The interconnectedness of the world has made it impossible for any country to survive in isolation. International trade is a part of Nigeria’s trade with other countries through imports and exports.
In international trade, Nigeria stands as a vibrant hub, welcoming goods and products from all corners of the world. Imports significantly influence many facets of daily life in Nigeria’s economy.
From the food we consume to the electronic gadgets we use, a considerable proportion of the products we use in Nigeria are imported from other countries.
From available data from the National Bureau of Statistics (NBS), Nigeria’s total trade value in 2022 was N49.42 trillion, with total imports at N22.28 trillion, representing 45.1% of the total trade value.
- Motor Spirit Ordinary
Otherwise known as petrol, Nigeria has over the years heavily relied on refined petrol due to the moribund nature of the country’s four refineries.
With the removal of fuel subsidy on May 29 by President Bola Tinubu, prices of goods have soared across the country.
- Durum wheat (not in seeds)
Durum wheat was the second-most imported goods in the country in 2022. Durum wheat is a variety of spring wheat that is used to make semolina and noodles. It is also used to make bread.
The Russian invasion of Ukraine has led to an increase in the price of durum wheat, as Ukraine is one of the largest producers in the world.
- Gas Oil
Also known as diesel, it is one of the most consumed products in the country on a daily basis. A number of cars and heavy-duty industrial generators make daily use of diesel.
The price of diesel has increased in the last three years by over 300%.
- Kerosene jet fuel
Jet fuel was the fourth-most imported product in the country in 2022.
The Nigerian aviation system has seen the prices of local flights increase in 2022 due to an increase in the price of jet fuel.
- Cane sugar
This type of cane sugar is meant for the refinery. Over the years, Nigeria has imported sugar, especially from Brazil.
A local alternative?
Nigeria’s reliance on imports, especially essential products such as petrol, oil, and foodstuffs, has led to an increase in the prices of these goods across the country.
This reliance has also led to the scarcity of FX in the country.
The country has had to spend FX on the importation of products, which affects the country’s reserves.
A look at the top five imports to the country in 2022 shows that they can be gotten or produced locally, saving the country trillions in FX annually.
Nigeria currently has four refineries that are non-functional, with billions allocated annually for maintenance. Fixing the moribund refineries is important as the price of fuel can be stabilized with no landing or refining costs added to the sale by filling stations.
Nigeria’s agriculture has suffered some setbacks, with the importation of produce that can be cultivated locally. In 2021, Nigeria imported sugarcane worth N425.6 billion, an increase of 61.315% from N263.84 billion in 2020.
Based on available facts, an investment in the production of our top five imports in 2022 will greatly help our economy and, at the same time, solve FX issues.
This kind of analysis where figure-friendly data is easily understandable is what makes people have confidence that the government really has a plan of salvation.
If these top five are the to squashers of FX then we really hadn’t much problem except for a lack of transparency, an expression of selfishness and/or a gross lacking of clues for governance.