.0
5.2
5.0 cent, shed 0.1 percentage point at end-December
0.5
0.0 - 2022, compared with 89.9 per cent at end-
2018 2019 2020 2021 2022 December 2021. The medium-term deposit
Currency Ratio (rhs) Reserve Ratio(rhs)
liabilities sustained an upward trajectory over a
M3 Multiplier (lhs) Velocity of M3 (lhs) five-year period, accounting for 4.6 per cent, while
Source: Central Bank of Nigeria. long-term deposits constituted 5.5 per cent at
end-December 2022.
7.4.3 Consumer Credit

Figure 7.4.3: Maturity Structure of DMBs’ Loans and
Despite the rise in interest rates in 2022, consumer Advances at end-December 2022 (per cent)
credit increased, riding on the back of inflationary
pressures and sustained implementation of loan- Medium
term
to-deposit ratio. Consumer credit outstanding 4.6% Long term
grew by 11.8 per cent at end-December 2022 to 5.5%
N2,318.63 billion, above the N2,073.76 billion

recorded at end-December 2021. The ratio of
outstanding consumer credit to ‘other sectors’
Short term
credit stood at 5.6 per cent at end-December 89.8%
2022, slightly lower than the 5.9 per cent at end-
December 2021. Source: Central Bank of Nigeria.

A similar trend was observed in the share of Table 7.4.5: Share in Outstanding Credit to the Private
outstanding loans and advances, as short-term Sector, 2018 – 2022 (per cent)
credit was dominant with a share of 58.1 per cent, Item Dec-18 Dec-19 Dec-20 Dec-21 Dec-22
at end-December 2022, from 56.4 per cent at end- Agriculture 4.00 4.49 5.15 5.98 6.15
December 2021. The medium-term and long-term Industry 45.10 41.58 41.93 40.66 41.01
of which:
maturities accounted for 14.9 per cent and 27.0 Construction
4.10 4.10 4.70 4.38 3.95
per cent, respectively, compared with 15.8 per Services 50.90 53.93 52.92 53.36 52.84
of which:
cent and 27.9 per cent at end-December 2021. Trade/General 7.10 7.20 6.60 7.00 7.52
Commerce
Figure 7.4.4: Maturity Structure of DMB’s Loans and Source: Central Bank of Nigeria.
Advances, and Deposit Liabilities
The agriculture sector's share increased to 6.2 per

Medium
term
cent at end-December 2022, compared to 6.0 per
26.98% cent at end-December 2021.
Short term
58.08% 7.4.6 Financial Sector Development Indicators
The financial sector showed resilience, as revealed
Long term
14.94% by key indicators. Aggregate savings maintained
an upward trajectory in 2022, as reflected in the
higher ratio of ‘other’ deposits (OD) to GDP of 15.6
Source: Central Bank of Nigeria. per cent, relative to 15.2 per cent in 2021. The
ratio of banking system’s asset to GDP rose to 71.4
7.4.5 Sectoral Distribution of Credit per cent, indicating that the size of the financial
sector remains robust.
The industry and services sectors sustained their
dominance in the share of credit to the private Table 7.4. 6: Financial Sector Development Indicators
sector. Credit utilisation by sectors of the economy Item 2018 2019 2020 2021 2022
grew by 20.8 per cent to N29,445.87 billion at end-
M3/GDP 25.6 24.2 25.5 25.6 26.2
December 2022, above the N24,378.19 billion at CIC/M3 7.1 7.0 7.5 7.5 5.8
COB/GDP 1.5 1.4 1.6 1.7 1.3
end-December 2021. The share of credit to the OD/GDP 12.6 12.5 14.4 14.8 15.6
private sector, revealed that the services and NDC/GDP 22.3 25.2 27.2 28.0 33.3
COS/GDP 18.4 18.3 19.6 20.3 21.0
industry sectors accounted for the largest shares, CPS/GDP 10.4 11.2 12.3 13.7 14.3
as their share in total credit stood at 52.8 per cent Banking
System's 59.5 58.3 67.3 68.1 71.4
and 41.0 per cent, respectively, at end-December Assets/GDP
COB/M3 5.8 5.8 6.4 6.6 4.9
2022, compared with 53.4 per cent and 40.7 per Source: Central Bank of Nigeria.
cent, recorded at end-December 2021.

The ratio of claims on ‘other’ sector (COS) to GDP Figure 7.5. 1: Value of Interbank Funds Market
and claims on the private sector (CPS) to GDP Transactions, 2018 – 2022
60,000
increased to 21.0 per cent and 14.3 per cent,
compared with 20.3 per cent and 13.7 per cent, 50,000
respectively, in 2021, following sustained efforts 40,000
Billion naira
at credit support to the domestic economy. 30,000
Intermediation efficiency indicator, measured by
20,000
the ratio of currency outside banks (COB) to broad
10,000
money supply, improved to 1.3 per cent, from 1.7
per cent at end-December 2021, partly attributed 0
2018 2019 2020 2021 2022
to the naira redesign policy.
7.5 MONEY MARKET DEVELOPMENTS
7.5.1 Inter-bank Market Transactions Figure 7.5. 2: Share of Interbank Funds Market
Collateralised transactions continued to dominate Transactions, 2018 – 2022
in the inter-bank market. The total value of
transactions at the open-buy-back, interbank call, 2022
and interbank tenored segments declined in 2022 2021

Bilion naira
to N49,733.95 billion, from N54,969.48 billion in

2020
the preceding year. Average transactions at the
OBB and interbank (call and tenored) segments in 2019
the review period stood at N199.39 billion and 2018
N6.47 billion, respectively, lower than the - 20,000.00 40,000.00 60,000.00
N220.11 billion and N5.45 billion in the preceding

year. Specifically, transactions at the OBB segment Interbank Call + Interbank Tenored OBB
accounted for the bulk of the interbank
transactions at 99.4 per cent, while the interbank
call and tenored transactions accounted for the
remaining 0.6 per cent. The decrease in inter-bank
7.5.4 Primary Market Activities
transactions was attributed to the level of liquidity
In 2022, the total value of Nigerian Treasury Bills
in the banking system occasioned by the
(NTBs) sold increased, compared with the level
contractionary policy stance that prevailed in the
recorded in 2021, due to the Federal Government’s
most part of the year.
reliance on public financing to bridge revenue
shortfalls. The total value of NTBs offered and
allotted was ₦4,675.86 billion and N4,344.82
billion, respectively, indicating an increase of
₦540.38 billion or 13.07 per cent and ₦342.59
billion or 5.47 per cent, above the ₦4,135.48
billion and ₦4,002.23 billion offered and allotted,
respectively, in 2021. The total public subscription

stood at ₦9,113.46 billion, compared with Figure 7.5.5: Nigerian Treasury Bills Outstanding: Class
₦8,217.96 billion in 2021. Public subscription of Holders, 2022
Merchant
remained relatively higher than the offered Banks Banks(includ
ing foreign
1.09%
investors)
amount due to the sustained appetite for 30.36%
instruments with risk-free features. Parastatals
30.79%
Figure 7.5.3: NTB Issues, Subscriptions, and Allotments Mandate/Internal

Funds
12,000 37.76%
10,000
8,000
Billion naira
6,000
4,000 Source: Central Bank of Nigeria.

2,000
0
2018 2019 2020 2021 2022
Over-the-Counter Transactions in Treasury Bills
and FGN Bonds
Offer Subscription Allotment
There was a decrease in OTC transactions for
NTBs, in contrast to the transactions in the FGN
Bonds, which recorded an increase. Over-the-
Structure of Allotment of Nigeria Treasury Bills
The structure of allotment of the instrument Counter (OTC) transactions for NTBs amounted to
indicated that banks, including foreign investors, ₦48,310.69 billion, indicating a decrease of
took up ₦2,925.64 billion or 67.34 per cent, ₦9,975.54 billion or 17.11 per cent below the
mandate and internal funds, ₦1,266.40 billion or ₦58,286.23 billion recorded in 2021. OTC
29.15 per cent, and merchant banks ₦152.78 transactions in FGN Bonds amounted to
billion or 3.51 per cent. The stop rates ranged ₦13,981.14 billion, indicating a decrease of
between 1.74 and 6.50 per cent for the 91-day, ₦5,379.64 billion or 27.79 per cent below the
3.00 and 8.05 per cent for the 182-day, and 4.00 ₦19,360.78 billion recorded in 2021. The
and 14.84 percent for the 364-day. developments in the OTC markets were attributed
primarily to lower patronage by foreign and other
Figure 7.5.3: Nigerian Treasury Bills Outstanding institutional investors.
5,000
4,423
4,500
3,786
7.5.5 Federal Republic of Nigeria Treasury
4,000
3,500
3,342
3,191
3,383 Bonds
3,000 Federal Republic of Nigeria Treasury Bonds
Billion naira
2,500 (FRNTBs) worth ₦50.99 billion was outstanding at

2,000
1,500
end-December 2022, compared with ₦75.99
1,000 billion outstanding at end-December 2021.
500
FRNTBs worth ₦25.00 billion was redeemed in the
0
2018 2019 2020 2021 2022 review period, same as in 2021. A breakdown of
Source: Central Bank of Nigeria. the amount outstanding indicated that the CBN
held ₦3.12 billion or 6.12 per cent, while ₦47.87
billion or 93.88 per cent was held in the Sinking

Fund. In 2021, CBN held ₦14.29 billion or 18.81 7.5.7 Federal Government of Nigeria Savings
per cent, while ₦61.70 billion or 81.19 per cent Bonds
was held in the Sinking Fund. There were no new In 2022, FGN Savings Bonds worth ₦16.59 billion
issues of FRNTBs in 2022. was allotted, representing an increase of ₦13.05
billion or 368.75 per cent, compared with ₦3.54
7.5.6 Federal Government of Nigeria (FGN) billion at end-December 2021. The rise was
Bonds attributed to the increased number of auctions
Total amount of FGN Bonds offered to the public and subscriptions following investor sensitizations
was ₦2,475.00 billion, while public subscription about the features of the bond. The new issues
and allotment stood at ₦4,483.77 billion and were 2- and 3- year tenors with coupon rates
₦3,000.63 billion, respectively. The amount ranging from 7.22 to 11.38 per cent and 8.22 to
offered comprised new issues and re-openings of 13.23 per cent, respectively. The range of coupon
FGN Bonds series 1, 2, 3, 4, and 5. In 2021, FGN rates was lower in 2021, from 2.20 to 8.89 per
Bonds issuance, subscription, and allotment were cent and from 3.20 to 9.89 per cent for the 2- and
₦1,750.00 billion, ₦3,357.32 billion, and 3- year tenors, respectively. The total value of
₦2,607.01 billion, respectively. The higher FGN Savings Bonds outstanding at end-December
subscription in 2022 was traceable to the 2022 was ₦27.51 billion, compared with ₦16.42
preference for long-tenored instruments with billion at end-December 2021.
attractive yields. The subsisting restriction placed
on non-banking institutions and individuals from 7.5.8 Federal Government of Nigeria Green
purchasing OMO Bills also sustained the activities Bonds
in the bond market. The total value of FGN Bonds FGN Green Bond valued at ₦10.69 billion was
outstanding at end-December 2022 stood at redeemed in 2022. Consequently, the outstanding
₦16,854.10 billion, compared with ₦14,395.75 stock of the instrument at end-December 2022
billion at end-December 2021, indicating an stood at ₦15.00 billion, representing a decrease of
increase of ₦2,458.34 billion or 17.08 per cent. ₦10.69 billion or 58.39 per cent, compared with
₦25.69 billion at end-December 2021.
Figure 7.5.6: FGN Bonds Auctions
5,000
7.5.9 Federal Government of Nigeria Sukuk
During the review period, a 10-Year FGN Sukuk
4,000
worth ₦130.00 billion was issued and allotted with
Billion Naira
3,000
the rental rate of 15.64 per cent payable semi-
2,000 annually. This brought the total value of FGN
1,000 Sukuk outstanding at end-December 2022 to
₦742.56 billion, an increase of 21.22 per cent
0
2019 2020 2021 2022 above the ₦612.56 billion recorded in 2021. The
Issue Subscription Allotment
increase in subscription was attributed to more
Source: Central Bank of Nigeria. issuance by the Federal Government, attractive
returns, as well as greater awareness of the
market participants to the developmental benefits
of Shari'ah compliant financial instruments.

