Nigeria’s Terms of Trade (ToT), for all commodities, recorded a decline of 0.22 percentage points in the fourth quarter of 2023.
TOT measures the value of the country’s trade with other countries where a decline indicates higher value of imports against exports.
The Q4’23 performance indicates a higher rate of decline compared to the 0.03 percent recorded in the third quarter.
Data from the National Bureau of Statistics (NBS) on Commodity Prices Indices and Terms of Trade showed that the ToT has been on a negative trend since Q3’22 when it recorded a fall of 0.50 percentage points from an increase of 0.11 percentage points in Q2’22.
According to the NBS, the All-Commodity Group Import Index for Q4, 2023 on average increased by 0.79 per cent points. It said the increase can be attributed to the changes in import prices mainly in the price of Mineral products, Prepared foodstuffs; beverages, spirits and vinegar; tobacco, Textiles and textile articles and Papermaking material; paper and paperboard articles.
On the other hand, it said the All-Commodity Group Export Price Index increased on average by 0.57 per cent points in Q4, 2023. An increase majorly attributed to changes in the prices of Prepared foodstuffs; beverages, spirits and vinegar; tobacco. Others are, Live animals; animal products, Vehicles, aircraft, and parts thereof, as well as Products of the chemical and allied industries.
It noted that the major export destinations of Nigeria in Q4, 2023 were The Netherlands, India, Spain, Canada, and France.