Money Supply And Lending Rate
Money Supply (Billion )
Rising money supply
Lending Rate (%)
Money Supply: On a month-on-month basis, growth in M2 have accelerated overtime; reaching over N20,000 billion by April 2016. The rise in M2 at the end of 2016Q1 reflects the fast-paced rise in aggregate domestic credit and other assets relative to pre-2008 period. Similarly, M1 grew sharply at the end of 2016Q1 due to the increase in its demand deposits and currency outside banks components.
Lending Rate: Lending rates co-moves with changes in liquidity and money supply. The gap between maximum and prime lending rates began to widen in 2010; reflecting higher liquidity in the banking system. Both the maximum and prime lending rate trended downwards in 2016Q1 on the account of liquidity ejection in the banking system, at the time.
Capital Importation: Given the positive outlook on the ITC sector in the past few years, investments in the sector reached a 10-year peak in 2014. However, the foreign investment fell marginally in 2
Appropriation Act (Budget): Capital expenditure remarkably increased in 2016 relative to preceding year, on the account of the present governments renewed commitment to infrastructure development.
Gross Federally Collected Revenue: Both oil and non-oil components of gross federal revenue fell below N40 billion in 2016, after recording a peak of N90 billion in 2013. The decline was most prominen
Capital Importation: Capital expenditure into the construction sector remained above 10 percent since 2005 until 2015. Similar to the manufacturing sector, overall capital imported into the constructi