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Economy & Politics

Nigeria’s total foreign trade drops to N6.24 trillion in Q2 2020, export plunges by 52%

Total import for the period stood at N4.02 trillion while total export was N2.22 trillion.

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Nigeria's foreign trade drops to N6.24 trillion, trade balance hits N1.8 trillion deficit in Q2 2020, Nigeria's current account worsens

Nigeria’s total foreign trade (import and export) drops by 27.46% year on year in Q2 2020, when compared to N8.61 trillion recorded in the corresponding quarter (Q2) of 2019. This is according to the latest foreign trade report, released by the National Bureau of Statistics.

According to the report, Nigeria’s total export during the quarter nosedived by 51.7% to stand at N2.22 trillion, a significant fall when compared to N4.59 trillion recorded in Q2 2019 and N4.08 trillion recorded in the previous quarter.

The report also showed that Nigeria’s total foreign trade recorded a decrease of 27.3% when compared to N8.59 trillion recorded in previous quarter (Q1 2020). A decline, which is a reflection of the disruptions caused by the COVID-19 pandemic.

READ: Dangote Cement posts N126.41 billion profit in H1 2020

Key Highlights

  • The value of total trade fell sharply by 27.30% in Q2 2020 compared to Q1, 2020 and 27.46% compared to Q2 2019
  • The value of total imports dropped by 10.69% in Q2 2020 against the level recorded in Q1 2020 but increased by 0.39% year-on-year
  • Imported Agricultural goods rose in value by 59.01% in Q2 2020 compared to Q1 2020 and 66.28% compared to the corresponding quarter in 2019.
  • Total exports dipped by 45.64% when compared to Q1 2020 and 51.73% as against N4.6 trillion recorded in Q2 2019.
  • Agricultural goods export also dropped 38.2% in Q2,2020 compared to Q1, 2020 but rose 6.3% year-on-year.

READ: UPDATED: Nigeria received $1.29 billion capital inflows in Q2 2020, down by 78.6%

 

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Export plunges further as trade balance hits N1.8 trillion deficit

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Nigeria has recorded a third consecutive decline in the value of total export during the quarter, declined by 45.64% and 51.73% compared to N4.08 trillion recorded in Q1 2020 and N4.59 trillion recorded in Q2 2019 respectively.

  • Crude oil exports accounted for 70% (N1.55 trillion) of the total value of exports in Q2 2020.
  • Also, Crude oil exports decreased in value by 47.2% in Q2 2020 compared to Q1 2020 and 60.5% year-on-year.
  • Further checks by Nairametrics, shows that the latest crude oil export is the lowest recorded in the past four years. The last time a lower value was recorded was in Q2 2016 (N1.49 trillion).
  • In Q2 2020, a third streak of negative trade balance was recorded, stood at (N1.8 trillion).
  • Manufactured goods export decreased in value by 42.8% in Q2 2020 against the level recorded in Q1 2020 but increased 139.6% compared with the corresponding quarter in 2019.
  • Analysis of export by Region revealed that Nigeria exported most products to Europe (N976.5billion or 44%), followed by Asia (N734.1billion or 33.08%), Africa (N401.4billion or 18.1%), America (N105.8billion or 4.8%) and Oceania (N1.7billion or 0.08%).
  • Within Africa, goods worth N149.3billion were exported to ECOWAS member states.
  • All regions recorded declines in the value of exported goods during the quarter, although China and Japan each recorded increased export activity.

READ ALSO: Nigerian Banks issue N3.3 trillion in new loans in June 2020

How it affects Nigeria’s economy

The latest report gives a full reflection of the disruptions caused by the COVID-19 pandemic and how travel and movement restrictions placed by various countries of the world has affected Nigeria’s international trade.

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  • The decline in crude oil exports will affect Nigeria’s revenue as the Nigeria is still largely an oil-dependent economy.
  • Meanwhile, the report reveals that Nigeria is importing more than it is exporting, giving that the federal government closed land borders in 2019 in order to discourage importation. Although, a further plunge in trade balance puts the policy under serious scrutiny.
  • It should be noted that the significant decline in most activities is attributed to the lockdown procedures put in place by the government and restrictions placed on international travel by most countries.

