Nigeria’s Non-oil Export Earnings Falls By 13%

Obinna Chima

Nigeria’s total non-oil export earnings, at $480.56 million, fell by 13.1 per cent in August, the Central Bank of Nigeria (CBN) revealed yesterday.

This, however, was below the level in the preceding month, but showed an increase of 112.8 per cent above the level in the corresponding period of 2017.

The CBN disclosed this in its monthly “Economic Report for August 2018,” that was posted on its website yesterday.

The development reflected, the respective decline of 31.9 per cent, 0.8 per cent and 30.3 per cent in the proceeds from manufacturing, food and minerals products sub-sectors, respectively, to US$261.66 million, US$41.19 million and US$9.28 million in August 2018. According to the report, export proceeds from industrial and agricultural sub-sectors, however, rose by 21.4 and 67.5 per cent, respectively, above the levels in the preceding month. “The shares of the various sectors in non-oil export proceeds were: minerals, 35.7 per cent; agricultural products, 24.9 per cent; manufactured products, 20.4 per cent; industrial sector, 16.5 per cent; and food products, 2.5 per cent,” it stated.

According to the report, aggregate foreign exchange outflow from the economy, at US$5.60 billion, fell by 10.4 per cent compared with the level in July 2018, but represented an increase of 47.6 per cent above the level at the end of the corresponding month of 2017. This was attributed to the 12.1 per cent decline in outflow through the Bank.

Also, inflow through autonomous sources, indicated marginal decline of 1.9 per cent to US$6.31 billion in August 2018, below the level in the preceding month. Outflow through autonomous sources, on month-on-month basis, however rose by 31.9 per cent to US$0.30 billion above the level in the preceding month and reflected the rise in invisible import. Thus, foreign exchange flow through the economy, resulted in a net inflow of US$5.53 billion in the review period, compared with US$4.92 billion and US$5.02 billion for July, 2018 and August, 2017, respectively. Provisional data indicated that aggregate foreign exchange inflow into the CBN was US$4.82 billion, showing an increase of 1.7 per cent and 22.2 per cent, compared with the respective levels in the preceding month and the corresponding period of 2017. The development, relative to the preceding month was attributed, largely, to the improved performance of the non-oil sector of the economy. Aggregate outflow of foreign exchange from the Bank fell by 11.1 per cent to US$5.29 billion in August 2018, compared with the level at the end of the preceding month.