CEM REPORT, TRADE | Nigeria recorded its fourth consecutive positive trade balance in the third quarter of 2023. The quarter closed with a positive trade balance of ₦1.89 trillion, a 54.62 per cent quarter-on-quarter increase.
The nation experienced an increase in trade activities which pushed total trade to ₦18.8 trillion an increase of 54.62 per cent over the amount recorded in Q2, 2023.
According to the National Bureau of Statistics (NBS) report on Nigeria’s Foreign Trade in Goods, total exports accounted for 55.02 per cent of total trade and total imports accounted for 44.98 per cent of total trade in Q3 2023
“Nigeria’s total merchandise trade stood at ₦18,804.29 billion in Q3, 2023. The value indicates an increase of 54.62% over the amount recorded in Q2, 2023 as well as by 53.16% when compared to the value recorded in Q3 2022.”
A trade surplus which is an economic measure of a positive balance of trade occurs when a country’s exports exceed its imports.
Total exports stood at ₦10.3 billion at the close of Q3 2023, an increase of 60.78 per cent quarter on quarter increase and 74.36 per cent over the value recorded in corresponding quarters.
Exports trade in the third quarter of 2023 was dominated by crude oil exports valued at ₦8.5 billion representing 82.50 per cent of total exports while the value of non-crude oil exports stood at ₦1.8 billion accounting for 17.50 per cent of total exports. Non-oil products contributed 6.55 per cent of total exports amounting to ₦677.57 billion.
“The share of total imports accounted for 44.98% of total trade in the third quarter of 2023 with the value of imports amounting to ₦8,457.68 billion in Q3, 2023. This value indicates an increase of 47.70% and 33.33% respectively over the value (₦5,726.25 billion) and (₦6,343.53 billion) recorded in the preceding and the corresponding quarters of 2022.”
NBS attributed the increase to increased trading activities in the review period.
“The significant rise in exports and imports in the third quarter of 2023 compared to the preceding and corresponding quarters was largely driven by a considerable increase in trade activities within the period.”
Components of Q3 Trade
A further analysis of the NBS report reveals that Nigeria exported mainly ‘mineral products’ worth ₦9.7 billion, contributing 94.11 per cent to the total export value. Followed by exports of Prepared foodstuffs; beverages, spirits and vinegar; tobacco worth ₦140.57 billion, representing 1.36 per cent of the value of total exports and ‘Vegetable products, with ₦138.95 billion, contributing 1.34 per cent of the value of total exports.
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“Using the Standard International Trade Classification, the top-ranked group import was “mineral fuels” with ₦2.85 billion representing 33.72 per cent of total imports, this was followed by “machinery and transport equipment” with ₦2.3 billion representing 27.31% of total imports and “Chemicals & related products” with ₦1 billion representing 12.65 per cent of total imports.”
In the review quarter, Nigeria imported goods mainly from Asia, valued at ₦3.76 billion representing 44.46 per cent of total imports. This was followed by imports from Europe with ₦3.5 billion, 41.60 per cent of total imports, America with ₦908 billion resulting to 10.74 per cent, Africa with ₦245.39 billion representing 2.90 per cent and Oceania with ₦25.57 billion or 0.30 per cent in the third quarter of 2023.
“Of which imports from ECOWAS countries amounted to ₦41.18 billion or 0.49% of total imports.”
China remained the top import destination with a total import of ₦1.9 billion in the review period.
“Analysis by trading partners reveals that imports originated mainly from China and were valued at ₦1,973.34 billion, representing 23.33% of total imports. This was followed by imports from Belgium with ₦996.65billion (11.78% of total imports), India with imports valued at ₦802.07 billion or 9.48% of total imports, Malta with ₦561.37 billion (6.64% of total imports) and the United States with ₦502.92 billion or 5.95% of total imports.”
Nigeria’s most imported products in Q3, 2023 were ‘Motor Spirit Ordinary’ (N1.92 trillion or 22.71% of total imports), ‘Gas oil’ (N736.66 billion or 8.71%), and ‘Durum wheat (not in seeds) with a value of N331.76 billion or 3.92% of total import.
Further analysis of the NBS data reveals that Europe was the top export destination Europe with goods valued at ₦4.3 billion amounting to 44.71 per cent of total exports. Asia followed with an exports contribution of 28.51 per cent valued at ₦2,949.73 while exports to America were valued at ₦1,552.99 billion representing 15.01 per cent of total exports as well as to Africa amounting to ₦1,142.21 billion or 11.04 per cent of total exports of which ₦711.71 billion worth of goods were exported to ECOWAS countries.
Spain became Nigeria’s top export destination in Q3 2023, with a total value of N1.27 trillion in exported goods.
“Likewise, export destinations by countries during the quarter under review show that the highest export destination was Spain with a value of ₦1,274.07 billion or 12.31% of total exports. This was followed by India with ₦1,015.13 billion or 9.81% of total exports, The Netherlands with goods valued at ₦988.66 billion representing 9.56% of total exports, Indonesia with ₦758.59 billion or 7.33% of total exports, and France with ₦720.45 billion or 6.96% of total export. These five countries collectively accounted for 45.98% of the value of total exports in Q3, 2023.”
According to the report the value of re-export stood at N35.95 billion, representing 0.35 per cent of total exports in Q3.
Ivory Coast, Gabon, Ghana, Cameroon and South Korea were the top five re-export destinations.
