Nigeria’s external position improved for the second consecutive quarter with the current account posting a $3.3billion (4.0% of GDP) surplus in third quarter (Q3) 2023 compared to the $810.0million (0.8% of GDP) in Q2. Experts at Afrinvest (West) Africa attributed the surplus to increased export earnings and lower import bills. Specifically, export earnings increased 7.0percent quarter on quarter (q/q) to $13.7billion on account of increased oil revenue (oil price and production up 12.2% and 5.3% respectively) while import bills fell 16.7percent q/q to $10.5billion due to lower importation of oil and non-oil products.
“From our analysis of imports by sector, we observed that raw materials and machinery accounted for the largest share (63.6%), followed by manufactured products (12.0%), food products (10.0%), petroleum products (6.2%), transport (3.8%), agricultural products (2.2%), and minerals (2.1%).
“Notably, our analysis of services showed that the total payments rose to $4.5billion from $4.3billion in Q2 due to higher payments for travel (52.2%), financial (89.9%), and government goods and services (62.2%), further widening the deficit in the services account to $3.3billion, from $3.2billion in Q2, “ the experts noted.
Looking ahead, there are expectations that the current account would sustain its surplus position in Q4:2023 and 2023 overall on the back of improved oil prices, increased oil production, reduced imports, and resilient remittances.
READ ALSO FROM NIGERIAN TRIBUNE
WATCH TOP VIDEOS FROM NIGERIAN TRIBUNE TV
- Relationship Hangout: Public vs Private Proposals – Which Truly Wins in Love?
- “No” Is a Complete Sentence: Why You Should Stop Feeling Guilty
- Relationship Hangout: Friendship Talk 2025 – How to Be a Good Friend & Big Questions on Friendship
- Police Overpower Armed Robbers in Ibadan After Fierce Struggle
