Monday, December 19, 2016 4:56 PM /NBS
Highlights of the 3rd Quarter External Trade
· Imported agricultural products rose by 33% in Q3 above Q2
· Raw materials imports grew 60% above the level in Q2
· Imported solid minerals grew 68.5% above the level in Q2
· Other oil products grew by 43.3% above the level in Q2
• The value of exported agricultural products rose by 5.30% above the level in Q2
• Imported Raw materials was 32.05% higher in value than in Q2
• Solid minerals exports grew 220.96% more in value than in Q2
• The value of Manufactured products exports was 21.86% more in Q2 than in Q2
• Crude Oil exports rose 30.86% in Q3, while Other oil products was 20.09% more than Q2
Major Export trading partners were - India, USA, Spain, France and Netherlands
Major Import trading partners - China, Belgium, Netherlands, USA, India and France
Major Traded Agric Products -frozen shrimps and Prawn, Sesame seeds, Cashew nuts, Flour and meals of Soya bean and Ginger.
Nigeria’s External Trade in Q3 2016
The total value of Nigeria’s external trade in the third quarter of 2016 was N 4,721.9 billion. This figure consisted of exports worth N2,309 billion and imports worth N2,413 billion, indi-cating a slight negative trade balance of N104 billion. As in previous quarters, the sector which contributed the most to total trade was Crude Oil, which was all for exports.
In total this sector accounted for N1,944 billion, or 41.2% of the total trade in the third quarter of 2016. The Manufacturing Sector had the second largest share of total trade, accounting for N1,218.3 billion or 25.8% of the total, but in contrast to Crude Oil, was dominated by imports. Other Oil products was also a prominent sector, and accounted for N1,029.4 billion, or 21.8% of the total.
The remaining sectors were a relatively small proportion of total trade. Raw Ma-terials accounted for 6.37% of the total, Agriculture accounted for 4.43%, Solid minerals ac-counted for 0.43%, and trade in Energy goods was negligible at N0.1 billion.
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 meas-ure 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 quarter three, Nigeria had a particularly strong export relationship with India, with export intensities of 5.6, 8.3 and 3.9 July, August and September respectively. Spain was also a key export market with intensities of 3.6, 4.4 and 1.9 during the same months. Despite more ex-ports going to the US than Spain, this was due to the importance of the US as a global mar-ket, and the country nevertheless had lower intensities, of 1.2, 0.7 and 0.9 (Table 3).
France and the Netherlands were the other two largest export destinations, and recorded intensities of 0.8, 3.6 and 0.6 for France, and 1.1, 1.8 and 0.9 for the Netherlands.
Import Intensity Index with Major Trading Partners
This index mirrors the export intensity index, and measures the importance of Nigeria as an export destination for other countries. Nigeria’s major trading partners in terms of import were China, Belgium, Netherlands, United States and India. During the quarter, the import intensity of Nigeria with China was 1.09, for July 1.08 for August and 0.65 for September.
These figures are around one, and therefore indicate that China’s exports to Nigeria reflect the global share of imports accounted for by Nigeria. By contrast, Belgium – the next leading consumer of Nigeria’s products – showed high import intensities with Nigeria, of 4.35, 3.54 and 2.19 for the months July to September, denoting a stronger relationship. (Table3).
The Country’s import intensities were also high with India (2.57, 2.49 and 1.28) and the Neth-erlands (4.38, 2.57 and 1.04) during the same months. However, the import intensity of Ni-geria with United States and Spain were lower, with indices less than one other than for Spain in August. This is possibly a result of the mix of products imported from these countries, which may have been affected more by the CBN import regulations.
Major Import Partners
As in previous quarters, the country that Nigeria imported the most goods from in the third quarter of 2016 was China. In total, China accounted for N478.7 billion, or 19.8% of total im-ports. Nevertheless, this is a lower share of total imports than the country accounted for in the previous quarter.
Belgium and the Netherlands were the next most important import partners, and accounted for N331.1 billion (13.7%) and N299.7 billion (12.4%) respectively. They were followed by USA, India and France, which recorded N165.5 billion (6.86%), N121.3 billion (5.03%) and N91.3 (3.78%) respectively.
Agricultural Product Exports
The individual product to contribute the most to Agricultural exports in the third quarter was Frozen Shrimps and Prawns, for which the value of exports was N6.0 billion, or 37.2% of Ag-ricultural exports.
This value also makes the product the 8th largest export product in the third quarter of 2016. The second agricultural product export was in the third quarter was Sesame seeds (whether broken), which accounted for N4.82 billion, followed by Cashew Nuts in shell (N2.15 billion). The fig.5 below shows the top five agricultural products export.
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1. Trade Balance Improves in Q3 2016 Due to Rising Exports but Still Negative
2. Q2'16 Foreign Trade Review - Deficit Correction Dependent on Improved Crude Oil Volumes
3. Nigeria’s Merchandise Trade Grows by 49% in Q2 2016
4. Nigerian Capital Importation Falls by 8.98% in Q2'16 Relative to Q1'16
5. Job Creation Increases by 5.1% in Q4'15; Declines by 83.1% in Q1'16
6. Unemployment Rises to 13.3% in Q2’16 from 12.1% in Q1’16
7. Labour Productivity per hour Increases to N637.50 in Q2’16
8. Labour Productivity per hour Drops to N605.27 in Q1'16
9. Nigeria’s GDP Declines to -2.06% in Q2’16 from -0.36% in Q1’16; Lower by 1.70%
10. CPI Rises to 17.1% in July, 0.6% Higher Than 16.5% June Rate
11. Capital Importation into Nigeria Moves up by 3.07% in Q3’15, down by 43.34% in Q4’15
12. Capital Importation to Nigeria drops marginally by 0.20% in Q2'15
13. Nigeria’s Merchandise Trade Declines in Q2 2015
14. Capital Importation to Nigeria drops Marginally by 0.20% in Q2’15 – Aug 19, 2015
15. Nigeria Records Negative Trade Balance in Q1’16 Due to Falling Exports
16. Merchandise trade declines by 30.6% in 2015 due to falling exports
17. Nigeria's Merchandise Trade Declines in Q3, 2015
18. Nigeria's Merchandise Trade Declines in Q2 2015 – Aug 19, 2015
19. NBS Releases Foreign trade Statistics Report for Q1 2015 – May 27, 2015