Economy
Nigeria: Broad Money Grows 6.51% in December 2016
By Modupe Gbadeyanka
Central Bank of Nigeria (CBN) Depository Corporations Survey has shown that broad money supply (M2) expanded month-on-month by 6.51 percent in December 2016 to N23.84 trillion, a report by Cowry Asset has revealed.
It was gathered that the increase in M2 followeda0.70 percentincreaseinNet Domestic AssetstoN14.38trillion, accompanied by a 16.98 percent decrease in Net Foreign Assets to N9.35trillion.
The increase in net foreign assets partly reflected recovery in international crude oil prices since October last year juxtaposed with improved crude oil production.
Narrow money supply, M1, increased by 10.46 percent to N11.52 trillion as demand deposits grew by 9.69 percent to N9.70 billion and currency outside the banks increased by 14.70 percent to N1.82 trillion.
Also, net domestic credit upped by 0.45 percent to N26.97 trillion as credit to the private sector declined by 2.91 percent to N22.37 trillion while credit to the government increased by 20.85 percent to N4.60 trillion; which was indicative of crowding out of the private sector in a high interest rate environment.
In the real sector, Nigeria’s economy recorded sustained increase in annual inflation rate, to 18.72 percent in January 2017 (from 18.55 percent in December 2016).
However, monthly increase in composite consumer price index slowed to 1.01 percent in the review month (from 1.06 percent in December).
Increase in general price level was partly due to increased pressure from higher foreign exchange rates and their subsequent impact on consumer goods and services –Naira/USD exchange rates increased month-on-month by 1.78 percent and 1.63 percent to average N490/USD and N495.38/USD at the Bureau De Change and Parallel market segments respectively.
Similarly, the prices of refined petroleum products increased on a monthly basis–Premium Motor Spirit increased by 1.36 percent to average N148.7/litre; Automotive Gas Oil increased by 22.59 percent to average N240.52/litre; Household Kerosene spiked by 87.12 percent to average N433.84/litre; while average price for Liquefied Petroleum Gas increased by 22.91 percent to N5,500 per 12.50kg refill.
Food inflation rate rose to 17.82 percent in January (faster than 17.39 percent in December), driven by increases in prices of bread and cereals, meat oil and fats, and fish.
However, core inflation rate fell to 17.90 percent in January (from 18.10 percent in December).
The price index of housing water, electricity, gas and other fuel grew by 27.17 percent in January (slower than 27.25 percent in December); imported food index rose by 20.97 percent in January (slower than 21.08 percent in December); while transportation index increased at a faster pace by 17.22 percent in January (from 17.30 percent in December).
The clothing and footwear price index also increased at a faster pace by 17.85 percent in January (from 17.81 percent in December).
On the foreign scene, inflation rate in the United States increased year-on-year to 2.5 percent in January 2017 (higher than 2.1 percent recorded in December; above market expectations of 2.4 percent and higher than 2.0 percent target set by the Federal Open Markets Committee), mainly driven by gasoline prices.
In the same vein, inflation rate in the United Kingdom increased to 1.8 percent in January 2017 (higher than 1.6 percent in December, but below mark expectations of 1.9 percent), mainly driven by rising cost of fuel.
Consumer prices in China also increased year-on-year by 2.5 percent in January 2017 (higher than 2.1 percent recorded in December), driven by a faster increase in cost of food and non-food items.
The annual inflation rate in Ghana slowed to 13.3 percent in January (from 15.4 percent in the previous month), driven by slower increase in prices of food and non-food items (7 percent from 9.7 percent and 16.6 percent from 18.2 percent respectively).
View full report here: Cowry Asset
By Adedapo Adesanya
The Senate Committee on Banking, Insurance and Other Financial Institutions has called for stronger collaboration among financial sector regulators and other stakeholders to strengthen Nigeria’s financial system and support sustainable economic growth.
The committee made the call during an expanded stakeholders’ engagement in Lagos, attended by the leadership of the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), National Insurance Commission (NAICOM) and Nigeria Export-Import Bank (NEXIM), among other industry stakeholders and financial experts.
Chairman of the committee, Mr Adetokunbo Abiru (Lagos East), who was represented by Mr Osita Izunaso (Imo West), said stronger legislative reforms and regulatory collaboration were necessary to reposition Nigeria’s financial architecture for long-term economic prosperity.
Mr Abiru said the financial sector remained critical to investment, job creation, business expansion and macroeconomic stability, stressing that its ability to mobilise savings, channel credit to productive sectors, facilitate investment and manage risks was fundamental to sustainable economic growth.
He said the current economic realities required closer collaboration between the legislature and financial regulators, noting that challenges confronting the sector were interconnected and could not be effectively addressed through isolated interventions.
The lawmaker identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as some of the challenges requiring coordinated policy responses.
He said the engagement was aimed at generating practical solutions to strengthen the country’s financial architecture and support sustainable economic growth.
