Nigeria’s trade deficit, according to the Central Bank of Nigeria (CBN’s) report released on Sunday, declined to $340m in July from $2.4bn in June.
The CBN, in its economic trade performance report, noted that the improvement emanated from a reduction in imports.
According to the report, “Trade balance improved in July 2021, resulting from risk sentiments emanating from the spread of the Delta-variant of COVID-19, which subdued imports.
“A lower trade deficit of $0.34bn was recorded in July 2021, compared with $2.4bn in June 2021.
“Aggregate export increased marginally by 0.2 per cent to $4.45bn, while total import declined significantly by 30 per cent to $4.8bn, compared with $4.44bn and $6.85bn, respectively, in June 2021.”
The CBN stated that Nigeria’s crude oil and gas export receipts decreased due largely to lower than-expected gas export.
It added that the value of crude oil and gas export decreased by one per cent to $3.99bn, compared with $4.04bn in June 2021.
It added that the value of crude oil export, on the other hand, increased by 1.7 per cent to $3.53bn in July 2021.
The report read: “The increase in crude oil receipts was due, majorly, to improvement in both price and production to $75.93 pb and 1.50 mbpd in July 2021, relative to $73.46 pb and 1.47 mbpd in June 2021.
“Crude oil and gas exports component remained dominant, contributing 89.7 per cent of total exports, with oil accounting for 79.3 per cent and gas export 10.4 per cent.”