Central Bank of Nigeria
Balance of Payments, Nigeria
This paper examines trends in Nigeria's balance of payments. Factors which have contributed to the continuous weakness of Nigeria's balance of payments include the poor performance of non-oil exports, fluctuations in crude oil prices, payments for the provision of international services, e.g., shipping, insurance, tourism, the low level of income from direct Nigerian investments abroad and high debt service payments. More fandamental problems underlie these factors.' a hostile international environment; a deterioration in terms of trade; a huge external debt servicing; slippages in fiscal and monetary policies and inappropriate exchange and interest rate policies. The failure of policy reforms to redress the adverse impacts of all these problems adequately indicates that Nigeria's balance of payments will continue to experience persistent pressure and show widening deficits from 1995 to 1998. Projections to 1998 reveal that the problem will remain large and non-oil export receipts will remain low. A reversal of the projected trend is possible if a programme of economic transformation is undertaken. This should be based on raising the level of domestic productivity, reducing domestic absorption (expenditure) through reduction in fiscal deficits and the adoption of sustainable and realistic interest and exchange rates. under a largely liberalized economic environment.
CBN Economic and Financial Review
Olisadebe, E. U. (1995). Trends in Nigeria's Balance of Payments (1980 - 1994). CBN Economic and Financial Review. 33(2), 131-155.