Nigeria’s Trade Deficit Fall By 61%

The Central Bank of Nigeria in its monthly economic report  revealed that Nigeria’s trade deficit declined on a year on year basis from $880 million to $340 million dollars representing a 61 per cent fall in deficit shortfall. The timeframe for this figures was monitored from July 2020 to July 2021.

Notwithstanding, revenue generated from gas exportation and crude oil increased by $2.23 billion, rising from $1.76 billion in 2020 to $3.99 billion in 2021.

The report was titled “Trade balance improved in July 2021, resulting from risk sentiments emanating from the spread of the Delta-variant of COVID-19, which subdued imports

Key statements from the report on Trade Deficit

“A lower trade deficit of $0.34 billion was recorded in July 2021, compared with $2.4 billion in June 2021. Aggregate exports increased marginally by 0.2 per cent to $4.45 billion, while total import declined significantly by 30 per cent to $4.80 billion, compared with $4.44 billion and $6.85 billion, respectively, in June 2021.

“Nigeria’s crude oil and gas export receipts decreased due largely to lower crude than-expected gas export.

“The value of crude oil and gas export decreased by 1.0 per cent to $3.99 billion, compared with $4.04 billion in June 2021. “A breakdown indicates that the value of gas export decreased by 17.9 per cent to $0.46 billion.

“The decline in gas export was due, majorly, to the lower export of liquefied petroleum gas (LPG) in the review period. “The value of crude oil export, on the other hand, increased by 1.7 per cent to $3.53 billion in July 2021.

“The increase in crude oil receipts was due, majorly, to improvement in both price and production to $75.93 pb and 1.50 mbpd in July 2021, relative to $73.46 pb and 1.47 mbpd in June 2021.