The provisional Balance of Payments (BOP) estimates for first quarter (Q1) 2018 showed a significant improvement in the country’s position as the overall record of all international financial transactions made by Nigerian residents indicated a surplus of US$7.321 billion compared with a surplus of US$6.180 billion in the preceding quarter.
Abbreviated as B.O.P or BoP, the balance of payment of a country is the record of all economic transactions between the residents of the country and of the world in a particular period.
Economists say a balance of payments deficit occurs when a country imports more goods, services and capital than it exports. It must borrow from other countries to pay for its imports.
In its brief on balance of payments statistics released on Friday, the Central Bank of Nigeria (CBN) said the records indicated a better position when compared to a surplus of US$2.975 billion recorded in the corresponding period of 2017.
The current account balance (CAB) also improved significantly from a surplus of US$3.656 billion in Q4 2017, to a surplus of US$4.468 billion in Q1 2018.
According to the CBN brief, the financial account balance indicated a net acquisition of financial assets of US$10.292 billion in the review period as against US$3.858 billion recorded in the preceding period.
“The current account witnessed a positive outcome during the review period, recording a higher surplus of US$4,468.61 million as against a surplus of US$3,656.15 million and US$3,417.37 million in the previous quarter and corresponding period of 2017, respectively. This development was largely attributable to the increased export earnings and the net surplus in current transfers,” the report read in part.
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The surplus in the Goods Account according to the apex bank increased to US$5.752 billion in Q1 2018 from a surplus of US$5.472 billion in the preceding quarter and US$2.271 billion recorded in the corresponding period of 2017.
It further showed that export earnings rose by 10.2 per cent to US$14.393 billion in Q1 2018 when compared with Q4 2017, and also indicated an increase of about 44.4 per cent when compared to Q1 2017.
Earnings from crude oil and gas, which accounted for 93.3 per cent of total export earnings during the review period, increased by 10.1 per cent to US$13.426 billion in Q1 2018 when compared with the preceding quarter.
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