7.5.10 Federal Government of Nigeria Promissory
Note 7.5.2 The Nigerian Exchange Group (NGX)
FGN Promissory Notes valued at ₦210.83 billion Limited
matured and ₦21.03 billion was issued in 2022. In the review period, the NGX Limited
The outstanding stock of the Notes at end- implemented various initiatives, aimed at
December 2022 stood at ₦530.03 billion, enhancing its strategic performance with the
representing a decrease of ₦231.96 billion or relaunching of the Market Making Program to
30.44 per cent, compared with ₦761.99 billion at tackle liquidity constraints and ensure sustained
end-December 2021. flow of funds in the capital market.
7.6 Capital Market Developments Other significant activities carried out by the
Global and domestic macroeconomic Exchange in 2022, included:
developments shaped the activities in the Nigerian  Launching of West Africa's first Exchange
capital market during the review year. Traded Derivatives (ETD) market - Listed 10
NGX Index Futures Contracts (NGX 30 Index
7.6.1 Policy, Regulation, and Institutional Futures, and NGX Pension Index Futures);
Environment  obtaining approval from SEC on the rules for
In line with the recommendations of the Nigerian listing on NGX Technology Board;
Capital Market Master Plan (2015 - 2025), the  Forming new strategic partnerships with the
Securities and Exchange Commission (SEC) signing of a MoU with the Bank of Industry and
continued its activities, aimed at strenghtening Dubai Financial Market;
regulation and ensuring effective operations of  signing of a Memorandum of Understanding
the Nigerian capital market. In the revie period, (MoU) to further promote financial literacy
the Commission: and enhance retail participation, develop
capital market solutions, leverage technology,
 notified all public companies involved or support data dissemination, promote capacity
intending to be involved in a merger, development, and eliminate barriers to retail
acquisition, or other forms of corporate participation in the capital market;
restructuring, of the revised applicable  successful launching of the African Exchange
“processing fee’’; and Linkage Project (AELP), which integrates the
 informed all capital market operators (CMOs) African capital markets, by facilitating cross-
and the general public about the amended border trading and enabling the trading of
Investment and Securities Order 2019, which exchange-listed securities across 7
granted exemption to State Governments and participating securities exchanges;
the Federal Capital Territory from the  execution of several physical and online
operations of Section 223 of the capacity building programs (Derivatives,
Investments and Securities Act, 2007 to Securities Lending, and Islamic Finance
enable them raise funds from the Capital webinars) to enhance the knowledge of key
Market for infrastructure development. stakeholders and increase investor
participation;

 collaboration with the International Finance Analysis of the sectoral performance shows that
Corporation (IFC) – a member of the World the NGX-Growth was the most impressive with a
Bank Group, to host a training for issuers and growth of 41.6 per cent, occasioned by the
market operators on the issuance of improved investors’ sentiment and strong
sustainable financial instruments across the corporate earnings. This was followed by NGX-Oil
Nigerian capital market under the IFC’s REGIO & Gas with a growth of 34.0 per cent, due mainly
Technical Assistance Program for Africa; and to the sustained high oil prices in the downstream
 launching of the Corporate Governance oil and gas sector, which boosted corporate
Triangle, an initiative of the Nigerian Bar earnings. Other sectoral indices improved: NGX-
Association Section on Business Law (NBA- Main Board (33.2 per cent); NGX-Afri Div Yield
SBL), NGX, and the Institute of Directors, Index (29.8 per cent); NGX-MERI Growth (27.3 per
Nigeria (IoD), to foster good corporate cent); NGX-Industry (19.7 per cent); NGX-
governance in Nigeria for members of the Premium (13.1 per cent); NGX-Pension (10.4 per
business law community, directors and cent); NGX-MERI Value (8.1 per cent); NGX-LOTUS
managers of businesses, shareholders, and (7.7 per cent); NGX-30 (7.0 per cent), and NGX-
other corporate stakeholders. Banking (2.8 per cent).
Table 7.6.1: Nigerian Exchange Group (NGX) Limited

i. The Secondary Market Indices
The secondary segment of the Nigerian capital Changes
NGX Indices 2021 2022
(%)
market sustained a bullish performance in 2022.
NGX-Growth 1269.66 1798.28 41.6
The NGX All-Share Index (ASI) and aggregate NGX-Oil & Gas 345.01 462.48 34.1
market capitalisation at end-December 2022 NGX-Main Board 1748.37 2328.51 33.2
appreciated relative to their levels at end- NGX-Afri Div Yield 2559.43 3321.49 29.8
December 2021. NGX-MERI Growth 1805.02 2297.30 27.3
NGX-Industrial 2008.30 2403.24 19.7
ii. NGX All-Share Index NGX-Premium 4167.78 4715.57 13.1
NGX-Pension 1624.09 1792.58 10.4
The NGX ASI appreciated significantly in 2022, NGX-MERI Value 2134.95 2308.19 8.1
occasioned by the bargain hunting in the equities NGX-Lotus 3009.51 3240.83 7.7
market and price appreciation in anticipation of NGX-30 1722.30 1842.50 7.0
favourable end-of-year corporate earnings, and NGX-Banking
406.07 417.50 2.8
improved macroeconomic outlook. The NGX ASI
NGX-Consumer Goods
grew by 20.0 per cent to 51,251.06 index points in 589.28 588.93 -0.1
2022, from 42,716.44 index points at end- NGX-Corporate

1278.00 1276.51 -0.1
Governance
December 2021. The positive performance was NGX-ASeM 670.65 659.42 -1.7
broad-based as sectoral indices trended upwards, NGX-AFRI Bank Value
1038.82 991.06 -4.6
except for NGX-Consumer Goods, NGX-ASeM, NGX-Sovereign Bond 860.95 818.27 -5.0
NGX-Afri Value, NGX-Sovereign Bond and NGX- NGX-Insurance 198.11 174.36 -12.0
Insurance, which declined relative to their levels at Source: Securities and Exchange Commission (SEC)/NGX Limited.
end-December 2021.

iii. Market Capitalisation  Bonds Segment
Market capitalisation increased in the review The market capitalisation of the 145 listed bonds
stood at N23.21 trillion at end-December 2022
period, due to better-than-expected corporate (17.6 per cent appreciation relative to the level at
earnings and improved investors’ confidence. The end-December 2021) and constituted 45.4 per
aggregate market capitalisation of the 300-listed cent of the aggregate market capitalisation. The
securities increased by 21.7 per cent to N51.19 bonds segment included: FGN Bonds (N22.0
trillion at end-December 2022, from N42.05 trillion); sub-national and supra-national bonds
trillion at end-December 2021. The development (N148.91 billion); and corporate
bonds/Debentures (N1.06 trillion).
reflected increase in the value of traded securities
in all segments of the market. Aggregate market Figure 7.6.3: Composition of Bonds Market
capitalisation, as a percentage of GDP stood at Capitalisation (%)
28.6 per cent in 2022, compared with 23.9 per
Corporate/Debentures
cent at end-December 2021. Similarly, the ratio of 4.6%
Sub-national
the value of traded stocks to GDP was 0.7 per cent, Bonds
compared with 0.5 per cent recorded at end- 0.6%
December 2021.
Figure 7.6.1: Trends in Market Capitalisation and NGX

Value Index, 2018 - 2022
60.0 60.0
FGN Bonds
94.8%
50.0 50.0
Source: SEC & NGX Limited.
Thousand Index Points
40.0 40.0
N Trilliom
30.0 30.0
20.0 20.0  Exchange Traded Funds

10.0 10.0 Exchange Traded Funds (ETFs) of N8.42 billion,
accounted for 0.02 per cent of the aggregate
0.0 0.0
2018 2019 2020 2021 2022 market capitalisation. The number of ETFs
Market Capitalisation (LHS) ASI (RHS) remained at 12, same as at end-December 2021.
Source: NGX Limited.
 Equities Segment
Market capitalisation of the 149-listed equities
A disaggregation of the components of the rose by 25.4 per cent to N27.97 trillion at end-
aggregate market capitalisation indicated that the December 2022, and accounted for 54.6 per cent
exchange-traded funds (ETFs), bonds, and equities of aggregate market capitalisation. There were
components, stood at N8.42 billion, N23.21 eight banks in the top 20 most-capitalised stocks
trillion, and N27.97 trillion, respectively. on the Exchange, same as in 2021. However, banks
accounted for 11.6 per cent of their market
capitalisation in 2022, compared with 8.0 per cent
in 2021.

Total volume and value of traded securities were Figure 7.6.4: Share of Banks in the 20 Most Capitalised
134.35 billion shares and N1,168.53 billion, Stocks in the NGX, 2016 – 2022
respectively, in 1,068,959 deals at end-December 2022 11.6
2021 15.9
2022. These represented an increase of 54.2 per
2020 15.9
cent and 22.5 per cent, compared with 87.11
2019 23.2
billion shares and N953.87 billion, respectively, in
2018 22.3
1,060,017 deals in 2021. Equities transactions
2017 25.7
dominated the capital market activities,
2016 22.5
accounting for 75.2 per cent of the turnover
0 5 10 15 20 25 30
volume, and 99.7 per cent of the value of traded
Per cent
securities.
Source: Securities and Exchange Commission (SEC) and
Figure 7.6.2: Volume and Value of Transactions on the NGX Limited.
NGX Limited
Market Participation
120.0 1400.0
Investors’ activities in the market showed that
domestic portfolio investment flows remained
100.0 1200.0
higher than foreign portfolio investment flows in
1000.0
Value (N Billion)
Volume (Billion)
80.0 2022. The share of domestic portfolio investment,

