Nigeria records $1.27 bln trade deficit in Oct ~CBN
By Samuel Bankole
Nigeria’s trade deficit has continued to widen as the country’s import bills are higher than its exports by $1.27 billion in the month of October 2020, the Central Bank of Nigeria (CBN) has said.
While Nigeria earned a total of $2.14 billion from the export of goods and services in the month of October, the country’s paid $3.41 billion for import bills for the month of October 2020, the bank said.
In the month under review, Nigeria posted a total external trade of $5.55 billion, representing an increase of 3 percent compared with the previous month of September.
The aggregate figure for external trade for the month of September stood at $5.39 billion, according to the CBN economic report for the tenth month of last year.
“However, the value showed a 59.4 percent decline below the $13.67 billion recorded in the corresponding period of 2019,” the regulatory bank’s report stated.
The bank said the increase in external trade in October against the figure recorded for September was largely due to the increase in imports in the month under review.
Nigeria’s earnings from export though rose marginally by 0.6 percent in the review period, compared with $2.13 billion in the preceding month, this was driven mainly by the rise in crude oil and gas exports.
The report attributed the increase in trade deficit in the period under review to the increase in non-oil imports as the economy resume fully from the lockdown imposed by government to contain the spread of Covid-19.
It said merchandise imports increased by 4.3 percent to $3.41 billion in October 2020, above the $3.27 billion in September 2020, driven by the increase in non-oil imports, particularly raw materials.
It said aggregate export increased marginally by 0.6 percent to $2.14 billion in the review period, compared with $2.13 billion in the preceding month, driven mainly by the rise in crude oil and gas exports.