How Nigeria’s foreign trade shrank to N6.24trillion in Q2, by NBS
By Philip Clement
As the scourge of COVID-19 bites harder on the economy, Nigeria’s foreign trade has now shrunk to N6.24trillion in the second quarter of 2020.
The figure represents a drop of 27.30 per cent compared to N8.58trillion recorded in the first quarter of this year, the National Bureau of Statistics have reported.
According to the National Bureau of Statistics report, the import component was valued at N4.02trn representing a drop of 10.69 per cent in the second quarter, against N4.50 trillion recorded in the first quarter, Daily Times gathered.
The export component accounted for N2.21trillion of the total trade, indicating a decline of 45.64 per cent against N4.08trillion recorded in the first quarter of this year.
Consequently, the trade balance recorded a deficit of N1.8trn, marking the third consecutive quarter of negative trade balance. Nigeria’s trade deficit was N421.3billlion in the first quarter of this year and N579.06billion recorded in the fourth quarter of last year.
According to the report which was released on Wednesday, the total trade-in agricultural goods stood at N493.7billion, of which exported agricultural goods accounted for N78.1billion.
The report added, “Most Agricultural goods were exported to Asia, Europe and America valued at N43.6billion, N26.4billlion and N6.6billion.
“The key driver of agricultural products exports were Superior quality raw cocoa beans, Sesamum seeds, Cashew nuts, well-fermented cocoa beans and more”.
It said that the main consumers of superior quality cocoa were The Netherlands (N9.3bn), Indonesia (N3.7bn) and United States (N2.4bn). Other agricultural exports were Sesamum seeds exported to Japan (N6bn) and to China, worth N2.3bn. Also, cashew nuts were exported to Vietnam, worth N12billion.
In terms of imports, Durum wheat worth N41billion was imported from the United States, Russia (N28.8bn) and Latvia (N24.5bn).
Similarly, the value of total trade in solid mineral goods stood at N30.5bn in the second quarter of this year, comprising import component of N28.97billion and the export component of N1.6billion.
The major products exported under this sector were Cement clinkers, exported to Senegal, valued at N44m, followed by Manganese Ores and concentrates exported to China, worth N42m and Lead ores and concentrate exported also to China, and worth N39million.
The value of manufactured goods traded in the second quarter of this year stood at N3trn.
READ ALSO: “We have had enough” – Nigerian traders respond to injustice in Ghana
Out of this, the export component accounted for N254.2billion. The products that drove up manufactured export were light vessels, Fire floats, floating Cranes exported to Spain in the value worth N129bn.
It said, “There were also exports of vessels and other floating structures to Cameroun (N32.8bn), Equatorial guinea (N36.9bn) and Singapore (N7.5bn)”.
The report stated that the value of total trade in raw material stood at N585.4bn with import component valued at N570.6billion while the export component stood at N14.8billion.