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Business News

FG starts the review of emoluments of political office holders, judicial staffs

This is coming at a time when there is a lot of agitation against the huge allowances that political office holders especially the Federal legislators are paid.

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The Federal Government has said that it has started the review of emoluments of political office holders and judicial staff.

This is coming at a time when there is a lot of agitation against the huge allowances that political office holders especially the Federal legislators are paid at the expense of other government workers.

This disclosure was made by the Chairman of Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Chief Elias Mbam, on Saturday, at Amagu community in Ikwo local government area of Ebonyi State, at the 7th Ofala festival and 30th anniversary of the coronation of the traditional ruler, saying the commission had begun reviewing their emoluments.

Mbam told newsmen that a process to review the remuneration of political and judicial office holders was in progress, noting that the commission was saddled with the responsibility, hence it would soon conduct a public hearing on the issue, to allow the citizens to contribute to the process.

What the RMAFC Chairman is saying

Mbam in his statement said, “One of the major responsibilities of our commission is to determine remunerations appropriate for political and judicial officeholders. In doing that, the financial situation of the country, at any giving time, is taken into consideration, including inflation and the country’s Gross Domestic Product (GDP), among others.

The commission being conscious that a lot has happened since the last review, has commenced the process of another review to reflect the changing realities. We have progressed and we believe that before the end of 2021 something concrete will happen,” he said.

While not confirming whether their salaries would be reviewed upwards or downwards, the RMAFC Chairman said, “It is a process and the process at the end determines what it will be; when we go through the process, if it comes out to increase, we increase, if it decreases we do it.’’

Mbam, however, encouraged Nigerians to participate in the review, noting that there would be public hearings and invitations for memoranda from members of the public, including institutions under the three tiers of government.

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The RMAFC boss, who also spoke on the diversification of Nigeria’s economy, noted that the solid minerals sector had been contributing immensely to the economy since his assumption of duty as chairman of the commission following the sensitization and advocacy campaigns to all tiers of government, to encourage revenue diversification.

Bottom line

The review of the emoluments of political office holders and judicial staffs would help address the concerns of Nigerians and various interest groups who feel that these political office holders are overpaid especially in this period of economic and revenue challenges.

It would also address their quest for better remuneration for Judges in line with the volume of work they do and also to discourage corruption in the Judiciary.

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Business News

Greenfield University abduction: FG determined to continue fighting all forms of banditry – Buhari

The president promised to continue the fight against banditry and urged Nigerians to show empathy and come together as a society.

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Military located bandits in kankara, Q1 2020 National Debt report, Buhari finally speaks on NDDC probe, urges NA to act with a sense of urgency,National Human Rights Commission,Presidency bows to pressure, agrees to demand made by EndSARS protesters, Our economy is too fragile to bear another round of lockdown-Buhari, Zarbarmari: Massacre by Boko Haram is nothing short of senseless, barbaric, gruesome and cowardly- Buhari

President Muhammadu Buhari finally reacted to the news of the killing of students abducted at Greenfield University, Kaduna by bandits earlier this week, promising to continue the fight against banditry and urged Nigerians to show empathy and come together as a society.

The President disclosed this in a statement on Saturday afternoon, after reports emerged of the killings.

What the President said

“The killing of three of the students kidnapped at Greenfield University, Kaduna, is tragic and condemnable. Three young Nigerians cut down in their prime, by evil people. My thoughts are with their families in this time of grief. May their souls Rest In Peace.

READ: Zamfara School Kidnap: State Governors must play their part – Buhari

These recurring kidnappings and killings, in Kaduna State in particular, are barbaric terror attacks. We are determined to continue fighting all forms of banditry, kidnapping and criminality with maximum will and with all the resources available to our country,” he added.

The President described it as unfortunate, that some political and religious leaders were inciting violence to stoke division of mourning families and urged the “great show of empathy and coming together as a society to squarely confront these elements and the danger they pose to our democracy and peaceful life in the country.”

READ: Kidnapping operations funding Boko Haram – El-Rufai

What you should know

The Kaduna State Commissioner for Internal Security and Home Affairs, Samuel Aruwan, announced on Friday that 3 students kidnapped at Greenfield University by bandits earlier this week were found dead. The bandits had demanded a ransom of N800 million from the parents of the students.

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