800.0
60.0 in total transactions, was 83.7 per cent in 2022,
600.0 compared with 77.1 per cent in 2021, while the
40.0
400.0 foreign transactions accounted for the balance of
20.0 200.0 16.3 per cent and 22.9 per cent, respectively.
0.0 0.0
2018 2019 2020 2021 2022 The New Issues Market
Activities in the primary segment of the Nigerian
Volume of Traded Stocks Value of Transactions
capital market were slightly lower in 2022 relative
Source: Securities and Exchange Commission (SEC) and NGX Limited.
to the level in 2021. There were 60 newly issued
securities worth N3.25 trillion in 2022, compared
The financial services sub-sector of the equities
with 62 securities, valued at N2.91 trillion in 2021.
market dominated activities, with 71.52 billion
One IPO, worth N10.00 billion, one private
shares (53.2 per cent), valued at N551.70 billion
placements, valued at N11.28 billion, and three
(47.2 per cent) in 521,040 deals, compared with
equities rights issues, worth N4.92 billion, were
57.21 billion shares (64.4 per cent) valued at
approved by the Commission in 2022, compared
N476.96 billion (50.6 per cent) in 559,092 deals in
with three private placements worth N12.99
2021.
billion, two public offer, valued at N98.25 billion,
and two equity rights issues, worth N7.57 billion,
in 2021.
In the government segment of the primary

market, 33 FGN Bonds worth N2,475.00 billion
and 22 corporate bonds (N751.08 billion), were

issued and allotted by the Debt Management
Office (DMO) in the review period, compared with
35 FGN Bonds worth N2,316.01 billion, one sub-
national bond (N137.33 billion), and 19 corporate
bonds (N388.79 billion) in 2021.
Figure 7.6.5: Value of New Issues by Sector in 2022

Equities
0.8%
Corporate
Bond
23.1%
FGN Bond
76.1%
Source: Securities and Exchange Commission (SEC) and NGX

Limited

8.0 EXTERNAL SECTOR DEVELOPMENT months of import for goods only, or 5.7 months of
The global economy was fraught with headwinds import of goods and services. The stock of public
arising majorly from the Russia-Ukraine war and external debt at end-December 2022 increased,
the attendant sanctions on Russia, which exerted by 8.6 per cent to US$41.69 billion, representing
pressure on the external sector in the review 8.8 per cent of GDP, from US$38.39 billion or 9.1
period. The development exacerbated the supply per cent of GDP in 2021. The net financial liability
chain disruptions, resulting, particularly, in high in Nigeria’s International Investment Position (IIP)
energy and food prices. Consequently, the overall increased by 6.2 per cent in 2022, relative to the
balance of payment resulted in a deficit, as against level in 2021.
a surplus in 2021. Figure 8.1. 1: Balance of Payments, 2018-2022
(Per cent of GDP)
However, the current account posted an
30
impressive surplus position, buoyed by positive 25
trade performance and sustained surplus in the 20
Per cent
15
secondary income account. The Bank sustained its
10
interventions in the foreign exchange market to 5
ensure stability, amidst persisting demand 0
-5 2018 2019 2020 2021 2022
pressure. The stock of external reserves declined to
-10
US$36.61 billion at end-December 2022,
compared with US$40.23 billion at end-December CAB IMP (G&S) EXP (G&S)
2021. Source: Central Bank of Nigeria.
8.2 THE CURRENT AND CAPITAL ACCOUNTS

8.1 BALANCE OF PAYMENTS
The current and capital accounts recorded an
8.1.1 Major Developments impressive surplus owing, majorly, to improved
An overall balance of payments deficit of US$3.32 export earnings and higher inflow of diaspora
billion, representing 0.7 per cent of GDP, was remittances. The current and capital accounts
recorded in 2022, against a surplus of US$0.30 surplus was US$1.02 billion or 0.2 per cent of GDP
billion or 0.1 per cent of GDP in 2021. The current in 2022, as against a deficit of US$3.25 billion or
and capital accounts, however, posted a surplus of 0.4 per cent of GDP in 2021.
US$1.02 billion or 0.2 per cent of GDP, in contrast
8.2.1 The Goods Account
to a deficit of US$3.25 billion or 0.4 per cent of
GDP in 2021. The development was due, largely, The sustained high crude oil prices, coupled with
to the trade surplus and higher inflow of diaspora increased earnings from non-oil export, resulted in
remittances. The financial account recorded a net a trade surplus in 2022. Transactions in the goods
incurrence of financial liabilities of US$6.49 billion, account resulted in a substantial trade surplus of
equivalent to 1.4 per cent of GDP in 2022, relative US$6.00 billion or 1.3 per cent of GDP, in contrast
to US$6.35 billion or 1.7 per cent of GDP in 2021. to a deficit of US$4.56 billion or 0.7 per cent of
The stock of external reserves at end-December GDP in 2021. The surplus was driven, largely, by a
2022 was US$36.61 billion and could finance 7.5

37.1 per cent increase in crude oil and gas export accounted for 47.1 per cent of total import,
earnings, relative to the level in 2021. followed by manufactured products with 21.5 per
cent. Food products, oil, minerals, transport, and
Figure 8.2.1: Value of Import, Export and Trade
Balance, 2018 – 2022 (US$ million) agriculture sub-sectors, accounted for 15.3 per
cent, 7.7 per cent, 3.8 per cent, 3.0 per cent, and
70,000
60,000 1.6 per cent, respectively.
50,000
Import by Major Groups
US$ million
40,000
30,000 An analysis of import by major groups22 revealed
20,000
the dominance of capital goods and raw materials,
10,000
0
with a share of 56.3 per cent of the total, while
-10,000 2018 2019 2020 2021 2022 consumer goods accounted for 42.8 per cent.
-20,000 Miscellaneous import accounted for the balance of
Export Import Trade Balance
0.9 per cent. The dominance of capital goods and
raw materials category reflected an improvement
in productive activities in 2022.
Import (Cost, Insurance, and Freight) In value terms, importation of capital goods and
raw materials rose by 20.7 per cent to US$36.06
The sustained improvement in domestic economic
billion in 2022, compared with US$29.14 billion in
activities boosted the demand for merchandise
2021. A disaggregation revealed that importation
import. Import (unadjusted for balance of
of capital goods, with a value of US$30.24 billion,
payments) rose by 14.2 per cent to US$64.01
accounted for 47.2 per cent of the total, while raw
billion in 2022, from US$56.07 billion in 2021,
materials, at US$5.82 billion, represented 9.1 per
owing to the increase in the importation of both
cent.
petroleum products and non-oil products.
Specifically, the need to bridge the demand- Import of consumer goods also rose by 5.9 per
supply gap, which was prevalent in 2022, boosted cent to US$27.37 billion, relative to US$25.84
the demand for petroleum products, especially billion in 2021. Within the category, import of
Premium Motor Spirit (PMS). Thus, the durable goods at US$14.94 billion constituted 23.3
importation of petroleum products increased by per cent of total import, while that of non-durable
43.7 per cent to US$23.33 billion, from US$16.24 goods at US$12.42 billion, represented 19.4 per
billion in 2021. Non-oil import also increased, by cent of the total. Miscellaneous import was
2.1 per cent to US$40.68 billion, relative to US$0.41 billion.
US$39.83 billion in 2021. Analysis of import shows
that non-oil import remained dominant,
accounting for 63.6 per cent of the total, while oil
import accounted for the balance of 36.4 per cent.
A breakdown of non-oil import based on activity

sectors 21 showed that the industrial sector
21 Based on returns from commercial banks. 22 Based on NBS classification.

Figure 8.2.2: Import by Major Groups, 2022 Figure 8.2.3: Import by HS Classification, 2022
30.0
Miscellaneous, 26.6
0.9% 25.0
20.0 17.4
Per cent
Consumer
15.0
Goods, 56.3% 10.8
10.0 8.5
6.9 6.2
5.3
Capital 3.2 3.3
5.0 2.7 2.9
Goods and
Raw
-
Materials,
Plastics and articles …

Machinery…
Pulp of wood…
Prepared foodstuffs…
Vehicles, aircraft…
Products of the chemical or
Vegetable products
Live animals; animal products
Mineral products
Base metals…
Optical, photographic…
42.8%
allied
Import by the Harmonised System (HS)

Classification Non-oil Imports by Country of Origin
Import by HS classification indicated the Major source of Nigeria’s non-oil import remained
dominance of machinery & mechanical China in 2022, accounting for 36.7 per cent of the
appliances, at US$17.04 billion, representing 26.6 total. This was followed by India and the United
per cent of the total. This was followed by: States, with 8.0 per cent and 7.8 per cent,
vehicles, aircrafts, vessels & associated transport respectively. Import from Republic of Korea and
equipment at US$11.12 billion (17.4 per cent); Germany followed with 5.8 per cent and 3.1 per
products of the chemical or allied at US$6.88 cent, respectively. Import from Brazil, the United
billion (10.8 per cent); vegetable products, Kingdom, Turkey, Italy, and The Netherlands
US$5.44 billion (8.5 per cent); plastic & articles accounted for 3.0 per cent, 2.4 per cent, 1.8 per
thereof, US$4.41 billion (6.9 per cent); prepared cent, 1.7 per cent, and 1.6 per cent, respectively.
foodstuffs, beverages, spirits, and vinegar, Import from South Africa and Malaysia was 1.5 per
US$3.95 billion (6.2 per cent); and base metals cent apiece, while France and Spain had a share of
and articles of base metal, US$3.38 billion (5.3 per 1.3 per cent apiece. United Arab Emirates
cent). Further analysis showed that: live animals accounted for 1.2 per cent; Saudi Arabia and
& animal products, US$2.23 billion (3.5 per cent); Indonesia, 1.1 per cent apiece; Russia and
optical photographic, cinematographic, Belgium, 1.0 per cent apiece; while other
measuring appliances, US$2.09 billion (3.3 per countries accounted for the balance.
cent); pulp of wood, US$1.87 billion (2.9 per
Analysis of non-oil import by group shows that
cent); mineral products, US$1.74 billion (2.7 per
import from Asia (excluding Japan) dominated
cent); textile & textile articles, US$1.34 billion (2.1
with a share of 58.2 per cent, an increase of 4.5
per cent); and animals and vegetable fats and oils,
percentage points relative to the level in 2021. The
US$0.81 billion (1.3 per cent). “Other” categories
share of import from African countries inched up
accounted for the balance.
marginally by 0.6 percentage point to 3.7 per cent,
from the level in 2021. Conversely, the share of

industrialised countries decreased to 24.6 per Crude oil export receipts rose by 41.5 per cent to
cent, from 27.6 per cent in 2021. Similarly, the US$49.75 billion, driven by the 47.5 per cent
share of “other” countries as a group also increase in the price of Nigeria’s reference crude,
decreased, to 13.5 per cent, relative to the 15.5 the Bonny Light, to an average of US$104.62 per
per cent in 2021. barrel, from US$70.91 per barrel in 2021. The
increase in prices was due, largely, to the lingering
supply constraints, exacerbated by the Russia-
Figure 8.2.4: Non-oil Import by Region, 2018-2022 Ukraine war, which pushed up commodity prices
(percentage share of total)
at the international market.
70.0
58.2
53.7 Similarly, receipts from gas export, increased by
51.2
50.6
60.0
29.4 per cent to US$7.36 billion, equivalent to 1.5
42.2
50.0
Per cent
per cent of GDP, from US$5.68 billion or 1.3 per

34.9
33.4
30.5
40.0
27.6
cent of GDP in 2021. The development reflected

24.6
30.0
17.4
the gains from sustained high prices.

