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Nigeria Records N1.87trn Trade Deficit In Q2, 2021 As Crude Oil Accounts For 80.29% Export

The National Bureau of Statistics (NBS)
The National Bureau of Statistics (NBS).

September 04, (THEWILL) – The National Bureau of Statistics on Saturday released the foreign trade statistics report for the second quarter of this year with Nigeria recording a trade deficit of N1.87trn in the first half of the year.

According to the report, total merchandise trade during the period stood at N12.03trn, indicating a N2.27trn or 23.28 percent increase when compared to the amount recorded in Q1 2021.

The aggregate trade of N12.03tn comprises N6.95tn of imports and N5.08tn of exports, resulting in a trade deficit of N1.87tn.

In terms of import, the NBS Report stated that the value of total imports rose by 1.45 percent in Q2, 2021 compared to Q1,2021 and 67.49 per cent compared to Q2,2020.

The Report stated that imported agricultural products were 3.5 per cent more in Q2,2021 than in Q1,2021 and 56.9 per cent more compared to Q2, 2020.

The value of Raw material imports increased by 25.6 percent in Q2,2021 compared to Q1, 2021 and 47.3 per cent compared to Q2, 2020.

The report reads, “During quarter 2, 2021 the total merchandise trade stood at N12.029trn representing 23.28 per cent increase over the value (N9.75trn) recorded in Q1,2021 and 88.71 per cent increase compared to Q2,2020.

“This increase resulted from the sharp increase in export value during the quarter under review. The export component of this trade was valued at N5.07tn or 42.22 per cent, the import was valued at N6.95trn or 57.78 per cent while the trade balance stood at a deficit of N1.87trn.”

It stated that crude oil was the major component of export trade during the period, contributing N4.07trn or 80.29 per cent of total export.

“This further shows a sharp increase of 111.32 per cent in Crude oil value in Q2, 2021 compared to (N1.92trn) recorded in Q1,2021 while the non-crude oil export recorded 19.71 per cent of total export trade during Q2,2021,” it added.

Analysis of imports by Country of Origin showed that the majority of the goods imported during the quarter originated from China with value (N2,078.59 trillion or 29.91%) This was followed by India (N570.01 billion or 8.20%), Netherlands (N557.16 trillion or 8.02%%) , United States (N526.92 billion or
7.58%) and others.

Analysis by Country export trade showed that most goods were exported to India (N949.05 trillion or 18.7%), Spain (N524.49 trillion or 10.3%), Canada (N355.60 billion or 7.0%) and Netherlands (N298.29 trillion or 5,9%) and United States N256.63 trillion or 5.1%.

Under imports classified by standard international trade classification and country of origin, machinery & transport equipment accounted for N2,495.69 trillion or 35.91% of total import trade. This was followed by Chemicals & related products N1,274.59 trillion or 18.34% , mineral fuel N1,110.38 trillion or 15.98%, food and live animals N951.28b trillion or 13.69% and manufactured goods N640.47 trillion or 9.2% among others.

Import trade classified by region showed Asia as the leading partner with a record of N3,469.6 trillion or 49.92%.The next leading partner was Europe with N2,304.6 billion or 33.16%.Others are America N869.1 trillion or 12.50%, Africa N248.8 trillion or 3.58% and Oceania N58.1 trillion or 0.84%.Out of the value recorded for Africa, imports from ECOWAS countries accounted for N24.2 trillion.