Home Business Nigeria’s Imports drop by 10.69% in Q2, 2020, trade balance records deficit...

Nigeria’s Imports drop by 10.69% in Q2, 2020, trade balance records deficit of N1,803.3 billion

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THUR, SEPT 03 2020-theG&BJournal-Nigeria’s value of total trade fell sharply by 27.30% to  N6,242.4 billion in Q2, 2020 compared to Q1, 2020 and 27.46% compared to Q2, 2019. The value of total trade year-to-date amounted to N14,829.4billion, indicating a drop of 11.96% compared to half year 2019, according to the latest data on Foreign Trade in Goods Statistics published by the National Bureau of Statistics (NBS) Wednesday.

The import component was valued at N4,022.9 billion representing a drop of 10.69% in Q2, 2020 against the level recorded in Q1,2020 but an increase of 0.39% year-on-year. The export component accounted for N2,219.5 billion of the total trade, indicating a decline of 45.64% against the value recorded in Q1, 2020 and 51.73% compared to Q2, 2019.

The country’s trade balance recorded a deficit of N1,803.3 billion overall, marking the third consecutive quarter of negative trade balance. This compares with trade in goods deficit of N421.3 billion recorded in Q1, 2020 and N579.06billion recorded in Q4 2019.

Total imports amounted to N4,022.9billion in Q2, 2020, s representing a drop of 10.69% against the level recorded in Q1,2020 but an increase of just 0.39% year-on-year. The year to date import value amounted to N8,527billion, or 10.58% over half year 2019, attributed to the decrease in the value of mineral fuels (N1031.9billion or 82.35%), Machinery and Transport equipment (N147.2billion or 8.43%) and Miscellaneous manufactured articles (N157.5 billion or 47.94%) against their respective values in Quarter 1, 2020.

According to the data, The structure of imports under this category showed that Machinery and transport equipment accounted for the largest share of imports, at N1,598.8billion or 39.7% of total imports, followed by Chemicals and related products, valued at N776.3billion or 19.30% and Food and Live Animals worth N648.6billion or 16.1% among others.

During the quarter, Nigeria imported goods mainly from Asia, which was valued at N2,122.6billion or 52.8%. Other imports originated from Europe, valued at N1,070.4billion or 26.6% while imports from America and Africa amounted to N605.2billion or 15% and N174billion or 4.3% respectively. Import from Oceania stood at N50.6billion or 1.3% while goods valued at N31.1billion originated from ECOWAS.

Nigeria’s imports, by country of origin, shows goods were imported mainly from China (N1,263.6billion or 31.41%), United States (N428.9billion or 10.66%), India (N322.3 billion or 8.01), and the Netherlands (N202.9billion or 5.04% respectively.

Total trade in Agricultural goods stood at N493.7billion, of which exported agricultural goods accounted for N78.1billion. Analysis by economic region showed that most Agricultural goods were exported to Asia, Europe and America valued at N43.6billion, N26.4billion and N6.6billion.

The key driver of agricultural products exports, according to the NBS were Superior quality raw cocoa beans, Sesamum seeds, Cashew nuts, good fermented cocoa beans and more. The main consumers of superior quality cocoa were The Netherlands (N9.3billion), Indonesia(N3.7billion) and United States(N2.4billion). Other Agricultural exports were Sesamum seeds exported to Japan (N6.0 billion) and to China, worth N2.3billion. Also, Cashew nuts were exported to Vietnam, worth N12billion. In terms of imports, Durum wheat worth N41billion was imported from United States, Russia (N28.8billion) and Latvia (N24.5billion).

The value of total trade in solid mineral goods stood at N30.5billion in Q2, 2020, comprising import component of N28.97 billion and export component of N1.6billion. The major products exported under this sector were Cement clinkers, exported to Senegal, valued at N 0.44billion.This was followed by Manganese ores and concentrates exported to China, worth N0.42billion and Lead ores and concentrate exported also to China, and worth N 0.39billion.

The value of manufactured goods trade in Q2, 2020 stood at N3,040.3billion. Out of this, the export component accounted for N254.2billion. The products that drove up Manufactured export were light vessels, Fire floats, floating Cranes exported to Spain in the value worth N129billion. There were also exports of vessels and other Floating structures to Cameroun (N32.8billion), Equatorial guinea (N36.9billion) and Singapore(N7.5billion).

Export trade on manufactured goods by Region showed that goods were exported mainly to Europe (N137.1billion) and within Africa (N96.98billion). On the other hand, manufactured imports stood at N2,786.2billion. The main drivers were used vehicles imported from United States (N116billion), Netherlands (N28.5billion) and Brazil (N24.7billion). Other goods imported under this category were Motorcycles from India (N66.6billion) and China (N25.4billion).

The value of total trade in raw material stood at N585.4billion. The import component was valued at N570.6billion while the export component stood at N14.8billion. During the quarter, Urea worth N3.5billion was exported to Brazil and leather further prepared after tanning worth N1.2billion was exported to Spain.

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