Export earnings: Nigeria's current account rises by $3.4bn

Nigerias current account balance for the second quarter of 2011 rose by 71.73 per cent or $3.4bn when compared to its first quarter results. This, according to information gathered by our correspondent, was as a result of the increased export earnings, which the country recorded during the period.The estimated current account balance which stood at $4.74bn in Q1 2011 almost doubled to $8.14bn in Q2 2011 due largely to increased export earnings arising from sustained high oil prices at the global market, reduced out-payment in respect of services and lower imports bill, the Central Bank of Nigeria said.Analysts noted that the price of crude oil during the period had impacted positively on Nigerias earnings, though the price of the commodity fell slightly during the third quarter of 2011.Information from the apex bank showed that the price of Bonny Light - the crude oil exported by Nigeria, was as high as $118.43 per barrel in May, but fell to $113.7 as at December 7, 2011, dropping by $4.37.Speaking on the development, a renowned economist, Dr. Ayo Teriba, said, Our second quarter account should be better considering the fairly high oil prices at the time, but after that period, the prices of crude started to fluctuate and this also had its impact.The CBN, in its report on developments in the external sector, noted that the movement in the current account position during the period under review also indicated a significant improvement in the balance of trade position at $12.51bn compared with $8.75bn in Q1 2011 and $6.51bn in Q2 2010 respectively.Further analysis also revealed that the countrys assets abroad increased from $993.44m recorded in Q1 to $13.65bn during the period under review, the apex bank said.The aggregate financial liabilities on the other hand, decreased from $4.12bn in Q1 2011 to $2.57bn in Q2 2011.The regulatory bank said that the performance of the external sector during the period remained impressive as exemplified by the current account position.It further noted that this was largely driven by a surplus in the goods account and lower deficit in the services account, as well as external debt sustainability despite the increase in the stock of external debt to $5.4bn at the end of June 2011.
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