As of the fourth quarter (Q4) of 2018, Nigeria recorded $2.8 million balance of payments surplus, the Central Bank of Nigeria (CBN) has said.
According to the apex bank, the 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 $4.54 trillion and a surplus of $6,180.40 million recorded in the preceding quarter and corresponding period of 2017, respectively.
According to the BoP document, the current account balance (CAB) improved from a deficit of $1.54 trillion in the third quarter (Q3) of 2018 to a surplus of $1.1 trillion in Q4 2018. “The financial account balance indicated a net acquisition of financial assets of $2,33 trillion in the as against a net incurrence of financial liabilities of $4,62 trillionrecorded in the preceding period”, it adds.
The current account balance indicated a positive outcome during the period, recording a surplus of $1.1 trillion as against a deficit of $1.5 trillion and a surplus of $3.66 trillion in the previous quarter and corresponding period of 2017, respectively. This development was largely attributable to the decrease in imports and payments on income.
“The surplus in the Goods Account increased significantly to $6.79 trillion in Q4 2018 from surpluses of $3.76 trillion in the preceding quarter and $5.47 trillion recorded in the corresponding period of 2017.
“Export earnings rose by 2.8 per cent to $16.66 trillion in Q4 2018 when compared with Q3 2018. It also indicated an increase of about 27.6 per cent when compared to corresponding Period of 2017. Earnings from crude oil and gas, which accounted for 93.8 per cent of total export earnings during the period, increased by 2.1 per cent to $15.62 trillion in Q4 2018 when compared with the preceding quarter. Earnings from non-oil and electricity exports increased by 15 per cent to $1035 trillion 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 $9.86trillion 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.
“On Services, Income and Current Transfers, net out payments for services during the period increased by 16.5 per cent to a deficit of $8.297trillion 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 $3.71trillion in the period from a deficit of $4,16trillion 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 5.7per cent to $6.3 trillion in Q4 2018 when compared with the preceding quarter,” the apex bank said in the report.