Nigeria’s total foreign trade (value of exports and imports) rose to N9.18 trillion in the third quarter (Q3) of 2019, up from N8.60 trillion recorded in the previous quarter (Q2).
According to the latest foreign trade report released by the National Bureau of Statistics (NBS), the total foreign trade increased by 6.67% within the quarter, a rise of N582.3 billion.
Nigeria’s value of the export rose significantly more than import. According to the foreign trade report, export component stood at N5.28 trillion, a 15.02% increase when compared to N4.59 trillion in Q2 2019.
- On the other hand, Nigeria’s total import in Q3 was valued at N3.89 trillion, a 2.70% drop against N4.01 trillion in Q2 2019.
- According to the NBS report, the increase in exports coupled with the decrease in imports led to a positive trade balance of N1.38 trillion during the period under review.
- Trade balance rose by 135.3% when compared to N590.4 billion recorded in Q2 2019.
- A quick breakdown shows that Nigeria’s non-oil export rose faster than oil export within the period under review.
- Specifically, non-oil export rose by 374.5% from N227.6 billion in Q2 to N1.08 trillion in Q3 2019.
Export gains momentum as Agric. sector down again
Nigeria’s total export trade rose significantly in Q3 2019, the biggest in the year. According to the report, the value of total exports in Q3 2019 increased by 15.02% compared to the level recorded (8.97%) increase in Q3, 2018.
- The value of total exports in Q3, 2019 stood at N5.28 trillion.
- Crude oil export accounted for N3.74 trillion or 70.84% of total exports during the period under period. On the other hand, non-crude oil export grew significantly, valued at N1.54 trillion or 29.13% growth.
- Further breakdown showed that the value of agricultural exports decreased by 42.69% in Q3 2019 relative to Q2.
- Meanwhile, the value of manufactured goods exports increased by 839.44% in Q3, 2019 when compared with the value recorded in Q2. Specifically, the export of manufactured goods accounted for N996.8 billion.
- The notable increase recorded in the export of manufactured goods was due to the re-exports of high-value cable sheaths of iron, as well as submersible drilling platform, Vessels and other floating structures.
- Analysis of trade by region disclosed that Nigeria exported most products to Europe (N1.86 trillion or 35%), followed by Africa (N1.45 trillion or 27.6%), Asia (N1.36 trillion or 25.74%), America (N598.3billion or 11.3%) and Oceania (N8.1 billion or 0.1%).
- Within Africa, exports to ECOWAS member states was worth N1.14 trillion, or 21.56% of total exports.
- According to the Bureau, the value of exports to Africa and ECOWAS was notably high in Q3 2019 due to exports of Cable sheaths of iron and submersible drilling platforms exported to Ghana.
Import down by N108.2 billion in 3-month
Nigeria’s import dropped by N108.2 billion (2.70%) in the period under review, and this was largely driven by a fall in the importation of solid minerals and other oil products.
- The importation of solid minerals dropped by 31.73%, lower than the value in Q2, 2019.
- The value of other oil products imported decreased by 41.85% in Q3, 2019 against the level recorded in Q2.
- Meanwhile, the importation of manufactured goods grew by 12.46% in Q3 2019 against the value recorded in Q2 2019.
- Importation of energy goods increased by 243.92% in Q3, 2019. This was due to the rise in import of other wood charcoal, electrical energy and charcoal of bamboo.
- During the quarter, Nigeria imported goods mainly from Asia and valued at N1.99 trillion or 51.3% of total imports.
- Other major imports originated from Europe, valued at N1.19 trillion or 30.6% while imports from the Americas and Africa amounted to N576.7 billion (14.8%) and N106.0 billion (2.7%).
- Also, import from Oceania stood at N23.8 billion (0.6%) of total imports while goods valued at N19.1 billion originated from ECOWAS.
Implications for the Nigerian economy
The latest foreign trade report shows some positives as Nigeria’s trade balance rose a high N1.38 trillion. This means the country’s trade balance (export-import) rose by N582.3 billion, and this was largely triggered by a fall in imports.
- When a country’s exports are greater than its imports, it has a trade surplus. This implies Nigeria’s trade surplus rose within the period and this is good for the economy.
- Also, the export of manufactured goods rose significantly, and this drove the country’s non-oil exports. This suggests the country’s diversification agenda may be yielding some positive results.
- However, despite the improvements in the country’s trade, agricultural exports suffered a major setback within the period.
- In Q3 2019, Nigeria exported only N42.1 billion worth of agricultural export, the lowest since Q4 2017. This means the nation’s agricultural sector has continued to witness slow momentum for investors.
- Also, despite the improvement in total trade, Nigeria is still largely an oil-dependent economy, as the country’s oil export constituted 70.87% of total export revenue in the period.
COVID-19 Update in Nigeria
On the 21st of September 2020, 195 new confirmed cases and 2 deaths were recorded in Nigeria.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 57,437 confirmed cases.
On the 21st of September 2020, 195 new confirmed cases and 2 deaths were recorded in Nigeria, having carried out a total daily test of 1,162 samples across the country.
