Nigeria recorded a trade surplus of N6.95 trillion in Q2 of 2024, reflecting the country’s strong export performance amid a slight decline in overall merchandise trade.
This surplus showed a 6.60 per cent increase from Q1, which recorded a surplus of N6.52 trillion. This is according to the National Bureau of Statistics (NBS) Foreign Trade in Goods report released yesterday.
Analysis of the report showed that the country’s total merchandise trade stood at N31.9 trillion in Q2 2024 representing a decrease of 3.76 per cent over the value recorded in the preceding quarter and a rise of 150.39 per cent compared to the value recorded in the corresponding period of 2023. In the quarter under review, exports accounted for 60.89 per cent of total trade with a value of N19.5 trillion, showing a marginal increase of 1.31 per cent compared to the value recorded in Q1 2024 (N19.2 trillion) and a 201.76 per cent rise over the value recorded in Q2 2023 (N6.5 trillion).
It is important to note that the volatile foreign exchange rate played a key part in this depreciation as data sourced from the Nigerian Customs Service (NCS) showed that the rates changed 42 times in Q2 2024, which directly spiked uncertainty, low importation and a price spiral. At N1602/1$ currently, the going rate is over a 100 per cent higher than the recommended N800/$ by the Taiwo Oyedele-led Presidential Committee on Fiscal Policy and Tax Reforms.
Findings showed that the revenue-driven customs stuck to the volatile rate calls by leading economists and advocacy groups at the detriment of the economy and market stability
The consequences were dire for import-dependent industries during the period. Importers, who were on the first line of the consequences, said about 40 operators lost their business footings at the ports as cargo traffic reduced significantly. Even those in operations were not at ease either as they fear more will be thrown out of their jobs if the trend continues.
Further analysis of the report showed that Nigeria’s exports trade continued to be dominated by crude oil exports, in Q2 of 2024 at N14.5 trillion representing 74.98 per cent of total exports while the value of non-crude oil exports stood at N4.9 trillion accounting for 25.02 per cent of total export; of which non-oil products contributed N1.9 trillion or 10.01 per cent of total exports.
The value of total imports stood at N12.5 trillion in Q2 2024, representing a decrease of 10.71 per cent compared with Q1 2024 (N13.9 trillion) and a rise of 97.93 per cent from the value recorded in the same quarter of 2023 (N6.4 trillion).
In the quarter under review, China remained Nigeria’s highest trading partner on the import side, followed by Belgium, India, USA and The Netherlands. The most traded commodities were motor spirit ordinary, gas oil, durum wheat, butanes and cane sugar meant for sugar refinery.
The value of agricultural goods imported in Q2 2024 was N893.2 billion, reflecting a decrease of 2.96 per cent when compared to N920.5 billion in Q1 2024 and an increase of 96.38 per cent compared to N454.8 billion in Q2 2023.
In the same quarter, raw material imports were valued at N1.5 trillion, representing a 0.96 per cent increase from N1.46 trillion in Q1 2024 and a significant rise of 160.92 per cent from N567.8 billion in Q2 2023.
Solid mineral imports were valued at N96.8 billion, a 35.61 per cent increase from N71.4 billion in Q1 2024 and a 206.08 per cent increase from N31.6 billion in Q2 2023.
