The value of Nigeria’s total trade balance in the first quarter of 2020 dropped to N8,304.8 trillion, a 17.94 per cent decrease than the value recorded in Q4, 2019 but 0.80 per cent higher than the value recorded in Q1,2019, remaining in the negative region for the whole of the Q1.
Nigeria recorded a N10.12 trillion balance of trade in the fourth quarter (Q4) 2019. As usual, the country’s import based economy recorded higher import of finished goods and raw materials in Q1 2020 than her export to foreign trade partners, according to data that was released by the National Bureau of Statistics (NBS) yesterday.
A trade deficit of N138.98 trillion was recorded during the quarter, marking two consecutive quarters of negative balance of trade, as the value of imports surpassed exports.
The consecutive quarters of negative trade balances (and lower imports and exports) is blamed on global slowdown in economic activity as a result of the COVID-19 pandemic. When compared with the preceding quarter, the deficit in Q1 2020 represented an improvement by 76 per cent.
On a year –on-year basis however, the deficit was lower by 116.71 per cent.
Nigeria’s mono-economic based product, Crude oil, dominated its export, accounting for N2,944.6 trillion representing 72.12 per cent of total exports in Q1, 2020. The value of crude oil export was 18.86 per cent less than the value recorded in Q4, 2019 and 12.80 per cent lower than the value recorded in the corresponding quarter of 2019.
Non crude oil exports was valued at N1,138.3 billion representing 27.9 per cent of total exports during the period under review.
The import component of the total trade for the quarter was valued at N4,221.9 trillion or 50.8 per cent while the export component totaled N4,082.9 trillion indicating 49.2 per cent of the total trade.
On the flip side, the value of total exports in Q1, 2020 stood at N4,082.9 trillion. This indicates a decrease of 14.42 per cent relative to Q4, 2019 and 9.98 per cent compared to the value recorded in Q1,2019, the latest NBS figure has shown.
Exports by section revealed that mineral products accounted for the largest proportion of exports, amounting to N3,478.1 billion or 85.2 per cent. This was due to the crude oil component of this section. It was followed by Vehicles, aircraft and parts which amounted to N406.3 billion or 9.95 per cent of total exports.
Analysis of trade by region revealed that Nigeria exported most products to Europe (N1,569.21 trillion or 38.43 per cent of total exports), followed by Asia (N1,277.21 trillion or 31.28 per cent), Africa (N978.21 billion or 23.96 per cent), America (N214.12 billion or 5.24 per cent) and Oceania (N44.14 billion or 1.08 per cent).
Within Africa, goods worth N296.3 billion was exported to ECOWAS member states.
Nigeria however received less imported products in the quarter under review occasioned by the decrease in the value of Machinery and transport equipment (N1,746 trillion) which represents 35.5 per cent less than (N2,708.98) recorded in Q4 2019.
Chemicals and related products (N398.7 billion) representing a decrease of 30.5 per cent over (N573.98 billion) recorded in Q4, 2019 and crude inedible materials (N43.5 billion) representing 22.2 per cent less than ( N55.9 billion) recorded in Q4, 2019.
Nigeria’s imports, by country of origin, shows goods were imported mainly from China (N1,109.46 trillion or 26.28 per cent), Netherlands (N470.11 billion or 11.14 per cent), United States (N441.06 trillion or 10.45 per cent), India (N334.53 or 7.92 per cent) and Belgium (N257.89 or 6.11 per cent).
During the quarter, Nigeria imported goods mainly from Asia, which was valued at N1,966.5 trillion or 46.58 per cent. Other major imports originated from Europe, valued at N1,534.7 billion or 36.35 per cent while imports from America and Africa amounted to N580.2 trillion or 13.74 per cent and N118.95 trillion or 2.82 per cent respectively.
Import from Oceania stood at N21.6 billion or 0.51per cent while goods valued at N28.3 trillion originated from
ECOWAS.