BusinessDay

Weak oil sales push Nigeria’s foreign trade lower

Nigeria’s foreign trade transactions fell to N11.59 trillion in the third quarter of 2022 from N12.84 trillion in the previous quarter owing largely to low oil sales, new data released by the National Bureau of Statistics (NBS) have shown.

When compared to the corresponding period in 2021, the country’s foreign trade in Q3 2022 is 10.7 percent higher than the N10.47 trillion recorded during the same period last year.

Total exports stood at N5.93 trillion in Q3 2022, indicating a decline of 19.89 percent when compared to N7.4 trillion in Q2. However, it increased by 15.52 percent when compared with the N5.13 trillion recorded in Q3 2021.

“In the third quarter of 2022, total trade stood at N11,597.93 billion; this was lower than the value recorded in the second quarter of 2022 (N12,841.54 billion) but was higher than the value recorded in the corresponding period of 2021, which stood at N10,472.42 billion,” the NBS said.

It said total exports stood at N5.93 trillion, of which re-exports were N25.04 billion, while total imports stood at N5.66 trillion.

“In the quarter under review, total exports declined by 19.89 percent when compared to the second quarter of 2022 (N7,406.53 billion) but it increased by 15.52 percent of the value recorded in the third quarter of 2021 (N5,136.56billion),” it said.

Low crude oil sales weakened Nigeria’s foreign trade in Q3. According to the NBS data, crude oil exports stood at N4.66 trillion, indicating a decrease of 21.15 percent when compared to the N5.9 trillion recorded in Q2. It however increased by 15.70 percent compared to N4.02 trillion in Q3 2021.

The value of agricultural goods exports stood at N84.21 billion in Q3, representing a 40.6 percent decrease when compared to the N141.77 billion recorded in Q2 2022, and a 6.03 percent increase when compared to N79.41 billion in Q3 2021.

Read also: High input cost drags Neimeth to N109m loss

Raw materials export was valued at N186.02 billion in Q3, as against N371.10 billion and N150.5 billion in Q2 2022 and Q3 2021 respectively.

Solid minerals export worth N22.47 billion was recorded in Q3, indicating a 7.07 percent increase over the N20.99 billion recorded in Q2. This also increased by 22.69 percent from N18.31 billion in the corresponding quarter in 2021.

The export of energy goods was worth N13.84 billion in Q3, amounting to a 36.2 percent decrease when compared to N21.70 billion recorded in Q2 2022. The value dropped by 28.2 percent when compared with N19.28 billion in Q3 2021.

The export of manufactured goods was valued at N131.46 billion in Q3, representing a 9.98 percent increase when compared to N119.53 billion recorded in Q2 2022. The value decreased by 53.87 percent when compared to N284.9 billion in Q3 2021.

The export of other oil products was valued at N837.33 billion in Q3, an increase of 1.68 percent when compared to N823.48 billion recorded in Q2 2022 but grew by 50.10 percent when compared to N557.8 billion in the same period of 2021.

The NBS said: “The top five export destinations in the third quarter of 2022 were Spain with a share of 14.72 percent, followed by India with 10.44 percent, France with 7.25 percent, the Netherlands and Indonesia with 7.09 percent and 7.00 percent each respectively.

“Total imports increased by 4.22 percent in the third quarter of 2022 when compared to N5.43 trillion recorded in the second quarter of 2022 and also grew by 6.16 percent when compared to N5.33 trillion recorded in the corresponding quarter of 2021.”

China, The Netherlands, India, Belgium, and the United States of America were the top five countries of origin of imports to Nigeria in Q3.

The NBS said: “The commodities with the largest values among the top imported products were motor spirit ordinary with N1.2 trillion, gas oil’ (N261.6 billion) and ‘durum wheat (not in seeds) (N252.62 billion).

“In the quarter under review, the top five re-export destinations were Cote d’Ivoire, Ghana, United Kingdom, China, and The Netherlands while the most re-exported commodity were ‘vessels and other floating structures for breaking up’ with N8.04 trillion. This was followed by ‘floating or submersible drilling or production platforms’ valued at N4.96 trillion, and ‘aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg’ amounting to N3.43 billion.”