15.5
15.3
13.5
12.7
20.0
Non-oil export, including electricity export
5.5
3.7
3.3
3.2
3.0
10.0
increased by 18.3 per cent to US$7.12 billion or
0.0
2018 2019 2020 2021 2022 1.5 per cent of GDP in 2022, compared with
US$6.02 billion or 1.4 per cent of GDP in 2021. The
Industrial Countries Asia (excluding Japan) development was on account of increased
Other Countries Africa receipts, particularly, from the export of fertiliser
and agricultural commodities, occasioned by the
favourable commodity prices.
Export (Free on Board)
Aggregate export earnings rose in 2022, on
Crude Oil Exports
account of higher commodity prices, occasioned by
the Russia-Ukraine war. Consequently, export Nigeria’s crude oil export increased by 41.5 per
earnings increased significantly, by 37.1 per cent cent to US$49.75 billion, relative to US$35.16
to US$64.23 billion, equivalent to 13.5 per cent of billion in 2021, despite the decline in the volume
GDP, relative to US$46.86 billion or 11.1 per cent of crude oil production, occasioned by the
of GDP in 2021. A breakdown of total export shows lingering domestic production challenges. A
that crude oil and gas remained dominant, at 88.9 breakdown of export by destination shows that
per cent, with crude oil accounting for 77.5 per India maintained its lead as the highest importer
cent of the total, while gas was 11.4 per cent. Non- of Nigeria’s crude oil, followed by Spain, The
oil export accounted for the balance of 11.1 per Netherlands, Indonesia, the United States, France,
cent. Italy, and South Africa.
Further analysis showed that crude oil and gas By continent, Europe was the major destination
receipts rose by 39.8 per cent to US$57.11 billion for Nigeria’s crude oil export, with US$23.35
or 12.0 per cent of GDP, above the US$40.84 billion, representing 46.9 per cent of the total.
billion or 9.6 per cent of GDP in 2021. Within the group, Spain ranked highest with
US$6.15 billion, accounting for 12.4 per cent of

the total. This was followed by: The Netherlands, Figure 8.2.5: Direction of Crude Oil Export
US$5.79 billion (11.6 per cent); France, US$3.20
45.8
45.6
46.9
43.5
50.0
billion (6.4 per cent); Italy, US$2.51 billion (5.0 per
38.2
45.0
40.0
31.8
cent); United Kingdom, US$1.38 billion (2.8 per 35.0
27.7
26.8
26.8
25.0
% Share of Total
cent); and Sweden, US$1.22 billion (2.4 per cent). 30.0
21.2
25.0
Other countries in the group accounted for the
16.6
14.5
14.2
13.4
13.2
20.0
12.8
12.6
11.4
10.7
balance. 15.0
10.0
Asia followed, with US$13.76 billion or 27.7 per 5.0
cent of the total. In the group, India imported 0.0
2018 2019 2020 2021 2022
Nigeria’s crude oil worth US$7.41 billion or 14.9
per cent of the total. Next was Indonesia, with a Europe Americas Asia & Far East Africa
value of US$4.49 billion or 9.0 per cent, and Source: Central Bank of Nigeria.
Thailand, US$0.79 billion or 1.6 per cent. Other
countries in the group accounted for the balance. Non-oil Exports
Export to the African and North American The drive by the Bank to boost non-oil export,
continents was US$5.33 billion and US$5.31 particularly, through the RT-200 policy, 100 for
billion, respectively. Within the African Continent, 100 PPP, among other policies, coupled with the
export to South Africa was the highest at US$2.09 favourable commodity prices, resulted in higher
billion (4.2 per cent), followed by Côte d’Ivoire non-oil export receipts. In 2022, non-oil export
with a value of US$1.93 billion (3.9 per cent), receipts increased by 18.3 per cent to US$7.12
Senegal, US$0.70 billion (1.4 per cent); and Togo, billion or 1.5 per cent of GDP, compared with
US$0.61 billion (1.2 per cent). In Northern US$6.02 billion or 1.3 per cent of GDP in 2021. A
America, the USA and Canada, imported Nigeria’s disaggregation of non-oil export showed that
crude valued at US$3.51 billion (7.1 per cent) and receipts from ‘other’ non-oil export increased by
US$1.81 billion (3.6 per cent). 20.0 per cent to US$6.96 billion, compared with
Nigeria realised US$1.90 billion (3.8 per cent) from US$5.80 billion in 2021. Conversely, receipts from
the export of crude oil to South America, with electricity export declined by 27.2 per cent to
Brazil, Peru, and Uruguay, accounting for 2.4 per US$0.16 billion, relative to US$0.21 billion in the
cent, 0.8 per cent, and 0.6 per cent, respectively. preceding year.
An analysis of non-oil export by products revealed
that the export of urea constituted the bulk at
US$2.28 billion or 32.1 per cent of the total. This
was followed by receipts from the export of cocoa
beans valued at US$0.88 billion, representing 12.4
per cent of the total. Export of sesame seeds
realised US$0.46 billion (6.5 per cent), while that
of aluminium was US$0.39 billion (5.5 per cent),
and cashew nut, US$0.35 billion (4.9 per cent).
Export of tobacco at US$0.16 billion, accounted
for 2.2 per cent of the total, while copper, with

US$0.15 billion had a share of 2.1 per cent of the the highest with US$124.75 million or 24.9 per
total. Receipts from the export of lead was cent of the total. This was followed by: Ghana,
US$0.13 billion (1.9 per cent); leather & processed US$90.25 million (18.0 per cent); Benin, US$77.47
skin, US$0.13 billion (1.8 per cent); cement/lime, million (15.5 per cent); Togo, US$67.43 million
US$0.10 billion (1.5 per cent); rubber, US$0.10 (13.5 per cent), Côte d’Ivoire, US$54.26 million
billion (1.4 per cent); ginger, US$0.08 billion (1.1 (10.8 per cent); and Senegal, US$34.67 million (6.9
per cent), and hibiscus flower, US$0.07 billion (0.9 per cent).
per cent). Other products accounted for the
Export to Mali was US$17.79 million (3.6 per cent);
balance.
Burkina Faso, US$14.04 million (2.8 per cent);
In terms of sectors, other export, valued at Guinea, US$12.92 million (2.6 per cent); Guinea-
US$2.82 billion, constituted the highest share of Bissau, US$3.89 million (0.8 per cent), and Sierra
39.7 per cent of the total, followed by the Leone, US$1.70 million (0.3 per cent). Nigeria’s
agricultural produce valued at US$2.20 billion or export to Liberia was US$1.09 million (0.2 per
30.9 per cent of the total. Semi-manufactured cent), while The Gambia was the least at US$0.72
product was US$1.06 billion (14.8 per cent), million (0.1 per cent). The dominant export
minerals, US$0.56 billion (7.9 per cent); and products to the sub-region were urea, tobacco,
manufactured products, US$0.48 billion (6.7 per plastics, rubber, plastic footwear, soaps &
cent). detergents, and polybags.
Figure 8.2.6: Non-oil Export by Sectors, 2022

Figure 8.2.7: Non-oil Export to the ECOWAS Sub-
Region, 2022 (per cent)
Agric. 24.9
Other Export Produce 25
39.7% 30.9%
20 18
15.5
13.5
15
PER CENT
10.8
10 6.9
Semi- 3.6 2.8
5 2.6
manufactured 0.8 0.3 0.2 0.1
Products
14.8% 0
Minerals
7.9%
Manufactured
6.7%
Non-oil Exports to the ECOWAS Sub-Region

Activities of the Top 100 Non-oil Exporters
The value of non-oil export to the ECOWAS sub-
Aggregate receipts from the top one hundred
region was US$500.98 million, representing an
(100) non-oil exporters increased significantly by
increase of 71.7 per cent, above the US$291.71
44.8 per cent to US$4.20 billion, from US$2.90
million in 2021. The increase reflected the waning
billion in 2021. This constituted 95.5 per cent of
of the Covid-19 pandemic effect on regional trade,
total non-oil export proceeds received through
and the positive effects of the Bank’s policies to
boost non-oil export receipts. Export to Niger was

the banking system and 59.0 per cent of total non- Limited ranked 10th with a value of US$67.89
oil export receipts. million (1.6 per cent) from the export of refined
lead, lead alloy ingots, aluminium alloy ingots, and
A breakdown showed that Indorama Eleme
copper ingots to India and the USA.
Fertiliser and Chemical Ltd ranked 1st with
proceeds of US$1.12 billion, accounting for 26.7 Huxley Industries Limited, Presco Plc, and Kapeun
per cent of the total, from the export of granular Limited, occupied the 98th, 99th, and 100th
urea in bulk to Côte d’Ivoire, Brazil, Canada, the positions, with earnings of US$3.91 million,
USA, Senegal, Benin, Cameroon, and Argentina. US$3.90 million, and US$3.83 million,
Dangote Fertiliser Limited ranked 2nd with respectively, from the export of oil nuts, kernels,
proceeds of US$458.81 million (10.9 per cent), fats, palm oil, cocoa beans, sorghum, and soya
from the export of fertilizers to the United States beans, to Belgium, USA, and Mexico.
and Brazil. Starlink Global and Ideal Limited ranked
3rd with US$175.62 million or 4.2 per cent of the
Figure 8.2.8: Top 10 Non-oil Exporters, 2022
total, from the export of raw cocoa beans, raw
30
cashew nuts, shea nuts, and sesame seeds to 26.7
Malaysia. Metal Recycling Industries Limited 25
ranked 4th with proceeds of US$156.19 million (3.7 20
per cent), from the export of aluminium to Saudi

Per cent
15
Arabia. Outspan Nigeria Limited ranked 5th with 10.9
10
US$150.51 million or 3.6 per cent of the total,
4.2 3.7 3.6 3.6
from the export of cotton lint, sesame seeds, 5 3.4
1.9 1.9 1.6
cocoa beans and dry ginger to The Netherlands, 0
Germany, France, USA, Italy, and Spain.

Segilola Resources Operating Limited ranked 6th
with US$149.88 million or 3.6 per cent of the total,
from the export of gold to Australia and Saudi Source: Central Bank of Nigeria.
Arabia. In the 7th place was the British American
Tobacco (BAT) Nigeria, with US$148.23 million
(3.5 per cent of the total), from the export of 8.2.2 Services Account
cigarettes to Liberia, Guinea, Ghana, Cameroon, The sustained improvement in domestic economic
Côte d’Ivoire, and Niger. Olam Nigeria Limited activities pushed up the demand for international
ranked 8th with US$78.99 million or 1.9 per cent of services in the review period. Thus, the deficit in
the total, from the export of premium grade the services account widened, by 19.5 per cent to
sesame seeds and fermented cocoa bean seeds to US$13.96 billion or 3.1 per cent of GDP, from
Australia, Greece, Turkey, The Netherlands, and US$12.06 billion, equivalent to 2.8 per cent of GDP
Syria. in 2021. The development was due to the higher
Olatunde International Limited ranked 9th with payments for both passenger and freight
US$77.65 million or 1.9 per cent, realised from the transport services, financial, and
export of raw cocoa beans to Spain, The telecommunication services.
Netherlands, and Belgium. Everest Metal Nigeria

Aggregate services receipts increased by 21.7 per Figure 8.2.9: Percentage Share of Services Receipts,
cent to US$4.86 billion, compared with the level in 2018-2022
2021. Of the total, receipts from travel services,
60
increased significantly to US$1.13 billion,
compared with US$0.26 billion in 2021, resulting 50
from increased personal travels by non-residents.

