Nigeria exported agro-food items worth N165.27 billion in the second quarter of 2021, representing a 112% increase compared to N78.03 billion recorded in the corresponding period of 2020. This is also the highest on record, according to data tracked from the National Bureau of Statistics (NBS).
The recent value also represents a 30% increase when compared to N127.18 billion worth of export recorded in the previous quarter (Q1 2021). Recall that Nairametrics had reported that Nigeria’s foreign trade increased by 89% year-on-year to N12.03 trillion in Q2 2021.
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The report had also highlighted that Nigeria continued with a foreign trade deficit of N1.87 trillion having recorded an import value of N6.95 trillion as against an export value of N5.08 trillion.
Meanwhile, Nigeria’s agric imports also increased by 56.9% year-on-year in Q2 2021 to N652.08 billion, indicating a trade deficit of N486.8 billion, quite huge for a country blessed with vast land and an agricultural sector that employs a huge chunk of its labour force.
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Nigeria continues to expand its ability to earn foreign returns from agricultural export, especially during a time when oil revenue is not as robust as it used to be, due to the OPEC production quota and oscillating crude oil prices.
However, the local production is still not enough for local consumption, hence the need to export food items from other countries, which in turn affects Nigeria’s balance of trade and by extension the exchange rate.
In a recent article by Nairametrics, the Chairman, Board of Directors of Sterling Bank Plc, Mr Asue Ighodalo while discussing at the 4th Agriculture Summit Africa (ASA) 2021 organised by the bank, stated that Nigeria’s agricultural productivity, which is currently growing by 1.3% is still insufficient to meet food and raw material demands.
Read: Foreign affairs minister explains why Nigerian exports are rejected by other countries
A brief historic check, reveals that Nigeria has recorded a continuous agric foreign trade deficit in the past 5 and half years, with the highest being N503 billion recorded in Q1 2021 followed by the recent N486.8 billion recorded in Q2 2021.
Meanwhile, Nigeria’s GDP report shows that the agricultural sector has grown consistently positively in recent years, with the latest growth at 1.3% in Q2 2021. The sector is valued at N16.67 trillion in real terms, representing about 23.5% of the Nigerian economy.
It is imperative to track the items that fetch the country its foreign earnings as a result of its impact on the Nigerian exchange rate, hence these are the top agricultural products exported to other countries.
Read: Sesamum seed, cocoa, cashew nuts top Nigeria’s agricultural exports in Q1 2021
Top agric export
- Cocoa – N63.18 billion
- Cashew nuts – N42.94 billion
- Sesamum seeds – N21.64 billion
- Coconut – N13.02 billion
- Ginger – N3.75 billion
- Frozen sea foods – N3.46 billion
- Brasil nuts in shell – N3.28 billion
- Natural cocoa butter – N2.44 billion
- Sesame oil and its fraction – N1.29 billion
- Palm nuts and kernels – N1.08 billion
What this means
The growth in agric export means an increase in foreign earnings, which would help boost the country’s foreign reserve as well as relieve the pressure on the exchange rate. However, the continuous negative trade balance, indicates more pressure as Nigerians will continue to search for scarce forex in order to import items that would have been produced locally.
Amazing, we are going places by His Grace.
So, it makes sense to export raw materials right ???
Yes, very much.
The biggest exporter for honey remains Ukraine. Unbeliveable you say? Bees can’t even function at optimum levels during Winter and Ukranians manage to pull this off. When i glanced at the data for the biggest honey exporters Nigerian isn’t among 20 or any African country. What i think President Muhammadu Buhari should have done prior to his assumption in office 2015 was to push for “Aggressive Exports” so we can fuck up some data in the Intl market in exchange for forex.
If you take a look at times when we got it right in terms of economic development in the 60s, 70 and 80s, it was because of exports and light scale manufacturing.
Good luck Nigeria
But it’s not luck we need at the end of the day.
The Bigot is only interested in power grab for himself and kith and kins not advancing the economy of nigeria.
What Agricultural items do we import and who are the importers?
Thank you very much cbn
This report is what we called investigative/informative journalism. We need to believe and be positive about our dear Country, Nigeria. Despite ALL challenges, these numbers were achieved. God bless Nigeria and it’s good citizens
This is a very misleading assessment,considering the dwindling fortune of the naira. It’s very possible that the intrinsic value dropped,but the naira value rose as a result of naira free fall against the dollar; the currency of international trade.
I think the govt should rather encourage meeting local demands to reduce local price and meet citizens needs and better still encourage export of value added rather than raw agricultural product. This way we create employment, earn more forex and reduce balance of trade deficit. A good investigative journalism.
Apt …Agree with you 100…. Are you an Agricpreneur if I may ask
Brilliant perspective. I hope all these translate better for the economy that is under water right now.
People who are lazy need not read this . The export is important. Local demand is not profitable and encouraging. Farmers labour a lot. Those who can export should do so and they sell the remainder to local.
I love to know we are exporting agric items. It will encourage young people to go into farming if they re sure of ready buyers for export. That’s what will make food available in Nigeria in long run
Exporting raw materials is not tge best. What happens if we produce chocolate and other derivatives from cocoa and cashew nuts and oil etc from cashew nuts. Hundreds of thousand of jobs would be created and more foreing exchange to us. That should be our focus
we are interested in cashew nuts imports from Nigeria. please furnish the exporters list of Nigeria so that we can contact them. Thank you in anticipation.
Thanks for helpil the people to give them good job
My name is Gaddafi umar thanks for the help them people a good job for people in Nigeria