Raw materials, spare parts, food drive Nigeria’s import bill

Raw materials for the nation’s manufacturing and construction sectors, as well as automotive spare parts, among others, are the major commodities which drive Nigeria’s import business, according to BusinessDay findings.

Also, Fast Moving Consumer Goods (FMCG) including electronics for household use, according to our findings and the second quarter report of the National Bureau of statistics, (NBS) are part of the drivers which contribute about 90 percent of the nation’s total import value on a quarterly basis.

The NBS report puts the total value of imports for the second quarter of this year at about N4.37 trillion.

According to the report, the structure of Nigeria’s import trade is being dominated by commodities like mineral products; products for chemical and allied industries; vehicles, aircraft spare parts. Other commodities which contributed significantly to the value of imports recorded in the country include industrial supplies; base metals and articles of base metals; food and beverage; machinery and appliances, including capital goods and spare parts.

The NBS report further reveals that Nigerians also consumed goods which are largely imported from Asia, Europe, the US and Africa, especially ECOWAS countries. The notable countries where Nigeria’s imports frequently originate from include China, the United States, India, Belgium and the Netherlands.

“Goods imported into the country are mainly dominated by household consumables and industrial raw materials such as electronics, cars, processed food items, chemicals, machinery, tiles and paper, among others, confirmed Maersk Shipping Line trade report, one of Nigeria’s leading shipping lines which controls close to 38 percent of the nation’s import market.

Jan Thorhauge, managing director of Maersk Nigeria Limited listed other cargoes that are imported into the country as including industrial equipment, automobile spare parts, frozen foods and manufactured goods.  Thorhauge added that these commodities are mostly packaged in container boxes for safe and ease of delivery while remaining volume come in bulk.

Muda Yusuf, director-general of the Lagos Chamber of Commerce Industry (LCCI), responding to questions from our reporter, confirmed that the nation’s manufacturing sector depends largely on the importation of raw materials.

On why the nation’s importation is dominated by industrial raw materials, Tony Anakebe, a maritime analyst, attributed this to the failure of Nigeria’s manufacturing sector to develop its agro-allied industries to locally process raw materials that can service the nation’s industrial needs.

According to him the insufficiency of locally processed raw materials is compelling Nigerian manufacturers to rely heavily on importation.

He blamed lack of requisite skills for value addition, shortage of critical infrastructure and access to capital for the inability of Nigerians to add value and make locally processed raw materials readily available.

AMAKA ANAGOR-EWUZIE