The country’s earnings from non-oil exports last year amounted to $7.45 billion, according to data released by the Central Bank of Nigeria (CBN).
The amount is 24.79 per cent, or $1.48 billion, higher than the $5.97 billion that the nation generated from non-oil exports in 2023.
New Telegraph’s analysis of CBN’s quarterly and monthly economic reports for 2024, indicate that although oil and gas exports still account for over 80 per cent of the country’s foreign exchange earnings, its earnings from non-oil exports generally maintained an upward trend last year.
For instance, the apex bank’s quarterly economic report for Q4’24 released, last week, stated that: “Aggregate export earnings fell by 3.50 per cent to $12.67 billion, from $13.13 billion in Q3’24.
A breakdown showed that oil receipts declined to $10.63 billion, from $11.25 billion in Q3’24, reflecting the decline in global crude oil price to $75.66 per barrel from $82.23 per barrel in the preceding quarter.
“The decline in price resulted from the rise in global crude oil supply, especially by the United States, leading to an oversupply situation that outweighed demand.
In contrast, non-oil export receipts improved, rising to $2.04 billion from $1.88 billion in the preceding quarter. The increase in non-oil proceeds was supported by improved earnings from the export of electricity and other non-oil products, particularly agricultural commodities.
Crude oil and gas exports continued to dominate merchandise export, accounting for 83.88 per cent of total earnings, while non-oil exports contributed the remaining share.”
Also, a breakdown of data obtained from the CBN shows that non-oil export receipts stood at $1.77 billion in Q1’2024; $1.76 billion in Q2; $1.88 billion in Q3 and $2.04 billion in Q4.
Analysts note that the CBN’s liberalisation of the forex market in June 2023, which led to the devaluation of the naira, contributed significantly to boosting the country’s export earnings last year.
Indeed, commenting on the latest foreign trade report released by the National Bureau of Statistics (NBS), analysts at CSL Research stated that the devaluation of the naira on the official market, “contributed to increased export values, driving export activities and making imports more expensive.”
The analysts said: “Nigeria’s foreign trade report by the National Bureau of Statistics (NBS) showed a trade surplus of N5.81 trillion in the third quarter (Q3) of 2024.
Total merchandise trade was N35.16 trillion, an increase of 13.3 per cent over the value recorded in Q2’24 and up significantly by 81.4 per cent compared to the value recorded in Q3’23.
“Total exports grew to N20.49 trn, representing 58.3 per cent of total trade and an increase of 16.8 per cent & 98 per cent from N17.55 trn & N10.35 trillion recorded in Q2’24 & Q3’23, respectively.
“Total imports amounted to N14.67 trillion, up 8.71 per cent and 62.3 per cent compared to N13.49 trillion & N9.04 trillion recorded in Q2’24 & Q3’23, accounting for 41.7 per cent of total trade.
“Looking at the export breakdown, of the N20.49 trillion total exports, crude oil export contributed 65.4 per cent (N13.41 trn).
“Non-crude oil exports added about 34.56 per cent (N7.08trn), of which non-oil products from agricultural goods, solid mineral, manufactured goods, and raw materials goods sectors contributed only N2.5 trillion, i.e., only 12.2 per cent of the total exports.”
However, the CSL Research analysts pointed out that while the contribution of crude oil to total exports is declining gradually, “the figures still highlight heavy reliance on crude oil for export earnings.”
