Nigeria's Merchandise Trade Deficit Deepens in Q1 2021 Due to Rising Imports

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Saturday, June 05, 2021 02:50 PM / by NBS/ Header Image Credit:  NBS

 

Key Highlights

 

Trade

  • The value of total trade was 6.99% higher in Q1 2021 compared to Q4 2020 and 14.13% higher than the value recorded in Q1, 2020.

 

Imports

  • The value of total imports rose by 15.61% in Q1, 2021 compared to Q4, 2020 and 54.30% compared to Q1, 2020.            
  • The value of imported agricultural products were 18.37% higher in Q1, 2021 than in Q4, 2020 and 140.47% higher year on year.                   
  • The value of Raw material imports fell by 6.50% in Q1, 2021 compared to Q4, 2020 but increased by  109.29% compared to Q1, 2020.
  • The value of Solid minerals imports was 36.97% higher in Q1, 2021 than in Q4, 2020 and  59.26% more than its value in Q1, 2020.
  • The value of Energy goods imports was 34.39% in Q1, 2021 higher than in Q4,2020  and 1,346.72% higher than the value recorded in Q1, 2020.
  • The value of imported manufactured goods grew by 18.47% in Q1, 2021 against the value recorded in Q4, 2020 and 69.70% against its value in Q1, 2020.
  • The value of other oil products imported in Q1, 2021 was 19.02% more than its value in Q4, 2020 but 15.76% less than the corresponding quarter of 2020.

 

Exports

  • The value of total exports in Q1, 2021 decreased by 8.99% against the level recorded in Q4, 2020 and 29.26 % compared to Q1,2020
  • The value of agricultural exports increased by 128.0% in Q1 2021 compared to Q4 2020 and 0.1% compared to Q1 2020.
  • The value of Raw material goods exports in Q1, 2021 was 9.0% lower than the value in Q4,2020 and 6.7% lower than the value recorded in Q1 2020
  • The value of Solid minerals exports increased by 107.2% in Q1,2021 against Q4 2020  and 481.7% against the corresponding quarter in 2020.
  • The exports of Energy goods increased in value by 16.3% in Q1 2021 compared to Q4 2020 and 18.1% compared to Q1,2020
  • The value of Manufactured goods exports rose by 94.0% in Q1 2021 compared to Q4 2020 but decreased by  43.7% compared to Q1, 2020.
  • The value of Crude oil exports in Q1 2021 decreased by 23.5% compared to Q4,2020 and 34.5%  compared to Q1,2020
  • The  export value of Other oil products increased by 25.5.% in Q1 2021 compared to Q4 2020, and rose marginally 0.1% compared to Q1 2020.



Major export trading partners and percentage share in Q1, 2021 export trade.

India

16.79%

Spain

9.88%

China

6.54%

Netherlands

5.50%

France

4.59%



Major import trading partners and percentage share in Q1, 2021 import trade

 

China

29.34 %

Netherlands

10.60%

United States

8.88%

India

8.60%

Belgium

3.48%



Overview

For the first quarter of 2021, Nigeria's total merchandise trade stood at N9,757.87billion representing 6.99% increase over the value recorded in Q4,2020 and 14.13% compared to Q1,2020. The export component of this trade stood at N2,907.21 billion, representing 29.79% of the total trade while import was valued at N6,850 billion representing 70.21%. The higher level of imports over exports resulted in a trade deficit (in goods) of -N3,943.45 billion. The value of Crude oil export stood at N1,929.83 billion representing 66.38% of the total export recorded in Q1, 2021, while non –crude oil export accounted for 33.62% of the total export.

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Imports Classified by Standard International Trade Classification and country of Origin

In Q1 2021, total import was valued at N6,850 billion representing 70.21% of the  total trade. This value rose by 15.61% in Q1, 2021 compared to Q4,2020  and  54.30% compared to Q1,2020.     Imports by SITC revealed that Machinery & transport equipment accounted for N2,492.73billion. This was followed by Chemicals & related products N1,302.82 billion and  Mineral fuel N981.68 billion.


