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CBN Economic Report Shows Decline In Non-Oil Export

CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele

The Central Bank of Nigeria, CBN, on Monday, released the Economic Report for the second quarter of 2016, which showed that total non-oil export earnings of the country stood at $576.97 million, falling by 43.2 percent, below the level in the preceding quarter.

“The development, relative to the preceding quarter, was attributed, mainly, to the significant decline in receipts from manufactured and food products as well as minerals export,” the report clarified

“A breakdown by sectors showed that proceeds from the export of agricultural, minerals, industrial, manufactured products, food products and transport sectors stood at $196.87 million, $185.51 million, $84.34 million, $79.44 million, $30.68 million and $0.12 million respectively.

The percentage shares of agricultural, minerals, industrial, manufactured products, food products and transport sectors in the total non-oil export proceeds were 34.1 per cent, 32.2 per cent, 14.6 per cent, 13.8 per cent, 5.3 per cent and 0.02 per cent, respectively, the CBN said.

The report also showed that the country’s gross external reserves stood at $26.51 billion, showing a decline of three per cent and 6.5 per cent, compared with the levels in the first quarter and the corresponding period of 2015.

“A breakdown of the official external reserves showed that CBN reserves stood at $19.44 billion (73.3 per cent), Federation reserves, $2.45 billion (9.3 per cent), and the Federal Government reserves, $4.61 billion,” it said.

However, assets and liabilities of commercial banks stood at N31.23 trillion, at the end of the preceding quarter of 2016, representing an increase of 9.6 per cent over the level at the end of the preceding quarter.

The funds were sourced, mainly, from time, savings and foreign currency deposits, foreign liabilities and unclassified liabilities.

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The CBN’s credit to the commercial banks rose by 34.2 per cent to N1,041.73 billion.

Banks’ specified liquid assets stood at N6.53 trillion, representing 34.9 per cent of their total current liabilities.

The CBN report also showed that the federal government’s retained revenue for the second quarter stood at N677.88 billion.

The sum is more than that of the first quarter by 34.2 percent, but lower than the quarterly budget estimate by 33 per cent.

The report showed that the Federation Account accounted for 47.7 per cent of the total revenue.

“Other Oil Revenue”, Federal Government Independent Revenue, Value Added Tax, VAT, and Nigeria National Petroleum Corporation, NNPC, Refund and Exchange Gain accounted for 30.0 per cent, 14.9 per cent, 4.1 per cent and 3.3 per cent.

Provisional data indicated that government expenditure for the second quarter stood at N1.76 trillion, which was above the provisional quarterly budget estimate and the level at the end of the preceding quarter by 12.8 and 58.1 per cent.




     

     

    This was attributed, mainly, to the rise in both recurrent and capital expenditure.

    The CBN data also showed that foreign exchange inflow and outflow through the apex bank amounted to $5.89 billion and $6.09 billion, resulting in a net outflow of US$0.20 billion.

    Foreign exchange sales by the CBN to the authorised dealers amounted to $4.31 billion. The average exchange rate of the naira against the dollar at the inter-bank was N209.13 to dollar.

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    The report said crude oil export stood at 1.09 million barrel per day (mbd) or 100.28 mb. This represented a decline of 20.4 per cent, compared with 1.37 mbd or 124.67 mb, recorded in the preceding quarter. It said supply disruptions owing to continued attacks on oil installations by vandals accounted for the decline in crude oil production.

     

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