| Nigeria Economy |    4058 VIEWS  |
| Nigeria Economy | |
| 4058 VIEWS | |
 |
Tuesday, June 09, 2020 11:20 AM / NBS/ Header Image Credit: NBS
Key Highlight
Total Trade
Imports
Exports
Major export trading partners and percentage share in q1, 2020 export trade.
India | 15.61% |
Spain | 9.87% |
Netherlands | 9.72% |
South Africa | 7.82% |
Cameroon | 7.39% |
Major import trading partners and percentage share in q1, 2020 import trade
|
China |
26.28% |
|
Netherlands |
11.14% |
|
United States |
10.45% |
|
India |
7.92% |
|
Belgium |
6.11% |
Major Traded Agricultural Products.
Sesamum seeds, whether or not broken
Good fermented cocoa beans
Superior quality raw cocoa beans
Natural cocoa butter
Cashew nuts, in shell
Cashew nuts, shelled
Ginger
Other frozen shrimps and prawns
Nigerian cotton lint
Other flours and meal of oil seeds or oleaginous
fruit, other than those of mustard
Overview
The value of Nigeria's total trade stood at N8,304.8billion in Q1,2020.This was 17.94% lower than the value recorded in Q4, 2019 but 0.80% higher than the value recorded in Q1,2019.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.
Imports Classified by Standard International Trade
Classification and country of Origin
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%).
Exports Classified by Standard International Trade
Classification and Country of Destination
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.
Exports by country of destination showed that Nigeria exported goods to India valued at (N637.5billion or 15.61%), Spain (N402.9billion or 9.87%), The Netherlands (N396.9billion or 9.72%), South Africa (N319.5 billion or 7.82%) and Cameroon (N301.8billion or 7.39%).
Export/Imports Products Classified by Sectors
Q1, 2020
Agricultural Goods Sector
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 Sesamum
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
N13.98billion. Further, Durum wheat (seed) was imported from the United
States (valued at N8.95billion), Russia (N5.9billion) and Lithuania (N5.5billion).
Solid Minerals Sector
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 (N0.3billion). 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).
Manufactured
Goods Sector
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 America
(N413.2billion)
Raw
Material Goods Sector
The value of total trade in raw material
stood at N341.1billion. The import component was valued at N307.3billion while
the export component stood at N33.8billion. During the quarter, Urea
worth N10.5billion and N5.4 billion were exported to Brazil and Uruguay. Technically
specified natural rubber, worth N1.0 billion, was exported to Spain. Leather
further prepared after tanning, valued at N2.2billion, was also exported
to Spain.
In terms of imports, Cane sugar meant for
sugar refinery worth N 44.3 billion was imported from Brazil, Milk
preparation worth N7.4 billion from Ireland, N3.8 billion from Malaysia and
N2.2billion from Australia were also imported. Other products were mixtures
of Odoriferous substances worth N9.5billion from Ireland and N2.0billion
from Swaziland. Mixed alkylbenzenes worth N11.4 billion was imported
from Spain and other Glutamic acid worth N3.3billion were imported from
China.
Trade Intensity in Q1 2020
Export
Intensity Index with Five Major Trading Partners
The export intensities of Nigeria in Q1, 2020 showed Nigeria had a strong export relationship with India, with export intensities of 6.97, 8.54 and 7.38 for January, February and March respectively. For the European trading partners, intensity was relatively weaker. For example, export intensity with Spain in all the months was recorded at 4.66, 4.14 and 5.79 respectively. Similarly, the bilateral trade flow between Nigeria and Netherlands was reflected by the export intensities of 2.53, 1.83 and 1.73. Italy recorded index greater than one in January (1.19) and February (1.59), but this slowed in March, when the intensity index recorded 0.62. For France, there was a low index in January (0.98) while February and March registered index greater than 1.
Import
Intensity Index with five Major Trading Partners
During the quarter, the import intensity of Nigeria with China was greater than 1, as reflected in January (1.22), February (1.45) and March (2.37). Similarly, Netherlands registered higher import intensities of 3.64 in Jan, slowing to 2.53 in February but weak import intensity in March (0.47). The next leading import partner were the United States and India. While the import intensity with the US remained fairly stable through January (1.02), February (1.0) and March (1.08), India's strengthened over the same period, recording 3.21, 3.92 and 5.08 for January, February and March respectively. Like the Netherlands, Belgium registered similar trend in import intensities in January (3.52), February (1.69) and (0.56) in March.
Trade by Mode of Transport
The majority of
commodity exported out of Nigeria were transported via water. This was
reflected in the value of exports by water in Q1,2020. Water transport
accounted for N4,040.1 billion or 98.95% of total exports. Air transport
contributed N42.6 billion and Road transport contributed N0.2billion.
Similarly, for imports most goods brought into the country arrived via water
transportation means. Water transport accounted for N3,763.7billion or 89.1% of
the value of total imports. Goods imported by Air were N429.8billion or 10.2%
while Road transport attracted goods valued at N28.3 billion respectively.
Trade by Custom Ports and Post
In Q1 2020, the
bulk of export transactions was conducted through Apapa port, valued at
N3,578.4billion or 87.6% of total exports, followed by Port Harcourt (3) which
recorded N355.7billion or 8.7%, and Tin Can Island which recorded N96.9billion
or 2.4%. In terms of imports, Apapa port also recorded the highest transactions
valued at N2,062.99billion or 48.9% of total imports. This was followed by Tin
Can Island N745.1billion or 17.7%, while Port Harcourt (3) was valued at
N297.1billion or 7%.
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