Nigeria’s Trade Plunges By 23%

Citing a new data from the National Bureau of Statistics (NBS), Nigeria has recorded a negative trade balance in 2016 Q1.

The report, titled “Foreign Trade Statistics for the First Quarter of 2016” states that the total value of Nigeria’s merchandise trade at the end of first quarter of 2016 stood at ₦2,723.9 billion. It said that from the preceding quarter value of ₦3,517.4 billion, this was ₦793.5billion or 22.6 per cent less.

The development was said to have arisen due to a sharp decline in both imports and exports. It was noted in the report that exports saw a decline of ₦671.1 billion or 34.6 per cent, while imports declined by ₦122.4 billion or 7.8 per cent.

The steep decline in exports had brought the country’s trade balance down to ₦184.1 billion, or ₦548.7bilIion less than in the preceding quarter.

The crude oil component of total trade decreased by ₦716.7 billion or 46.6 percent against the level recorded in the fourth quarter of 2015. The report also showed that the country imported goods, mostly from China, with an import value of ₦345.5 billion or 23.8 per cent of total imports.China was followed by the United States at ₦127.1 billion or 8.7 per cent while India with ₦89.4 billion or 6.1 per cent.

The Netherlands followed India with ₦73.8 billion or 5.1 percent and the United Kingdom with ₦61.4 billion or 4.2 percent of total imports. Imports by economic region revealed that the country consumed goods largely from Asia with import value of ₦611.2 billion or 42.0 percent.

The report further said that the value of the export trade, totaled ₦1,269.9 billion in first quarter of 2016.

“This is showing a decrease of ₦671.1 billion or 34.6 per cent over the value recorded in the preceding quarter.Year-on-Year analysis shows that the country’s exports dropped by ₦1,395.2 billion or 52.3 per cent as against the export value recorded in the corresponding quarter of 2015.

“The structure of Nigeria’s export trade is still dominated by crude oil exports, with the contribution of crude oil to the value of total domestic export trade amounting to ₦821.9 billion or 64.7 per cent,” the report said.