According to the National Bureau of Statistics (NBS) Nigeria’s balance of trade in the third quarter stood at N645 billion, down from N2.87 trillion in the third quarter a year ago ($14.42 billion – $3.24 billion). Consequently, Nigeria’s exports fell by 50.3 percent in the third quarter from a year ago and imports declined .3 percent, the NBS said. The fall in crude oil exports, which accounted for 69.1 percent of total domestic exports this year, hit the economy the most.
“The sharp decline in exports and slight decrease in imports contributed to a continued fall in the country’s trade balance, by 32 percent,” the NBS said in a report.
Crude exports fell 18.8 percent in the third quarter from the second. Imports dropped 1 percent from the second quarter, the NBS said. Currency controls imposed by the central bank are largely seen as part of the reasons for the decline in imports.
CBN was forced to devalue the naira in November as oil prices plummeted and pegged it to N197 to the dollar in February 2015. Nigeria which is rated as Africa’s biggest economy relies on oil exports for about 70 of government’s revenue. However, the price of crude has been falling, reaching its lowest in more than six years last week putting into its worst economic crisis in years. There was also raising fears that lower oil exports may also hinder implementation of crucial development programmes that will improve the lives of the citizens. Meanwhile, due to its limited manufacturing facilities, Nigeria imports most of what it consumes.
In June, it restricted access to the interbank currency market for importers bringing in a variety of goods. In an effort to conserve its dollar reserves, the bank said that importers could no longer get hard currency to buy 41 items, ranging from toothpicks and rice that can be produced locally. The bulk of Nigeria’s imports were food and beverages, along with machinery and appliances, vehicles and aircraft parts and petroleum products. They came mostly from China, United States, Belgium, the Netherlands and India. Intra African imports accounted for 3.9 percent of the total. The United States and the European Union in November raised concerns at the World Trade Organization about Nigeria’s restrictions on access to foreign currency, a WTO official 58 percent of government revenue. But the price of crude has been falling, reaching its lowest in more than six years last week.
Consequently, Nigeria faces its worst economic crisis in years, since exports of oil also bring in the hard currency that pays for imports. And because of its limited manufacturing, Nigeria imports most of what it consumes.
Nigeria’s exports fell by 50.3 percent in the third quarter from a year ago and imports declined 7.3 percent, the NBS said. The fall in crude oil exports, which accounted for 69.1 percent of total domestic exports this year, hit the economy the most. In June, it curbed access to the interbank currency market for importers bringing in a variety of goods. In an effort to conserve its dollar reserves, the bank said that importers could no longer get hard currency to buy 41 items, ranging from toothpicks and rice to steel products and private jets.
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