The foreign trade in goods statistics released by the National Bureau of Statistics (NBS) shows the total value of Nigeria’s merchandise trade stood at N9, 757.87 billion representing a 6.99 percent increase over the value recorded in the last three months (Q4) of 2020.
This is 14.13 percent compared to the first three months (Q1) of 2020.
The rise in total trade during the quarter was driven by an increase in imports (up 15.6% quarter on quarter to N6.9 trillion) while exports declined. Exports were down by 9 percent quarter on quarter to N2.9 trillion in Q1 2021.
The current total value of imports is the highest recorded quarterly in a decade. The export component of this trade stood at N2, 907.21 billion, representing 29.79 percent of the total trade while import was valued at N6, 850 billion representing 70.21 percent.
Consequently, the surge in imports compared with the decline in exports resulted in the sixth consecutive quarter of trade deficit in Q1 2021 (N3.9trn) and the highest trade deficit in a quarter since 2011.
The higher level of imports over exports resulted in a trade deficit (in goods) of -N3, 943.45 billion.
The value of crude oil export stood at N1, 929.83 billion representing 66.38 percent of the total export recorded in Q1, 2021, while non-crude oil export accounted for 33.62 percent of the total export.
Analysis of imports by country of origin showed that the majority of the goods imported during the quarter originated from China, valued at N2, 009.94 billion or 29.34 percent. This was followed by the Netherlands (N726.09 billion or 10.60 %), the United States (N608.12 or 8.88%) and others.
Exports by section revealed that Nigeria exported mainly mineral products, valued at N2, 486.1 billion, or 85.52 percent of the total export value.
This was followed by vehicles, aircraft, and parts (N180.5 billion or 6.21%) and vegetable products (N82.3billion or 2.83%). In terms of regional trade, Nigeria exported most products to Asia (N1, 132.55 billion), Europe (N997.79 billion), America (N316.62 billion) and Africa (N449.84 billion).
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During the quarter goods worth N282.2 billion were exported to the Economic of West African States (ECOWAS) countries.
By country, most goods were exported to India (N488.1 billion or 16.8%), Spain (N287.2billion or 9.9%), China (N190.1 billion or 6.5 %) and the Netherlands (N160.billion or 5.5%).
On a sectoral basis, major sectors that contributed to Nigeria’s current deficit position include:
Agricultural goods sector
The total value of trade in agricultural goods in Q1 2021 stood at N757.4 billion. The export component of this trade totaled N127.2 billion while the import was valued at N630.2 billion. Top exported agricultural produces were sesamum seeds exported mainly to China (valued at N23.1 billion), Japan (N8.3billion) and Turkey (N3billion).
This was followed by well-fermented cocoa beans exported to the Netherlands (N9.2billion), Malaysia (N5.5billion) and the United States (N3.2 billion).
Other major exports under this sector include cashew nuts in shell exported to Vietnam and India worth, N5.3billion N5.1 billion respectively.
However, there was the importation of durum wheat (not in seed) worth N66.97 billion from Lithuania. Durum wheat also came from Latvia (N41.51 billion), Canada (N41.31billion) et cetera.
Edible mixtures or preparation of animal, worth N82.86billion, was imported from Denmark. Herrings (Clupea haregus, Clupea pallasii) were imported from Russia (N15.8billion) and Netherlands (N14billion).
Solid minerals sector
The total value of trade in solid mineral goods in Q1 2021 stood at N49.5billion.
The export component of this trade stood at N9.3 billion while the import was valued at N40.2billion. The leading exported mineral products were other cement exported to the Niger Republic and Togo worth N2.7billion and N1.3billion respectively.
Lead ores and concentrates worth N2.9 billion were exported to China, as were zinc ores and concentrates worth N0.8billion.
In terms of imports, plasters of calcined gypsum sulphate were imported from Turkey and Egypt, worth N8.9billion and N3.5 billion.
Gypsum anhydrite was also imported from Spain and Turkey, valued at N5.8billion and N3.4billion respectively. Others were Crude salt worth N4.5billion imported from Brazil etc.
Manufactured goods sector
The value of manufactured goods trade in Q1 2021 stood at N4, 782.7billion representing 49.01 percent of total trade.
