Recent Q3 report on foreign trade by the National Bureau of Statistics showed that Nigeria’s trade deficit rose by 32.45 per cent from N1.8tn as of the end of second quarter to N2.38tn in the third quarter. Total trade in the period under review stood at N8.37tn.

According to NBS, “The value of Nigeria’s merchandise trade stood at N8.37tn in Q3 2020.

“This represents an increase of 34.15 per cent in Q3 2020 compared to Q2 2020 but a decline of 8.85 per cent compared to Q3, 2019. Total trade year-to-date amounted to N23.2tn.

“The import component was valued at N5.38tn, representing an increase of 33.77 per cent in Q3 2020 against the level recorded in Q2 2020 and 38.02 per cent compared to Q3 2019.”

The value of imports in Q3 represented the highest level for any quarter since 2017.

The export component accounted for N2.99tn of the total trade in Q3 2020 indicating an increase of 34.85 per cent compared to the value recorded in Q2 2020 but a decrease of 43.41 per cent compared to Q3 2019.

“Aside from Q2 2020, the value of exports in Q3 2020 represented the lowest level of any quarter since 2017. Due to lower exports and higher imports compared to 2019, the trade balance recorded a deficit of N2.38tn during the third quarter.

“This also represents the widest merchandise trade deficit since 2017. When compared to the deficit of N1.8tn recorded in Q2, the Q3 deficit rose by 32.45 per cent.”