Investor Presentaiton
Domestic Operating Environment
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Mar 14 June 14
Sept 14
Dec 14 Mar 15
6.5
6.2
6.2
5.94
GDP Growth
5.26f
Rate (%)
8.5
8.2
8.0
8.0
Inflation Rate
7.8
Y/Y (%)
113.1
110.2
115.0
Crude Oil Price
63.1
57.5
USD/Barrel
FX Rate
159.8
164.9
162.9
192.1
197.0
Interbank (#/$)
15.1
13.2
13.0
11.1
11.3
Average 30-Day
NIBOR Rate (%)
12.7
13.1
10.8
10.5
10.0
Money Market
Rate¹ (%)
Note: Call rate was used as an indicator for the Money Market Rate
Source: CBN, Nigerian Bureau of Statistics (NBS), Financial Derivatives, Trading Economics, BMI
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The Nigerian Economy
GDP growth declined to 5.9% in Q4'14, from 6.2% in Q3'14.
Slowed growth resulted mainly from non-oil sector which grew by
6.44% in Q4 compared to 8.78% in Q3'14. GDP is expected to
increase by 5.26% in Q1'15
Inflation rate increased for the fourth consecutive month to 8.5%
in March 15 largely due to rise in the prices of food. Core sub
index increased by 50bps to 7.5% y/y while food index was 9.4%
➤ Average Bonny Light oil price declined to $57.5/barrel from
$63.1/barrel in FY 2014 due to increase in shale production in
the US leading to a supply glut in the international market
>>
FX rate at the interbank market increased from N192.1 in Dec
2014 to N197 due to the devaluation of the naira and significant
reduction in foreign inflows
Banking Industry
MPC unanimously agreed to retain MPR at 13%; CRR on private
sector deposits at 20%; CRR on public sector deposits at 75%;
and liquidity ratio at 30%
CBN released FX prudential guidelines, adjusted Bank's
allowable Net open FX position and closed the RDAS windows
resulting in a tacit devaluation in order to stabilize the naira by
Due to pressure from the drop in crude oil prices, the Naira
depreciated by 7.9% in Q4 2014, from N155.3/$ to N168/$
despite the Central Bank's effort to defend the naira
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