Nigerians defy FX pressure in N387.5bn imported Chinese goods

The inability of various government policies to encourage local manufacturers with a competitive edge over their foreign counterparts has continued to reflect on the level of foreign exchange (forex) outflows due to imports.

As rising demand for the dollar pressured naira exchange rate in the first-quarter (Q1) of 2015, Nigerians spent a whooping N387.5 billion same period importing Chinese products.

The recent foreign trade statistics of the National Bureau of Statistics (NBS) revealed that the value of Nigeria’s total imports stood at N1.645 trillion at the end of Q1 2015, though a decline of about N385.8 billion or 19 percent from N2.031 trillion recorded in the preceding quarter.

While China ranked first among the top 10 countries in Nigeria’s import origin, United States of America followed as goods that originated from that country to Nigeria were valued N133.768 billion in the three month period.

Other countries and values of goods Nigeria imported from them are Belgium (N118.740bn); Netherlands (N108.696bn); India (N96.605bn); United Kingdom (N79.913bn); Italy (N74.776bn); Germany (N54.664bn); Thailand (N46.325bn), and Brazil (N42.522bn).

According to the NBS, the structure of Nigeria’s imports classified by section revealed imports of “boilers, machinery and appliances” dominated, accounting for 27.7 percent of the total value in Q1 2015.

Other commodities that contributed considerably to the value in the review period were “mineral products” (13.1%), “base metals and articles of base metals” (10.2%), “vehicles, aircraft and associated parts” (9.6%), and “products of the chemical and allied industries” (8.7%).

Also in Q1 2015, Nigeria’s import of Premium Motor Spirit valued at N181.253 billion, followed by other wheat and meslin valued at N50.279 billion and semi-milled or wholly milled rice more than 5kg or bulk (investors with rice milling capability) valued at N33.439 billion.

Details also show: imported motorcycles and cycles, imported CKD by established manufacturers (above 50cc and less or equal to 250cc) valued at N29.883 billion, and cane sugar worth N24.744 billion.

Also imported in the Q1’15 period are: Other vessels, including warships and lifeboats – rowing boats valued at N21.700 billion; electric conductors for a voltage exceeding 1000 Volts (N17.953bn); herbicides, anti-sprouting products and plant-growth regulators (N17.877bn); NPAfrozen mackerel (Scomber Scombrus, Schomber austalasicus, Scomber japonicus) (N17.868bn); other appliances such as taps, cocks and valves (N14.847bn); automatic data processing machines equal of less than 5kg, consisting of CPU, keyboard and display, CKD (N13.353bn); tubes and hollow profiles, used for oil or gas pipelines seamless, stainless steel (N12.845bn); milk an cream in powder above 1.5 percent fat not contain sweetening matter specially made for infants (N12.737bn); poles with or without light fittings of a height not exceeding 8 metres (N12.399bn); parts of machines and mechanical appliances having individual functions, others (N12.072bn).