Nigeria recorded a total foreign trade of N11.59 trillion in the third quarter of 2022, representing a 9.7% decline compared to N12.84 trillion recorded in Q2 2022.
This is, however, 10.7% higher than the N10.47 trillion recorded in Q3 2021.
The latest stat is contained in the newly released foreign trade report by the National Bureau of Statistics (NBS).
Nigeria’s international trade fell to its lowest level since the third quarter of last year as a result of a huge decline in crude oil export earnings. Specifically, crude oil export fell by 21.2% to N4.66 trillion in Q3 2022 from N5.91 trillion recorded in the previous quarter.
Further breakdown: Imports increased by 4.2% quarter-on-quarter to N5.66 trillion compared to N5.44 trillion recorded in Q2 2022, while it increased by 6.2% from N5.34 trillion recorded in the corresponding period of 2021.
- Also, export fell by 19.9% to N5.93 trillion in Q3 2022 from N7.41 trillion recorded in Q2 2022, although it increased by 15.5% on a year-on-year basis (Q3 2021: N5.14 trillion).
- The value of Re-Exports in the third quarter of 2022 stood at N25.04 billion, showing an increase of 160.16% compared to the value recorded in the second quarter of 2022 but declined by 86.07% compared to the corresponding quarter of 2021 (N179.81 billion).
- The top five export destinations in the third quarter of 2022 were Spain with a share of 14.72%, India with 10.44%, France with 7.25%, the Netherlands and Indonesia with 7.09% and 7.00%, respectively.
- Trade balance, which is the difference between export and import fell to N269.3 billion in the review quarter, representing an 86.3% decline compared to N1.97 trillion recorded in the previous quarter.
- The imports: The value of total imports stood at N5.66 trillion in the third quarter of 2022 (+4.2% QoQ). This brings the total export in the first nine months of the year to N17 trillion compared to N14.9 trillion recorded in the same period of 2021.
- Agricultural imports in Q3 2022 stood at N512.91 billion, representing an increase of 10.44% when compared to the value recorded in the second quarter of 2022 (N464.45 billion) and by 6.37% when compared to the value recorded in the corresponding quarter of 2021 (N482.21billion).
- Raw material imports stood at N649.21 billion in Q3 2022. The value fell by 6.74%, when compared to the value in Q2 2022 (N696.12 billion) but rose by 23.9% when compared to the value recorded in Q3 2021 (N523.97 billion).
- Solid minerals import in the third quarter of 2022 stood at N37.66billion, this is 2.58% lower than the value recorded in Q2 2022 (N38.66 billion) and 28.6% higher than the value recorded in Q3 2021 (N29.93billion).
- The value of other oil products imports in the third quarter of 2022 stood at N1.61 trillion, indicating an increase of 9.11% from Q2 2022 (N1.48 trillion) but declined by 4.63% compared to the value recorded in the corresponding quarter of 2021 (N1.69 trillion).
The Exports: Nigeria’s export stood at N5.93 trillion in Q3 2022, indicating total export of N20.44 trillion between January and September 2022, as against the N13.14 trillion recorded in the corresponding period of 2021.
- The value of agricultural goods exports stood at N84.21 billion in Q3 2022 indicating a sharp decline of 40.6% when compared to the value recorded in Q2 2022 (N141.77 billion) and an increase of 6.03% when compared to the value recorded in Q3 2021 (N79.41 billion).
- Nigeria’s export of raw material goods in Q3 2022 was valued at N186.02 billion showing a drastic decrease of 49.87% and an increase of 23.58% compared to values recorded in Q2 2022 (N371.10 billion) and Q3 2021 (N150.52billion) respectively.
- Solid minerals exports in Q3 2022 were valued at N22.47 billion indicating an increase of 7.07% compared to the value recorded in Q2 2022 (N20.99 billion), this is also 22.69% higher than the N18.31 billion recorded in the corresponding period of 2021.
- The exports value of energy goods in Q3 2022 stood at N13.84 billion indicating a decrease of 36.20% when compared to the value recorded in Q2 2022 (N21.70 billion) and also decreased by 28.21% compared to Q3 2021 (₦19.28billion).
What this means: The drop in Nigeria’s total merchandise trade in the third quarter of the year is attributable to the 19.9% drop in export earnings, which is a result of a drop in crude oil earnings.
- The decline in Nigeria’s crude oil earnings may be attributed to the continued volatility in the crude oil market and the decline in the country’s oil output, which has affected its ability to earn as much from the bullish oil prices.
- On the other hand, importation has remained high albeit a 4.2% quarter-on-quarter increase, which is an indication of Nigeria’s sustained petrol import amidst the rise in agric imports. The rising cost of goods and services in most advanced economies has also affected Nigeria’s import bill.