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Nigeria’s Trade Balance Hits N1.2tn as Imports Decrease by 10.51%

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  • Nigeria’s Trade Balance Hits N1.2tn as Imports Decrease by 10.51%

Nigeria’s trade balance peaked at N1.23 trillion in the third quarter of 2017, indicating the highest figure posted since 2014, the National Bureau of Statistics (NBS) has said.

In its foreign trade statistics report for the third quarter of 2017, the NBS also disclosed that total imports value of N2.234 trillion posted in the third quarter of 2017 represented a 10.51 per cent decline over the second quarter, and 4.68 per cent lower than the third quarter of 2016.

According to the NBS, the positive trade balance was attributable to an increase in exports and a decline in imports.

Providing further data, the statistical agency said that the N1.23 trillion trade balance exceeded the N506.5 billion recorded in the previous quarter.

The NBS said in the report that the country’s exports in the third quarter of 2017 stood at N3.57 trillion, marking a 13.19 per cent increase over the figure recorded in the second quarter.

It added that the N3.57 trillion also represented a 35 per cent increase over the amount posted in the corresponding period in 2016.

Raw materials export value, the report added, increased by 16.88 per cent in the third quarter of 2017 compared to raw materials exports in the second quarter of 2017 and 70.42 per cent higher than the third quarter of 2016.

In addition, the NBS report stated that the value of solid minerals exports increased by 85.3 per cent in the period under review compared to the second quarter of 2017 and was 78.72 per cent higher than the third quarter of 2016.

It also showed that the value of Nigeria’s total imports in goods decreased by 10.51 per cent in the third quarter of 2017 from the N2.6 trillion recorded in the second quarter of 2017 to N2.3 trillion.

Total imports (goods) were 4.68 per cent lower than the N2.4 trillion recorded in the third quarter of 2016.

Aggregate trade for the third quarter stood at N5.93 trillion, showing a 3.94 per cent and 23.86 per cent rise over the value posted in the second quarter of 2017 and the third quarter of 2016, respectively.

Also, the value of imported agricultural goods stood at N232.2 billion, a 0.05 per cent increase over the N232.1 billion recorded in the second quarter of 2017 and 16.91 per cent higher than the value recorded in Q3 2016.

The value of exported agricultural goods stood at N21.47 billion, indicating a 38.43 per decrease over the N29.71 billion recorded in the second quarter of 2017.

It was however 25.29 per cent higher than agriculture exports in the third quarter of 2016.

Manufactured goods exports, valued at N50.13 billion, were 62.68 per cent lower than the N1.24 trillion recorded in Q2, 2017, but 22.98 per cent higher than the value recorded in Q3 2016.

Manufactured goods imports in the third quarter of 2017, valued at N1.2 trillion, were 4.08 per cent higher than the N1.1 trillion recorded in the second quarter of 2017 and 2.79 per cent lower than the value documented for the third quarter of 2016.

Other oil products exports valued at N474.9 billion in the third quarter were 13.53 per cent lower than the N539 billion recorded in the second quarter of 2017 and 37.22 per cent higher than the value recorded in the third quarter of 2016.

Crude Oil exports in Q3 2017 stood at N2.9 trillion, representing an 18.40 per cent increase and 34.13 per cent hike over the N2.43 trillion recorded in Q2 2017 and the value posted in Q3 2016, respectively.

“Exports in the third quarter were still dominated by crude oil, with the commodity accounting for 83.17 per cent of total exports,” the report stated.

NBS in another report on banking sector data also revealed yesterday that the deposit money banks in the country extended a total of N15.83 trillion in credit to the private sector in the third quarter of 2017.

The NBS said in a report on select banking sector data for Q3 2017 that 213,693,964 transactions valued at N19.33 trillion were recorded in Q3 2017 on electronic payment channels in the Nigerian banking sector.

NIBSS Instant Payment (NIP) transactions dominated the volume of transactions recorded.

The report showed that 97,530,856 NIP transactions valued at N13.96 billion were recorded in the quarter under review.

