Nigeria Records Trade Deficit Of N1.87 Trillion As Merchandise Trade Rises By 23.28%

Nigeria’s trade balance ended the second quarter of 2021 with a deficit of N1.87 trillion, according to data from the Nigerian Bureau of Statistics (NBS).

The NBS in its “Foreign Trade in Goods Statistics – Q2, 2021” report released over the weekend stated that Nigeria’s Total Merchandise trade rose by 23.28% to N12.02 trillion in the review period from N9.75 trillion recorded in Q1, due to a sharp increase in export value.

It added that the export component of the trade was valued at N5.07 trillion or 42.2% while import was valued at N6.95 trillion or 57.78 % with a trade balance deficit of N1.87 trillion.

According to the NBS, crude oil represented 80.29% of total export for the period valued at N4.07 trillion.

“This further shows a sharp increase of 111.32 percent in crude oil value in Q2 compared to N1.92 trillion recorded in Q1, while the non-crude oil export recorded N1 trillion or 19.71 percent of total export trade in Q2,” the NBS said.

For product classification, NBS said “total value of trade in agricultural goods in Q2 stood at N817.35 billion, with the export component totaling N165.27 billion while the import was valued at N652.08 billion.

“Topmost of these exported agricultural products were good fermented Nigerian Cocoa beans exported mainly to Netherlands (N16.48 billion), Malaysia (N9.32 billion) and the United States of America (N8.41 billion).”

For Solid Minerals, trade stood at N63.68 billion, with the export component at N14.93 billion while import was valued at N48.75 billion, with the top exported mineral products being cement exported to Niger Republic and Togo in values worth N3.12 billion and N2.32 billion.

For the manufactured goods sector, the value of trade stood at N4.51 trillion representing 37.50 percent of total trade. The export component accounted for N211.67 billion while the import component was valued at N4.29 trillion.

“The products that drove up manufactured products were vessels and other floating structures for breaking up, which was exported to Cameroon in the value worth N71.90 billion.

“Vessels and other floating structures for breaking up were also exported to Spain and Equatorial Guinea in values worth N18.34 billion and N6.26 billion.

“In terms of manufactured imports, used vehicles were mainly imported from the United States and Italy in values worth N33.78 billion and N5.74 billion", they said.

For raw materials, total trade stood at N904.51 billion, imports at N840.50 billion while the export component stood at N64.01 billion.

Asia is the leading partner with a record of N3.46 trillion or 49.92% with Europe with N2.30 trillion or 33.16% closely following.
America with N869.1 billion, Africa, N248.8 billion, and Oceania, 58.1 billion. ECOWAS countries accounted for N24.2 billion.

On goods imported during the quarter, China led with a value of N2.078 trillion, followed by India with N570.01 billion, Netherlands with N557.16 billion, and the United States with N526.92 billion.

“In terms of regional trade, Nigeria exported most products to Asia (N1.84 trillion), Europe (N1.82 trillion), America (N806.81 billion), and Africa (N584.11 billion) while Oceania totaled N23.28 billion with goods worth N363.3 billion exported to ECOWAS.

“Analysis by country export trade showed that most goods were exported to India (N949.05 billion or), Spain (N524.49 billion), Canada (N355.60 billion) and Netherlands (N298.29 billion) and United States N256.63 billion,” NBS stated.