Covid-19 pushes down Nigeria’s foreign trade to N8.30 trn in Q1, 2020

The total value of Nigeria’s foreign trade showed negative balance for two straight quarters, staying at N8.304 trillion in Q1, 2020 representing 17.94 percent decrease from N10.12 trillion recorded in the previous quarter, as the coronavirus pandemic took a toll on international trade.

The National Bureau of Statistics (NBS) on Tuesday put the the import component of trade at N4.221 trillion representing 50.8 percent while the export component was N4.082 trillion indicating 49.2 percent of the total trade.

A trade deficit of N138.98billion was recorded during the quarter, NBS said, marking two consecutive quarters of negative balance of trade, as the value of imports surpassed exports.

“It is worth noting that the consecutive quarters of negative trade balances occurred against the backdrop of a global slowdown in economic activity as a result of the COVID-19 pandemic”.

“The global health crisis resulted in several countries implementing varying degrees of
restrictions with respect to international trade, travel and tourism,” the data office stated.

According to the report, even though the value of total imports reduced by 21.08 percent in Q1, 2020 compared to the value recorded in Q4, 2019, the value of imported Agricultural goods was 12.02 percent more in Q1 2020 than in Q4, 2019.

Also, the value of manufactured goods and raw materials imports decreased by 31.98 percent and 8.49 percent respectively in Q1,2020 compared to Q4 2019, while the value of solid minerals imports was 15.65 percent higher in Q1,2020.

Similarly, the value of total exports in Q1, 2020 stood at N4,082.9billion representing a 14.42 percent decrease relative to Q4,2019, but the value of Raw material, Agricultural goods exports grew by 60.17 percent and 85.36 percent in Q1,2020.

Other exports such Solid minerals, manufactured goods, crude oil exports decreased in the period by 16.3 percent, 12.72 percent and 18.86 percent respectively.

“Exports by section revealed that mineral products accounted for the largest proportion of exports, amounting to N3,478.1 billion or 85.2 percent. This was due to the crude oil component of this section. The next major section was Vehicles aircraft and parts which amounted to N406.3billion or 9.95 percent t of total exports”.