40
Per cent
Receipts from financial services also increased, by
30
27.6 per cent to US$0.80 billion, relative to
US$0.63 billion in 2021. Receipts from 20
telecommunications services increased to
10
US$0.26 billion, compared with US$0.17 billion in
2021. 0
2018 2019 2020 2021 2022
Receipts in respect of transportation services,

however, decreased by 10.6 per cent to US$2.02 Transport Travels
Government Services Financial Services
billion, compared with the level in 2021. The Telecommunication Services Insurance Services
Other Services
decline reflected the drop in receipts from freight
services rendered by resident companies.
Similarly, receipts in respect of insurance and
Payments for international services increased by
government services declined, by 40.8 per cent
17.6 per cent to US$18.82 billion, relative to
and 1.8 per cent to US$0.11 billion and US$0.46
US$16.06 billion in 2021, owing to a higher
billion, respectively, relative to the levels in 2021.
demand for international services, buoyed by
In terms of share, receipts from transportation improved domestic economic activities.
services constituted the highest share of 41.6 per
A disaggregation showed that payment in respect
cent, followed by receipts from travel, financial,
of transport services, particularly air transport,
and government services with 23.2 per cent, 16.5
increased significantly by 62.0 per cent to US$8.80
per cent, and 9.4 per cent, respectively. Receipts
billion, from US$5.39 billion in 2021. Payments for
from telecommunications and insurance services
financial, telecommunications, and government
accounted for 5.4 per cent and 2.3 per cent of the
services also increased, by 9.6 per cent, 31.1 per
total, respectively. Other components of services
cent, and 20.9 per cent to US$0.43 billion,
represented the balance.
US$0.56 billion, and US$0.32 billion, respectively.
However, payments for travel services decreased
by 8.8 per cent to US$4.04 billion, relative to
US$4.43 billion in 2021, due, largely, to the decline
in personal travels, particularly for health and
education related services. Insurance services also
fell, marginally by 0.9 per cent to US$0.70 billion,
compared with US$0.71 billion in 2021. Payments
for other business services declined by 11.0 per
cent to US$3.68 billion, from US$4.14 billion in

2021, attributed, largely, to lower payments for Figure 8.2.10: Percentage Share of Services Payment,
professional and management consulting services. 2018-2022
46.2
In terms of share in total payments, transportation
41.2
41.1
services accounted for 46.2 per cent, while travel
37.0
34.9
services was 21.5 per cent. Payments for other
33.7
31.0
business services constituted 19.6 per cent,
27.7
25.9
25.8
27
PER CENT
21.5
insurance services, 3.7 per cent,
20.6
19.6
17.8
telecommunications services, 3.0 per cent, and
government services, 1.7 per cent. “Other
9.0
8.4
4.40
4.30
categories” of services accounted for the balance.
5.8
5.5
2.60
3.7
1.80
3.5
2018 2019 2020 2021 2022
Table 8.2.1: Net Share of Major Invisible Transactions
(Per cent) 2018 – 2022
Items 2018 2019 2020 2021 2022 Transport Travels Other Businesses
Insurance Services Other Services
Transportation 19.3 14.6 20.3 26.0 48.5
Travel 29.2 35.6 30.3 34.8 20.9
Insurance and 1.3 1.5 3.3 4.2 4.2
Pensions Services
Telecommunication, -0.2 -0.2 -0.9 -0.6 2.1 8.2.3 The Primary Income Account
Computer and
Information Services The deficit in the primary income account widened
Construction Services 0.2 0.1 0.1 0.0 0.0
significantly, owing mainly to the repatriation of
Financial Services 0.5 -0.6 -1.1 -2.0 -2.7
Government Services -0.8 -0.6 45.8 -1.7 -0.8 higher dividends by non-resident investors,
reflecting improvement in domestic economic
Personal, Cultural & 0.2 0.3 0 0.0 0.1
Recreational Services activities. The primary income account posted a
Other Business 48.5 47.9 -1.4 34.2 25.8
Services higher deficit of US$12.87 billion, equivalent to 2.7
Maintenance and 0.1 per cent of GDP in 2022, relative to US$8.58 billion
Repair Services n.i.e
Charges for the use 1.8 or 2.0 per cent of GDP in 2021, indicating an
of intellectual increase of 50.0 per cent. The development was
property n.i.e.
Total 100 100 100 100 100 attributed, mainly, to higher claims by non-
Source: Central Bank of Nigeria. resident investors, which rose by 38.8 per cent to
US$14.54 billion, from US$10.48 billion in 2021,
on account of higher dividend and interest
payments to non-residents. Income on direct
investment grew by 40.5 per cent to US$12.47
billion, relative to US$8.87 billion in 2021.
The development was due, largely, to the 35.9 per
cent and 80.9 per cent increase in dividend
payments and reinvested earnings to US$10.64
billion and US$1.76 billion in 2022, relative to
US$7.83 billion and US$0.97 billion, respectively,
in 2021. This reflected an uptick in domestic

economic activities, with companies declaring remittances inflow, which compensated the 8.8
higher dividends in the review period. Income per cent decline in the general government
payments in respect of portfolio investment also transfers. Inflow of personal transfers improved to
increased, to US$0.21 billion, from US$0.14 billion US$19.86 billion, relative to US$19.24 billion in
in 2021. Interest payments on loans rose by 27.3 2021, reflecting the positive effect of the Bank’s
per cent to US$1.83 billion, compared with foreign exchange reform policies, particularly, the
US$1.43 billion in 2021. naira-4-dollar scheme on remittances. Conversely,
general government transfers fell to US$2.81
The compensation of employees’ sub-account,
billion, relative to US$3.09 billion in 2021,
which maintained its surplus position, registered
signifying lower inflow of aids and grants to the
an increase of 9.9 per cent to US$0.23 billion in
government.
2022, from US$0.21 billion in 2021.
Figure 8.2.12: Secondary Income Account (US$ Million),

Figure 8.2.11: Primary Income Account (US$ Billion), 2018-2022
2018-2022
30000
5
0.23
0.23
0.22
0.21
0.16
25000
US '$' Millions 20000

-
2018 2019 2020 2021 2022 15000
US$ BILLION
(5) 10000
(5.28)
(5.44)
5000
(10)
(8.56)
(8.77)
0
2018 2019 2020 2021 2022
(12.49)
(12.71)
(12.87)
(15)
(13.10)
Secondary Income Balance

(14.66)
(14.89)
General Government
(20) Other Sectors (remittances and other transfers in kind)
Primary Income (Net) Source: Central Bank of Nigeria.
Investment Income (Net)
Compensation of Employees (Net)
8.2.4 The Secondary Income Account
The gains from the Bank’s remittance-enhancing

policies, positively influenced the diaspora
remittances inflow, leading to sustained surplus
position in the secondary income account. The
secondary income account posted a surplus of
US$21.85 billion, representing 4.9 per cent of
GDP, compared with US$21.95 billion or 5.2 per
cent of GDP in 2021. The sustained surplus was
aided by the 3.2 per cent increase in the diaspora

8.3 THE FINANCIAL ACCOUNT attributed to the US$0.14 billion divestment by
residents in some direct investment enterprises.
Tighter global financial conditions, arising from the
Reinvested earnings of residents, at US$0.14
contractionary monetary policy stance of most
billion, declined by 32.4 per cent relative to
central banks across the globe, affected foreign
US$0.28 billion in 2021.
capital flows in the review period. The financial
account, however, maintained a net borrowing Acquisition of portfolio investment assets
position. A net incurrence of financial liabilities decreased by 8.5 per cent to US$0.69 billion, from
worth US$6.49 billion, equivalent to 1.4 per cent US$0.76 billion in 2021, signifying lower
of GDP was recorded, compared with US$6.35 acquisition of debt instruments by resident
billion or 1.5 per cent of GDP in 2021. The investors. In addition, financial derivatives worth
development was attributed, majorly, to the US$1.00 billion was acquired by the Bank.
relatively stable and predictable environment
Other investment assets registered a lower
anchored on policy consistency.
acquisition of US$8.20 billion, compared with
US$9.87 billion in 2021, largely on account of
Figure 8.3.1: Financial Account, 2018-2022 lower foreign currency holdings by financial
25000
corporations and the private sector. Loan assets
20000 worth US$0.23 billion and US$1.02 billion,
15000 respectively, was, however, acquired in the review
10000
period by the deposit taking corporations and the
US$ MILLION
5000
0
private sector.
2018 2019 2020 2021 2022
-5000
External reserves decreased by US$3.32 billion, in
-10000
-15000
contrast to an accretion of US$0.30 billion in 2021.
-20000 This was due, mainly, to the Bank’s intervention at
-25000 the foreign exchange market to stabilise the
exchange rate, financing of import, and debt
Net Financial Position NAFA NIL
servicing.
Figure 8.3.2: Financial Assets
12000
8.3.1 Acquisition of Financial Assets 10000
8000
Foreign financial assets decreased to US$6.50 6000
billion or 1.4 per cent of GDP, compared with 4000

US$ MILLION
US$14.74 billion or 3.5 per cent of GDP in 2021. 2000
0
The decrease was attributed, largely, to the 2018 2019 2020 2021 2022
-2000
divestment of FDI equity, lower foreign currency -4000
holdings of the private sector, and the decline in -6000
external reserves in the review period. -8000
-10000
A divestment of FDI equity worth US$0.07 billion
was recorded in 2022, as against an acquisition of Direct Investment Portfolio Investment Other Investment
Financial Derivatives Reserve Assets
US$0.49 billion in 2021. The development was Source: Central Bank of Nigeria.

8.3.2 Incurrence of Financial Liabilities compared with US$9.68 billion in 2021. The
development was driven, largely, by the 19.6 per
The sustenance of monetary tightening across
cent decline in the inflow of loans to US$4.86
major advanced economies resulted in a lower
billion, relative to US$6.04 billion in 2021.
inflow of foreign capital to developing economies
Incurrence of foreign currency deposit liabilities,
in the review period. Aggregate foreign financial
however, increased significantly to US$2.73
liabilities declined to US$12.99 billion or 2.7 per
billion, from US$0.34 billion in 2021. This was on
cent of GDP, compared with US$21.10 billion or
account of higher placements in domestic banks in
5.0 per cent of GDP in 2021.
the review period. Foreign currency placements of
An analysis of financial liabilities revealed the US$1.73 billion was recorded in 2022, as against a
divestment of US$0.19 billion in FDI, in contrast to withdrawal of US$1.66 billion in 2021.
an inflow of US$3.31 billion in 2021. This was due
to the equity divestment of US$1.99 billion in Figure 8.3.3: Financial Liabilities, 2018-2022
direct investment enterprises by non-resident 15000
investors. On the contrary, reinvested earnings
10000
improved significantly to US$1.76 billion in 2022,
relative to US$0.97 billion in 2021. US$ million
5000
Portfolio capital at US$4.56 billion, declined by

0
25.3 per cent, compared with US$6.10 billion in 2018 2019 2020 2021 2022
2021, following the policy rate hike in most -5000
advanced economies. Inflow for the purchase of Direct Investment Portfolio Investment
Financial Derivatives Other Investments
equity by non-resident investors rose significantly Source: Central Bank of Nigeria.
to US$0.29 billion, from US$0.07 billion, signifying
the bullish performance of the domestic capital
market. Inflow for investment in debt securities 8.3.3 External Debt
declined by 29.3 per cent to US$4.26 billion, Public external debt stock increased by 8.6 per
relative to US$6.03 billion in 2021. The decline was cent at end-December 2022 to US$41.69 billion,
due to the lower purchase of both short- and long- relative to US$38.39 billion at end-December
term dated instruments by non-resident investors. 2021. This was due, largely, to the additional
The external reserves remained adequate using disbursements from multilateral and bilateral
the Greenspan-Guidotti measure, which is sources, as well as additional Euro bond issuance
computed by the ratio of external reserves to and syndicated loans incurred during the review
portfolio investment. At 103.1 per cent, the short- period. The additional loan incurrence was for the
term debt measure was higher than the 100.0 per financing of strategic infrastructure projects
cent benchmark, implying adequacy of the required to grow domestic productivity, and
external reserves. enhance external sector competitiveness.
Incurrence of financial derivatives liabilities by the

