Trade Balance Improves in Q3 2016 Due to Rising Exports but Still Negative


Friday, December 02, 2016/8:26 AM /NBS

Total Merchandise Trade
The total value of Nigeria’s merchandise trade at the end of Q3, 2016 stood at 4,721.9 billion, an increase of 661.5 billion or 16.3% from the preceding quarter value of 4,060.4 billion. This development arose due to increase in both imports and exports.

Exports stood at 2,308,857.2 billion resulting to an increase of 520.8 billion or 29.1%, while imports rose to 2,413,001.7 billion which gives an increase of 140.7 billion or 6.2%.

The rise in exports this quarter reduced the deficit trade balance from -484,238.7 billion experienced in the previous quarter to -104,144.5 billion. The crude oil export value stood at 1,943,987.0 billion indicating an increase of 458.4 billion or 30.9% against the level recorded in Q2,2016 (Table 1).

Imports Classified by Standard International Trade Classification and Country of Origin.

Nigeria’s import trade stood at 2,413.0 billion, at the end of Q3, 2016. This was 6.2% more than the value recorded in the preceding quarter 2,272.3 billion. Further comparison with the corresponding quarter of last year, showed an increase of 724.8 billion or 42.9%.

The structure of Nigeria’s import trade according to SITC was dominated by the imports of “Mineral fuel, lubricant etc.”, “Machinery and transport equipment”, and “Chemicals and related products”, which accounted for 30.3%, 25.1%, and 14.4% respectively in 2016.

These commodities contributed the most to the value of import trade in 2016, whereas commodities such as “Crude inedible materials, except for fuel”, “Beverages and tobacco”, and “Animal and vegetable oils, fats and waxes”, contributed the least, accounting for 1.5%, 0.6%, and 0.3% respectively (Table 6).

Import trade by section (Table 2), was dominated by the imports of “Mineral products”, which accounted for 746.2 billion or 30.9% of the total value of import trade in 2016. Other commodities which contributed noticeably to the value of import trade in 2016 were “Boilers, machinery and appliances; parts thereof” at 475.6 billion (19.7%), and “Products of the chemical and allied industries” at 220.0 billion (9.1%), “Plastic, rubber and articles thereof” at 153.9 billion (6.4%) and “Prepared foodstuffs; beverages, spirits and vinegar; tobacco” at 148.2 billion (6.1%).

At the end of the quarter, the import trade classified by Broad economic category (Table7) revealed that “Fuels and lubricants.” ranked first with 725,118.5 billion or 30.1%. This was followed by “Industrial Supplies (nec)” with the value of 611,617.5billion or 25.3 %, and “Capital Goods and parts of” with 460,563.9billion or 19.1%.

Nigeria’s import trade by direction showed the country imported goods mostly from China, with an import value of 478.7 billion or 19.8% of total imports. This was followed by Belgium at 331.3 billion or 13.7%, Netherlands with 299.7 billion or 12.4%, the United States with 165.5 billion or 6.9% and India with 121.3 billion or 5.0% of total imports.

Imports by economic region revealed that the country consumed goods largely from Europe, with import value of 1,158.4 billion or 48.0%. The Country also imported goods largely from Asia, with import goods valued at ₦843.27 billion or 34.9%. Goods valued at ₦294.5 billion or 12.2% of total import trade was imported from America. Import trade within the continent of Africa totalled ₦87.9 billion or 3.6%, while imports from the region of ECOWAS amounted to ₦8.5 billion (Table 4).

Exports Classified by Standard International Trade Classification and Country of Destination
The value of the export trade, totalled 2,308.9 billion in Q3, 2016 showing an increase of 520.8 billion or 29.1%, over the value recorded in the preceding quarter. Year-on-Year analysis shows that the country’s exports decreased by 24.4 billion or 1.0% against the export value recorded in the corresponding quarter of 2015. The structure of Nigeria’s export trade is still dominated by crude oil exports, with the contribution of crude oil to the value of total domestic export trade amounting to 1,944.0 billion or 84.2% (estimate figures).

Exports by section revealed that the highest export product for Nigeria in 2016 was “Mineral products” which accounted for 2,246.4 billion or 97.3%. Other products that contributed the most to Nigeria’s exports include “Prepared foodstuffs; beverages, spirits and vinegar; tobacco” and “Vegetable products” whose values stood at 24.3 billion or 1.1%, and 9.4 billion or 0.4% respectively, of the total exports from Nigeria for the quarter (Table 3).

Exports by continent showed that Nigeria mainly exported goods to Europe and Asia, which accounted for 767.7 billion or 33.3% and 672.8 billion or 29.1% respectively, of the total export value for Q3, 2016. Furthermore, Nigeria exported goods valued at N371.2 billion or 16.1% to the continent of Africa while export to the ECOWAS region totaled 190.3 billion (Table 5).

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