Nigeria’s Trade Deficit Widens 62% to N3trn in 3-month

Nigeria’s Trade Deficit Widens 62% to N3trn in 3-month

Nigeria’s trade deficit has widened by about 62% between the second quarter and third quarter of 2021 to N3.02 trillion, from N1.87 trillion on imports dominated transactions, data from the National Bureau of Statistics (NBS) shows. 

Statistician-General of the Federation, Simon Harry, announced the figure during a media conference on the “Foreign Trade in Goods Statistics for Quarter Three, 2021”.

Detail shows that Nigeria’s total merchandise trade rose to N13.3 trillion in the third quarter of 2021, representing a 10.43 per cent increase over N12.02 trillion recorded in the second quarter.

He said that of the N13.3 trillion, export trade value was N5.1 trillion, while import trade was valued at N8.1 trillion, resulting in a negative trade balance of N3.02 trillion.

According to him, this was majorly due to increased import of Premium Motor Spirit (petrol) with N1.05 trillion from N782.46 billion, Gas Oil with N225.63 billion from N152.53 billion and other items.

“Comparing third quarter to second quarter, total trade grew by 10.43 per cent from N12.02 trillion, export trade grew by one per cent from N5.07 trillion.

“Import trade also grew by 17.32 per cent from N6.95 trillion, while trade balance recorded a deficit of 61.62 per cent from N1.87 trillion in quarter two depicting a decline.”

The statistician-general said that in terms of exports, Nigerian export trade was mainly dominated by crude oil which amounted to N4.02 trillion (78.47 per cent) of total export in the third quarter.

This was followed by natural gas, liquefied with N487.49 billion (9.50 per cent), floating or submersible drilling platforms with N163.70 billion (3.19 per cent) and Urea, whether or not in aqueous solution with N107.17 billion (2.08 per cent).

On the other hand, imports were mainly petrol valued at N1.05 trillion (12.91 per cent), durum wheat valued at N315.17 billion (3.87 per cent), gas oil N225.63 billion (2.77 per cent) and used vehicles N185.41 billion (2.27 per cent).

Harry said that in terms of trading partners, the top five major trading partners in export trade during the period under review were India with N758.1 billion, Spain N627.01 billion, Italy N446.04 billion, France N363.23 billion and the Netherlands with N242.49 billion.

Similarly, the top import trading partners were China with N2.44 trillion, India N710.35 billion, United States N599.12 billion, Netherlands N554.23 billion and Belgium N434.12 billion.

The report indicates that major traded agricultural products were good fermented Nigerian cocoa beans, superior quality raw cocoa beans and sesame seeds.

Others were cashew nuts in shell, other frozen shrimps and prawns, shelled cashew nuts, Brazil nuts, in shell and frozen rock lobster and other sea crawfish. # Nigeria’s Trade Deficit Widens 62% to N3trn in 3-month

Read Also: Nigerian T-Bills Average Yield Jumps to 3-Month High