The monthly report of the economy by the Central Bank of Nigeria (CBN) for April 2020 has revealed that Nigeria’s exports total export earnings dropped by 14.9% from $15.22 billion as at end of March 2020 to $13.39 billion in April.
The CBN attributed the decline to the impacts of the Covid-19 scare that crumbled businesses and economic activities globally.
The report indicated that: “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 $13.39 billion, compared with $15.74 billion and $15.22 billion in Q4 2019 and 2019 Q1 respectively.”
It also revealed that the export of crude oil dropped by 20% and 14% to $9.48 billion, from $11.84 billion and $11.02 billion in 2019 Q4 and 2019 Q1 respectively.
As well known, there was total crash in the demand for oil as economic activities that reply on oil shut down all over the world as a result of the coronavirus pandemic.
At the time of reference, Nigeria’s 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.
In the same data, “the non-oil export witnessed a marginal increase of 0.9% from $2.14 billion in Q4 2019 to $2.16 billion. But it was lower than the $2.36 billion 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%.
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
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.
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..