Out of this, the export component accounted for N250.4billion while the import the component was valued at N4, 532.4billion.
The products that drove up manufactured products were helicopters of unladen weight exceeding 2000kg which were exported to Ghana, at a value of N71.1billion.
Vessels and other floating structures for breaking up were exported to the United Kingdom and Cameroon, worth N38.9billion and N17.6billion.
Other products were floating or submersible drilling platforms exported to Equatorial Guinea, at a value of N39.5billion, and storage units worth N31.3billion exported to Ghana.
In terms of manufactured imports, other antibiotics were mainly imported from the Netherlands and India worth N329.2billion and N43.3billion.
Used vehicles, worth N140.2billion, were imported from the United States. There were motorcycles worth N30.98billion and N86.67 billion from China and India, and machines for the reception of voice, worth N75.1 billion, and N21.8billion from China and Hong-Kong. Other imports under this category were parts of Machinery for working rubber or plastics worth N67.8billion imported from India.
The raw material goods sector
The value of total trade in raw material stood at N711.8billion, accounting for 7.3 percent of total trade. The import component was valued at N669.2billion while the export component stood at N42.7billion.
Urea, whether or not in aqueous solution, worth N16.8 billion was exported to Brazil, leather further prepared after tanning was exported to Spain and Italy, valued at N6.6billion and N1.0billion respectively.
Cotton, not carded or combed, worth N1.9 billion was also exported to Pakistan.
In terms of imports, cane sugar worth N88.9billion was imported from Brazil, mixtures of odoriferous substance valued at N15.5 billion and N8.0 billion were imported from Ireland and Swaziland, whole milk preparation worth N18.4billion and N7.8 billion were imported from Ireland and Malaysia during the period under review.
Trade by mode of transport
The majority of commodities exported out of Nigeria were transported by water.
This was reflected in the value of exports by water in Q1 2021. Water transport accounted for N2, 822.5billion or 97.09 percent of total exports.
Air transport contributed N75.9billion or 2.61 percent, road transport was valued at N3.7billion or 0.13 percent while other transport was valued at N5.0 billion or 0.17 percent.
Similarly for imports, most goods brought into the country arrived via water transportation means.
Water transport accounted for N6, 056.6billion or 88.4 percent of the value of total imports. Other modes of transport were air and road, responsible for goods valued at N765.3billion or 11.17 percent and N28.8billion or 0.4 percent respectively.
Trade by custom ports and post
In Q1 2021, the bulk of export transactions were conducted through Apapa port, with goods valued at N2, 584.7billion or 88.91 percent of total exports.
This was followed by Port Harcourt which recorded N167.29billion or 5.75 percent while Muhammed Murtala International recorded N75.4 billion or 2.5 percent.
In terms of imports, Apapa Port also recorded the highest transactions valued at N2, 927.1billion or 42.73 percent of total imports.
This was followed by Tin Can Island N1, 229.43billion or 17.95 percent, Port Harcourt N691.7billion or 10.10 percent, while Muhammed Murtala Cargo recorded N625.7billion or 9.13 percent of total imports.
Overall, the increase in total trade is broadly reflective of the gradual recovery in the global economy following the removal of the movement restrictions that characterised the second to fourth quarters of 2020 and the widespread rollout of vaccines across the globe which has hastened recovery from historic economic blows caused by the pandemic.
These have led to a rebound in the global economy and improved growth projections by multilateral institutions. Analysis of the data revealed that the rise in imports were driven by increased patronage of manufactured goods from foreign sources (up 18% quarter on quarter and 70% year on year to N4.5trn).
On the other hand, the decline in exports was on the back of lower earnings from crude oil exports (down 23% q/q and 34% y/y to N1.9trn) on the back of lower production levels due to compliance with the Organisation of Petroleum Exporting Countries (OPEC) production cuts.
Also, the emergence of the second and third waves of the pandemic which resulted in renewed lockdown measures undermined recovery.
Although trade activities continue to recover, nonetheless, the recovery is not broad-based. The nation’s compliance with OPEC’s production cuts may continue to drag oil receipts despite rising crude oil prices.
As indicated above, improvement in other products segments for exports were highlighted; however, exports remain skewed towards crude oil exports.
