Coronanomics (23) - Sectorial Analysis of Nigeria's Trade Sector

Monday, June 29, 2020 /  05:00 AM / by Proshare Content/ Header Image Credit:  EcoGraphics

Trade Sector

The trade sector contracted by -2.82% in the first quarter of  2020 from -0.58% in Q4 2019 and 0.85% in Q1 2019. The trade sector was adversely affected by the global spread of the coronavirus.

The restrictions in international travels as well as interstate travels disrupted the supply chain and distributional efficiency of almost every sector.

The growth of the trade sector was further worsened with the decline in consumer's demand, the volatility of the foreign exchange market as well as dwindling oil prices.

It is forecast that the trade sector will contract further in the second quarter, and gradually recover in the fourth quarter while full recovery is expected in 2021 as the economy is fully opened and the virus is effectively managed (see Chart 128).

Chart 128: Trade Sector Quarterly Growth Rate (%)

Source: NBS, Proshare Research

Note Asterisks (*) - Forecasted figures

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