Nigeria’s foreign exchange earnings surged in the second quarter of 2024, driven by strong export performance. This resulted in a trade surplus of N6.95 trillion, indicating that the country’s exports exceeded its imports.
According to the latest foreign trade statistics data released by the National Bureau on Wednesday, fuel products topped the list of imported goods into Nigeria
“The value of other oil products imports in Q2, 2024 stood at N4.425tn showing a decrease of 23.34 per cent from N5.772bn in Q1 2024 and a 98.64 per cent rise from N2.23tn in Q2 2023.
“The value of total imports stood at N12.47tn in the second quarter of 2024, representing a decrease of 10.71 per cent compared with the value recorded in Q1, 2024 (N13.97tn) and a rise of 97.93 per cent from the value recorded in the corresponding quarter of 2023 (N6.3tn),” the NBS said.
The statistics agency noted that surplus which marks a 6.60 per cent increase from the previous quarter, reflects the country’s strong export performance amidst a slight decline in overall merchandise trade.
It said the total merchandise trade in Q2 2024 stood at N31.89tn, representing a 3.76 per cent decline compared to the preceding quarter (Q1 2024) but was a 150.39 per cent rise from the corresponding period in 2023.
The report read, “The share of total imports accounted for 39.11 per cent of total trade in the second quarter of 2024 with the value of imports amounting to N12.47tn in Q2, 2024. This value indicates a decrease of 10.71 per cent over the value recorded in Q1 2024 (N13.97tn) and a rise of 97.93 per cent compared to the value recorded in Q2.
“The merchandise trade balance in the second quarter of 2024 remained positive at N6.95tn indicating an increase of 33.63 per cent compared to the value recorded in the preceding quarter.”
The report revealed that Nigeria’s export sector remains the primary driver of its trade surplus. In the second quarter of 2024, total exports reached N19.42 trillion, accounting for 60.89% of the country’s total trade.
This represents a 1.31 per cent increase from N19.17tn in the first quarter and a 201.76 per cent surge from N6.44tn recorded in Q2 2023.
The dominance of crude oil exports remains a key factor in this performance, contributing N14.56tn, or 74.98 per cent of total exports. Non-crude oil exports, valued at N4.86tn, made up 25.02 per cent of the total export value, with non-oil products contributing N1.94tn.
The strong export performance, particularly in crude oil, ensured that Nigeria maintained a favourable trade balance. “Total exports in Q2 2024 were valued at N19.42tn, reflecting a 1.31 per cent increase compared to N19.17tn in Q1 2024 and a 201.76 pee cent rise compared to N6.44tn in Q2 2023.
“In Q2 2024, the top trading export partners were Spain, the United States of America, France, India, and The Netherlands. The most exported commodities included crude oil, liquefied natural gas, other petroleum gases in a gaseous state, superior-quality cocoa beans, and urea,” It noted.
In the report, Nigeria’s top export destinations were dominated by European and American countries. Spain emerged as the largest export partner, receiving goods valued at N2.01tn, accounting for 10.34 per cent of Nigeria’s total exports.
The United States followed closely with N1.86tn (9.56 per cent), while France imported N1.82tn worth of Nigerian goods, representing 9.37 per cent of total exports.
Other significant export partners include India (N1.65tn or 8.50 per cent) and the Netherlands (N1.38tn or 7.10 per cent).
Collectively, these top five export partners contributed 44.87 per cent of Nigeria’s total exports during the second quarter of 2024.
While exports surged, imports in Q2 2024 experienced a notable decline. The total value of imports stood at N12.47tn, accounting for 39.11 per cent of the country’s merchandise trade.
This marked a 10.71 per cent decrease from the N13.97tn recorded in Q1 2024 but still showed a 97.93 per cent increase from the N6.30 trillion recorded in Q2 2023.
The reduction in imports further contributed to the significant trade surplus, highlighting Nigeria’s growing export strength relative to its import demand.
China maintained its position as Nigeria’s largest supplier of goods, with imports valued at N3.03tn, representing 24.29 per cent of Nigeria’s total imports.
Belgium followed, supplying goods worth N1.79tn (14.35 per cent), while India contributed N1.06tn, accounting for 8.49 per cent of total imports. The United States was the fourth-largest import partner with N917.84bn (7.36 per cent), and the Netherlands rounded out the top five with N585.3bn (4.69 per cent) of total imports.
These countries were responsible for a significant portion of Nigeria’s imports, mainly supplying mineral fuels, machinery, and transport equipment.
Furthermore, the NBS said that the bulk of Nigeria’s trade was conducted via maritime transport. Exports transported by sea accounted for N19.25tn, or 99.14 per cent of total exports.
Air transport played a not too significant role in the export sector, contributing N73.72bn or 0.38 per cent, while road transport accounted for N30.72bn or 0.16 per cent of exports. Other transport methods, including pipelines, contributed N63.28 billion or 0.33 per cent.
On the import side, maritime transport also dominated, accounting for N11.84tn or 94.94 per cent of total imports. Air transport contributed N531.38bn (4.66 per cent), while road transport accounted for only N49.97 billion (0.40 per cent) of imports.
This article was written by Tamaraebiju Jide, a student at Elizade University
