In theory, data does not
concern with actual payments made and received in the balance of payment. Exporting
data are the process of extracting data from an instance of SQL server into
some user specified format.
Oil and natural gas are the most
important export products for Nigerian trade.
Importing data can be an ongoing
task, the country’s exports approximately 2.327 million barrels per day in 2007
figures. In terms of total oil exports, Nigeria ranks 8th in the
world. As of 2009, Nigeria has approximately 36.2 billion barrels of oil
reserves. Despite large scale liberalization efforts, the sector is under close
check of government agencies.
Balance of payment is a statement
that summarizes an economy’s transactions for a specified time period. The balances
of payment are classify into two accounts - the current and capital account.
The current account includes
transactions in goods, services investment income and current transfers while
capital account mainly includes transactions in financial instruments. A
current account deficit would have to be financed by a net inflow in the
capital account, while a current account surplus should correspond to an
outflow in the capital and financial account for a net figure of zero.
In actual practice, data are
compiled from multiple sources gives sore to some degree of measurement error.
The balance of payment should be in
equilibrium. Current account should balance with the sum of the capital and
financial accounts because in practice, the transactions do not offset each
other exactly as a result of statistical discrepancies.
A number of theories have been
developed to explain adjustment process of the balance of payments.
The balance of payment is viewed as
the difference between what the economy produces and what it spends. In an
economy that operates below its full potential, exchange rate depreciation
tends to increase net export and bring about no increase in output and
employment.
In a modern global economy with
well-developed financial markets and large-scale capital flows, financial
assets play an important role in the analysis of the balance of payment.
In an economy at full potential, depreciation
tends to increase net exports but because it is not possible to increase
output, the result is higher prices of domestically produced goods. The lifting
of controls on the movement of capital and financial flows has been fundamental
to promote world trade and eventually greater incomes.