Nigeria Records N4 trillion Trade Deficit as Imports Jump

Nigeria Records N4 trillion Trade Deficit as Imports Jump

Nigeria records unfavourable trade position with a trade deficit of about N4 trillion in the first quarter of 2021 due to increased importations despite scarce foreign currency inflow into the economy.

This deficit or negative trade position means an outflow of dollar for the country as the monetary policy authority struggle to keep Naira strong in the currency market.

Current data shows that foreign trade jumps 6% to about N10 trillion. Of which importations accounted for 70% of total international trade in the period.

The unfavourable trade report stemmed from increased demand for imported items amidst low exports apart from crude where Nigeria earned foreign receipts.

In the last one year, total imports saw a meteoric jump of more than 50% while exports positions still remain weak as government strives to raise performance of non-oil segment.

According to National Bureau of Statistics (NBS) foreign trade in goods report, total merchandise trade stood at exactly N9.757 trillion representing 6.99% increase in the first quarter (Q1).

It said the 6.99 percent was an increase over the value recorded in Q4, 2020 and by 14.13 percent compared to the value recorded in Q1, 2020.

The report said the export component of the trade stood at N2.907 trillion, representing 29.79 percent of the total trade while import was valued at N6.850 trillion representing 70.21 percent.

The Bureau informed that the higher level of imports over exports resulted in a trade deficit in goods of -N3.943.45 trillion.

It added that the value of crude oil export stood at N1.929 trillion representing 66.38 percent of the total export recorded in Q1, while non –crude oil export accounted for 33.62 percent of the total export.

Giving a breakdown, the NBS said the value of total imports rose by 15.61 percent in Q1 compared to Q4, 2020 and 54.30 percent compared to Q1, 2020.

It added that the value of imported agricultural products were 18.37 percent higher in Q1 than in Q4, 2020 and 140.47 percent higher year on year.

“The value of raw material imports fell by 6.50 percent in Q1 compared to Q4, 2020 but increased by 109.29 percent compared to Q1, 2020.

“The value of solid minerals imports was 36.97 percent higher in Q1 than in Q4, 2020 and 59.26 percent more than its value in Q1, 2020.

“The value of energy goods imports was 34.39 percent in Q1, higher than in Q4, 2020 and 1,346.72 percent higher than the value recorded in Q1, 2020.”

The report stated that the value of imported manufactured goods grew by 18.47 percent in Q1, against the value recorded in Q4, 2020 and 69.70 percent against its value in Q1, 2020.

However, the value of other oil products imported in Q1, was 19.02 percent more than its value in Q4, 2020 but 15.76 percent less than the corresponding quarter of 2020, it said.

For exports, the NBS said its value in Q1, decreased by 8.99 percent against the level recorded in Q4, 2020 and 29.26 percent compared to Q1, 2020.

It said the value of agricultural exports increased by 128 percent in Q1, compared to Q4, 2020 and 0.1 percent compared to Q1, 2020.

“The value of raw material goods exports in Q1, was 9.0 percent lower than the value in Q4, 2020 and 6.7 percent lower than the value recorded in Q1, 2020.

“The value of solid minerals exports increased by 107.2 percent in Q1, against Q4 2020 and 481.7 percent against the corresponding quarter in 2020.

“The export of energy goods increased in value by 16.3 percent in Q1 compared to Q4 2020 and 18.1 percent compared to Q1, 2020,” said the report.

The bureau assed that the value of manufactured goods exports rose by 94 percent in Q1 compared to Q4 2020 but decreased 43.7 percent, compared to Q1, 2020.

According to the report, the value of crude oil exports in Q1 decreased by 23.5 percent compared to Q4, 2020 and 34.5 percent compared to Q1, 2020.

It also said the export value of other oil products increased by 25.5 percent in Q1 compared to Q4, 2020, and rose marginally 0.1 percent compared to Q1, 2020.

Nigeria Records N4 trillion Trade Deficit as Imports Jump