On Wednesday, Bank of Nigeria (CBN) released the External Sector report for the third quarter of 2010, which shows that the country’s current account fell by 62 per cent in the third quarter of last year due to huge import bill and decline in exports

“The estimated current account surplus which stood at US$ 3,614.92 million in Q2, 2010 declined to US$ 1,359.75 million in Q3,2010. When compared with the level in the corresponding quarter of 2009, the decline in the current account surplus was steep”, the apex bank said in its quarterly External sector report for third quarter of 2010.

The decline according to the apex bank, was occasioned by “high import bills (visible and invisible) and a slight drop in aggregate exports, reflecting the country’s over-dependence on imported goods and services coupled with the fact that the services subsector is not competitive, occasioned largely by the absence of technical know-how required for external competitiveness.”

“This underscores the need for significant investment in service industries and education sector. Also, in comparison with the revised levels recorded in Q2, 2010, current account as a percentage of GDP declined from 7.89 per cent to 2.62 per cent. This development notwithstanding, the goods account position remains robust at US$5,886.43 million during the period under review.”, the report stated.