To date, 57,437 cases have been confirmed, 48,674 cases have been discharged and 1,100 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 480,874 tests have been carried out as of September 21st, 2020 compared to 479,712 tests a day earlier.
COVID-19 Case Updates- 21st September 2020,
- Total Number of Cases – 57,437
- Total Number Discharged – 48,674
- Total Deaths – 1,100
- Total Tests Carried out – 480,874
According to the NCDC, the 195 new cases were reported from 11 states- Enugu (51), Gombe (40), Lagos (39), Plateau (23), FCT (15), Rivers (12), Kaduna (8), Ondo (3), Bauchi (2), Edo (1), Ogun (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 18,982, followed by Abuja (5,566), Oyo (3,254), Plateau (3,231), Edo (2,612), Kaduna (2,356), Rivers (2,255), Delta (1,799), Ogun (1,767), Kano (1,734), Ondo (1,600), Enugu (1,285), Ebonyi (1,038), Kwara (1,025), Abia (881), Katsina (848), Gombe (839), Osun (817), Borno (741), and Bauchi (691).
Imo State has recorded 562 cases, Benue (473), Nasarawa (448), Bayelsa (394), Jigawa (322), Ekiti (317), Akwa Ibom (288), Niger (254), Adamawa (234), Anambra (232), Sokoto (161), Taraba (95), Kebbi (93), Cross River (85), Zamfara (78), Yobe (75), while Kogi state has recorded 5 cases only.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
AfCFTA: Nigeria securing approval to ratify agreement – Trade Minister
The Minister revealed that Nigeria has set up a National Action Committee on AfCFTA.
Minister of Trade, Niyi Adebayo said Nigeria is currently in the process of securing approval to ratify the African Continental Free Trade Area (AfCFTA) agreement soon.
The Minister disclosed this during a meeting with the Secretary-General of the African Continental Free Trade Area(AfCFTA), Mene Wamkele on Monday.
During the meeting, the Honourable Minister informed him that Nigeria has established … pic.twitter.com/vSDnNqcfmE
— FMITI Nigeria (@TradeInvestNG) September 21, 2020
Recall that Nairametrics reported last week Mr. Adebayo said that Nigeria is actively working to attract more foreign direct investments into key industries to meet the demands of the African Continental Free Trade Area (AfCFTA).
“As we gear up to meet the demands of the enlarged continental market which will be fostered by AfCFTA, we are actively working to attract more foreign direct investments into key industries,” the Minister said.
In today’s meeting, The Minister told the delegation that Nigeria has set up a National Action Committee on AfCFTA, which would implement Nigeria’s roll-out strategy in a bid to take advantage of the agreement. He added, “Nigeria is currently in the process of securing approval to ratify the agreement within the shortest possible time”.
The African Union announced in August that the first commercial deal of AfCFTA will be taking off on January 1, 2021.
FG inaugurates Committee on the Commercialization of the Nigeria Film Corporation
The Minister said that the FG is repositioning the NFC for effective service delivery.
The Federal Government inaugurated a Steering Committee on the Commercialization of the Nigeria Film Corporation (NFC), with the aim of making Nigeria’s film industry a continental entertainment power.
This inauguration was performed by the Minister of Information and Culture, Alhaji Lai Mohammed in Abuja on Monday. The Minister added that the FG is repositioning the NFC for effective service delivery.
“What we are doing today is to simply reposition the NFC in a manner that will enable it to play the role statutorily assigned to it,” he said.
The Minister added that Nigeria’s film industry is a major boost for Nigerian soft power and entertainment, citing the need for repositioning by the FG as a means to enable effective service delivery for the film industry to grow.
The Minister added that Nigeria lags behind her film making counterparts in the film production value chain, citing Nigeria’s 142 movie theaters compared to 782 in South Africa and 11,209 in India and many others. He urged state governments to invest a part of their infrastructure budgets for the entertainment industry as a means to generate jobs and grow the GDP.
“It is important to appeal, especially to our state governments, to invest in infrastructure in the industry. I don’t think it will be too much for the state governments to ensure they build at least one cinema house in each local government area of their state. That will give us additional 774 cinema houses, ” he said.
The Minister added that the role of the NFC is to regulate Nigeria’s film industry and organise professional practice in the sector and also addressed challenges facing the NFC like the inability to produce its own films for commercial purposes due to the law establishing the Corporation limits on its operational functions.
Lai Mohammed said the NFC will be repositioned as the FG has engaged the services of a Business Development Consultant to conduct due diligence on the corporation and the sector and recommend a strategy that is suitable for its reform and commercialization.
“Dear members of the SC, your appointment into this committee comes with huge trust and belief in your ability and capacity to make this reform happen. I therefore urge you to consider this a critical national assignment that requires unflinching commitment and zeal,” he stated.
The members of the Steering Committee are: Honourable Minister, Federal Ministry of Information and Culture, Alhaji Mohammed as Chairman; Permanent Secretary, Federal Ministry of Information and Culture, Deaconess Grace Isu-Gekpe; Director-General, BPE, Mr. Alex Okoh; Managing Director, NFC, Dr. Chidia Maduekwe, and Director, Industries and Communications, BPE, Abdullahi Dikko, as Secretary.