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NBS: Nigeria Spent N157bn on Vehicles, Aircraft Parts, Vessels Importation

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  • NBS: Nigeria Spent N157bn on Vehicles, Aircraft Parts, Vessels Importation

Foreign Trade Statistics for the third quarter(Q3) 2017 released by the National Bureau Statistics( NBS) has revealed that Nigeria spent a total of N157 billion on the importation of vehicles, aircrafts parts and vessels.

This represent an increase of 17.7 per cent from the N133.4 billion the country spent in the same period of 2016.

An analysis of the report showed that the country spent N34.55 billion on used vehicles and vehicles with diesel and semi diesel engine of cylinder capacities, while N23.9 billion was spent on imported motorcycles, Completely Knocked Down(CKD) by established manufacturers.

The federal government had begun implementation of zero duty and value added tax (VAT) payment on the importation of commercial airplanes and spare parts.

The new move by the government is part of the intervention efforts to lessen the cost burden that domestic operators bear as well as ensure safe flight operations.

The gesture has, however, been extended specifically to commercial aircraft operators and not private jet operators, who are required to pay for luxury taxes.

The NBS stated that the country’s trade balance in Q3 2017 amounted to N1.225 trillion, due to a continued value increase in exports and a decline in imports.

According to NBS, Q3 figure more than doubled the value in the previous quarter and it is the first time that trade balance exceeds N1 trillion since the last quarter of 2014.

The report noted that exports in the review quarter was still oil dependent, as crude oil exports was N2.972 trillion and remained the major, accounting for 83.17 per cent.

Crude oil exports, the report added, grew faster than non-crude oil exports as crude oil exports accounted for 78.18 per cent in the second quarter of 2017, while non-oil products only contributed to 3.54 per cent of total exports in the quarter.

Continuing, the report said: “Nigeria’s imports trade stood at N2.349 trillion in Q3 of 2017, among which N648.83 billion, while imports were machinery and transport equipment, representing 27.63 per cent of total import and N602.89 billion imports were mineral fuel, representing 25.67 per cent.

“The value for the first category stated above in total imports increased by 20.59 percent while the second one decreased by 14.78 per cent from the previous quarter. Machinery and transport equipment also replaced Mineral products as the top imported products in the reviewing quarter.”

Chairman of Airline Operators of Nigeria (AON) Noggie Meggison had, while commenting on the implementation of the zero duty, lauded the federal government for acknowledging the importance of aviation, as one of the key drivers of economy and its critical role of making Nigeria the pivot of air transportation in Africa.

Meggison noted that the unprecedented move was a welcome development and a strong testament of the commitment of President Muhammadu Buhari to making good on his promise to work assiduously to ensure that aviation does not go out of the reach of the common man by giving it the attention it deserves.

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

Brent Crude Oil Approaches $70 Per Barrel on Friday

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Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension

Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.

Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.

Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.

While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.

According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.

“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”

Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.

The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.

I do believe we’re headed for a much healthier supply and demand environment” she said.

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Crude Oil

Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

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Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.

OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.

Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”

Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.

Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.

Experts have started predicting $75 a barrel by April.

“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”

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Gold

Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin

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Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges

Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.

The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.

The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.

We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.

Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.

Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.

In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.

The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.

 

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