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Import trade classified by region showed Asia as the dominant originating region with a record of N3,319.4 billion or 48.45%. This was followed by Europe with N2,471.6 billion or 36.08%, America N827.8 billion or 12.08%, Africa N183.4billion or 2.68% and Oceania N48.5billion or 0.71%. Out of the value recorded for Africa, Import from ECOWAS countries accounted for N20.8 billion.


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Analysis of imports by Country of Origin showed that the majority of the goods imported during the quarter originated from China, valued at N2,009.94 billion or 29.34%. This was followed by the Netherlands (N726.09 billion or 10.60 %), the United States (N608.12 or 8.88%) and others.


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Exports Classified by Standard International Trade Classification and Country of Destination

 

In Q1 2021, the value of total exports stood at N2,907.21 billion, representing 29.79% of total trade. This value represented a decline of 8.99% against the level recorded in Q4 2020 and 29.26 % compared to Q1 2020.  Exports by section revealed that Nigeria exported mainly mineral products, valued at ₦2,486.1 billion, or 85.52% of the total export value. This was followed by Vehicles, Aircraft and parts (N180.5 billion or 6.21%) and vegetable products (N82.3billion or 2.83%). In terms of regional trade, Nigeria exported most products to Asia (N1,132.55 billion), Europe (N997.79 billion), America (N316.62 billion) and Africa (N449.84 billion). During the quarter goods worth N282.2 billion was exported to ECOWAS. By country, most goods were exported to India (N488.1 billion or 16.8%), Spain (N287.2billion or 9.9%), China (N190.1 billion or 6.5 %) and the Netherlands (N160.billion or 5.5%).



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Export/Imports Products Classified by Sectors Q1, 2021

     

Agricultural Goods Sector

The total value of trade in agricultural goods in Q1 2021 stood at N757.4 billion. The export component of this trade totaled N127.2 billion while the import was valued at N 630.2 billion. Top exported Agricultural products were Sesamum seeds exported mainly to China (valued at N23.1 billion), Japan (N8.3billion) and Turkey (N3billion). This was followed by good fermented cocoa beans exported to the Netherlands (N9.2billion), Malaysia (N5.5billion) and the United States (N3.2 billion). Other major exports under this sector includes Cashew nuts in shell exported to Vietnam and India worth, N5.3billion N5.1 billion respectively .


However, there was importation of Durum wheat (not in seed) worth N66.97 billion from Lithuania. Durum wheat also came from Latvia (N41.51 billion), Canada (N41.31billion)  etc.  Edible mixtures or preparation of animal, worth N82.86billion, was imported from Denmark. Herrings (Clupea haregus, Clupea pallasii) was imported from Russia (N15.8billion) and Netherlands (N14billion).


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Solid Minerals Sector

 The total value of trade in solid mineral goods in Q1 2021 stood at N49.5billion. The export component of this trade  stood at N9.3 billion while the import was valued at N40.2billion. The leading exported mineral products were Other cement exported to Niger Republic and Togo worth N2.7billion and N1.3billion respectively. Lead ores and Concentrates worth N2.9 billion were exported to China, as were Zinc ores and Concentrates worth N0.8billion.

 

In terms of imports, Plasters of Calcined Gypsum sulphate was imported from Turkey and Egypt, worth N8.9billion and N3.5 billion. Gypsum anhydrite was also imported from Spain and Turkey, valued at N5.8billion and N3.4billion respectively. Others were Crude salt worth N4.5billion imported from Brazil etc.

 

Manufactured Goods Sector

The value of manufactured goods trade in Q1 2021 stood at N4,782.7billion representing 49.01% of total trade. Out of  this, the export component accounted for N250.4billion while the import component was valued at N4,532.4billion. The products that drove up Manufactured products were Helicopters of Unladen weight exceeding 2000kg which was exported to Ghana, at a value of N71.1billion. Vessels and other floating structures for breaking up were exported to United Kingdom and Cameroon, worth N38.9billion and N17.6billion. Other products were Floating or Submersible drilling  platform exported to Equatorial Guinea, at a value of N39.5billion, and storage units worth N31.3billion exported to Ghana.