Bank declined to US$1.00 billion in 2022, relative
to US$2.00 billion in 2021. Inflow of other
investment liabilities declined to US$7.62 billion,

Figure 8.3.4: External Debt Stock (US$ Billion) from US$4.47 billion or 11.6 per cent in 2021.
45 Promissory notes decreased by 8.8 per cent to
40 US$0.54 billion (1.3 per cent), from US$0.60 billion
US$ billion
or 1.6 per cent of the total in 2021. A syndicated

35
loan arranged by the AFC, worth US$0.26 billion
30
(0.5 per cent), was incurred in 2022.
25
Public sector external debt was equivalent to 8.8
20
2018 2019 2020 2021 2022
per cent of GDP in 2022, compared with 9.1 per
cent of GDP in 2021. The level was within the
international threshold of 40.0 per cent of GDP.
Figure 8.3.5: Composition of External Debt Stock, 2022
Syndicated Promisory
0.5% Notes 8.4 CAPITAL IMPORTATION AND
1.3% OUTFLOW
Commercial 8.4.1 Capital Importation by Nature of Investment
37.7% Multilateral
48.2%
New capital injected into the economy was
US$5.42 billion in 202223, compared with US$6.51
billion in 2021, indicating a decrease of 16.4 per
Bilateral
12.3% cent, reflecting tighter global financial condition. A
Source: Central Bank of Nigeria. disaggregation of capital importation by type of
investment showed that inflow of portfolio
Multilateral borrowing, mainly, from the IMF, the investment, at US$2.49 billion, accounted for the
World Bank, and the African Development Bank, largest share of 45.9 per cent of the total. Of this
increased by 8.3 per cent to US$20.20 billion or amount, purchase of money market instruments
48.5 per cent of total external debt, from amounted to US$1.45 billion, representing 26.8
US$18.66 billion or 48.6 per cent in 2021. The per cent of the total; government bonds, US$0.98
development was due to the additional billion or 18.1 per cent; and equities, US$0.06
disbursements by the World Bank Group and the billion or 1.0 per cent of the total. Inflow of FDI was
African Development Bank Group. Similarly, loans US$0.50 billion, representing 9.3 per cent of the
from commercial sources, in the form of Euro and total inflow, of which equity accounted for the
Diaspora bonds increased, by 6.5 per cent to total FDI inflow. Other investment inflow at
US$15.62 billion, equivalent to 37.5 per cent of the US$2.43 billion, constituted 44.8 per cent of the
total, from US$14.67 billion or 38.2 per cent in total, of which loans was US$2.32 billion or 42.9
2021. This reflected the issuance of additional per cent of the total, while other claims at US$0.10
Eurobonds in 2022. billion accounted for 1.8 per cent. Trade credit and
currency deposits accounted for the balance of 0.1
Loans from bilateral sources, principally, the China
per cent.
EXIM Bank, also increased, to US$5.07 billion,
representing 12.2 per cent of the total in 2022,
23
Based on commercial banks returns.

Table 8.4. 1: Capital Importation (US$ Million)
Nature of Capital 2018 2019 2020 2021 2022
FDI – Equity 1,288.30 922.2 1,026.00 686.7 496.7
FDI - Other capital 5.6 12.1 3 0.6 5.2
Sub-Total 1,293.90 934.3 1,028.90 687.3 501.9
Portfolio Investment –
2,456.40 1,893.20 755.1 209 56.6
Equity
Portfolio Investment –
980.2 1,022.40 231.2 564.1 980.3
Bonds
Portfolio Investment -
Money Market 8,731.70 13,449.90 4,150.90 2,387.40 1,452.60
Instruments
Sub – Total 12,168.40 16,365.50 5,137.20 3,160.50 2,489.50
Other Investments -
6.9 0.1 0.1 0.2 3.0
Trade Credits
Other Investments -
3,684.70 5,078.80 3,378.90 2.399.6 2,323.40
Loans
Other Investments -
1 3 0.9 0.7 9.3
Currency Deposits
Other Investments -
284.9 1,608.40 934.6 263.1 95.0
Other Claims
Sub – Total 3,977.50 6,690.30 4,314.40 2,663.60 2,430.70
TOTAL 17,439.80 23,990.10 10,480.50 6,511.40 5,422.10
8.4.2 Capital Importation by Country of Origin Figure 8.4. 1: Capital Importation by Country of Origin
Analysis of capital importation by country of origin Others

14.1%
showed the United Kingdom as the dominant
Netherlands
source of capital inflow to Nigeria, with a value of 3.2%
Mauritius
US$2.82 billion or 52.1 per cent of the total, 4.3%
United
followed by the Republic of South Africa, with South Africa
7.9% Kingdom
52.1%
US$0.43 billion or 7.9 per cent. Inflow from
Singapore
Singapore was US$0.42 billion (7.8 per cent); the 7.8%
United States and United Arab Emirates, at United Arab United

Emirate States
US$0.29 billion (5.30 per cent) apiece; Mauritius, 5.3% 5.3%
US$0.23 billion (4.3 per cent); and The

Netherlands, US$0.17 billion (3.2 per cent). Other
countries accounted for the balance.
8.4.3 Capital Importation by Sector
A disaggregation of imported capital by economic
sectors indicated that banking received the
highest inflow with a share of 38.6 per cent, valued
at US$2.10 billion. Inflow for
production/manufacturing amounted to US$0.95
billion and accounted for 17.5 per cent of the
total. Financing, shares, Telecoms, trading, and

the agricultural sectors, received US$0.85 billion, 8.4.5 Capital Outflow
US$0.47 billion, US$0.46 billion, US$0.27 billion,
Aggregate capital outflow declined by 3.1 per cent
and US$0.10 billion, representing 15.7 per cent,
to US$7.49 billion, from US$7.73 billion in 2021. Of
8.7 per cent, 8.4 per cent, 4.9 per cent, and 1.8 per
the total capital outflow, repayment of loans at
cent, respectively. Inflow to other sectors
US$3.19 billion, accounted for 42.6 per cent.
accounted for the balance.
Relative to US$2.73 billion in 2021, an increase of
Figure 8.4. 2: Capital Importation by Sector 16.7 per cent was recorded. Capital reversal
Agriculture,
Trading, 1.8%
declined by 29.7 per cent to US$2.64 billion (35.3
4.9%
Others, 4.4% per cent), from US$3.76 billion in 2021. Outflow in
respect of repatriation of dividends increased
Telecoms, Banking,
significantly, by 48.0 per cent to US$1.65 billion
8.4% 38.6%
(22.1 per cent), from US$1.12 billion in 2021.
Other outflow accounted for the balance.
Prod/Man,
17.5%
Shares, 8.7% Figure 8.4. 4: Capital Outflow, 2022

Financing,
15.7% Others
0.1%
Loans
42.6%
8.4.4 Capital Importation by Destination Capital
35.3%
Lagos State received the highest inflow of capital
at US$3.71 billion, constituting 68.3 per cent of
the total. Federal Capital Territory (FCT) followed,
with US$1.63 billion or 30.4 per cent of the total. Dividends
22.0%
Other States accounted for the balance.
Figure 8.4.3: Capital Importation by States, 2022

(per cent)
8.5 THE INTERNATIONAL INVESTMENT
Others
Abuja (FCT)
1.6% POSITION
30.0%
The International Investment Position posted a
higher net borrowing position, attributed to the
higher incurrence of financial liabilities and
dwindled external reserves. A net financial liability
Lagos
of US$74.48 billion was recorded at end-
68.4% December 2022, compared with US$70.15 billion
at end-December 2021.
The stock of financial assets increased by 4.9 per
cent to US$109.33 at end-December 2022, from

US$104.25 billion at end-December 2021. Analysis 2021. The development was due, mainly, to the
showed that the stock of foreign direct investment financing of balance of payments needs of the
increased marginally, by 0.4 per cent to US$13.63 country.
billion, relative to US$13.58 billion at end-
December 2021, mainly on account of higher As a share of total stock of assets at end-
stock of reinvested earnings. Similarly, the stock of December 2022, other investment assets
dominated with a share 47.9 per cent. This was
portfolio investment assets increased, by 19.8 per
cent to US$3.57 billion at end-December 2022, followed by: reserve assets, 33.5 per cent; direct
compared with US$2.98 billion at end-December investment, 12.5 per cent; portfolio investment,
2021, following the 38.9 per cent increase in the 3.3 per cent; and financial derivatives, 2.9 per
holdings of debt securities by resident investors cent.
and deposit taking corporations. The stock of financial liabilities grew by 5.4 per
cent to US$183.81 billion at end-December 2022,
The stock of other investment assets rose by 15.2
per cent to US$52.37 billion, relative to US$45.44 from US$174.40 billion at end-December 2021. A
billion at end-December 2021, due to an increase disaggregation showed that the stock of inward
in the stock of foreign currency holdings of the direct investment increased by 0.8 per cent to
private sector, loans, and trade credits. A US$88.20 billion at end-December 2022, from
breakdown showed that the stock of trade credits US$87.53 billion at end-December 2021. The stock
and advances to non-residents increased, by 2.8 of direct investment equity and reinvested
per cent to US$2.19 billion at end-December earnings increased by 1.1 per cent to US$51.35
2022, compared with US$2.13 billion at end- billion, from US$50.81 billion at end-December
2021. Similarly, the stock of debt instruments
December 2021. The stock of loans to foreign
entities increased by 37.9 per cent to US$0.84 increased marginally, by 0.4 per cent to US$36.85
billion, from US$0.61 billion at end-December billion, from US$36.71 billion at the end of 2021,
2021. This was on account of the higher stock of indicating increased investment among related
short-term loans extended by Nigerian banks to entities.
their non-resident subsidiaries. The stock of The stock of portfolio investment liabilities inched
foreign currency deposits also increased, by 15.5 up by 9.9 per cent to US$36.14 billion, compared
per cent to US$49.34 billion at end-December with US$32.87 billion at end-December 2021. This
2022, compared with US$42.71 billion at end- was due, majorly, to the 11.0 per cent increase in
December 2021, due to the 22.8 per cent and 15.9 debt securities to US$32.33 billion, from US$29.12
per cent increase in the holdings of the deposit billion, at end-December 2021. The increase was
taking corporations and the private sector, driven by the rise in non-residents’ investment in
respectively. fixed income securities. The stock of portfolio
The stock of financial derivatives increased by 57.0 equity also increased, by 1.5 per cent to US$3.81
per cent to US$3.16 billion at end-December billion at end-December 2022, relative to US$3.75
2022, relative to US$2.01 billion at end-December billion at end-December 2021, reflecting the
2021. The stock of external reserve assets at end- bullish performance of the domestic capital
market.
December 2022, fell by 9.0 per cent to US$36.61
billion, from US$40.23 billion at end-December

