Nigeria’s trade balance for manufactured goods has incurred a deficit of N9.4 trillion in the first nine months of 2023. An analysis of various Foreign Trade Statistics reports published by the National Bureau of Statistics provides insights into this significant deficit.
In the first quarter of 2023, Nigeria’s imports of manufactured goods amounted to N2.5 trillion, increasing to N3.2 trillion in the second quarter and further escalating to N4.1 trillion in the third quarter. Cumulatively, imports of manufactured goods in the initial three quarters of 2023 totaled N9.9 trillion.
Contrastingly, exports in this category were reported at N131 billion, N212 billion, and N200 billion in the first, second, and third quarters, respectively, adding up to N543 billion. This implies that the trade balance, reflecting the difference between imports and exports, stood at a negative N9.37 trillion, with imports surpassing exports.
Major items imported during this period included ‘Used Vehicles with diesel or semi-diesel engines’ from the United States and the United Arab Emirates, ‘Machines for reception, conversion, and transmission of voice, images or data’ imported from China, and ‘Other medicaments not elsewhere specified’ from India.
Key exports in this sector comprised ‘Unwrought aluminium alloys’ sent to Japan, ‘Oilcake and other solid residues resulting from the extraction of soyabean oil,’ and ‘Cathodes and sections of cathodes’ exported to Japan.
Manufactured goods exports were predominantly directed to Asia, Africa, and Europe, according to the data.
The Manufacturers Association of Nigeria’s report highlights that Nigeria’s non-oil export volume has not fared well globally, ranking 52nd among nations. Challenges such as high production costs, port administration issues, and the operating environment hinder non-oil exports in the country.
Francis Meshioye, the President of the Manufacturers Association of Nigeria, expressed concerns about the high production costs faced by exporting manufacturers, making it challenging for them to compete globally. He emphasized the need for a competitive economic base to support export efforts and address the prevailing trade deficit.
