The Central Bank of Nigeria (CBN) has said in its July economic trade performance report that Nigeria’s trade deficit declined to $340m in July from $2.4 billion in June.
It stated that the improvement emanated from reduction in imports.
“Trade balance improved in July 2021, resulting from risk sentiments emanating from the spread of the Delta-variant of COVID-19, which subdued imports.
“A lower trade deficit of $0.34 billion was recorded in July 2021, compared with $2.4 billion in June 2021.
“Aggregate export increased marginally by 0.2 per cent to $4.45 billion, while total import declined significantly by 30 per cent to $4.8 billion, compared with $4.44 billion and $6.85 billion, respectively, in June 2021,” it said.
The bank further stated that Nigeria’s crude oil and gas export receipts decreased due largely to lower than-expected gas export.
It added that the value of crude oil and gas export decreased by one per cent to $3.99 billion, compared with $4.04bn in June 2021.
A breakdown indicated that the value of gas export decreased by 17.9 per cent to $460 million.
The decline in gas export was due, majorly, to the lower export of liquefied petroleum gas in the review period.
It added that the value of crude oil export, on the other hand, increased by 1.7 per cent to $3.53 billion in July 2021.
“The increase in crude oil receipts was due, majorly, to improvement in both price and production to $75.93 pb and 1.50 mbpd in July 2021, relative to $73.46 pb and 1.47 mbpd in June 2021.
“Crude oil and gas exports component remained dominant, contributing 89.7 per cent of total exports, with oil accounting for 79.3 per cent and gas export 10.4 per cent,” it stated.