As industry players mull steps to strengthen bilateral trade relationship between Nigeria and other countries, the director of Indonesian Trade Promotion Centre (ITPC), Hendro Jonathan, has disclosed that Nigeria’s trade balance surplus with Indonesia is currently at $459 million, which he describes as a positive growth sign for the country.
Jonathan made the disclosure during a media briefing in Lagos to announce the Equipment and Manufacturing West Africa (EMWA) 2021 exhibition, with the theme ‘Industrialisation and Innovation; Revitalising the industrial Sector to Unlock Nigeria’s Potential.’
A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports. A trade surplus occurs when the result of the above calculation is positive.
He noted that the total volume of trade between Nigeria and Indonesia stands at $2 billion, adding that it is still growing.
He also explained that in the bilateral trade relationship with Nigeria, the conversation has always focused on the value of trade, not volume, adding that in terms of trade volume, it is positive for Nigeria, because the export from Nigeria is higher when compared with the imports from Indonesia.
For Indonesia to be at par with Nigeria in terms of trade surplus there is need for the country to import more commodities to Nigeria to the tune of $459 million, he intoned.
Read Also: PH Chamber of Commerce to explore trade links in the Caribbean
“Nigeria sells more to Indonesia when we compare it. Therefore, the trade balance is more positive on the Nigeria side than Indonesia. However, we are increasing our import gradually and hopes to be even with Nigeria. We import crude oil, used cartons, rubber latex from Nigeria and export pharmaceutical products, palm oil, paper products, printing materials, vehicle tyres and textile to Nigeria,” he said.
Earlier in his remarks, Joseph Oru, managing director, Zenith Exhibition, stated that the exhibition would take place from April 27-29 at Landmark Event Centre, Victoria Island, Lagos, adding that the expo would serve as a platform for businesses involved in the industrial and manufacturing value chains to reconnect once again, especially after the unprecedented times experienced in 2020.
He also hinted that the 3-day expo is unique as it runs simultaneously with conference sessions and creates an opportunity for free trainings, access to finance and networking across the industrial sector aimed at providing solutions for the industry.
According to Oru, the trade and services industries account for a large proportion of economic activities, boosting tourism, activating knowledge transfer, enhancing partnerships and collaborations.
They also contribute to the Gross Domestic Product (GDP) of a country and create employment opportunities, he said.
“We are confident that this expo presents tremendous opportunities for Nigerian businesses and it will go a long way to animate trade and commerce in Nigeria. With extensive industrialisation plan of the present administration, we decided to host the industry and hope that this expo will serve as a catalyst to economic recovery,” Oru adds.
