Wednesday, December 8, 2021

Nigeria’s indebtedness reduces to $425m in second quarter of 2021

The upward movement in the country’s balance of payment  has been attributed to the significant surge in crude oil export. Notably, crude oil export increased by 73% quarter-on-quarter in the second -quarter of  2021 from $6.48 billion to $11.22 billion. Compared to the corresponding period of 2020, crude oil export increased by 116.7% from $4.31 billion.

According to data on Nigeria’s balance of payment from the Central Bank of Nigeria (CBN). It was  recorded that the current account debt of $424 million in the second quarter of 2021, dropped to its lowest level in over two years.

Although Nigeria’s balance of payment continues to trail in the negative region, it dropped significantly by 79.8% compared to a deficit of $2.1 billion recorded in the previous quarter. Also, it reduced by 87% compared to a deficit of $3.27 billion recorded in second-quarter 2020.

Nigeria has now endured a negative balance of payment for 10 consecutive quarters, since Q1 2019. However, considering the appreciation in global crude oil prices as the economy continues to reopen amidst intensified vaccine roll-out, which could, in turn, see remittances receive some form of boost, we are likely to see positive numbers in the coming quarters.



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