By Mohammed Momoh
Nigeria’s total trade stood at $27.2 billion in first quarter of 2020 (Q1,2020), the National Bureau of Statistics (NBS), has reported.
In its quarterly report released on June 9, 2020, it said that the total trade was
17.94 per cent lower than the value recorded in fourth quarter of 2019 but 0.80 per cent higher than the value recorded in first quarter ofQ1,2019.
It reported that the total trade declined in the first three months of this year, its total imports decreased by 21.08 per cent.
Total trade declined 17.94 per cent the first quarter of 2020 compared to the value recorded in the fourth quarter of 2019 but increased marginally by 0.80 per cent year on year.
NBS said the decrease in imports by 21.08 per cent compared to the value recorded in fourth quarter of 2019 but was 13.99 per cent.
The data published on its website on June 9, 2020 show that the value of imported agricultural goods was 12.02 per cent more in the period under review than in fourth quarter (Q4) of 2019 and 10.62 per cent more than Q1, 2019.
The value of raw material imports decreased by 8.49 per in Q1,2020 relative to Q4 2019, and 6.91 per cent compared to the corresponding quarter in 2019.
The value of solid minerals imports was 15.65 per cent higher in Q1,2020 than the preceding quarter and 20.05 per cent compared to the corresponding quarter in 2019.
The value of manufactured goods imports decreased by 31.98 per cent in Q1,2020 compared to Q4 2019, and 4.03 per cent when compared with Q1,2019.
The value of energy goods decreased by 72.18 per cent in Q1,2020 on a quarter on quarter basis, and 91.58 per cent year on year.
But the value of other oil products imports was 14.21 per cent higher in Q1, 2020 than in Q4, 2019 and 180.05 per cent higher when compared with the corresponding quarter of 2019.
On the total export, value decreased 14.42 per cent in Q1, 2020 compared to the value recorded in Q4, 2019 and 9.98 per cent compared to Q1,2019.
The value of agricultural goods exports grew 85.36 per cent and value of Raw material exports increased 60.17 per cent in Q1,2020 relative to last quarter but decreased by 7.08% year on year.
The value of agricultural goods exports grew 85.36 per cent in Q1,2020 compared to Q4,2019 and 46.76 per cent compared to Q1, 2019 while the value of Solid minerals exports was 16.31 per cent lower in Q1,2020 relative to Q4 2019 and 82.17 per cent less than the value recorded in Q1, 2019.
Manufactured goods exports decreased by 12.72 per cent in value in Q1,2020 compared to Q4,2019 and 3.86 per cent compared to Q1, 2019.
Crude oil exports decreased by 18.86 per cent in Q1, 2020 compared to Q4, 2019 and 12.80 per cent compared to Q1, 2019.
The exportable products include Sesame seeds, fermented cocoa beans, natural cocoa butter, cashew nuts, ginger, frozen shrimps and prawns, cotton lint and fruits.
The import component of this trade was valued at N4,221.9billion or 50.8% while the export component totaled N4,082.9 billion indicating 49.2% of the total trade.
A trade deficit of N138.98billion was recorded during the quarter, marking two consecutive quarters of negative balance of trade, as the value of imports surpassed exports.
It is worth noting that the consecutive quarters of negative trade balances (and lower imports and exports) occurred against the backdrop of a global slowdown in economic activity as a result of the COVID-19 pandemic.
The global health crisis resulted in several countries implementing varying degrees of restrictions with respect to international trade, travel and tourism. When compared with the preceding quarter, the deficit in Q1 2020 represented an improvement by 76%. On a year –on-year basis however, the deficit was lower by 116.71%.
Crude oil, Nigeria’s dominant export, accounted for N2,944.6billion representing 72.12% of total exports in Q1,2020. The value of crude oil export was 18.86% less than the value recorded in Q4, 2019 and 12.80%
lower than the value recorded in the corresponding quarter of 2019. Non crude oil exports was valued at N1,138.3billion representing 27.9% of total exports during the period under review.
Total imports stood at N4,221.9 billion indicating a decline of 21.08% in Q1, 2020 over the value recorded in Q4, 2019, but an increase of 13.99% when compared with Q1, 2019.
The drop in the value of imports in Q1,2020 can be attributed to decreases in the value of Machinery and transport equipment (N1,746.0 billion) which represents 35.5% less than (N2,708.98) recorded in Q4 2019.
Chemicals and related products (N398.7billion) representing a decrease of 30.5% over (N573.98billion) recorded in Q4,2019 and crude inedible materials (N43.5 billion) representing 22.2% less than ( N55.9billion) recorded in Q4,2019.
During the quarter, Nigeria imported goods mainly from Asia, which was valued at N1,966.5 billion or 46.58%. Other major imports originated from Europe, valued at N1,534.7billion or 36.35% while imports from America and Africa amounted to N580.2billion or 13.74% and N118.95billion or 2.82% respectively.
