The total export earnings recorded by Nigeria dropped by 14.9% from $15.22 billion as at end of March 2020 to $13.39 billion in April. This is attributed to the decline in crude oil prices.
This was disclosed by the Central Bank of Nigeria in its monthly economic report for the month of April.
The report stated, “Due to the decline in the price of crude oil in first quarter (Q1) 2020, aggregate export earnings declined by 14.9% and 12% to $13.39billion, compared with $15.74billion and $15.22billion in Q4 2019 and 2019 Q1 respectively.”
The report also stated that the export of crude oil fell by 20% and 14% to $9.48billion, from $11.84billion and $11.02billion in 2019 Q4 and 2019 Q1 respectively.
This was attributed to the fall in the average price of Nigeria’s reference crude, the bonny light, to $52.48 per barrel in 2020 Q1, from $65.87 and $64.90 per barrel in 2019 Q1 and 2019 Q4 respectively.
“Dampened global demand and supply-chain disruptions due to the lockdown measures to contain the COVID-19 pandemic were factors that contributed to the fall in crude oil price,” it added.
However, the non-oil export witnessed a marginal increase of 0.9% from $2.14 billion in Q4 2019 to $2.16billion. But it was lower than the $2.36billion recorded in Q1 2019.
The share of crude oil and gas export was 70.8% and 13.1% respectively, while non-oil export accounted for the balance of 16.1%.
Drivers of non-oil exports
The main drivers of non-oil exports are cashew nuts, cocoa beans, sesame seeds. The major destinations of the commodities are Netherlands, Cote d’Ivoire, Brazil and the USA.
Non-oil export receipts through banks
Due to the lull in economic activities, occasioned by the partial lockdown of the economy caused by the COVID-19 pandemic, aggregate non-oil export receipts through banks declined in April 2020.
The aggregate non-oil export receipts through banks closed at $0.05 billion, compared with $0.24 billion and $1.83 billion in March 2020 and the corresponding period of 2019, respectively.
Contributions of sectors
The industrial sector’s 70.8% decrease in receipts contributed to the development. The sector stood at $30.07 million in April 2020.
Receipts from agricultural, manufactured products and Minerals sectors, also declined by 87.9%, 79.7% and 18.0% to $11.02 million, $7.71 million, and $1.29 million, respectively, from their levels in the preceding month.
However, receipts from food products increased by 3.9% to $3.62 million, from its level in the preceding month. The growth was due to increased export of alcoholic and non-alcoholic drinks.