According to him, monetary policy, financial safety nets, banking institutions, the insurance industry and export finance were interdependent components of a stable financial system and must therefore be strengthened collectively.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, said the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had contributed significantly to stabilising and repositioning the insurance sector.
Mr Omosehin disclosed that 43 insurance companies had successfully recapitalised, describing the development as a major milestone for the industry.
He commended Abiru and members of the committee for their role in advancing insurance sector reforms and urged the House of Representatives to expedite action on the relevant insurance reform bill to enable it to receive presidential assent and become operational.
Representatives of the CBN Governor and the Managing Directors of AMCON, NEXIM and NDIC also commended the Senate committee for its oversight and legislative support, saying its interventions had strengthened the agencies’ capacity to discharge their statutory mandates.
The engagement, held under the theme, Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria, also featured presentations by Professor Uche Uwaleke, President of Capital Market Academics of Nigeria (CMAN); Professor Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited; and Dr Tilewa Adebajo, Chief Executive Officer of CFG Advisory.
The experts presented policy recommendations on key issues affecting Nigeria’s financial system, with emphasis on financial stability, investment and sustainable economic growth.
Mr Abiru said the Senate would continue to engage financial regulators and other stakeholders to deepen financial inclusion, strengthen public confidence in financial institutions and improve regulatory effectiveness.
He said the broader objective was to position Nigeria’s financial system to compete more effectively in the global economy while remaining resilient and responsive to the country’s economic transformation agenda.
By Aduragbemi Omiyale
The first six months of 2026 were not too good for Caverton Offshore Support Group Plc, as it suffered an N8.7 billion loss compared with the N2.1 billion net profit it recorded in the same period of 2025.
This occurred as the company posted a 10.91 per cent decline in earnings between January and June 2026, according to its financial statements for the period ended June 30, 2026.
Analysis of the results showed that the revenue generated in the period under review stood at N14.7 billion versus the N16.5 billion printed in the corresponding period of last year.
Business Post observed that the revenue was negatively impacted by a decline in earnings from helicopter charter and helicopter/airplane contract.
Further analysis of the financial results indicated that operating profit went down by 22.34 per cent to N7.3 billion from N9.4 billion, with administrative expenses jumping to N7.9 billion from N4.7 billion.
But Caverton believes things will get better, noting that the clearest driver of the recovery is Caverton Marine.
Through its relationship with Stena Bulk, one of the world’s leading tanker operators, the organisation now participates in three Suezmax tankers trading a rare source of foreign-currency revenue for a Nigerian-listed company.
It noted that the relationship is being deepened through Unity Shipping Worldwide, a joint venture with the Nigerian National Petroleum Company (NNPC) Limited and Stena Bulk that pairs the state-owned oil firm’s national position and Stena Bulk’s fleet with Caverton’s indigenous operating platform
Closer to home, the firm’s OMIBUS platform, developed with Shanghai-based electric-propulsion OEM Explomar, is bringing battery-electric passenger ferries to Lagos waterways. A prototype is already in service, and Caverton holds a firm order from Lagos State for ten vessels, an early-mover position in clean inland-water transport that the group believes can be replicated across other states as the fleet enters service and ferry operations mature into steady, recurring revenue.
In aviation, the institution said the recovery is anchored on its partnership with NHV, a Belgium-based international helicopter operator, with the restructuring of charter operations targeted for the second half of 2026.
“The first half of the year tested us, but the direction of travel is now visible in the numbers.
“Quarter on quarter, we are working to build up our revenue to narrow losses. Our marine business units, from international tankers to electric ferries, are scaling.
“Meanwhile, our aviation relaunch is on track for the second half, and our cost base is tighter than it has been in years. There is distance still to travel, but Caverton is moving from stabilisation to recovery, and we intend to finish 2026 with that momentum intact,” the chief executive of Caverton, Mr Olabode Makanjuola, stated.
By Adedapo Adesanya
The Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) have issued new guidelines clarifying the taxation of virtual assets in Nigeria.
The guidelines provide an administrative framework for the taxation of virtual assets and specify the tax obligations of individuals and businesses operating in the sector.
According to a public notice issued by the two agencies, the framework covers registration, reporting and record-keeping requirements, valuation principles and the tax treatment of virtual asset transactions.
It applies to taxpayers, Virtual Asset Service Providers (VASPs), peer-to-peer (P2P) marketplace operators, tax practitioners and other persons engaged in virtual asset-related activities.
The NRS and JRB said the guidelines were developed in line with the provisions of the Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025.
The two bodies said the release was aimed at providing clarity, certainty and consistency in the administration of Nigeria’s tax laws as the country’s virtual asset ecosystem continues to evolve.
The agencies added that the framework would promote voluntary compliance, enhance transparency and support the development of a fair and efficient tax system for digital asset transactions.
They urged all affected taxpayers and stakeholders to familiarise themselves with the guidelines and ensure compliance with the applicable tax obligations.
The guidelines are available on the official websites of the two agencies.
