Higher Imports Push Nigeria’s Foreign Trade To N8.6 Trn In Q2 2019
Imports was 46.6 percent while exports accounted for 53.4 percent or N4,596.2 billion for the second quarter.
The value of imports represent 8.20 percent increase over the value in Q1, 2019 and also 65.21 percent over the corresponding quarter of 2018.
For the quarter however, the value of non-oil exports rose by 4.1 percent in Q2 2019 relative to Q2 2018, and by almost 5 percent at half year 2019 relative to the same period in 2018
Though the value of total trade in second quarter 2019 was higher by 4.4 percent over first quarter 2019, and 24.2 percent higher than second quarter 2018, the trade balance however remained favourable, standing at N588.8billion.
The trade balance according to the figure contained in the latest report of the Nigeria Bureau of Statistics (NBS) released Thursday, shows that when combined with the Q1 2019 performance, however, the trade balance declined by 63.14 percent relative to the same period in 2018, while the value of total trade was 15.43% higher at half year 2019 than for the same period in 2018.
NBS data shows that the performance was largely as a result of stronger growth in the value of imports far outpacing growth in the value of exports which rose only marginally.
At N4,596.2 billion, the value of total exports has remained relatively stable since 2018, but the value of imports has maintained its steady rise, hence the decline in trade balance since mid-2018.
NBS attributed the slower growth in exports to a combination of slower growth in the value of crude oil exports occurring at the same time as a decline in the value of non-crude oil exports.
In Q2, 2019 crude oil remained the major export, accounting for 85.6 percent or N3,934.6 billion of total exports while non-crude oil exports contributed 14.37 percent or N661.6billion.
On a year on year basis, the value of crude oil exports was 4.4 percent higher in Q2 2019 than in Q2 2018, and 16.52 percent higher than in Q1 2019.
At half year 2019, the value of crude oil exports declined only slightly by -0.5 percent relative to half year 2018 while the value of non-crude oil exports declined by almost 3 percent as at half year 2019, by 10 percent relative to Q2 2018 and by 43 percent relative to Q1 2019.
Components of the Nigeria’s import value are machinery and transport equipment valued at N1, 674.4 billion, or 41.78 percent, mineral fuels valued at N909.7 billion or 22.79 percent of total imports and Chemical & related products valued at N428.2 billion or 10.7 percent.
During the quarter, imported goods came mainly from Asia with value at N1,777.8 billion or 44.36 percent of total imports and trailed by imports from Europe valued at N1,422.9 billion or 35.51 percent, Americas N544.3billion or 13.58 percent, Africa N241.7 billion or 6.03 percent and Oceania N20.7billion or 0.52 percent.
Within Africa, import trade with ECOWAS was valued at N146.1 billion, or 60 percent of total imports from Africa.
By country of origin, Chinese goods dominated Nigeria imported goods with value at N1,020.6 billion or 25.47 percent of total imports, and N422.1 billion worth of goods or 10.53 percent from the United States. Other major trading partners were the Netherlands, India and Belgium which respectively accounted for imports valued at N374.1 billion (or 9.33 percent), N299.8 billion (or 7.48 percent) and N248.9 billion (or 6.21 percent).
For the second quarter, the value of total exports stood at N4,596.2 indicating an increase of 1.34 percent over Q1, 2019, and 2.06 percent over Q2, 2018.
Crude oil exports contributed N3,934.59 billion (or 85.6 percent) while Non-crude oil export stood at N661.6 billion.
Components are mineral products which at N4,385.3 billion or 95.4 percent, accounted for the bulk of the total value of exports. This was followed by Vehicles worth N68.6 billion (or 1.49%) and Vegetable products worth N49.8billion (or 1.1%).
Nigeria exported mostly to Europe (N2,105.4 billion or 45.8%), followed by Asia (N1,270.8billion or 27.6%), America (N638.5billion or 13.9%), Africa (N508.95billion or 11%) and Oceania (N72.5billion or 1.58%).
Within the continent of Africa, ECOWAS accounted for N200.3billion (or about 40% of total Africa exports).
By country of destination, Nigeria’s exports went mainly to India, Spain, the Netherlands, the United States and France valued at N793.9 billion (or 17.27%), N550.1 billion (or 11.97%), N478.32billion (or 10.41%), N353.17 billion (or 7.68%) and N279.9 billion (or 6.09%) respectively.
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