After five consecutive quarters of negative growth, Nigeria’s trade sector bounced out of recession in quarter two (Q2) of 2021, then continued in third-quarter (Q3), though on a moderated rate.
Following the negative growth of 2.43 percent in quarter one (Q1) 2021, the sector grew by 22.49percent in the second quarter (Q2) of 2021 and later by 11.9percent in the third quarter (Q3) of 2021.
The Trade Sector’s Contribution to GDP
The value contributed by the trade sector rose to N2.769trillion in Q3’2021 from N2.474trillion in Q2’2020 representing an increase of 12percent. The trade sector recorded an increase in the percentage value contributed to the total GDP as it contributed 14.9percent in Q3’2021 as regards 13.88percent contributed in Q3’ 2020.
Compared with the third quarter (Q3), the last trade surplus made by the trade sector was in 2019 and after which it has made trade deficit for two consecutive years of 2020 and 2021.
Nigeria’s trade balance in Q3’2021 recorded the highest trade deficit over the last 5years. The trade sector recorded a trade deficit of N3.02trillion as compared to the first deficit of N2.39trillion made in the last 5years which represented a trade deficit increase of 26.4percent as imports greatly outnumbered exports, resulting in an unfavourable trade balance.
According to the National Bureau of Statistics (NBS) foreign trade in goods statistics (Q3 2021) report, Nigeria’s total trade stood at N13.28trillion indicating an increase of 58.6percent compared to N8.37trillion in Q3’2020 having total export and import of N5.13trillion and N8.2trillion respectively.
Most Imported Items
The data reviewed showed that in the third quarter of 2021, Motor Spirit ordinary capped the items of goods imported into the country. It was worth N1.05trillion and accounted for 12.91percent of total imports. Durum wheat (Not in seeds) was 3.87percent in second place and Gas Oil was in third place, covering 2.77percent.
Compared to the same period of the previous year, Motor Spirit ordinary topped the items of goods imported into the country. It was worth N532.6billion and accounted for 9.9percent of total imports. Durum wheat (Not in seeds) was 3.93percent in second place and Used Vehicles, with diesel or semi-diesel engine, of cylinder capacity >2500cc was third place, covering 3.2percent.
Most Exported Items
According to the data reviewed, Petroleum oils and oils obtained from bituminous minerals, crude topped the items of products exported out of the country in the third quarter of 2021. It had a value of N4.03trillion and accounted for 78.48percent of all exports. Natural gas, liquefied was in the second position with 9.5percent, while floating or submersible drilling was in third place with 3.19percent.
Petroleum oils and oils obtained from bituminous minerals and crude topped the list of commodities exported out of the country when compared to the same period of the previous year. It had a value of N2.4trillion and made up 81.02percent of total exports. Natural gas, liquefied came in second with 9.28percent, followed by other petroleum gases, among others in a gaseous state which came in third with 1.87percent.
Countries by Import Flow
The majority of imported commodities originated from China, according to the inflow of imported items. China accounted for more than a quarter of Nigeria’s total imports in Q3’2021. That is, one dollar was sent to China for every four dollars spent on imports by Nigerians.
During this quarter, total goods from China were worth N2.4trillion which represents 29.95percent of total imports. Imports from India added up to a value worth N710.4billion which represented 8.71percent of the total imports while those from the US accounted for N599.1billion which denoted a 7.35percent of the total item brought into the country.
Countries by Export Flow
In the third quarter of 2021, India, on the other hand, may be described as Nigeria’s top business partner. The majority of Nigeria’s exports went to India, accounting for N758.1billion representing 14.78percent of the country’s total exports. This means that for every N100 received by Nigeria from exports, India received N14.
Exports from Spain accumulated to a value worth N627billion which represented 12.22percent of the total exports while those from Italy accounted for N446billion which denoted 8.69percent of the total item exported out of the country.