Low Export Prices Weaken Nigeria’s Trade With Europe, Others-NBS

Nigeria’s trade with Europe, Africa and Asia has been weakened by low export prices in the second quarter of this year, the National Bureau of Statistics has said.

The NBS in its second quarter report on ‘Commodity Price Indices and Terms of Trade,’ attributed the fall to decreases in export prices to Europe, Africa and Asia.

NBS said export prices to Europe fell 1.25 per cent, while export prices to Africa and Asia decreased 0.96 per cent and 0.90 per cent respectively during the review period. 

During the period, export prices to America and Oceania rose 0.09 per cent and 0.07 per cent respectively.

Nigeria’s statistics body said the all commodity group terms of trade declined all through the quarter, from 101.21 in April, declining to 100.64 in May before dropping to 100.42 in June. 

A Term of Trade greater than 100 per cent means that the value of exports is increasing relative to the value of imports, and the country can afford more imports for the same value of exports.

The drop represents 0.57 per cent decrease in May compared to April and 0.22 per cent in June against the precedingmonth. 

On the average, the terms of trade decreased by 0.79 per cent in the second quarter of this year, the Bureau said.

The trade decline was driven by fall in prices of prepared foodstuffs; beverages, spirits and vinegar by 5.06 per cent; animal products by 1.44 per cent; mineral products which plunged1.09 per cent and vegetable products which decreased by 0.37 per cent.   

During the review period, Africa’s largest economy witnessed huge decline across most of the commodity groups, including a significant decrease in boilers, machinery, and chemical appliances by 11.60 per cent.

Also Footwear, headgear, umbrellas, sunshades, whips export declined 5.18 per cent, while raw hides and skins, leather, furskins slumped 5.13 per cent. 

Commodity groups that saw increased indices, however, include prepared foodstuffs; beverages, spirits, and vinegar; tobacco which rose by seven per cent and live animals; animal products which rose by 3.58 per cent.

The NBS further said all commodity group import index rose by 0.16 per cent between April and June this year. 

This was driven by an increase in the prices of footwear, headgear, umbrellas, sunshades and whips by 5.52 per cent,  while  raw hides and skins, leather, furskins rose by 5.28 per cent.

Also pearls, precious and semi-precious stones, precious metals rose by 3.71 per cent.