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Economy & Politics

Spain takes over from India as Nigeria’s top export destination

Spain got 14% (N310.7 billion) of the total export trade of Nigeria in Q2 2020.

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Petrol importation gulps N1.13 trillion in 2019, as Nigeria fails another deadline 

Spain took over from India as Nigeria’s top export destination in the second quarter (Q2) of 2020. The European nation got 14% (N310.7 billion) of the total export trade of Nigeria in Q2 as against the 9.87% (N402.93 billion) recorded in Q1 2020.

Next is the Netherlands with 10.98% (N243.6 billion), up from 9.72% recorded in Q1 2020. While China received 9.93% share (N220.35 billion), India got 8.81% (N195.5 billion), down from the 15.61% (N637.53 billion) seen in Q1. South Africa got 7.76% (N172.19 billion) share within the same quarter.

These were disclosed in the latest foreign trade report, released by the National Bureau of Statistics on Wednesday.

 

The report also stated that crude oil exports accounted for 70% (N1.55 trillion) of the total value of exports in Q2 2020. However, 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).

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Back story: Nairametrics had reported on Tuesday when the NBS revealed that Nigeria’s total foreign trade (import and export) dropped 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.

SSKOHN

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 the previous quarter (Q1 2020). The decline is a reflection of the disruptions caused by the COVID-19 pandemic.

Why the twist?

Expectedly, Nigeria’s crude oil earnings from India, the world’s third-largest importer of crude, dropped after the latter recorded its lowest oil imports in 10 years in the month of June 2020.

According to Reuters, India’s oil imports dropped in the month of June as its refineries reduced demand due to maintenance and turnarounds.

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India reportedly imported 3.2 million barrels per day in June, the lowest since October 2011 and a 0.4% decline from May and 28.5% lower than the same period in 2019.

The report also indicates that July was not any better due to weak demand as a result of the effects of the coronavirus pandemic.

Nigeria is India’s 13th largest country of import behind other crude oil exporters such as the US, Iraq, Saudi Arabia, and UAE. In contrast, India is Nigeria’s largest export destination.

India replaced the US as Nigeria’s largest export destination for crude, as the demand increased in the second-most populous country in the world.

India has been one of the fastest-growing economies in the world, with industrialization widening its appetite for crude. However, the impact of COVID-19 has halted economic growth in India. The country is now next to the US and Brazil in countries with the most cases of COVID-19. India has over 3.84 million confirmed cases and 67,486 reported deaths.

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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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.

    SSKOHN
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