|Ngozi Okonjo Iweala, Finance Minister|
The federal government generated a total of N10.655 trillion in 2012, the Central Bank of Nigeria (CBN) has disclosed.
The amount, according to the central bank, exceeded the N9.7 trillion target for the fiscal year by 9.9 per cent.
The CBN made this known in its annual report for 2012 posted on its website.
The development was attributed to the favourable receipts from both oil and non-oil revenue sources.
An analysis of the receipts indicated that the gross oil revenue accounted for N8.026 trillion (19.8 per cent of GDP) and represented 75.3 per cent of the total.
At that level, it also surpassed the 2012 budget benchmark of N6.636 trillion by 20.9 per cent, but was below the 2011 receipts by 9.6 per cent.
However, the report showed the computed capital adequacy ratio (CAR) for Nigerian banks indicated the industry average stood at 18.3 per cent, compared to the computed average of 17.7 per cent at end-December 2011.
“Available data further revealed that all deposit money banks (DMBs), except one met the stipulated minimum ratio of 10 per cent. The asset quality of the banks, as measured by the ratio of non-performing loans to industry total, improved substantially as it declined from 4.95 per cent at end-December 2011, to 3.47 per cent at end-December 2012. The average industry liquidity ratio (LR) stood at 63.9 per cent, and exceeded the prescribed LR of 30.0 per cent, compared with 69.1 per cent at end-December 2011,” it stated.
The number of banks’ branches also declined by 3.9 per cent to 5,585 from 5,810 in 2011.
According to the CBN, the number of reported cases of fraud and forgery in the banking industry increased in 2012. Specifically, the central bank disclosed that there were 4,527 cases of fraud and forgery involving the sum of N14.8 billion and $1.6 million respectively, compared to the 2,527 cases involving the sum of N29.5 billion at the end of December 2011.
It added: “However, the actual loss to banks fell by 26.1 per cent to N4.27 billion and $0.4 million, from N5.78 billion at end-December 2011. The cases of fraud were perpetrated mostly by outsiders and some bank staff, through such means as pilfering, theft, suppression and conversion of customers’ deposits, illegal funds transfer and fraudulent ATM withdrawals.”
The CBN said it continued with its consolidated supervision of all entities within the banking groups in the review year, to ensure that all risks were properly evaluated on a global basis. Consequently, it disclosed that both joint and solo examinations of offshore subsidiaries of Nigerian banks were conducted in 2012.
“The audited financial statements of the CBN for the year ended December 31, 2012 showed that a net income of N305.6 billion before operating expenses was realised, representing a decline of 1.8 per cent below the level at end- December 2011.
“The fall in income largely reflected the fall in net interest income (-2.2 per cent), other operating income (-13.7 per cent) and a significant increase in interest expense (320.9 per cent). Similarly, operating cost declined by 6.5 per cent, bringing the operating surplus before appropriation to N100.38 billion, which represented an increase of 25.2 per cent over the level at end-December 2011.
“In accordance with the provisions of Section 22(1) and (2) of the Fiscal Responsibility Act (FRA) 2007, the sum of N80.3 billion was due to the Federal Government, while the balance accrued to general reserve. The size of the CBN balance sheet increased by 16.6 per cent to N13,200.5 billion at end-December 2012,” it stated further.