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