Export earnings rose by 2.8% to $16.6bn – CBN

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Story by Kayode Tokede

The Central Bank of Nigeria (CBN) has disclosed that export earnings rose by 2.8 per cent to $16.6billion in fourth (Q4) 2018 when compared with third quarter of (Q3) 2018.

According to the apex bank Q4 balance of payments statistics, the growth in export earnings also indicated about 27.6 per cent increase when compared to corresponding period of 2017.

The report noted that earnings from crude oil and gas, which accounted for 93.8 per cent of total export earnings during the review period, increased by 2.1 per cent to $15.6 billion in Q4 2018 when compared with the preceding quarter.

”Earnings from non-oil and electricity exports increased by 15 per cent to $1034.59 million in Q4 2018 when compared with the preceding quarter.

”Available data showed that payments for import of goods (fob) to the economy in the review period decreased significantly by 20.7 per cent to $9,861.89 million below the level recorded in the preceding quarter. This was largely as a result of 19.9 per cent decrease in the imports of non-oil products,” the report released on Tuesday noted.

The report explained that direct Investments inflow decreased by 28.3 per cent to $314.44 million when compared with the preceding quarter of 2018.

”It however, indicated a decline of 67.2 per cent when compared to the corresponding period of 2017. Portfolio Investments inflow to the economy decreased significantly to $1,382.40 million in Q4 2018 from $1,790.83 million and $3,787.16 million in the preceding quarter and the corresponding period of 2017, respectively.

”However, other investment liabilities increased to $1,421.26 million when compared with a reversal of $3,070.76 million recorded in the preceding quarter.”

The statistics by CBN disclosed that provisional Balance of Payments (BOP) estimates for Q4 2018 showed a significant improvement in the BOP outcome as the overall balance of payments recorded a surplus of $2.80 million compared to a huge deficit of $4,542.08 million and a surplus of $6,180.40 million recorded in the preceding quarter and corresponding period of 2017, respectively.

”The current account balance (CAB) improved from a deficit of $1,544.41 million in Q3 2018 to a surplus of $1,104.57 million in Q4 2018. The financial account balance indicated a net acquisition of financial assets of $2,327.91 million in the review period as against a net incurrence of financial liabilities of $4,615.17 million recorded in the preceding period.

On current account balance, the statistics stated that current account indicated a positive outcome during the review period, recording a surplus of $1,104.57 million as against a deficit of $1,544.41 million and a surplus of $3,657.18 million in the previous quarter and corresponding period of 2017, respectively.

”This development was largely attributable to the decrease in imports and payments on income (net).”

In addition, statistics by the apex bank noted that “the Net out-payments for services during the review period increased by 16.5 per cent to a deficit of $8,287.57 million when compared with the level recorded in Q3 2018.

”When compared with the corresponding period of 2017, it indicated a much higher increase of about 76.9 per cent. However, the deficit in the income account (net) decreased by 10.8 per cent to $3,713.84 million in the review period from a deficit of $4,161.76 million recorded in the preceding quarter. When compared with the level in the corresponding period of 2017 it indicated an increase of about 24.5 per cent.

”The surplus in the current transfers (net) increased by 5.7 per cent to $6,312.39 million in Q4 2018 when compared with the preceding quarter. However, the level of surplus was 7.8 per cent higher than the level recorded in the corresponding period of 2017.”

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