Lower Export Earnings Widens Nigeria’s Trade Deficit By N2.38trn

Due to lower exports and higher imports compared to 2019, Nigeria’s trade balance recorded a deficit of N2.38trn during the third quarter of this year, figures released by the National Bureau of Statistics have revealed.

The National Bureau of Statistics said in its Merchandise Trade Report for the third quarter that the N2.38trn represents the widest merchandise trade deficit since 2017.

The Report stated that during the third quarter of this year, the value of Nigeria’s merchandise trade stood at N8.37trn.

The N8.37trn represents an increase of 34.15 per cent compared to the second quarter of this year, but a decline of 8.85 per cent compared to the third quarter of last year.

The NBS Report stated that the import component was valued at N5.38trn representing an increase of 33.77 per cent, against the level recorded in the second quarter of this year and 38.02 per cent compared to the third quarter of last year.

The value of imports in the third quarter of this year represented the highest level for any quarter since 2017.

The Report said that the export component accounted for N2.99trn of the total trade, indicating an increase of 34.85 per cent compared to the value recorded in the second quarter, 2020.

Aside from the second quarter of this year, the value of exports in the third quarter represented the lowest level of any quarter since 2017.

It said, “Due to lower exports and higher imports compared to 2019, the trade balance recorded a deficit of N2.38trn during the third quarter.

“This also represents the widest merchandise trade deficit since 2017. When compared to the deficit of N1.8trn recorded in Q2, the Q3 deficit rose by 32.45 per cent.”

The Report said the predominant export remained crude oil, which was valued at N2.42trn, representing 81.02 per cent of total exports while non-crude oil was valued at N568.2bn, or 18.98 per cent of total export during the review period.

Total imports amounted to N5.38trn in the third quarter of this year compared to N4.02trn recorded in the second quarter. This indicated an increase of 33.77 per cent, and an increase of 38.02 per cent, when compared with the third quarter, 2019.

During the quarter, Nigeria imported goods mainly from Asia, valued at N2.58trn.

Other major imports originated from Europe, valued at N1.8trn while imports from America and Africa amounted to N746.4bn and N175.4bn respectively.

Import from Oceania stood at N532.4bn while goods valued at N12.5bn originated from ECOWAS.

Nigeria’s imports, by country of origin, showed that goods were imported mainly from China (N1.64trn or 30.51 per cent), United States (N482.3bn or 8.96 per cent), The Netherlands (N443.5bn or 8.24 per cent) and India (N354.1bn or 6.58 per cent) respectively.