The country’s trade deficit narrowed 61 percent year-on-year (year-on-year) to $ 340 million in July 2021, from $ 880 million in July 2020.
However, revenues from crude oil and gas exports rose from 127% to $ 3.99 billion in October 2021, from $ 1.76 billion in 2020.
The Central Bank of Nigeria, CBN, revealed this in its July 2021 monthly economic report.
The report said: “The trade balance improved in July 2021, resulting from risk emanating from the spread of the Delta variant of COVID-19, which has held back imports.
“A lower trade deficit of $ 0.34 billion was recorded in July 2021, compared to $ 2.4 billion in June 2021.
Total exports edged up 0.2% to $ 4.45 billion, while total imports fell significantly by 30% to $ 4.80 billion, from $ 4.44 billion and 6, $ 85 billion, respectively, in June 2021.
Nigeria’s crude oil and gas export earnings have declined largely due to lower than expected crude gas exports.
“The value of crude oil and gas exports fell 1.0% to $ 3.99 billion from $ 4.04 billion in June 2021.
“A breakdown indicates that the value of gas exports fell 17.9% to $ 0.46 billion.
The decrease in gas exports was mainly due to the decrease in exports of liquefied petroleum gas (LPG) during the period considered.
The value of crude oil exports, on the other hand, rose 1.7% to $ 3.53 billion in July 2021.
“The increase in crude oil revenues was primarily due to improved prices and production to $ 75.93 per barrel and 1.50 mbpd in July 2021, from $ 73.46 per barrel and 1.47 mbpd in June 2021.
“The export component of crude oil and gas remained dominant, contributing 89.7% of total exports, with petroleum accounting for 79.3% and gas exports 10.4%.”
Likewise, non-oil export revenues increased 35% to $ 460 million in July 2021, from $ 340 million in July 2020.
Apex Bank attributed the growth to growing global demand, particularly from sub-Saharan Africa.
He said: “Non-oil exports increased 11.7% to $ 0.46 billion in July 2021, from $ 0.41 billion in June 2021.
A disaggregation of non-oil exports shows the value of electricity exports remained at $ 0.07 billion, while other non-oil exports rose 13.3% to $ 0.44 billion, from $ 0.39 billion dollars in June 2021, due to increased exports of agricultural products, especially sesame seeds.
“As a percentage of total exports, non-petroleum products accounted for 10.3%. “Import demand fell during the review period, reflecting supply chain disruptions, due to containment measures aimed at stemming the spread of COVID-19 in some trading partner economies. “