Economy

Nigeria’s Import Exceeds Export by $4.5b

Published

6 years ago

17/12/2018

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) last week said the nation’s balance of payments depreciated to deficit of $4.5 billion in the third quarter of 2018, indicating that import exceeded export by $4.5 billion.

In a report, the apex bank said this was different from the $503 million surplus recorded in the second quarter of this year.

In the report titled Brief on Balance of Payments Statistics Q3’18, the apex bank said, “The provisional Balance of Payments (BOP) estimates for Q3 2018 showed a significant turnaround in the country’s position as the overall balance of payments swung into a deficit of $4.542 billion compared to surpluses of $503.97 million and $2.787 billion recorded in the preceding quarter and corresponding period of 2017, respectively.

“The current account balance (CAB) worsened from a surplus of $4.452 billion in Q2 2018 to a deficit of $3.105 billion in Q3 2018. The financial account balance indicated an increased net incurrence of financial liabilities of $10.724 billion in the review period as against $2,575.64 million recorded in the preceding period.

“The current account indicated a negative outcome during the review period, recording a deficit of $3.105 billion as against surpluses of $4.452 billion and $1.973 million in the previous quarter and corresponding period of 2017, respectively. This development was largely attributable to the increased payments for imports

“The surplus in the Goods Account decreased significantly to $2.125 billion in Q3 2018 from surpluses of $7.510 billion in the preceding quarter and $3.416 billion recorded in the corresponding period of 2017.

“Export earnings rose by 2.8 per cent to $16.210 billion in Q3 2018 when compared with Q2 2018. It also indicated an increase of about 35.3 per cent when compared to corresponding period of 2017.

“Earnings from crude oil and gas, which accounted for 94.4 per cent of total export earnings during the review period, increased by 9.5 per cent to $15,301.72 million in Q3 2018 when compared with the preceding quarter.

“Earnings from non-oil and electricity ex-ports decreased by 49.3 per cent to $909.04 million in Q3 2018 when compared with the preceding quarter.

“Available data showed that payments for import of goods (fob) to the economy in the review period increased by 70.5 per cent to $14.085 billion above the level recorded in the preceding quarter. This was largely as a result of 79.7 per cent increase in the imports of non-oil products.

“Net out-payments for services during the review period in-creased significantly by 35.4 per cent to a deficit of $7.024 million when compared with the level recorded in Q2 2018.

“When compared with the corresponding period of 2017, it indicated a much higher increase of about 65.0 per cent.

“Similarly, the deficit in the income account (net) increased by 6.7 per cent to $4.161 billion in the review period from a deficit of $3.898 billion recorded in the pre-ceding quarter.

“When compared with the level in the corresponding period of 2017 it indicated an increase of about 39.5 per cent. The surplus in the current transfers (net) decreased by 1.2 per cent to $5.955 million in Q3 2018 when compared with the preceding quarter. However, the level of surplus was 2.7 per cent higher than the level recorded

“Provisional Q3 2018 BOP estimates for the Financial Ac-count showed an increase in net incurrence of financial liabilities from $2.575 billion recorded in Q2 2018 to $10.724 billion in the review period. This is also significantly different from the net acquisition of financial as-sets of $3.739 billion recorded in the corresponding period of 2017.

“Direct Investments inflow increased by 0.7 per cent to $438.84 million when compared with the preceding quarter of 2018. It however, indicated a decline of 45.0 per cent when compared to the corresponding period of 2017. Portfolio Investments inflow to the economy decreased significantly to $1.790.83 billion in Q3 2018 from $4.233 billion and $3.320 billion in the preceding quarter and the corresponding period of 2017, respectively. However, other investment liabilities increased slightly to $4.281 billion when compared with $3.226 million recorded in the preceding quarter.”

Economy

Afriland Properties, Geo-Fluids Shrink OTC Securities Exchange by 0.06%

Published

5 hours ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.

The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.

Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.

At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.

The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.

When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.

Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.

Economy

Naira Weakens to N1,547/$1 at Official Market, N1,670/$1 at Black Market

Published

6 hours ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.

It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.

The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.

At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.

As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.

A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.

The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.

The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.

The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.

Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.

Economy

Dangote Refinery Makes First PMS Exports to Cameroon

Published

7 hours ago

12/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.

In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.

However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.

In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.

Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.

Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.

“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.

“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.

His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.

“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.

“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”