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
Despite signs that Nigeria’s headline inflation is easing, rising food prices continue to threaten the country’s inflation outlook, the chief executive of the Centre for the Promotion of Private Enterprise (CPPE), Mr Muda Yusuf, has warned.
He noted that structural inflationary pressures in the real economy remain pronounced despite improving macroeconomic stability.
In a policy brief released following the inflation report, he noted that headline inflation eased marginally, while month-on-month change moderated from 1.75 per cent to 1.66 per cent, indicating that headline inflation has largely plateaued.
According to him, the dominant concern in the latest inflation report is the renewed acceleration in food inflation.
This growth, he said, suggested that food prices have resumed an upward trajectory after a brief period of moderation.
Warning that a renewed increase in food inflation has significant economic and social implications, he stressed that food inflation remained the biggest driver of Nigeria’s cost-of-living crisis, stressing that rising food prices continue to erode household purchasing power, worsen poverty and food insecurity while weakening the inclusiveness of the current reform programme.
He maintained that sustained moderation in food prices is critical to improving citizens’ welfare and strengthening public confidence in the ongoing economic reforms.
Acknowledging the easing of core inflation as encouraging, he drew attention to the persistence of urban inflation.
At 16.08 per cent, urban inflation exceeded the national headline inflation rate of 15.91 per cent, while month-on-month urban inflation increased from 1.99 per cent to 2.13 per cent.
According to Mr Yusuf, the figures indicated that inflationary pressures remained particularly intense across urban centres.
He attributed the rising urban inflation partly to increasing population displacement from rural communities affected by insecurity, expressing worry that as more households migrate to urban areas, demand for housing, transportation, utilities and other essential services would increase, adding to inflationary pressures and creating additional urbanisation challenges.
Addressing insecurity in farming communities, he said, was important not only for protecting lives and property and boosting agricultural output but also for easing cost pressures in urban centres, adding that the June CPI data reinforced the view that Nigeria’s inflation challenge is predominantly structural rather than monetary.
On the monetary policy outlook, he said the data do not justify further monetary tightening, arguing that headline inflation has largely stabilised.
The CPPE chief expected the Monetary Policy Committee (MPC) to retain the current monetary policy rate at its next meeting, adding that the priority is for monetary and fiscal authorities to work together to accelerate structural reforms to expand food supply, improve logistics, reduce energy and production costs, lower debt service costs, as well as strengthen domestic value chains.
By Aduragbemi Omiyale
Additional shares of Sterling Financial Holdings Company Plc have been listed on the Nigerian Exchange (NGX) Limited.
The new equities were added to the company’s existing stocks on Customs Street on Thursday, July 16, 2026, a notice from the bourse confirmed.
Business Post reports the total new ordinary shares of Sterling Holdings listed yesterday were 13,812,239,000 units.
They were from the offer for subscription of 12,581,000,000 ordinary shares of 50 Kobo each sold for N7.00 per share, which was oversubscribed by investors.
The financial institution brought the new shares to the stock exchange to increase its total issued and fully paid-up shares to 65,929,251,414 ordinary shares of 50 Kobo each from 52,117,012,414 ordinary shares of 50 Kobo each.
“Trading licence holders are hereby notified that an additional 13,812,239,000 ordinary shares of 50 Kobo each of Sterling Financial Holdings Company Plc were on Thursday, July 16, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares listed on NGX arose from the company’s offer for subscription of 12,581,000,000 ordinary shares of 50 Kobo each at N7.00 per share.
“With the listing of the additional shares, the total issued and fully paid-up shares of Sterling Financial Holdings Company Plc have now increased from 52,117,012,414 to 65,929,251,414 ordinary shares of 50 Kobo each,” the notice read.
By Adedapo Adesanya
President Bola Tinubu has signed a Presidential Executive Order on Virtual Assets Coordination, establishing a new framework to coordinate the regulation of virtual assets across government agencies as Nigeria seeks to curb fraud while supporting innovation in the digital economy.
The Executive Order, which takes immediate effect, creates a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN) to harmonise oversight of cryptocurrencies, tokenised assets, stablecoins, and other digital assets without creating a new regulator.
As part of the new framework, the CBN will establish a regulatory sandbox that will allow eligible firms to test virtual asset products, blockchain solutions, and related services under regulatory supervision before they are introduced to the wider market.
The development was disclosed in a statement issued on Friday by the President’s Special Adviser on Information and Strategy, Mr Bayo Onanuga.
According to the presidency, the Executive Order responds to the growing complexity of virtual assets, which increasingly cut across the traditional boundaries of currencies, securities, commodities, and payment systems.
The fragmented regulatory environment has left gaps that have exposed Nigeria to money laundering, terrorism financing, cybersecurity and data privacy risks, fraud, and revenue losses.
The government said some unregistered operators have exploited these regulatory gaps to defraud unsuspecting Nigerians, resulting in significant financial losses.
“The Order is designed to close these gaps through supervisory coordination, without introducing new layers of regulation or displacing the mandates of existing agencies,” the statement read.
Under the new framework, the Virtual Asset Council will be chaired by the CBN, with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) serving as vice chairs. Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).
The Council will provide policy direction, improve cooperation among participating agencies, and work with the Attorney General of the Federation to develop a harmonised legal and institutional framework for the sector.
The Executive Order also establishes a Virtual Asset Office, which will serve as the Council’s operational arm. The office will be domiciled at the CBN and will coordinate information sharing, applications, and reporting among the participating agencies through a shared supervisory technology platform.
The presidency stressed that the Executive Order does not create a new regulator or transfer statutory powers from existing agencies, clarifying that instead, each institution will continue to exercise its existing mandate while working within a coordinated framework.
Under the arrangement, registration of virtual asset businesses will depend on the nature of the service being offered.
Activities classified as securities will continue to be regulated by the SEC, while payment, settlement, custody, and other services involving non-security virtual assets will fall under the CBN.
Where there is uncertainty over regulatory jurisdiction, the Virtual Asset Council will determine the appropriate supervising agency.
“The sandbox will provide a controlled environment in which eligible operators can test and operate virtual asset products, services, and blockchain-based solutions under close supervision, enabling the participating agencies to assess the implications for monetary sovereignty, financial stability, market integrity, consumer protection, financial inclusion, and revenue administration before products reach the wider market,” the statement added.
According to the presidency, the sandbox will enable regulators to evaluate the implications of emerging products for financial stability, monetary sovereignty, consumer protection, financial inclusion, market integrity, and revenue administration.
The central bank is expected to announce further details of the sandbox.