In terms of credit to the private sector, of the N15.83 trillion extended by the banks, the oil and gas and manufacturing sectors got N3.54 trillion and N2.27 trillion, respectively during the third quarter, the report stated, while the total number of bank staff increased by 9.16 per cent from 75,607 in the second quarter of 2017 to 82,531 in the third quarter of 2017.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

South Africa’s iGas, PetroSA and Strategic Fuel Fund Merge to Create South African National Petroleum Company

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The South African Department of Mineral Resources and Energy (DMRE) has announced the merger of Central Energy Fund (CEF) subsidiaries iGas, PetroSA and the Strategic Fuel Fund (SFF).

The merger will be effective from 1 April 2021 and the new company will be called the South African National Petroleum Company.

The merger, driven by the pursuit of implementing a new company that has a streamlined operating model via the development of a shared services system and a common information platform, comes a few months after cabinet approval and the confirmation that PetroSA had incurred losses of R20 billion since 2014.

Additional factors which prompted the move included the determination to strengthen PetroSA which had not had a permanent CEO in five years prior to the appointment of CEO Ishmael Poolo last and, had become majorly ungainful since its failure to secure gas for the gas-to-liquids refinery project in Mossel Bay.

While the merger deadline has been set, the portfolio committee expressed reservations to the department’s likelihood of meeting the deadline, considering the existing legislative regime, pending issues raised in the SFF and PetroSA forensic reports, as well as PetroSA’s current insolvency and liquidity challenges, the official press statement on the briefing revealed.

“South Africa’s energy sector is entering a new dawn,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “With gas discoveries off the coast and the announcement of the REIPPP programme bid window 5 and 6 on the horizon, now is the most opportune time for the merger of the CEF subsidiaries. Of course, it is not an easy task and delays may be anticipated but, this move signals a real change towards a meaningful strategy that will not only be beneficial to the DMRE but to potential investors and local development as well.”

The African Energy Chamber welcomes this move and acknowledges that this is yet another step supporting the country’s determination to restarting the engines of sustainable growth and the transformation of energy policy and infrastructure.

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Crude Oil

Crude Oil Hits $71.34 After Saudi Largest Oil Facilities Were Attacked

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Brent Crude Oil Rises to $71.34 Following Missile Attack on Saudi Largest Oil Facilities

Brent crude, against which Nigerian oil is priced, jumped to $71.34 a barrel on Monday during the Asian trading session following a report that Saudi Arabia’s largest oil facilities were attacked by missiles and drones fired on Sunday by Houthi military in Yemen.

On Monday, the Saudi energy ministry said one of the world’s largest offshore oil loading facilities at Ras Tanura was attacked and a ballistic missile targeted Saudi Aramco facilities.

One of the petroleum tank areas at the Ras Tanura Port in the Eastern Region, one of the largest oil ports in the world, was attacked this morning by a drone, coming from the sea,” the ministry said in a statement released by the official Saudi Press Agency.

It also stated that shrapnel from a ballistic missile dropped near Aramco’s residential compound in Eastern Dhahran.

Such acts of sabotage do not only target the Kingdom of Saudi Arabia, but also the security and stability of energy supplies to the world, and therefore, the global economy,” a ministry spokesman said in a statement on state media.

Oil price surged because the market interpreted the occurrence as supply sabotage given Saudi is the largest OPEC producer. A decline in supply is positive for the oil industry.

However, Brent crude oil pulled back to $69.49 per barrel at 12:34 pm Nigerian time because of the $1.9 trillion stimulus packed passed in the U.S.

Market experts are projecting that the stimulus will boost the United States economy and support U.S crude oil producers in the near-term, this they expect to boost crude oil production from share and disrupt OPEC strategy.

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Crude Oil

A Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

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Loud Blast Heard in Dhahran, Saudi Arabia’s Largest Crude Oil Production Site

Two residents from the eastern city of Dhahran, Saudi Arabia, on Sunday said they heard a loud blast, but they are yet to know the cause, according to a Reuters report.

Saudi’s Eastern province is home to the kingdom’s largest crude oil production and export facilities of Saudi Aramco.

A blast in any of the facilities in that region could hurt global oil supplies and bolster oil prices above $70 per barrel in the first half of the year.

One of the residents said the explosion took place around 8:30 pm Saudi time while the other resident claimed the time was around 8:00 pm.

However, Saudi authorities are yet to confirm or respond to the story.

 

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