Nigeria’s foreign trade declines by 17.94% in Q1’20-NBS

The National Bureau of Statistics in a recent report revealed that the value of Nigeria’s total trade in the first quarter of 2020 was N8.304.8 billion, down by 17.94% compared to value recorded in Q4, 2019 but 0.80% higher than the value recorded in Q1,2019.

According to the report, the import component of this trade was valued at N4,221.9 billion or 50.8% while the export component totaled N4,082.9 billion indicating 49.2% of the total trade. A trade deficit of N138.98 billion was recorded during the quarter, marking two consecutive quarters of negative balance of trade, as the value of imports surpassed exports. It is worth noting that the consecutive quarters of negative trade balances (and lower imports and exports) occurred against the backdrop of a global slowdown in economic activity as a result of the COVID-19 pandemic. The global health crisis resulted in several countries implementing varying degrees of restrictions with respect to international trade, travel and tourism. When compared with the preceding quarter, the deficit in Q1 2020 represented an improvement by 76%. On a year –on-year basis however, the deficit was lower by 116.71%.

 

Crude oil, Nigeria’s dominant export, accounted for N2,944.6 billion representing 72.12% of total exports in Q1,2020. The value of crude oil export was 18.86% less than the value recorded in Q4, 2019 and 12.80% lower than the value recorded in the corresponding quarter of 2019. Non crude oil exports was valued at N1,138.3 billion representing 27.9% of total exports during the period under review.

 

Total imports stood at N4,221.9 billion indicating a decline of 21.08% in Q1, 2020 over the value recorded in Q4, 2019, but an increase of 13.99% when compared with Q1, 2019. The drop in the value of imports in Q1,2020 can be attributed to decreases in the value of Machinery and transport equipment (N1,746.0 billion) which represents 35.5% less than (N2,708.98) recorded in Q4 2019.Chemicals and related products (N398.7 billion) representing a decrease of 30.5% over (N573.98 billion) recorded in Q4,2019 and crude inedible materials (N43.5 billion) representing 22.2% less than ( N55.9 billion) recorded in Q4,2019.

During the quarter, Nigeria imported goods mainly from Asia, which was valued at N1,966.5 billion or 46.58%. Other major imports originated from Europe, valued at N1,534.7billion or 36.35% while imports from America and Africa amounted to N580.2 billion or 13.74% and N118.95billion or 2.82% respectively. Import from Oceania stood at N21.6 billion or 0.51% while goods valued at N28.3billion originated from ECOWAS.

Nigeria’s imports, by country of origin, shows goods were imported mainly from China (N1,109.46 billion or 26.28%), Netherlands (N470.11 billion or 11.14%), United States (N441.06 billion or 10.45%), India (N334.53 or 7.92%) and Belgium (N257.89 or 6.11%).

 

The value of total exports in Q1, 2020 stood at N4,082.9billion. This indicates a decrease of 14.42% relative to Q4,2019 and 9.98% compared to the value recorded in Q1,2019. Exports by section revealed that mineral products accounted for the largest proportion of exports, amounting to N3,478.1 billion or 85.2%. This was due to the crude oil component of this section. The next major section was Vehicles aircraft and parts which amounted to N406.3 billion or 9.95% of total exports.

Analysis of trade by region revealed that Nigeria exported most products to Europe (N1,569.21 billion or 38.43% of total exports), followed by Asia (N1,277.21billion or 31.28%), Africa (N978.21billion or 23.96%), America (N214.12 billion or 5.24%) and Oceania (N44.14billion or 1.08%). Within Africa, goods worth N296.3 billion was exported to ECOWAS member states.

Exports by country of destination showed that Nigeria exported goods to India valued at (N637.5billion or 15.61%), Spain (N402.9billion or 9.87%), The Netherlands (N396.9 billion or 9.72%), South Africa (N319.5 billion or 7.82%) and Cameroon (N301.8 billion or 7.39%).

 

 

 

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