The merchandise import into the country decreased in the month of November 2024 following a decline in the importation of oil and non-oil.......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
A recent report released by the Central Bank of Nigeria (CBN) over the weekend showed that the value of total import declined by 2.45 per cent to $3.18 billion, from $3.26 billion reported in October 2024.
A disaggregation indicated that the import of petroleum products decreased by 2.01 per cent to $0.99 billion from its level in the preceding month. Similarly, non-oil import decreased slightly to $2.20 billion, from $2.22 billion in the preceding month.
A breakdown of the sectoral utilisation of foreign exchange for visible import showed that the industrial sector import had the largest share of 50.64 per cent, followed by the oil sector with 17.24 per cent, food products went 13.05 per cent, manufactured products stood at 7.91 per cent, minerals was 6.64 per cent, transport 4.08 per cent, and agriculture 0.44 per cent.
The report, however, showed that capital inflow declined due, majorly, to lower inflow of loans.
Capital inflow declined to $1.63 billion in November 2024, from $1.89 billion in October 2024.
An analysis of the inflow showed that portfolio investment inflow decreased to $1.36 billion, from $1.41 billion as result of lower purchases of equity and shares.
Similarly, foreign direct investment decreased to $0.12billion from $0.18 billion in October 2024 while ‘Other investments’, mainly loans, also decreased to $0.15 billion from $0.30 billion in the preceding month.
In terms of share, portfolio investment inflow constituted 83.59 per cent, while ‘other investment’ and direct investment accounted for 9.11 and 7.30 per cent, respectively.
Further analysis of capital importation by sector indicated that inflow into the banking sector accounted for 78.59 per cent of total inflow. This was followed by the financing sector accounting for 9.01 per cent, production and manufacturing sector accounted for 4.98 per cent, telecommunication 2.28 percent, IT services recorded 2.15 per cent, and shares recorded 1.79 per cent, while other sectors accounted for the balance.
The CBN report stated that Capital inflow by the originating country showed that the UK was the major source of capital, accounting for 66.31 per cent of the total. This was followed by the Republic of South Africa with 7.83 per cent, the Netherlands accounted for 6.24 percent; the United States of America recorded 5.53 per cent; the United Arab Emirates recorded 5.24 per cent; and Singapore was 2.40 per cent and Other countries accounted for the balance.
On the other hand Capital outflow moderated in November 2024 due to lower loan repayments.
Capital outflow decreased to $0.75 billion, from $0.80 billion in the preceding period. A disaggregation showed that loan repayments and repatriation of dividends declined to $0.20 billion and $0.06 billion, respectively. Capital reversals, however, increased by 6.86 per cent to $0.49 billion, compared with the level in October 2024.In terms of share in total outflow, capital reversals constituted 65.51 per cent, followed by repayment of loans and repatriation of dividends at 26.70 and 7.53 per cent, respectively. Other forms of outflow accounted for the balance.
Provisional data from CBN also revealed an increase in the trade surplus to $1.33 billion, from $1.13 billion in October 2024.
It stated that the export receipts rose by 3.44 per cent to $4.51 billion, from $4.36 billion in the preceding month, driven by higher exports of both crude oil and non-oil products while Import bills, however, declined by 2.45 per cent to $3.18 billion from $3.26 billion in October 2024, due to lower importation of petroleum products.