Other investment liabilities also rose, by 8.3 per 2021. Similarly, the end-period exchange rate
cent to US$56.30 billion at end-December 2022, closed at N460.00/US$, a depreciation of 5.4 per
from US$52.00 billion at end-December 2021, cent, compared with ₦435.00/US$ in 2021.
driven largely by the increase in the stock of
currency and deposits by 43.0 per cent to US$9.08 The average exchange rate of the naira per US
billion at end-December 2022, from US$6.35 dollar at the I&E window depreciated to
₦416.95/US$ in February, from ₦415.96/US$ in
billion at end-December 2021. The stock of loans
increased by 4.7 per cent to US$41.88 billion, January, but appreciated to ₦415.53/US$ in April.
compared with US$40.01 billion at end-December The naira maintained relative stability at
2021, driven by the higher loan liabilities of ₦417.26/US$ in July but depreciated to
general government and deposit taking ₦426.06/US$ in August and further to
₦450.71/US$ in December 2022, due, largely, to
corporations.
the persistent demand pressure, amid supply
In terms of share, direct investment dominated shortages.
total financial liabilities, accounting for 48.0 per
cent of the total, followed by other investment Figure 8.6.1: Average and End-Period I&E Exchange
liabilities with a share of 30.6 per cent, portfolio Rate of the Naira per US Dollar
investment liabilities, 19.7 per cent, and financial 470
derivatives, 1.7 per cent. 450

N/USD
430
Figure 8.5.1: International Investment Position, 2018-
2022 (US$ Million) 410
390
300000 370
250000
350
200000 2018 2019 2020 2021 2022
US$ MILLION
150000
100000 Average End-Period
50000 Source: Central Bank of Nigeria.
0
2018 2019 2020 2021 2022
-50000 8.7 THE NOMINAL AND REAL EFFECTIVE
-100000
EXCHANGE RATES
Total Assets Total Liabilities Net IIP The average 19-currency nominal effective
exchange rate (NEER) index decreased by 3.7 per
cent to 192.83 index points in 2022, from 200.16
8.6 EXCHANGE RATE MOVEMENTS index points in 2021, indicating a nominal
depreciation of the currency, relative to the major
Heightened demand pressures, amid supply trading partners. The average 19-currency real
shortages, led to the depreciation of the naira effective exchange rate (REER) index, which
exchange rate at the Investors’ and Exporters’ measures external competitiveness, was 63.00
(I&E) window. The annual average exchange rate index points in 2022, reflecting a decrease of 13.3
at the I&E window depreciated by 4.0 per cent to per cent, from 72.69 index points in the preceding
₦425.98/US$ in 2022, relative to ₦408.96/US$ in period. This indicated improved competitiveness

of the country, relative to major trading partners.
The REER index opened at 68.62 index points in
January 2022 and closed at 61.11 index points in
December 2022.
Figure 8.7.1: Nominal and Real Effective Exchange Rate

Indices, 2021 – 2022
210
190
170
Index
150
130
110
90
70
50
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12
2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021
NEER REER
Table 8.7.1: Nominal and Real Effective Exchange rate

Indices (November 2009 = 100)
2022 2/
2021 1/ Percentage Change
Monthly Annual Monthly Annual Monthly Annual

index average index average index average
index index index
NEER 197.27 200.16 199.67 192.83 1.22 (3.66)
REER 68.76 72.69 61.11 63.00 (11.13) (13.33)

1/ Revised.
2/ Provisional.

9.0 INTERNATIONAL ECONOMIC 9.1 REGIONAL CO-OPERATION
RELATIONS 9.1.1 West Africa Monetary Zone
The Bank participated in various regional and non- i. 50th and 51st Meetings of the
regional meetings in 2022. At the regional level, Technical Committee of the West
the 44th and 45th Meetings of the Committee of African Monetary Zone
Governors of Central Banks of member states of The 50th and 51st Meetings of the Technical
the West African Monetary Zone (WAMZ) were Committee of the WAMZ were held in February
held, wherein members stressed the need for the and August 2022, respectively. The meetings
establishment of a harmonised supervisory and focused on the status of implementation of the
regulatory framework in the region. The WAMZ’s work programme and activities under the
Committee encouraged member states to share ECOWAS single currency programme. Various
experiences on banking supervision and regulatory recommendations were made, among which
practices for managing NPLs. At the non-regional were:
level, the 77th session of the UN General Assembly  sustain the short-term efforts to curb the
(UNGA 77) acknowledged the shared root of global spread of the COVID-19 virus, and contain
crises, such as the COVID-19 pandemic, the Russia- its impact on real sector activities;
Ukraine war, the energy crisis, and climate change  fast-track the implementation of reforms
as well as emphasised the need for solutions that that address structural challenges and
would build global sustainability and resilience. At invest in social infrastructure, as well as
the level of international cooperation, the 2022 provide adequate social safety nets to
Annual Meetings of the Bretton Woods Institutions enhance resilience to shocks;
(BWIs) observed that multiple compounding crises  increase investment in the agriculture
severely worsened the global economic outlook and mining sectors, to modernise their
and development prospects of countries. The operations and realise their potentials as
meeting called for increased actions among the well as improve road infrastructure to
international financial institutions (IFIs), to cushion facilitate transportation in major food
the effects of the global economic, political, and producing areas;
humanitarian turmoil, particularly in low-income  increase investment in growth-enhancing
countries, and emerging market and developing capital projects to sustain long-term
economies (EMDEs). growth and reposition the private sector
for inclusive growth and employment
generation;
 adopt measures to deepen fiscal
consolidation, such as, boosting revenue
mobilisation by strengthening tax
administration and public financial
management, while implementing
expenditure rationalisation measures
anchored on debt burden reduction;

 negotiate for concessional loans and debt implementation of the West African Monetary
relief with external creditors, while Zone (WAMZ) work programme and activities
adopting a framework that ensures under the ECOWAS Single Currency Programme.
subsequent capital loans are project- The CoG deliberated on the Report of the 50th and
based; 51st Meeting of the Technical Committee and
 remain steadfast in the discharge of underlined the need to:
oversight responsibilities in the financial
sector, by enforcing compliance with  convene a technical seminar on the
good corporate governance practices and dynamics of control and management of
credit risk management guidelines; NPLs in the WAMZ;
 review their monetary policy stance amid  establish a regional supervisory and
inflationary pressures, and reduce Net regulatory framework, that reflects cross-
Domestic Asset (NDA), especially, claims country peculiarities, for the resolution of
on government, to ensure effective high NPLs within the WAMZ; and
liquidity management;  share diverse experiences on banking
 fast-track the harmonisation of statistical supervision and regulatory practices for
and policy frameworks in the Zone, to managing NPLs by member central banks
facilitate comparability among member of the WAMZ.
states;
 improve current account balances, 9.1.2 West African Monetary Agency
address supply-side constraints, and i. 40th Ordinary Meeting of the Joint Technical
maintain prudent monetary policy Committee of the West African Monetary
measures; Agency
 sustain diversification drive, by investing
in manufacturing industries to stimulate The 40th Meeting of the Joint Technical
growth; and Committee of the West African Monetary
 diversify export-base by supporting Agency (WAMA) was held virtually from 24 _
businesses that engage in export 26 February 2022. The Committee deliberated
activities and build buffers to withstand on the progress of the ECOWAS
both global and domestic shocks. macroeconomic convergence criteria on
reserves and exchange rate developments. It
ii. 44th and 45th Meeting of the also examined the impact of the policy
Committee of Governors of Central measures adopted to mitigate the effects of
Banks of the Member States of WAMZ COVID-19 and its implications for the
stabilisation phase of the ECOWAS Monetary
Union.
The 44th and 45th Meeting of the Committee of
The Committee observed and recommended
Governors (CoG) of the Central Banks of Member
that:
States of WAMZ was held virtually on 3 March and
 increased public spending financed by
25 August 2022, respectively. At the meeting, the
external support and domestic borrowing
Governors deliberated on the status of

appeared to be the best fiscal  proposed the establishment of a Solidarity
combination; and and Stabilisation Fund within ECOWAS;
 appropriate monetary conditions should  standardised the Provident Fund Scheme
be ensured, particularly concerning the and Harmonised staff benefits for WAMA,
redesign of collateral. WAMI, and the West African Institute for
Financial and Economic Management
ii. 4th Ordinary Meeting of the Audit Committee (WAIFEM); and
of WAMA  endorsed the recommendations of the
The 4th Ordinary meeting of the Audit Report of the ECOWAS Macroeconomic
Committee of the WAMA held virtually on 23 Convergence Committee.
February 2022, and was presided over by the
Central Bank of Nigeria. The meeting reviewed
the appointment of an external auditor for 9.1.3 West African Institute for Financial and
WAMA for the Financial Year ended 31 Economic Management
December 2021, updated rules and
regulations of WAMA, and considered the i. 46th Technical Committee Meeting of
internal audit reports for the period July to the West African Institute for Financial
December 2021. and Economic Management
The 46th Meeting of the Technical Committee of

iii. Joint Multilateral Surveillance Mission to
the West African Institute for Financial and
Nigeria
Economic Management (WAIFEM) was held
The ECOWAS, WAMA, and WAMI conducted a virtually from 18-19 August 2022. The Committee
Joint Multilateral Surveillance Mission to
reviewed the activities of the Institute and
Nigeria from 9-17 May, 2022. The objective of
progress made from January – June 2022.
the Mission was to assess the country’s
macroeconomic developments and its status The Technical Committee reviewed and
of convergence in 2021, the outlook for 2022, recommended the following reports for
as well as the medium-term framework of the consideration and adoption by the Governors of
ECOWAS Monetary Cooperation Programme the central banks of member states:
(EMCP).
 Draft Audit Report;
 Draft Capacity Building Programme for
iv. 41st Ordinary Meeting of the Joint Technical
the Year 2023; and
Committee of the West African Monetary
 Draft Annual Report for 2021.
Agency
The 41st Meeting of the Joint Technical
Committee (Economic and Monetary Affairs
Committee and Operations and
Administration Committee) of the WAMA was
held virtually from 15 – 17 August 2022. The 9.2 NON-REGIONAL MEETINGS
Committee:

i. Spring Meetings of the Board of Governors of the policy caused currency depreciations and
World Bank Group and the International Monetary large capital outflows in EMDEs; and
Fund  called for increased action among
The 2022 Spring Meetings and Annual Meetings of international financial institutions (IFIs), to
the Bretton Woods Institutions, (the World Bank cushion the ongoing and increasingly
harsh effects of the global economic,
Group (WBG) and the International Monetary
political, and humanitarian turmoil,
Fund (IMF)) were held from 18 to 24 April, and 10
particularly against low-income countries
to 16 October 2022, respectively. The meetings of
the Ministers and Governors of the Inter-governmental and EDMEs.
Group of Twenty-four (G-24), International Monetary
The IMFC noted that:
and Finance Committee (IMFC) of the Governors of the
IMF, and the Development Committee were also held.  the lingering effects of the COVID-19
The committees noted the following: pandemic, coupled with the Russia-
The G24 Ministers: Ukraine war, weighed down on economic
activity with significant impact on
 the conflict in Ukraine, with its attendant livelihoods;
implication for the global economy, and  the resulting surge in energy and food
strongly supported international efforts prices added to the inflationary pressures,
to provide humanitarian support and as supply disruptions intensified;
restore peace and stability to Ukraine;  financial markets and capital flows
 noted that the COVID-19 pandemic had continued to exhibit increased volatility;
imposed huge costs on the global and
economy;  the global economy faced significant
 recognised the multiple compounding challenges, and the outlook became more
effects of the crises, which intensified uncertain and subject to downside risks.
global risks, thus undermining global
economic recovery as growth prospects The Development Committee:
remained increasingly divergent and  pledged to intensify efforts to achieve the
uncertain; goal of a more resilient, sustainable, and
 noted the need for urgent global action to inclusive global economy, while remaining
prevent hunger, water scarcity, cost of fully committed to fostering multilateral
living, food and energy insecurity, which cooperation;
had increased alarmingly, thereby,  reiterated its strong commitment to
deepening the existing challenges in the further accelerate climate action in line
global economy; with the Paris Agreement, taking into
 the downside risks to prospective growth account country-specific factors, and
have risen, leading to fears of a global looked forward to strong ambition for
recession; COP27, including enhanced action on
 the worsening financial conditions, which adaptation and resilience;
led policymakers, to tighten monetary

