In a remarkable surge, Nigeria’s foreign trade for the third quarter of 2023 witnessed a substantial year-on-year increase of 53.16 percent, soaring to a total value of N18.80 trillion.
This surge was driven by an astonishing 83.23 percent growth in crude oil revenue, reaching N8.54 trillion during the same quarter, as revealed by the National Bureau of Statistics (NBS) in its ‘Foreign Trade in Goods Statistics (Q3 2023)’ report released on Monday.
The report highlighted that the total value of exports surged by 60.78 percent, reaching N10.35 trillion, reflecting the heightened trade activities in the period. Crude oil exports played a significant role, constituting 82.50 percent of the total exports, valued at N8,535.61 billion. Non-crude oil exports accounted for the remaining 17.50 percent, totaling N1.81 trillion, with non-oil products contributing N677.57 billion or 6.55 percent of total exports.
On the import side, the report noted that the share of total imports represented 44.98 percent of total trade in the third quarter of 2023, amounting to N8.46 trillion. This figure indicated a substantial increase of 47.70 percent over the value recorded in the preceding quarter and a 33.33 percent increase compared to the corresponding quarter in 2022.
The trade balance for the country in Q3 2023 stood at N1.89 trillion, emphasizing a positive trade outcome for the period.
Spain (N1.27 trillion), India (N1.02 trillion), The Netherlands (N988.66 billion), Indonesia (N758.59 billion), and France (N720.45 billion) emerged as the top export destinations for Nigeria. Together, exports to these top five countries constituted 45.98 percent of the total value of exports.
China (N1.97 trillion), Belgium (N996.65 billion), India (N802.07 billion), Malta (N561.37 billion), and the United States of America (N502.92 billion) emerged as the major sources of imports for Nigeria, totaling N4.84 trillion and representing a share of 57.18 percent of total imports.
The report also provided insights into the commodities contributing significantly to the trade figures. Petroleum oils and oils obtained from bituminous minerals, crude, remained the largest export, accounting for 82.50 percent, while Motor Spirit Ordinary topped the list of imported products, representing 22.71 percent of total imports.
Despite the positive trade outcomes, concerns about the country’s oil production were raised, as it currently stands at about 1.33+ million barrels per day, below the targeted 1.69 million barrels per day for the year. Challenges in the oil sector persist, with the World Bank noting subdued oil production in the country.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, acknowledged the challenges but expressed optimism about the steady increase in production, reaching between 1.3 and 1.4 million barrels per day, excluding condensates, and approximately 1.7 million barrels per day when condensates are included.
The notable increase in exports, however, may be linked to the recent devaluation of the naira, with JP Morgan noting earlier in the year that a weaker exchange rate would result in higher naira revenues from oil and gas exports.
