Nigeria recorded a total foreign trade of N12.84 trillion in the second quarter of 2022, representing a 32.2% increase compared to the corresponding period of 2021 (N9.71 trillion). However, when compared to the previous quarter, it decreased marginally by 1.2% from N13 trillion).
This is contained in the recent report released by the National Bureau of Statistics (NBS). According to the report, international trade balance surged to N1.97 trillion, the highest in four years. The favourable trade balance can be attributed to the significant increase in export value compared to that of import bill.
Specifically, Nigeria earned N7.41 trillion from export in the period under review, compared to N5.02 trillion recorded in the corresponding period of 2021. This indicates a 47.5% year-on-year increase.
On the other hand, import bill increased 15.8% year-on-year to N5.44 trillion. Although compared to the previous quarter it declined by 7.9%.
A further breakdown of the report showed that crude oil export rose by 45.1% year-on-year to N5.91 trillion in Q2 2022, this is the highest on record based on data from the NBS. Also, non-crude oil export jumped by 58.2% year-on-year to N1.49 trillion.
Highlights
- Imports increased by 15.8% year-on-year from N4.69 trillion in Q2 2021 to N5.44 trillion in Q2 2022.
- Export earnings rose by 47.5% to N7.41 trillion compared to N5.02 trillion recorded in the corresponding period of 2021.
- Crude oil accounted for 79.77% of the total exports recorded in the period under review.
- The value of agricultural imports in the second quarter of 2022 stood at N464.45 billion showing an increase when compared to the value recorded in Q1 2022 (N443.36 billion) by 4.76%, and by 13.70% when compared to the value recorded in the corresponding quarter of 2021 (N408.49 billion).
- Trade balance stood at N1.97 trillion from N1.19 trillion and N327.3 billion recorded in Q1 2022 and Q2 2022 respectively.
The top five export destinations in the second quarter of 2022 were India with a share of 14.85%, followed by Spain with 13.98%, The Netherlands with 12.35%, the United States of America and Indonesia with 8.93% and 8.45% respectively. Collectively, they accounted for 58.6% of the total export.
In terms of Imports (CIF), in the second quarter of 2022, China, Belgium, India, The Netherlands and the United States of America were the top five countries of origin of imports to Nigeria. The values of imports from the top five countries amounted to N3.14 trillion representing a share of 57.71% of the total value of imports.
The commodity groups with the largest values among the top imported products were petrol (N948.76 billion), Gas Oil (N357.37billion), and Durum wheat (Not in seeds) (N242.67 billion).
Why this matters
Nigeria’s international trade suffered a pull-back in 2020, following the covid-19 pandemic. However, trading activities have picked up as most economies have lifted the ban on cross—border movements in the country.
Also, the sustained debacle between global oil power, Russia and other western economies due to its attack on Ukraine, which has seen the price of crude oil remain the high has also benefitted Nigeria’s export earnings, although inadequate production and oil theft have restricted the growth in earnings.