 welcomed the IMF’s vital real-time iii. 77th United Nation General Assembly
support to members through its cutting- The 77th Session of the UN General Assembly
edge policy advice, timely financial (UNGA 77) was held in New York, from 13 - 26
support, and targeted capacity September 2022, with the theme, “A Watershed
development and effective collaboration Moment: Transformative Solutions to Interlocking
with international partners to respond to Challenges”. The UNGA 77 acknowledged the
ongoing shocks and uncertainties; shared root of crises such as the COVID-19
 supported the IMF’s increased focus on pandemic, the war in Ukraine, the global energy
risk analysis and contingent policy advice; crisis, climate change, and the geo-political
and its efforts to strengthen multilateral conflicts, as well as the need for solutions that
surveillance and analytical work on build global sustainability and resilience.
pressing policy issues;
 welcomed the IMF’s work with the World The Assembly:
Bank to help strengthen and accelerate  expressed concern over the
the implementation of the G20’s Common developments in Afghanistan since the
Framework (CF) for debt treatments on a Taliban took over in 2021, and the
case-by-case basis, which was also agreed persistent abuse of human rights,
to, by the Paris Club; and including those of women, girls, and
 reaffirmed its commitment to a strong, minorities;
quota-based, and adequately resourced  adopted a resolution, delivering more
IMF at the centre of the global financial than US$3.50 million to the Secretary-
safety net. General to ease the global food crisis by
facilitating the implementation of two
ii. World Economic Forum Annual initiatives aimed at bringing agricultural
Meeting commodities from Ukraine and the
Russian Federation to the world markets;
The 52nd annual meeting of the World Economic
and
Forum held at Davos-Klosters, Switzerland, from
 commended the work of the
22 – 26 May 2022, with the theme, “Working
International Criminal Court, as the body
Together, Restoring Trust”. The Meeting focused
marked 20 years since its inception.
on a wide range of subjects, including tackling skill
shortages, multiple benefits of investment in INTERNATIONAL MONETARY FUND ARTICLE IV
social infrastructure, and redesigning CONSULTATIONS WITH NIGERIA
organisational structures. The International Monetary Fund (IMF) Article IV
Mission Consultations with Nigeria was held from
Other subjects discussed were: progressing 7 - 18 November 2022. During the visit, the
cooperation on tackling climate change; building a Mission Team assessed recent multi-sectoral
more inclusive and better future for work; economic and policy developments, prospects,
accelerating “stakeholder capitalism”; and and their impact on the economy.
harnessing the technologies of the Fourth
Industrial Revolution

The Mission reviewed key developments in major recovery from the COVID-19 pandemic, despite
macroeconomic variables such as: balance of global economic challenges, particularly the
payments (BOP), International Investment Russia-Ukraine war and its effects on the global
Position (IIP), external debt, foreign exchange economy.
cashflows, reserve management, exchange rate
stability, banking supervision, macroprudential The Team’s inquiries were related to the:
policies, and the overall soundness of the  level of alignment between MPR and
economy other market rates;
 negative real rate in the capital market
The Mission commended the:
and its influence on monetary policy
transmission mechanisms;
 measures taken by the Central Bank of
 expected impact and implications of CBN
Nigeria to tighten liquidity and curb
policy on liquidity, money markets, and
inflationary pressure by increasing the
policy stance;
monetary policy rate (MPR) and raising
 impact of exchange rates, especially in the
the cash reserve ratio (CRR);
 progress in the securitization of the CBN’s parallel market, on inflation;
existing stock of overdrafts and  country’s financial account flows, errors
recommended speedy finalisation; and and omissions, the possibility of capital
 the implementation of Basel III regulation. flight, and general outlook for financial
accounts and reserves; and
 level of liquidity in the money market.
Rating Agencies and Nigerian Authorities
The CBN responded to the concerns raised by
Three major international rating agencies, namely Fitch Ratings Agency.
Fitch, Moody’s, and Standard and Poor’s, held
meetings with CBN representatives and reviewed ii. MOODY’S RATING AGENCY
the Nigerian economy. Following the meetings, On 15 September 2022, Moody’s Ratings Agency
the agencies adjusted their ratings accordingly. held a virtual meeting with the Central Bank of
Fitch's credit rating for Nigeria reported a B- with Nigeria (CBN) and assessed Nigeria's
a stable outlook; Moody's credit rating was Caa1 macroeconomic performance in 2022. The
and a stable outlook; while Standard & Poor's gave discussion centered on reconfirmation of
the country a B- rating, with a negative outlook. responses provided by CBN prior to the meeting
on government finances, external position, and
other macroeconomic indicators. The rating
i. FITCH RATINGS AGENCY
agency, after a review of the economic
Fitch’s Rating Agency held a virtual meeting with developments and expectations in the short-term,
the Central Bank of Nigeria on 27 October 2022, to downgraded the Government of Nigeria's long-
review Nigeria’s macroeconomic performance in term foreign-currency and local-currency issuer
2022. The CBN provided an overview of the ratings, as well as its foreign currency senior
economy's performance and informed the Agency unsecured debt rating to Caa1 from B3, and
that the Nigerian economy was showing signs of changed the outlook to stable. Moody's has also

downgraded Nigeria's foreign currency senior February 2022 to assess Nigeria's macroeconomic
unsecured MTN program rating to (P)Caa1 from performance in 2022.
(P)B3.
The CBN provided an overview of the economy's
The Agency’s rationale for the downgrade was performance. The Bank explained that though the
based on whether the Nigerian government has economy was still fragile, it had remained resilient
over the past four quarters of 2021. It also stated
the capacity to address the ongoing deterioration
in Nigeria's fiscal and external positions. The that the rise in inflation was primarily caused by
Agency averred the fiscal pressure from falling oil supply shocks in the domestic economy.
production, the costly oil subsidy, and rising Following the Agency’s review of the Nigerian
interest rates may persist over the next couple of economy, it revised its outlook on Nigeria from
years, and doubted a post-election policy stable to negative. The Agency affirmed the
response to rebalance Nigeria's fiscal position on nation's B-/B long- and short-term foreign and
a more sustainable path in the short term. Thus, local currency sovereign credit ratings. The ratings
Moody's projected that the scope to finance were based on its perceived increasing risks to
critical spending that would support the country's Nigeria’s debt servicing capacity over the short-
social and economic developments remain term, due to intensifying fiscal and external
constrained by increasing debt service costs. The pressures and low oil production volumes. Other
Agency also considered the environmental, social, pressures, according to the agency, included large
and governance (ESG) position, and concluded refined-petroleum subsidy costs, and relatively
that Nigeria's ESG Credit Impact Score was highly large planned fiscal deficits in the 2023 budget.
negative (CIS-5), indicating the country’s high The Agency held that the lower oil production
exposure to environmental and social risks, and capacity would affect export growth, while
very weak governance. inflationary pressure, fiscal constraints, and
sluggish investment would continue to weigh on
The Agency’s outlook for Nigeria’s economy was, consumption and investment growth.
however, considered stable. The Agency upheld
the government’s long-held aim of raising non-oil However, the Agency was also of the opinion that
revenue and disembarking out of the costly oil the impact of these factors may be partially
subsidy, and urged the government to go through counterbalanced by more business-friendly
with the much-needed reforms. administration in the post-election period.
iii. STANDARD AND POOR’S RATING AGENCY

Standard and Poor’s Rating Agency held a virtual
meeting with the Central Bank of Nigeria on 3

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Central Bank of Nigeria

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Central Bank of Nigeria 2022 Annual Economic Report

Central Bank of Nigeria 2022 Annual Economic Report

The financial sector remained stable, as key

Despite the significant headwinds, real GDP grew,

- Godwin I. Emefiele, CON

Empowered Integrity and

Strategy Architecture Strategic

“The Strategic focus of the Central Bank

Godwin I. Emefiele, CON

Godwin I. Emefiele, CON

Prior to his appointment as the Governor of the Central Bank of

Mr. Shonubi is a seasoned information technology-

Kingsley I. Obiora, Ph.D

Prof. Justitia O. Nnabuko Prof. Michael I. Obadan

Professor Ummu Ahmed

Mr. Ahmed Idris is a Non-Executive Director of the CBN

Dr. Abdu Abubakar holds a First Class honours B.Sc. degree

Members of the Committee of Governors

Members of the Monetary Policy Committee

Branch Controllers as of 31 December 2022

Monetary Policy Committee (MPC) Decisions in 2022

Central Bank of Nigeria 2022 Annual Economic Report 17

interventions, maturity and sale of CBN and 25,000

Nigerian Treasury Bills, and monetised proceeds 20,000

part of the year, aimed at managing banking

2.1.2.1 Open Market Operations CBN Standing Facilities

Central Bank of Nigeria 2022 Annual Economic Report 18

2022 (Average) 11.27 10.66 11.66 10.44 13.67

Jun 11.10 10.88 11.80 8.52 13.00

Sep 12.19 11.49 12.63 11.25 15.50

Oct 16.47 15.91 16.39 10.89 15.50

Nov 11.89 12.56 12.61 14.25 16.50

Central Bank of Nigeria 2022 Annual Economic Report 19

Table 2.2.1: Naira Indents (million)

Central Bank of Nigeria 2022 Annual Economic Report 20

2.2.3 Currency Management Initiatives 2.2.3.2 Forensic Currency Laboratory

Central Bank of Nigeria 2022 Annual Economic Report 21

The Bank introduced the Race to US$200 billion

Inflow through autonomous sources,

Central Bank of Nigeria 2022 Annual Economic Report 22

Outflow through the Bank constituted 81.1 per 3.9

A disaggregation shows that US$18.37 billion or

Central Bank of Nigeria 2022 Annual Economic Report 23

Source: Central Bank of Nigeria. Source: Central Bank of Nigeria.

Central Bank of Nigeria 2022 Annual Economic Report 24

43 16 affected returns from fixed income investments.

fixed income portfolio managed by the external

37 6 asset managers stood at US$7.23 billion. Overall,

Source: Central Bank of Nigeria.

Central Bank of Nigeria 2022 Annual Economic Report 25

Central Bank of Nigeria 2022 Annual Economic Report 26

2 such as AFOS, Enhancing Financial Innovation and Access (EFInA)

Central Bank of Nigeria 2022 Annual Economic Report 27

Central Bank of Nigeria 2022 Annual Economic Report 28

financial soundness indicators were within the

Central Bank of Nigeria 2022 Annual Economic Report 29

Central Bank of Nigeria 2022 Annual Economic Report 30