CENTRAL BANK OF NIGERIA ECONOMIC REPORT FOR THE FIRST QUARTER OF 2008

ABSTRACT
Aggregate output growth measured by the gross domestic product (GDP) was estimated at 6.49 per cent during the first quarter of 2008, compared with 7.82 per cent in the preceding quarter. The growth was driven by the non-oil sector which was estimated at 9.67 per cent. Provisional data indicated growth in monetary aggregates during the review quarter. Broad money supply (M2) and narrow money supply (M1) increased by 34.8 and 40.2 per cent relative to the preceding quarter. The increase in M2 was attributed to the rise in foreign assets (net), aggregate domestic credit and other assets (net) of the banking system. Available data indicated mixed developments in banks’ deposit and lending rates in the first quarter of 2008. The spread between the weighted average deposit and maximum lending rates widened from 15.01 percentage points in the preceding quarter to 15.20 percentage points. On the other hand, the margin between the average savings deposit and maximum lending rates, narrowed from 10.77 to 10.31 percentage points during the quarter. The weighted average inter-bank call rate, rose from 8.25 per cent in the preceding quarter to 10.30 per cent at end- March 2008, reflecting the liquidity squeeze in the interbank funds market.