According to data on Nigeria’s balance of payment from the Central Bank of Nigeria (CBN), Nigeria recorded a current account deficit of $424 million in the second quarter of 2021, dropping 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 Q2 2020.
The upward movement in the country’s balance of payment is attributed to the significant surge in crude oil export. Notably, crude oil export increased by 73% quarter-on-quarter in Q2 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.
It is worth noting that the rally in the global crude oil market and the reopening of economies and relaxation of lockdown measures around the world are major contributing factors to the surge recorded in the value of Nigeria’s crude export. However, when compared to pre-pandemic levels, we are yet to earn as much from crude oil exports. This is due to the decline in crude oil production.
According to data from the National Bureau of Statistics, crude oil production has hovered around 1.6 million barrels per day in the past year as against an average of 2.02 mbpd before the pandemic.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate