Overview

The document is the Central Bank of Nigeria (CBN) 2004 Annual Report, presented by Governor Prof. Charles C. Soludo on May 10, 2005. The report covers the CBN's operations, institutional changes in 2004 including governance restructuring, and the economic outcomes under the National Economic Empowerment and Development Strategy (NEEDS). Monetary policy focused on broad money targeting with a 15% growth target, achieving actual M2 growth of 14%. Inflation decelerated to 10% from 23.8% in 2003, and GDP grew by 6.1% (non-oil sector driven at 7.5%), exceeding the NEEDS target of 5%. Bank credit to the private sector grew by 26.6%, while net claims on the federal government declined by 17.9%. Interest rates declined due to low public sector demand and banking consolidation. Bank surveillance using CAMEL ratings showed mixed performance: 10 sound, 51 satisfactory, 16 marginal, and 10 unsound banks. The report also outlines a 13-point banking sector reform agenda aimed at building Africa's financial centre.

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