Home Business Nigeria’s trade deficit expands by N7.37 trillion, imports rise by 17.3%, crude...

Nigeria’s trade deficit expands by N7.37 trillion, imports rise by 17.3%, crude oil exports increase 4% in Q4 2020

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By Audrey Lotechukwu

TUE 09 MARCH, 2021-theGBJournal- Nigeria’s annual merchandise trade deficit in 2020 was recorded at N7.37 trillion, as imports grew faster than exports, data published Tuesday by the National Bureau of Statistics (NBS) showed.

The value of total imports in 2020 stood at N19.898.0 billion, or 17.3% higher than in 2019, while total exports was valued at N12,522.7billion, or 34.8% less than in 2019.

On an annual basis, total trade was valued at N32,420.7 billion in 2020, or 10.3% less than the value recorded in 2019.

Total imports reached a record high at N5,925.7 in Q4 2020, an increase of 10.1% over the preceding quarter, and 10.8% over the preceding year. Imports also accounted for 65% of total trade in Q4 2020, compared to 53% the previous year. As the value of imports nearly doubled the value of exports, the trade deficit rose to its highest level and a fifth consecutive quarterly deficit at -N2,731.2 billion, an increase of 14.30% compared to the preceding quarter.

In the fourth quarter of 2020, Nigeria’s total merchandise trade stood at N9,120.2billion, representing 8.9% over the level recorded in the third quarter of 2020 but was 9.9% lower when compared to the fourth quarter of 2019. The value of trade in Q4 was the highest recorded over the past year.

The export component of trade stood at N3,194.5 billion, an increase of 6.7% over the preceding quarter but a drop of 33% over the previous year. Further, the share of exports in total trade declined to 35% in Q4 2020 from 47% a year earlier.

Meanwhile, The value of imported agricultural products was 5.75% higher in Q4, 2020 than in Q3,2020 and 128.17% higher compared with the corresponding quarter of 2019. For 2020, the value of agricultural imports was 78.6% higher than recorded in 2019.

On other hand, the value of agricultural exports fell by 8% in Q4 2020 compared to Q3 2020 and 18.2%compared to Q4 2019. In 2020, the value of agricultural exports was 19.2% higher than the value recorded in 2019.

While the value of raw material goods exports in Q4 2020 was 317.6% higher than the value in Q3,2020 and 122% higher than the value recorded in Q4 2019. In 2020, the value of raw material goods exports was only 0.7% higher than the value recorded in 2019. Imports grew only marginally by 0.75% in Q4 2020 compared to Q3, 2020 but was 113.12% higher compared to Q4, 2019. For 2020, the value of raw material imports was 72.5% higher than the value recorded in 2019.

The value of Solid minerals imports was 16.82% lower in Q4, 2020 than its value in Q3, 2020 but 58.59% higher than its value in Q4 2019. On an annual basis, the value of solid mineral imports was 39.3% higher than the value recorded in 2019. The value of Solid minerals exports decreased by 20.7% in Q4 2020 against Q3 2020 but increased by 135% against the corresponding quarter in 2019. In 2020, the value of solid mineral exports was 46.2% lower than the value recorded in 2019.

The value of Energy goods imports was 236.20% in Q4, 2020 higher than in Q3,2020 and 199.51% higher than the value recorded in Q4, 2019. On an annual basis, the value of energy goods imports was 24.1% lower than recorded in 2019. The exports of Energy goods increased in value by 13.3% in Q4 2020 compared to Q3 2020 but decreased by 15.5% compared to Q4,2019. In 2020, the value of energy goods exports was 40.3% lower than the value recorded in 2019.

The value of Manufactured goods exports fell by 3.1% in Q4 2020 compared to the value recorded in Q3 2020 and 74.7% compared to Q4, 2019. In 2020, the value of manufactured exports was 53.7% lower than the value recorded in 2019. The value of imported manufactured goods grew by 11.43% in Q4, 2020 against the value recorded in Q3, 2020 but decreased by 2.21% against its value in Q4, 2019. For 2020, the value of manufactured imports was 6.5% higher than the value recorded in 2019.

The value of other oil products imported in Q4, 2020 was 17.40% higher than its value in Q3, 2020 but 3.23% less than the corresponding quarter of 2019. For 2020, the value of other oil products imports was 15.1% higher than the value recorded in 2019. The export value of Other oil products increased by 22.2% in Q4 2020 compared to Q3 2020, but decreased by 19.3 % compared to Q4 2019. On an annual basis, the value of other oil products exports was 17.1% lower than the value recorded in 2019.

The value of Crude oil exports in Q4 2020 increased by 4% compared to Q3 2020 but decreased by 30.5% compared to Q4 2019. In 2020, the value of crude oil exports was 35.7% lower than recorded in 2019.

During the quarter, Nigeria imported goods mainly from Asia, valued at N2,847.8 billion or 48.06% of total imports. This was followed by Europe at N2,163.1 billion or 36.5%, America at N702.5 billion or 11.86%, Africa at N190.1 billion or 3.21% and Oceania at N22.3 billion or 0.38%. Imports from ECOWAS countries accounted for N22.5 billion, or 0.4% of the value of total imports.

Similarly, on an annual basis, Asia also accounted for the largest imports to Nigeria, representing 49.3% of total imports, valued at N9,808 billion in 2020. This was followed by Europe with imports valued at N 6,626 billion, or 33.3% of total imports, and America, which recorded N2,635.8 billion or 13.2% of total imports.

By country of origin, imported goods originated mainly from China and was valued at N1,675.6 billion, representing 28.3% of total imports. This was followed by India (N506 billion or 8.5 %), the United States (N408.6 or 7.57%), the Netherlands (N424.5billion, or 7.2%) and Denmark (N319.9billion, or 5.4%).

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