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Monetary Policy

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The Conduct of Fiscal Policy

Fiscal Policy 1996
The 1996 fiscal policy was focused on consolidating and building on the modest gains and stabilization made in 1995. The objectives of the 1996 fiscal policy included enhancement of increased production and productive capacity; encouragement of export promotion and growth; reduction in inflation rate; intensive revenue collection drive; drastic reduction of fiscal deficit through curtailment of wasteful expenditure; stringent control of extra budgetary spending; continued consolidation of the Federal Government revenue and expenditure in order to enhance accountability and transparency. Other fiscal measures included a change in the basis of Personal Income Tax (PIT) from income to consumption; broadening of the base of VAT by eliminating all extra statutory exemptions; and series of incentives in respect of company taxation.

The 1996 total budget outlay was N125billion made up of N48billion and N77billion for recurrent and capital expenditures respectively. The major source of revenue for financing the budget was proceeds from crude oil sales which accounted for 53.3 percent and it was followed by Autonomous Foreign Exchange market which contributed 17.3 percent. The major components of capital spending were the PTF projects and loan capital repayment which, constituted 36.6 percent and 18.9 percent respectively.

The major components of recurrent expenditure were transfer payment including interest payments on debts which constituted 45.4 percent of the total recurrent expenditure while administration took 36.4 percent.

Overall, the fiscal operations of the Federal Government in 1996 resulted in a substantial surplus of N37.04billion, which was almost double the N19billion budget estimate. The surplus represented 1.6 percent of GDP and was due to improved revenue performance and an expenditure contraction within the general framework of fiscal discipline and prudence.

Facts : 1/1/1900
BOFIA:In 1991, the Bank s and Other Financial Institutions Act (BOFIA) formerly BOFI was promulgated to replace the CBN Act of 1958 and the Banking Decree of 1969 (including later amendments). The policy brought the non-bank financial intermediaries under the supervision of Central Bank of Nigeria.
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We are open for business Monday through Friday except on national holidays. Official visiting days are Tuesdays and Thursdays by appointment only. Our working hours are from 8:00a.m. - 4:00p.m.

Address

Central Bank of Nigeria
Plot 33,
Abubakar Tafawa Balewa Way
Central Business District,
Cadastral Zone,
Abuja,
Federal Capital Territory,
Nigeria

Post Office Box

P.M.B. 0187,
Garki Abuja.
Nigeria

Phones

General Switch Board:
See Reception Desk below

Authorized Dealer Enquires
+234 9 462 37804,
+234 9 462 37802

Commercial Agricultural Credit Scheme (CACS)
+234 9 46237602

Corporate Communications
+234 9 462 36011
Fax: +234 9 462 36012
cad@cbn.gov.ng

Complaints Against Financial Institutions
cpd@cbn.gov.ng

Forex Helpdesk
+234 9 462 37827
+234 9 462 37831

Reception Desk
+234 9 462 39701-02