Trade balance hits N6.5 Trillion in Q2 2024 – Shettima

…with exports rising over 200% Year-on-Year

Kashim Shettima, Vice President of the Federal Republic of Nigeria has said that ongoing efforts to strengthen the country’s trade sector has shown promising results, as the country recorded a trade balance of N6.5 trillion in the second quarter of 2024.

He stated this at the 3rd National Conference on Non-oil Export organized by the Nigerian Export Promotion Council (NEPC) held on Tuesday in Abuja.

The vice president, who was represented by Ibrahim Hadejia, the Deputy Chief of Staff to the President, explained that the recently implemented Trade Policy aims to increase the non-oil sector’s contribution to GDP and enhance Nigeria’s position in global trade.

He added that in Q2 2024, exports accounted for 60.89 percent of total external trade, reaching N19.42 trillion, a 1.31 percent rise from Q1’s N19.17 trillion and a 201.76 percent increase over the N6.44 trillion recorded in Q2 2023.

“For Nigeria to improve its balance of trade, there is a need to ensure the effective implementation of the country’s Trade Policy. With the Trade Policy, we intend to substantially increase the contribution of the trade sector to GDP and increase Nigeria’s share of global trade.

“It is encouraging to state here that the country’s total external trade recorded a favorable trade balance of N6.5 trillion in the second quarter of the year 2024. Of this sum, exports accounted for 60.89 percent of total trade which amounted to N19.42 trillion, representing a marginal increase of 1.31 percent compared to N19.17 trillion in Q1 2024, and a 201.76 percent rise over N6.44 trillion in Q2 2023,”

Shettima emphasized the critical role of trade in driving Nigeria’s economic growth and supporting its citizens’ prosperity. He outlined the administration’s commitment to diversifying the economy and reducing its dependence on oil.

He also reiterated the administration’s commitment to streamlining regulatory frameworks to improve the ease of doing business for Micro, Small, and Medium Enterprises (MSMEs), acknowledging that removing obstacles to trade is key for empowering small businesses and strengthening Nigeria’s position in the global market.

Read also: Nigeria records N424bn trade deficit in agric sector

With global trade projected to hit $32 trillion by year-end, the vice president challenged Nigeria and Africa to seize these vast economic opportunities, especially through the African Continental Free Trade Agreement (AfCFTA), which offers access to a 1.4 billion market.

However, he cautioned that Nigeria must avoid becoming a “dumping ground” for foreign goods and called for collaboration between the government and the Organized Private Sector (OPS) to help local businesses maximize the AfCFTA’s benefits.

Shettima outlined the recent initiatives to bolster food production and support MSMEs, including tariff cuts on essential imports like rice, maize, and medical supplies, distribution of fertilizers, and provision of one million Naira loans to 75,000 small business owners.

According to him, Nigeria’s leadership in various international trade agreements, including the World Trade Organization (WTO) and the African Growth and Opportunity Act (AGOA), remains a priority, with over 31 bilateral investment agreements already in place, Shettima assured that Nigeria will continue dialogues to strengthen its trade and investment ties.

“I wish to use this opportunity to reiterate that as a signatory to several trade agreements, Nigeria will continue to dialogue on improving and strengthening trade and investment opportunities as enshrined in the numerous bilateral and multilateral trade agreements between Nigeria and other countries.

“ I am aware that Nigeria has bilateral investment agreements with about 31 countries, aside been a member of the World Trade Organisation (WTO), General Agreement on Tariffs and Trade (GATT), AfCFTA, African Growth and Opportunity Act (AGOA), and indeed a founding member of the ECOWAS,”

He called for action form both public and private sectors to address challenges in maximizing Nigeria’s trade potential

“As we strive to develop a flourishing domestic market that is competitive and fully integrated into the global economy, this administration remains resolute in its quest to position the country as a strong economic force by formulating policies and adopting measures that will promote and increase patronage of Made-in-Nigeria products, enhance market access, increase the competitiveness of the country’s product in the international market and thereby boost job creation and reduce unemployment.

“This administration will not relent on its on-going fiscal reforms. Therefore, we intend to rigorously pursue the economic policies we have put in place to reignite economic growth, social welfare improvements and thereby improve the living standards of Nigerians,” Shettima stated

On her part Ngozi Okonjo-Iweala Director-General of the World Trade Organization (WTO), urges Nigeria to boost non-oil exports for sustainable economic growth

Okonjo-Iweala underscored the need to diversify Nigeria’s exports beyond oil, highlighting the country’s vast, untapped potential in non-oil sectors.

“Nigeria has immense potential in diversifying its export base, particularly through non-oil exports, Leveraging this potential is essential not only for Nigeria’s economy but for fostering greater economic resilience and opportunity across the continent and beyond. We must continue the effort to push our growth beyond oil and gas.

“Non-oil diversification is essential to Nigeria’s growth, and the WTO stands ready to help in whichever way we can,” she said

Okonjo-Iweala commended the NEPC’s efforts in promoting non-oil exports, noting that the council has been instrumental in supporting Nigerian businesses, including many small and medium enterprises (SMEs).

She emphasized the NEPC’s focus on empowering women entrepreneurs, particularly in agriculture, textiles, and services, where Nigerian women are increasingly leading as innovators and business owners. She emphasized the WTO’s shared commitment to ensuring trade benefits for all, especially in developing economies.

“Women play a critical role in driving inclusive growth, at the WTO, we share this commitment to enabling all people, including women, to benefit from international trade. Our work is focused on ensuring that trade remains open, fair and beneficial for all, especially for developing economies,”