Failing Economy: Nigeria’s Foreign Trade Reduced By N338 Billion In 3 Months
Nigeria’s total external merchandise trade decreased by as much as N338.1 billion to N4.02 trillion in the third quarter of the year (Q3 2015) compared to N4.35 trillion in the previous quarter, according to the National Bureau of Statistics (NBS).
It attributed the decline to a 320.6 billion or 12.1 percent decline in the value of exports as well as imports decline of 17.4 billion or 1.0 percent against the levels recorded in the preceding quarter.
According to the NBS, when compared to Q3 2014, the value of total merchandise trade decreased by 2.49 trillion or 38.3 per cent as a result of a 132.4 billion or 7.3 per cent and 2.36 trillion or 50.3 per cent decline in imports and exports respectively relative to the corresponding quarter in 2014.
According to the Foreign Trade statistics for Q3 2015, which was released by the statistical agency yesterday, quarter-on-quarter, the sharp drop in exports and falling imports caused the country’s trade balance to drop further by N303.1 billion or 32.0 per cent.
In the period under review, total exports was valued at 2.33 trillion, representing a decrease of 320.6billion or 12.1 per cent compared to N2.65 trillion (revised) in the preceding quarter.
The drop in exports was further blamed on a fall in crude oil exports by 372.8 billion or 18.8 per cent over the preceding quarter.
Notwithstanding, the structure of exports was still dominated by crude oil, which contributed 1.61 trillion or 69.1 per cent to the value of total domestic exports in 2015.
Natural liquefied gas recorded 265.2 billion of the total export value during the period under review.
On the other hand, imports value stood at 1.68 trillion in Q3, a decrease of 1.0 per cent from N1.70 trillion (revised) recorded in the preceding quarter.
Meanwhile, year-on-year analysis showed that the country’s imports decreased by 132.4 billion or 7.3 per cent.
The structure of imports by Section was dominated by the imports of boilers, machinery and appliances among which accounted for 24.0 percent of the total value of imports in Q3.
“Other commodities which contributed noticeably to the value of imports in the review period were ‘Mineral products’ (15.3 per cent), ‘Vehicles, aircraft and parts thereof; vessels, among others.” (8.8 per cent), ‘Products of the chemical and allied industries” (8.6 per cent), and ‘Base metals and articles of base metals” (8.4 per cent),” the NBS noted.
India remained the country’s major export partner, accounting for N408.2 billion or 17.5 percent of total exports in the period in review.
Others are Netherlands, Spain, United Kingdom and Brazil, accounting for N408.2 billion or 17.5 per cent, 245.1 billion or 10.5 per cent, 211.4 billion or 9.1 per cent, 192.2 billion or 8.2 per cent and 169.4 billion or 7.3 per cent respectively.
China was Nigeria’s major source of imports which accounted for 459.4 billion or 27.2 per cent.
Other are United States, Belgium, Netherlands and India which respectively accounted for 459.4 billion or 27.2 per cent, 160.6 billion or 9.5 per cent, 128.3billion or 7.6 per cent, 101.8billion or 6.0 per cent and 97.4billion or 5.8 per cent of the total value of goods imported during the quarter.