Wednesday, May 27, 2015 10.38AM/NBS
Merchandise Trade Declines in Q1, 2015:
Favorable Trade Balance from rising exports and falling import values
Total External Merchandise Trade
The total value of Nigeria’s merchandise trade at the end of Quarter One, 2015, stood at ₦4,875.4billion. From the preceding quarter value of ₦4,985.6billion, this was ₦110.2billion or 2.2% less. Despite a rise of ₦275.6billion or 9.3% in the value of exports against levels recorded in the preceding quarter, a decline of ₦385.8billion or 19.0% in the value of imports resulted in an overall decline in the value of merchandise trade.
The rise in exports and decline imports improved the Country’s trade balance however, which increased by 71.6% from the preceding quarter, to ₦1,584.9billion (Table1). In comparison with the corresponding quarter of 2014, the value of total merchandise trade decreased by ₦639.5billion or 11.6%, while the trade balance decreased by ₦839.1 billion or 34.6%
Imports Classified by Standard International Trade Classification and Origin
The value of Nigeria’s imports stood at ₦1,645.3billion, at the end of Q1, 2015, a decrease of ₦385.8billion or 19.0% from ₦2,031.0billion recorded in the preceding quarter. Year-onyear however, the value of the country’s imports increased by ₦99.8billion or 6.5% from the Q1, 2014 value of ₦1,545.44billion.
The structure of Nigeria’s imports classified by Section revealed that imports of “Boilers, Machinery and Appliances” dominated, accounting for 27.7% of the total value of imports in Q1, 2015 (Table 2). Other commodities which contributed considerably to the value of imports in the review period were “Mineral Products” (13.1%), “Base Metals and Articles of Base Metals” (10.2%), “Vehicles, Aircraft and Associated Parts” (9.6%), and “Products of the Chemical and Allied Industries” (8.7%). The key drivers of the year on year growth were “Boilers, Machinery and Appliances” and “Vegetable Products”, which increased by ₦88.7billion or 24.2% and by ₦33.8billion or 47.6% from Q1 of 2014 values respectively.
Imports classified by Broad Economic Category (Table7), revealed that “Industrial Supplies not elsewhere classified”, ranked first with ₦491.4billion or 29.9% of total Q1, 2015 imports. This was followed by “Capital Goods and Parts” with the value of ₦418.3billion or 25.4% of the total, and “Food and Beverage“ with ₦257.8billion or 15.7% of total imports. The product with the greatest import value was “Motor Spirit”, which stood at ₦181.3billion* or 11.0% of the total.
Nigeria imported goods mostly from China, United States, Belgium, Netherlands and India, which respectively accounted for ₦387.5billion or 23.6%, ₦133.8billion or 8.1%, ₦118.7billion or 7.2%, ₦108.7billion or 6.6% and ₦96.6billion or 5.9% of the total value of goods imported during the quarter. By Continent, the country consumed goods largely from Asia, with an import value of ₦708.2billion or 43.0% of the quarterly total. Nigeria also imported goods valued at ₦458.4billion or 27.9% of total imports from Europe and ₦252.2billion or 15.3% of total imports from Africa. Imports from the ECOWAS region amounted to ₦9.6billion or 3.8% of the total value of imports from Africa. (Table4).
Exports Classified by Standard International Trade Classification and Destination
The value of merchandise exports totalled ₦3,230.2billion in Q1, 2015, an increase of ₦275.6billion or 9.3% over the value recorded in the preceding quarter. Relative to the opening quarter of 2014, the value of exports declined by ₦739.3billion or 18.6%. The structure of the nation’s exports was still dominated by Crude Oil, which contributed ₦2,251.2 billion or 69.7% to the value of total of exports in the opening quarter of 2015*.
Exports classified by Section revealed that Nigeria exported mainly “Mineral Products”, which accounted for ₦2,880.3billion or 89.2% of total exports. Other products exported by Nigeria include “Vehicles, Aircraft and Parts Thereof; Vessels etc” at ₦185.8billion or 5.8% of the total, “Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco” at ₦53.8billion or 1.7% of the total, and “Vegetable Products” at ₦36.7billion or 1.1% of total exports (Table 3). Natural Liquefied Gas was the product with the second greatest export value, after Crude Oil, with a value of N306.2 billion or 9.5% of the total export value during the period of review.
Nigeria exported goods mainly to India, Netherlands, Spain, South Africa and Brazil, whose values stood at ₦436.6billion or 13.5%, ₦319.6billion or 9.9%, ₦263.4billion or 8.2%, ₦260.0billion or 8.0% and ₦257.0billion or 8.0% of the Q1, 2015, totals respectively.
Exports by continent of destination revealed that Nigeria mainly exported goods to Europe and Asia, which accounted for ₦1,152.0billion or 35.7%, and ₦909.1billion or 28.1% respectively of total exports during Q1 2015. Nigeria exported goods valued at ₦601.0billion or 18.6% of total exports to the continent of Africa, while exports to the ECOWAS region totalled ₦277.3billion, 46.1% of the total exported to Africa (Table5).
*Crude oil and Premium motor spirit figures for this quarter are estimated, and therefore should be treated as provisional