 

In terms of Manufactured imports, other antibiotics were mainly imported from the Netherlands and India worth N329.2billion and N43.3billion. Used vehicles, worth N140.2billion, was imported from the United States. Motorcycles worth N30.98billion and N86.67 billion from China and India, and Machines for reception…of voice, worth N75.1 billion and N21.8billion from China and Hong-Kong. Other imports under this category were parts of Machinery for working rubber or plastics worth  N67.8billion imported from India.

 

Raw Material Goods Sector

The value of total trade in raw material stood at N711.8billion, accounting for 7.3% of total trade. The import component was valued at N669.2billion while the export component stood at N42.7billion. Urea, whether or not in aqueous solution, worth N16.8 billion was exported to Brazil, Leather further prepared after tanning was exported to Spain and Italy, valued at N6.6billion and N1.0billion respectively. Cotton,  not carded or combed, worth N1.9 billion  was also exported to Pakistan.


In terms of imports, Cane sugar worth N88.9billion was imported from Brazil, Mixtures of Odoriferous substance valued at N15.5 billion and N8.0 billion were imported  from  Ireland and Swaziland, while Milk preparation worth N18.4billion and N7.8billion  were imported from Ireland and  Malaysia during the period under  review.

 

Trade Intensity in Q1 2021

 

Export Intensity Index with Five Major Trading Partners

The export intensity index compares the share of exports to each country in Nigeria's total exports, with the share of world exports going to that country, and therefore gives a measure of the importance of that country to Nigeria as an export destination. A higher number denotes a stronger relationship, and an index of one indicates that exports to that country are what would be expected given global trade patterns.   

In Q1 2021, Nigeria had  intense export trade with India (6.0, 3.97, 4.37), Spain (3.64,5.61, 1.94) and the Netherlands (1.04, 1.06 and 1.14). This is shown by the higher index recorded during the quarter.    However, lower export intensities were recorded for China (0.45, 0.39, 0.46) and France (0.82, 0.83 except in March where France recorded 1.18. This can be attributed to the nature of the product mix exported during the quarter.


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Import Intensity Index with five Major Trading Partners

 

During the quarter, the import intensity index of Nigeria with the top importing partners  (China, the Netherlands, India and Belgium)  were higher in all months. China recorded 1.7, 1.5 and 2.0 in January, February and March. Higher indices were also recorded for the Netherlands (1.0, 4.4 and 1.0), India (3.4, 5.1 and 4.2), Belgium (1.0, 1.3 and 1.4) while the United States registered lower intensities of 0.9 and 0.6 for January and February except in March where it recorded 1.3.

 

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Trade by Mode of Transport

The majority of commodity exported out of Nigeria were transported by water. This was reflected in the value of exports by water in Q1 2021. Water transport accounted for N2,822.5billion or 97.09% of total exports. Air transport contributed N75.9billion or 2.61%, Road transport was valued at N3.7billion or 0.13% while other transport was valued at N5.0 billion or 0.17%.

Similarly for imports, most goods brought into the country arrived via water transportation means. Water transport accounted for N6,056.6billion or 88.4% of the value of total imports. Other modes of transport were air and road, responsible for goods valued at N765.3billion or 11.17% and N28.8billion or 0.4% respectively.

 

Trade by Custom Ports and Post

In Q1 2021, the bulk of export transactions was conducted through Apapa port, with goods valued at N2,584.7billion or 88.91% of total exports. This was followed by Port Harcourt (3) which recorded N167.29billion or 5.75% while Muhammed Murtala International recorded  N75.4 billion or 2.5%.

In terms of imports, Apapa Port also recorded the highest transactions valued at N2,927.1billion or 42.73% of total imports. This was followed by Tin Can Island N1,229.43billion or 17.95% , Port Harcourt (3) N691.7billion or 10.10%, while Muhammed Murtala Cargo recorded N625.7billion  or  9.13% of total imports.

