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Nigeria records $6.61bn Forex outflow

By on May 6, 2014

The total outflow of forex from the country in February 2014 has been put at $6.61 billion.

Similarly, the provisional data of the Central Bank of Nigeria (CBN) indicated that forex inflow through the central bank in same month was $2.80 billion.

According to the central bank’s economic report for February 2014, the net outflow in the month under review was $3.81 billion, compared to the net outflow of $2.11 billion in the preceding month.

However, this was in contrast with the net inflow of $1.58 billion recorded in the corresponding period of 2013. Relative to the level in the preceding month, inflow rose by 10 per cent, but indicated a decline of 24 per cent below the level in the corresponding period of 2013.

The increase in inflow relative to the preceding month was attributed to the 12 per cent rise in crude oil receipts.

In the same vein, outflow rose by 42.1 and 214.4 per cent respectively, above the levels in the preceding month and the corresponding period of 2013.
The development was attributed, largely, to the increase in Retail Dutch Auction System (RDAS) utilisation.

On the other hand, the report showed that Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.86 million barrels per day (mbd) or 52.08 million barrels for the month.

This was 0.06 mbd or 3.1 per cent lower than the 1.92 mbd or 59.52 million barrels produced in the preceding month.

Crude oil export was estimated at 1.41 mbd or 39.48 million barrels for the month. This represented a decrease of 4.1 per cent when compared to the 1.47 mbd or 45.57 million barrels recorded in the preceding month.

“Deliveries to the refineries for domestic consumption remained at 0.45 mbd or 12.6 million barrels during the review month.

“At an estimated average of $111.40 per barrel, the price of Nigeria’s reference crude, the Bonny Light, rose by 1.1 per cent above the level in the preceding month,” it added.

The average prices of other competing crudes, namely the West Texas Intermediate at $95 per barrel; the UK Brent at US$109.77 per barrel; and the Forcados at $112.26 per barrel, also showed similar trend as the Bonny Light.

The average price of OPEC’s basket of eleven crude streams, at $105.38 per barrel, indicated a marginal increase of 0.6 per cent over the level in the preceding month.
It, however, showed a decrease of 6.5 per cent when compared with the level of $112.75 per barrel recorded in the corresponding period of 2013.

Furthermore, the report showed that estimated federally collected revenue in the month under review at N847.81 billion, exceeded the receipts in the preceding month by 25.5 per cent, but was lower than the monthly budget by 10.3 per cent.

The decline, relative to the 2013 monthly budget estimate, was attributed, largely, to the shortfall in non-oil revenue during the review period. Relative to the preceding month, growth in estimated federally-collected revenue (gross) was attributed to increases in both oil and non-oil revenue.

“At N630.14 billion, oil receipts (gross), which constituted 74.3 per cent of the total revenue, exceeded the receipts in the preceding month by 32.8 per cent, but was lower than the monthly budget estimate by 2.2 per cent.

“The fall in oil receipts relative to the monthly budget estimate was attributed to the shortfall in receipts from crude oil and gas export due to pipe line vandalism resulting in a drop in production,” it added.

 

 

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