Tuesday, August 16, 2016 9:05am /FBNQuest Research
The merchandise trade data released by the NBS in its latest Foreign Trade Statistics for Q1 2016 shows a trade deficit of N1.8bn (US$5.6m), representing a 23% decrease from the previous quarter.
The steep decline in exports contributed to the total trade deficit recorded. Given the oil production losses due to pipeline vandalism in the Niger Delta, export of crude oil fell in the quarter under review.
According to the NBS, the crude oil exports declined by 47% when compared with the level recorded in Q4 2015.
Nigeria’s import trade stood at N1.5trn (US$4.7bn) in Q1. This is 8% lower than the value recorded in Q4 2015.
Nigeria’s import trade which is structured in the SITC model shows the import of machinery, mineral fuel and chemicals as the dominant import products for Q1, accounting for 35%, 17% and 15% respectively.
Meanwhile commodities such as oils, fats and waxes as well as beverages and tobacco contributed the least to total imports, equating to 0.8% and 0.6% respectively.
The bulk of imported goods in Q1 was from China, with an import value of N346bn (US$1.1bn) thus, contributing 24% to total imports.
As for exports, the country’s export trade stood at N1.3trn (US$4.1bn), representing a 35% decline from the previous quarter.
Nigeria’s fx sourcing challenges have resulted in a dip in import volumes. Customs and excise has been the weakest of the four components of gross non-oil revenue so far. The customs service has pointed to CBN policies as the reasons for the shortfall.
1. Nigeria Records Negative Trade Balance in Q1’16 Due to Falling Exports
2. Merchandise trade declines by 30.6% in 2015 due to falling exports
3. Nigeria's Merchandise Trade Declines in Q3, 2015
4. Nigeria's Merchandise Trade Declines in Q2 2015 – Aug 19, 2015
5. NBS Releases Foreign trade Statistics Report for Q1 2015 – May 27, 2015