The Central Bank of Nigeria (CBN), has released its Balance of Payments (BOP) Statistics for the first quarter ended March 2018, indicating that the nation recorded a surplus overall, just as Current Account Balance (CAB), compared to the corresponding period of last year and the last quarter 2017.
The report, prepared by the BOP Statistics Office, External Sector Statistics Division, Statistics Department of the CBN, also showed an increase in portfolio inflow, just as investment in liabilities recorded increase.
According to the report, provisional BOP estimates for first quarter 2018 indicated $7.321 billion surplus, up by $1.141 billion or 18.47 per cent from the $6.18 billion recorded in the preceding quarter. It was however more significant, when compared to the $2.975.billion recorded in the corresponding period of 2017, representing a $4.345 billion or 146.03 per cent growth.
The current account balance (CAB) for the period also improved significantly from a surplus of $3.656 billion in the fourth quarter of 2017 to $4.468 billion in the first quarter of 2018.
The financial account balance showed a net acquisition of financial assets of $10.292 billion in the review period. This improved by $6.434 billion or 166.74 per cent from $3.858 bilion recorded in the preceding period.
“The current account witnessed a positive outcome during the review period, recording a higher surplus of $4,468.61 million as against a surplus of $3,656.15 million and $3,417.37 million in the previous quarter and corresponding period of 2017, respectively.
“This development was largely attributable to the increased export earnings and the net surplus in current transfers,” report added.
There was also surplus in the Goods Account, which increased to $5.752 billion , as against $5.472 billion in the preceding quarter, just as it was $3.481 billion or 153.28 per cent better than the $2.271 billion recorded in the corresponding period of 2017.
The nation’s export earnings rose by 10.2 per cent to $14.393 billion within the period under review, when compared with the level in fourth quarter of 201. It also showed a 44.4 per cent increase when compared to Q1 2017.
Also, earnings from non-oil and electricity exports for the period went to 12.3 per cent to $967.08 million in the first quarter of 2018 when compared with the preceding quarter.
Payments for import of goods (fob) to the economy in the review period, the CBN said, citing available data, grew by 13.9 per cent to $8.641 billion above the level recorded in the preceding period.
The growth according to CBN “was largely as a result of 99.5 per cent increase in the imports of petroleum products,” even as net out-payments for services during the review period fell by 5.1 per cent to a deficit of $4.445 billion when compared with the level recorded in the last quarter of 2017. In the corresponding period of 2017, however, it indicated a significantly increase of about 201.2 per cent.
The income account (net) worsened to a debit of $3,272.17 million in the review period from $2.983 billion recorded in the preceding period.
This, the report said, “is significantly different from $2,278.33 million recorded in the corresponding period of 2017. “Current transfers (net) increased by 9.9 and 31.3 per cent to a surplus of $6.434 billion in Q1 2018, when compared with the levels in the preceding quarter of 2017 and corresponding period of 2017, respectively.
Direct Investments inflow declined during the period by 15.7 per cent and 5.3 per cent to $808.56 million when compared with the preceding quarter and corresponding period of 2017. On the other hand, “Portfolio Investments inflow to the economy increased to $5.141bn in Q1 2018 from $3.787 billion and $438.47 million, when compared with the preceding quarter and corresponding period of 2017, respectively.
“Other investment liabilities increased to $6.637 billion when compared with the level in the preceding quarter of $23.71million,” noting that the nation’s stock of external reserves as at end March 2018 stood at $46.73 billion, representing an accretion of 18.7 per cent, when compared with the preceding quartr and the corresponding period of 2017, it recorded a higher accretion of 55.8 per cent and enough to finance approximately 16.2 months of imports, compared with 15.6 and 11.7 months of imports cover for the preceding quarter and corresponding period of 2017, respectively.
