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· According to the National Bureau of Statistics (NBS), the value of Nigeria’s total merchandise trade fell to N8.30 trillion in the first quarter of the current year.
· The global slowdown in economic activity due to the COVID-19 pandemic is pointed out as the primary cause of the contraction in trade
According to the National Bureau of Statistics (NBS), released this week, the value of Nigeria’s total merchandise trade fell to N8.30 trillion in the first quarter of the current year, a contraction of 17.94 per cent against N10.12 trillion recorded in Q4 of 2019. However, when compared to the Q1 of 2019, the trade was 0.80 per cent higher than the N8.24 trillion posted in Q1 2019.
The global slowdown in economic activity due to the COVID-19 pandemic is pointed out as the primary cause of the contraction in trade. NBS said that the global health crisis resulted in trade, travel and tourism restrictions by several countries leading to a drop in trade. The Foreign Trade Statistics – Q1, 2020, by NBS states that the decline in Q1 was tied to the drop in both imports and exports.
Nigeria recorded two consecutive quarters of negative balance of trade, marking a trade deficit of N138.98 billion in the quarter under review. Crude oil export that accounted for N2.94 trillion or 72.12 per cent of total exports in Q1, was less by 18.86 per cent in the value recorded in Q4 2019 and 12.8 per cent lower than Q1 2019. Non-crude oil exports stood at N1.13 billion represented 27.9 per cent of total exports in Q1.
The export value also fell by 14.42 per cent in Q1 compared to the value recorded in Q4 2019. imports also declined by 21.08 per cent in the period under review compared to Q4 2019. The decline in the value of imports in Q1 was attributed to fall in the value of machinery and transport equipment, which accounted for N1.74 trillion in Q1, representing 35.5 per cent less than N2.70 trillion recorded in Q4 2019.
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India continued to remain as the major trading partner for export goods, accounting for N637.5 billion or 15.61 per cent of total exports. Spain accounted for N402.9 billion or 9.87 per cent, The Netherlands, N396.9 billion or 9.72 per cent, South Africa N319.5 billion or 7.82 per cent and Cameroon N301.8 billion or 7.39 per cent.
Region-wise, Europe remained as the major destination for Nigeria’s exports accounting for 38.43 per cent of total exports, followed by Asia, 31.28 per cent, Africa 23.96 per cent, America 5.24 per cent and Oceania 1.08 per cent. As for imports, Asia, accounted for 46.58 per cent; Europe 36.35 per cent, America and Africa 13.74 per cent and 2.82 per cent respectively. China remained the main source of imports with a26.28 per cent share of total imports in the period.
