Financial Freedom Nigeria


Non-oil exporters’ earnings drop by 27%

There has been a considerable decline in the performance of non-oil export sector in recent period as latest economic report by the Central Bank of Nigeria (CBN) showed double-digit declines in the earnings of non-oil exporters and the contribution of non-oil sector to total foreign exchange inflow.

The latest economic report by the apex bank indicated that total non-oil export receipts by banks in the month of April 2016 fell by 27.3 per cent to $364.35 million compared to the previous month.

The development was attributed mainly to the decline in most of its components except the minerals sector. A sectoral analysis showed that on a month-on-month basis, proceeds from food products, manufactured products, industrial and agricultural sectors fell by 26.0 per cent, 42.8 per cent, 17.6 per cent and 24.5 per cent to $16.9 million, $204.1 million, $24.2 million and $25.9 million, respectively, below the levels in March 2016. However, proceeds from minerals grew by 61.1per cent to $93.15 million.

The shares of the various components in the non-oil export proceeds included manufactured products, 56.0 per cent; minerals, 25.6 per cent; agricultural, 7.1 per cent; industrial, 6.7 per cent; and food products, which accounted for 4.6 per cent.

The apex bank’s economic report also indicated that a month-on-month drop of 40.5 per cent in non-oil receipts contributed to a marginal decline of 6.1 per cent decline in foreign exchange inflow during the month of April.

The report showed that foreign exchange inflow through the CBN stood at $1.31 billion in April, a decline of 6.1 per cent from the previous month of March and 54.3 per cent drop from the comparable period of 2015.

The report indicated that aggregate foreign exchange inflow into the economy was $4.78 billion in April 2016, indicating 3.1 per cent increase relative to the level at the end of the preceding month, but a decline of 42.2 per cent from the comparable period of 2015. Non-oil sector inflow of $0.48 billion accounted for 10 per cent of the total inflow and represented 40.5 per cent decline from the previous month.

Also, analysis of sectoral utilisation of foreign exchange indicated that agricultural products accounted for the least utilisation at 0.8 per cent of the total forex disbursed in April 2016.

The shares of the sectors in a descending order were invisible sector, 32.8 per cent;  industrial sector, 23.3 per cent; minerals and oil, 22.3 per cent; manufactured product, 11.8 per cent; food products, 6.8 per cent; and  transport sector, which accounted for 2.2 per cent.

[The Nation]

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