Emeka Okoroanyanwu
Nigeria’s current account entered into a deficit of US$1.1bn, equivalent to -1.1% of Gross Domestic Product (GDP), compared with the previous quarter’s surplus of US$1.1bn (1.0%).
The deterioration stemmed from a fall of US$2.8bn in crude oil and gas exports, which was partly offset by the highest non-oil exports since Q2 2014 (US$2.3bn). At the same time, non-oil imports increased by US$4.6bn.
The deficit would have been higher had it not been for a US$1.3bn rise in net current transfers to a record US$7.6bn in Q1.
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The long-term trend for the current account is one of deterioration. Looking back to the start of the data series in 2008, and so cover periods of high and low oil prices, it reflects that import growth outpaced export growth.
Nigeria is largely an import dependent country with rising population importing most of their requirement.
This is even as exports have stagnated.