 

Click Here to Download Q1 2021 Foreign Trade Statistics PDF Report


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Latest 2021 NBS Reports

 

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Q2 2021

1.      Average Prices of 1kg of Tomato Increased by 0.09% YoY in April 2021 - NBS

2.     Average Fare Paid by Commuters for Intercity Bus Journey Increased by 1.48% MoM in April 2021 - NBS

3.     Nigeria's Real GDP Grew by 0.51% YoY in Q1 2021 - NBS

4.     Average Prices of PMS, AGO, HHK and Cooking Gas - April 2021

5.     Headline Inflation Increases by 18.12% YoY In April 2021, 0.05% Lower Than March 2021 Rate - NBS

6.     416 Movies Produced in Q1 2021 - NBS

7.     N392.77bn Generated as CIT in Q1 2021 - NBS

8.     N496.39bn Generated as VAT in Q1 2021 - NBS

9.     Banking Sector Records 3.46bn Volume of Transaction in Q4 2020 - NBS

10.  Average Price of 1kg of Tomato Decreased by -0.64% MoM in March 2021 - NBS

11.   Average Fare for Bus Journey Within City Increased by 4.42% MoM in March 2021 - NBS

12.  N1.31trn Generated as IGR in 2020 - NBS

13.  Headline Inflation Increases by 18.17% YoY In March 2021, 0.82% Higher Than February 2021 Rate - NBS

14.  Average Prices of PMS, AGO, HHK and Cooking Gas - March 2021

15.  Real Household Consumption Expenditure Growth Rate Stood at 0.18% in 2020 - NBS

16.  All Commodity Group Import Index Grew By 0.13% in Q4 2020 - NBS

17.  38.60% of Nigeria's Total Public Debt Was External in Q4 2020 - NBS

 

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Q1 2021

18.  Average Price of 1kg of Tomato Increased by 11.33% YoY in February 2021 - NBS

19.  Average Fare Paid by Commuters for Intercity Journey Increased by 1.13% MoM in February 2021 - NBS

20. FAAC Disburses N619.34bn in January 2021 - NBS

21.  Average Prices of PMS, AGO, HHK and Cooking Gas - February 2021

22. Active Voice Subscribers Declined by -0.32% QoQ in Q4 2020 - NBS

23. Headline Inflation Increases by 17.33% YoY In February 2021, 0.86% Higher Than January 2021 Rate

24. Nigeria's Unemployment Rate Increases to 33.3% in Q4 2020 from 27.1% in Q2 2020 - NBS

25. Total Trade Higher By 8.9% in Q4 2020, Lower By 10.3% in FY 2020

26. Average Price of 1kg of Tomato Decreased by -6.59% MoM in January 2021

27. Average Prices of PMS, AGO, HHK and Cooking Gas - January 2021

28. Nigeria Exits Recession, Real GDP Grew by 0.11% in Q4 and -1.92% in Full Year 2020

29. Headline Inflation Increases by 16.47% YoY In January 2021, 0.71% Higher Than December 2020 Rate

30. FAAC Disburses N2.49trn to FG and N2.30trn to States in Year 2020 - NBS

31.  FAAC Disburses N601.11bn in December 2020 - NBS

32. FAAC Disburses N604.00bn in November 2020 - NBS

33. Total Value of Capital Importation into Nigeria Stood at US$1,069.68m in Q4 2020 - NBS

34. N295.72bn Generated as Company Income Tax in Q4 2020 - NBS

35. N454.69bn Generated as Value Added Tax in Q4 2020 - NBS

36. Average Price of 1kg of Tomato Increases by 17.51% YoY in December 2020 - NBS

37. Average Air Fare Increases by 18.54% YoY in December 2020 - NBS

38. Average Prices of PMS, AGO, HHK and Cooking Gas - December 2020

39. Headline Inflation Increases by 15.75% YoY In December 2020, 0.86% Higher Than November 2020 Rate

40. 62.18% of Nigeria's Total Public Debt as of Q3 2020 Was Domestic - NBS

41.  Active Voice Subscribers Grew by 4.59% in Q3 2020 - NBS

 

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