By Kayode Tokede
The Central Bank of Nigeria (CBN) has reported an aggregate foreign exchange inflow into the economy at $26.95 billion in the third quarter of 2017.
The apex bank in its economic report for third quarter of 2017 said the $26.95 foreign exchange inflow represents 35.7 per cent and 57.9 per cent increase over the levels in the preceding quarter and the corresponding quarter of 2016, respectively.
According to the CBN report, “the development reflected the respective rise of 42.4 per cent and 28.1 per cent in inflow through autonomous sources and the Bank, respectively, in the review period.
“Oil sector receipts, which accounted for 11.8 per cent of the total, stood at $3.17 billion, compared with $2.10 billion and $3.60 billion in the second quarter of 2017 and the corresponding period of 2016, respectively.”
The report disclosed that Non-oil public sector inflow, was $8.81 billion (32.7 per cent of the total), rose by 21.3 per cent and 336.1 per cent, above the levels at the end of the second quarter of 2017 and the corresponding period of 2016, respectively.
“Autonomous inflow, at $15.0 billion, rose by 42.9 per cent and 30.4 per cent, above the levels in the preceding quarter and the corresponding period of 2016, respectively. Inflow through autonomous sources accounted for 55.7 per cent of the total.
“At $10.17 billion, aggregate foreign exchange outflow from the economy rose by 7.1 per cent and 19.3 per cent above the levels in the preceding quarter and the corresponding period of 2016, respectively. The development was driven, largely, by outflow through the CBN.
“Thus, foreign exchange flows through the economy resulted in a net inflow of $16.78 billion in the review quarter, compared with $10.37 billion and $8.55 billion in the second quarter of 2017 and the corresponding period of 2016, respectively,” the report by CBN stated.
According to CBN’s report on non-oil export earnings by exporters, total non-oil export earnings received through commercial banks declined significantly by 51.4 per cent below the level in the second quarter of 2017 to $505.9 million in the review quarter.
The report attributed the decline to the 86.9, 42.1 and 20.3 per cent fall in foreign exchange receipts from manufactured products, minerals and food products sub-secrors.
“A breakdown by sectors showed that proceeds from agriculture products, minerals, manufactured products, industrial sector and food products stood at $216.1 million, $97.6 million, $89.6 million, $83.7 million and $18.9 million, respectively.
“The transport sector recorded $20,440.00 in earnings during the review period. The percentage shares of agriculture products, minerals, manufactured products, industrial sector and food products in the total non-oil export proceeds were 42.7, 19.3, 17.7, 16.6 and 3.7 per cent, respectively.”
The report disclosed that a total of $6.49 billion was sold by the CBN to authorised dealers in the third quarter of 2017.
“This represented 15.1 per cent decline below the level in the second quarter of 2017. The development relative to the preceding quarter was as a result of the reduction in inter-bank sales.
“Of the total, foreign exchange forwards disbursed at maturity amounted to $3.31 billion or 51.0 per cent of the total. Interbank and BDC sales were $0.69 billion (10.6 per cent) and $1.77 billion (27.3 per cent), respectively, while Swap transactions was $0.72 billion or 11.1 per cent of the total,” the report stated.
The report added that the federally-collected revenue in the third quarter of 2017, at N2,299.37 billion, was lower than the proportionate quarterly budget estimate of N2,684.28 billion by 16.7 per cent, it however, exceeded the receipts in the preceding quarter by 46.1 per cent. The decline in federally-collected revenue (gross) relative to the proportionate quarterly budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue during the review quarter.
“Gross oil receipt at N1,270.62 billion or 55.3 per cent of the total revenue, was lower than the proportionate quarterly budget estimate by 6.2 per cent, but was above the receipts in the preceding quarter by 59.7 per cent.
“The decline in oil revenue relative to the proportionate quarterly budget estimate was due to the shortfall in receipts from crude oil/gas exports, owing to the decline in crude oil production, arising from leakages and shut-ins/shut-downs at some NNPC terminals,” the report added.