Inter-sectorial financing in Nigeria, 1985

Abstract

Available data show that in 1985 the domestic economy managed to generate sufficient funds to finance an increase in capital formation and to have a net claim on the rest of the World. The surplus so generated during the year originated mainly in the Households and Oil companies sectors. The net borrowers were the Federal Government, State Government and Non-oil businesses. An interesting result of the financial inter-mediating activities of the banking system was that, during the year, they mobilised a substantial sum over and above what it lent to the various sectors, thus generating a sizeable investible surplus. Although no new financial assets were introduced during the year, there is evidence of greater patronage of the differentiated assets ranging from deposits to Federal debt instruments. Estimates of insurance funds show that they dipped, especially the life insurance contributions.