Import from Oceania stood at N21.6billion or 0.51% while goods valued at N28.3billion originated from ECOWAS.
Nigeria’s imports, by country of origin, shows goods were imported mainly from China (N1,109.46billion or 26.28%), Netherlands (N470.11billion or 11.14%), United States (N441.06 billion or 10.45%), India (N334.53 or 7.92%) and Belgium (N257.89 or 6.11%).
The value of total exports in Q1, 2020 stood at N4,082.9billion. This indicates a decrease of 14.42% relative to Q4,2019 and 9.98% compared to the value recorded in Q1,2019.
Exports by section revealed that mineral products accounted for the largest proportion of exports, amounting to N3,478.1 billion or 85.2%. This was due to the crude oil component of this section.
The next major section was Vehicles aircraft and parts which amounted to N406.3billion or 9.95% of total exports.
Analysis of trade by region revealed that Nigeria exported most products to Europe (N1,569.21billion or 38.43% of total exports), followed by Asia (N1,277.21billion or 31.28%), Africa (N978.21billion or 23.96%), America (N214.12billion or 5.24%) and Oceania (N44.14billion or 1.08%). Within Africa, goods worth N296.3 billion was exported to ECOWAS member states
During the quarter, total trade in Agricultural goods stood at N387.7billion (or 4.67% of the overall trade), of which exported agricultural goods accounted for N126.3billion. Analysis by economic region showed that most Agricultural goods were exported to Asia and Europe, valued at N66.9billion or 52.98% and
N52.7billion or 41.68% respectively.
The key drivers of agricultural products exports were Sesame seeds whether or not broken (N49.1billion), Good fermented Nigerian Cocoa beans N35.2billion) and Superior quality cocoa beans (N16.8billion). Sesamum seeds worth N9.8billion, N9.5 billion and N9.3billion were exported to Japan, Turkey and China respectively, while Good fermented cocoa beans were exported mainly to The Netherlands (valued at N16.5billion) and Germany (valued at N6.6billion).
Superior raw Cocoa beans was also exported mainly to The Netherlands at a value of N11.2billion. In terms of imports, Nigeria imported Agricultural goods worth N261.4billion in Q1, 2020.
Sectoral imports by region, showed that the country imported most Agricultural goods from Europe (N125.2billion or 47.9%), America (N85.2billion or 32.6%) and Asia (N40billion or 15.3%). The major products imported
during the quarter were Durum wheat (not in seeds). This was imported from the United States, Latvia, Canada and Argentina valued at N25.9 billion, N22.6billion, N15.2 billion and N13.98 billion.
Further, Durum wheat (seed) was imported from the United States (valued at N8.95billion), Russia (N5.9billion) and Lithuania (N5.5billion).
The total trade in solid mineral goods stood at N22.98 billion in Q1, 2020, comprising an import component of N21.4 billion and export component of N1.6billion.
The major products exported under this sector were Zinc ores and concentrates exported to China (valued at N0.7billion) and Belgium
This was followed by lead ores and concentrates exported to China, worth N0.4billion.
In terms of imports, plasters of Calcined Gypsum was mainly imported from Turkey in the value worth N2.3 billion, Other, including crude salt was imported from Brazil, worth N3.0 billion. Denatured salt was imported from Namibia, worth N2.6billion and Gypsum from Spain (N2.9billion) and Turkey (N1.4billion).
In terms of the trade relationship with regions of the world, solid minerals was imported from all regions Asia (N6.2billion), Africa (N5.1billion), Europe (N4.5billion), America (N4.2billion) and Oceania (N1.4billion).
The value of manufactured goods trade in Q1, 2020 stood at N3,105.7billion or 37.40%. Of this, the export component accounted for N444.5 billion. The products that drove up Manufactured exports were Vessels and other floating Structures exported to Cameroon, and Equatorial Guinea, worth N300.7billion
and N57.9billion respectively. Helicopters of an unladen weight was exported to Ghana, worth N33.2billion.
Export trade on manufactured goods by region showed that manufactured goods were mainly exported within the continent of Africa (N414.4billion), to Europe (N14.7billion) and Asia (N13.8 billion).
On the other hand, manufactured imports stood at N2,661.3billion. The main drivers were Used Vehicles imported from the United States, worth N123.7billion. Used vehicles were also imported from Italy (at N5.8billion) and Belgium (worth N4.4billion.).
Other imported manufactured goods include motorcycles from India (N93.97billion) and China (N44.8billion). During Q1, 2020, Unused postage was imported from the United Arab Emirates (N65.4billion), and the United States (N65.3billion), while Automatic Rifles and Carbines worth N51.97billion were imported from China. Import trade by region showed that manufactured goods were mainly imported from Asia (N1,683.9 billion), Europe (N489.9 billion) and