Home Business Nigeria’s Trade deficit widens as imports grow 70.21% in Q1, 2020

Nigeria’s Trade deficit widens as imports grow 70.21% in Q1, 2020

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MON 07 JUNE, 2021-theGBJournal- For the first quarter of 2021, Nigeria’s total merchandise trade stood at N9,757.87billion representing 6.99% increase over the value recorded in Q4,2020 and 14.13% compared to Q1, 2020, according to latest data release on Foreign Trade in Goods Statistics by the National Bureau of Statistics (NBS).

The export component of this trade stood at N2,907.21 billion, representing 29.79% of the total trade while import was valued at N6,850 billion representing 70.21%. The higher level of imports over exports resulted in a trade deficit (in goods) of -N3,943.45 billion.

Imports by Standard International Trade Classification (SITC) revealed that Machinery & transport equipment accounted for N2,492.73billion. This was followed by Chemicals & related products N1,302.82 billion and Mineral fuel N981.68 billion.

Import trade classified by region showed Asia as the dominant originating region with a record of N3,319.4 billion or 48.45%. This was followed by Europe with N2,471.6 billion or 36.08%, America N827.8 billion or 12.08%, Africa N183.4billion or 2.68% and Oceania N48.5billion or 0.71%. Out of the value recorded for Africa, Import from ECOWAS countries accounted for N20.8 billion.

Analysis of imports by Country of Origin showed that the majority of the goods imported during the quarter originated from China, valued at N2,009.94 billion or 29.34%. This was followed by the Netherlands (N726.09 billion or 10.60 %), the United States (N608.12 or 8.88%) and others.

The value of Crude oil export stood at N1,929.83 billion representing 66.38% of the total export recorded in Q1, 2021, while non –crude oil export accounted for 33.62% of the total export.

In Q1 2021, the value of total exports stood at N2,907.21 billion, representing 29.79% of total trade. This value represented a decline of 8.99% against the level recorded in Q4 2020 and 29.26 % compared to Q1 2020. Exports by section revealed that Nigeria exported mainly mineral products, valued at 2,486.1 billion, or 85.52% of the total export value.

 This was followed by Vehicles, Aircraft and parts (N180.5 billion or 6.21%) and vegetable products (N82.3billion or 2.83%). In terms of regional trade, Nigeria exported most products to Asia (N1,132.55 billion), Europe (N997.79 billion), America (N316.62 billion) and Africa (N449.84 billion).

During the quarter goods worth N282.2 billion was exported to ECOWAS. By country, most goods were exported to India (N488.1 billion or 16.8%), Spain (N287.2billion or 9.9%), China (N190.1 billion or 6.5 %) and the Netherlands (N160.billion or 5.5%).

The total value of trade in agricultural goods in Q1 2021 stood at N757.4 billion. The export component of this trade totaled N127.2 billion while the import was valued at N 630.2 billion. Top exported Agricultural products were Sesamum seeds exported mainly to China (valued at N23.1 billion), Japan (N8.3billion) and Turkey (N3billion). This was followed by good fermented cocoa beans exported to the Netherlands (N9.2billion), Malaysia (N5.5billion) and the United States (N3.2 billion). Other major exports under this sector includes Cashew nuts in shell exported to Vietnam and India worth, N5.3billion N5.1 billion respectively .

However, there was importation of Durum wheat (not in seed) worth N66.97 billion from Lithuania. Durum wheat also came from Latvia (N41.51 billion), Canada (N41.31billion) etc. Edible mixtures or preparation of animal, worth N82.86billion, was imported from Denmark. Herrings (Clupea haregus, Clupea pallasii) was imported from Russia (N15.8billion) and Netherlands (N14billion).

The total value of trade in solid mineral goods in Q1 2021 stood at N49.5billion. The export component of this trade stood at N9.3 billion while the import was valued at N40.2billion.

The leading exported mineral products were Other cement exported to Niger Republic and Togo worth N2.7billion and N1.3billion respectively. Lead ores and Concentrates worth N2.9 billion were exported to China, as were Zinc ores and Concentrates worth N0.8billion.

In terms of imports, Plasters of Calcined Gypsum sulphate was imported from Turkey and Egypt, worth N8.9billion and N3.5 billion. Gypsum anhydrite was also imported from Spain and Turkey, valued at N5.8billion and N3.4billion respectively. Others were Crude salt worth N4.5billion imported from Brazil etc.

The value of manufactured goods trade in Q1 2021 stood at N4,782.7billion representing 49.01% of total trade. Out of this, the export component accounted for N250.4billion while the import component was valued at N4,532.4billion. The products that drove up Manufactured products were Helicopters of Unladen weight exceeding 2000kg which was exported to Ghana, at a value of N71.1billion. Vessels and other floating structures for breaking up were exported to United Kingdom and Cameroon, worth N38.9billion and N17.6billion.

Other products were Floating or Submersible drilling platform exported to Equatorial Guinea, at a value of N39.5billion, and storage units worth N31.3billion exported to Ghana.

In terms of Manufactured imports, other antibiotics were mainly imported from the Netherlands and India worth N329.2billion and N43.3billion. Used vehicles worth N140.2billion, was imported from the United States.

Motorcycles worth N30.98billion and N86.67 billion from China and India, and Machines for reception of voice  worth N75.1 billion and N21.8billion from China and Hong-Kong. Other imports under this category were parts of Machinery for working rubber or plastics worth N67.8billion imported from India

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