Total Trade Declined By 5.1% QoQ in Q4 2018; Rose By 42.9% YoY

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Friday, March 01, 2019  07:20 PM / NBS


Key Highlights

v  Total trade declined by 5.1% in Q4 2018 compared to Q3 2018, but rose by 42.9% relative to the corresponding quarter in 2017.

Imports

v  The value of total imports fell 14.99% in Q4 2018 compared to Q3 2018, but rose 69.6% over the corresponding quarter of 2017.

v  Imported Agricultural products was valued at N5.0 billion, or 2.23%  less  than  in Q3 2018, and N8.7 billion or 3.8% lower than Q4, 2017.

 

v  The value of Raw material imports grew 9.5% more than the value recorded in Q3, 2018 and 10.8%  more than the value recorded in Q4 2017.

 

v  The value of Solid minerals imports was 5.26% lower than the value of imports in Q3, 2018 but 15.25% higher than the value recorded in Q4 2017.

v  The value of Energy goods imports was N40million, or 456.76%  higher than in Q3,2018  due to the increased importation of non-coniferous  energy goods ( ie fuel wood in logs)  during the quarter under review. Compared with the corresponding quarter of 2017, it represented a decrease of 70.8%.

v  The value of imported Manufactured goods decreased by 23.5% against the value recorded in Q3, 2018 but rose by 82.2% against its value in Q4, 2017.

 

v  The value of Other oil products imported was N832.2 billion, or 28.6% lower than in Q3, 2018 but 118.98% higher than the corresponding quarter of 2017.

Exports

v  The value of total exports in Q4, 2018 increased by 3.52% against the level recorded in Q3, 2018 and 28.46% higher than its value in Q4, 2017.

v  The value of Agricultural exports rose by 115.1% in Q4 2018 compared to Q3,2018, and 696.8% compared to Q4 2017.

v  The value of Raw material goods exports in Q4,2018 was 26.7% higher than the value in Q3 and 7.7% higher than the value recorded in Q4 2017.

v  The value of Solid minerals exports decreased by 20.6% against Q3 2018 and 67.7% against the corresponding quarter in 2017.

v  The exports of Energy goods increased in value by 6.1% in Q4 2018 compared to Q3 2018 and by 12.7% when compared with Q4 2017.

v  The value of Manufactured goods exports rose by 14.97% in Q4 2018 when compared with the value recorded in Q3 2018 but decreased 36.6% against the corresponding quarter in 2017.

v  The value of Crude oil exports in Q4 2018 was 1.98% higher than in Q3 2018 and 29.95% higher than in Q4 2017.

v  The value of Other oil products exports increased by 3.5% in Q4 2018 when compared with Q3 2018, and 15.99% compared to Q4 2017.

Nigeria’s major export trading partners and their percentage shares in Q4 2018 export trade:

v  India                           15.5%

v  Spain                          11.3%

v  France                        9.9%

v  South Africa              6.8%

v  Netherlands              6.5%

Nigeria’s major import trading partners and their percentage shares in Q4 2018 import trade:

v  China                         25.1%

v  United States 10.4%

v  Netherlands              9.1%

v  India                           6.5%

v  Belgium                     5.5%

Major traded agricultural products in Q4 2018:

v  Sesamum seeds

v  Good fermented Nigerian Cocoa beans

v  Superior quality raw cocoa beans

v  Cashew nuts in Shell

v  Other quality raw cocoa beans

Overview

During the fourth quarter of 2018, Nigeria’s total merchandise trade stood at N8,606.0billion. Compared to its value of N9,066.9billion recorded in the third quarter, total trade in Q4 2018  was lower by N460.96billion or 5.1%. The total export component of this trade was recorded at N5,023.7 billion, representing an increase of 3.5% over Q3, 2018 and 28.5% over Q4, 2017. The import component stood at N3,582.3 in Q4,2018 showing a drop of N631.6billion or 15.0% compared to Q3,2018, but an increase of 69.6% when compared with the corresponding quarter in 2017. The increase in export value and decrease in import value (relative to Q3 2018) resulted in a favourable trade balance of N1441.0 billion, or 125.5% over the preceding quarter. By year end 2018, the country recorded a total trade value of N32.264.7billion, representing 39.3% increase over the corresponding period in 2017. The volume of total merchandise trade in 2018 was the highest recorded since 2014, nearly double pre-recession levels.

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Figure 1: Trends in imports, exports and trade balance


Crude oil export has been the main stay of the economy, and at N4,228.9 billion, accounted for the largest share of total exports (84.2%)  in the fourth quarter of 2018. Non-oil products accounted for 4.6% of total exports while other oil products accounted for 11.2% of total exports in the quarter under review.

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Figure2: Trade composition

 

Imports Classified by Standard International Trade Classification and country of Origin

Nigeria’s imports was valued at N3,582.3billion in Q4, 2018 of which machinery and transport equipment accounted for N1,484.2 billion, or 41.4% of total imports during the quarter. Mineral fuel worth N830.2 billion, or 23.2% of total imports was also recorded while the importation of  chemical and related products accounted for N398.1 billion or 11.1% of the total imports during the quarter. Other major categories of imports were food and live animals, as well as manufactured goods which accounted for N349.2billion (9.7%) and N285.9billion (7.98%)of total imports during the quarter respectively.


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Figure 3: Composition of imports


The major import origins for Nigeria during the quarter were Asia, Europe and America each of which contributed N1,538.3 billion or 42.9%, N1,395.4billion or 39.0% and N510.7billion or 14.3% of the total imports respectively. Imports from Africa totaled N114.3billion or 3.2% while imports from the ECOWAS region accounted for N23.2 billion, or 20% of the total imports from African Countries.


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Figure 4: Imports by region


Nigeria’s imports by country of origin shows imported goods were predominantly from China, valued at N900.0 billion or 25.1% of the value of total imports. Other import origins were the United States, The Netherlands, India and Belgium which respectively accounted for N373.3 billion or 10.4%, N327.4billion or 9.1%, N230.96 billion or 6.5% and N197.0 billion or 5.57%.  The value of total imports from the top originating country was equivalent to the sum of total imports from the following three countries.

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Figure 5: Imports by country

 

Exports Classified by Standard International Trade Classification and Country of Destination

The structure of Nigeria’s export trade, valued at N5,023.7 billion in Q4 2018, was dominated by crude oil exports, which contributed N4,228.9 billion or 84.2% to the value of total exports in Q4, 2018. 

By section, Nigeria exported mainly mineral products which accounted for N4,809.2 billion or 95.7% of the total value of exports.  This was followed by prepared food stuff, beverages, Spirits and Vinegar which accounted for N59.9billion or 1.2% of total exports.

In the fourth quarter of 2018, Nigeria exported mostly to Europe, Asia and America, each of which accounted for N2,167.9 billion or 43.2%, N1,428.1billion or 28.4% and N702.5 or 13.98% respectively.  Furthermore, Nigeria exported goods worth N708.7 billion or 14.1% to other parts of Africa, of which goods valued at N338.5billion, or 48%, was exported to the ECOWAS region.

Export trade by country of destination showed that Nigeria exported goods mainly to India, Spain, France, South Africa and the Netherlands; at values of N780.1 billion or 15.5%,  N569.4 billion or 11.33%,  N496.1billion or 9.9%,  N340.1 billion or 6.8% and N328.7billion or 6.5% respectively.  These five countries accounted for 50% of the total exports in Q4, 2018.

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Figure 6: Exports by region

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Figure 7: Exports by country

 

Trade Classified by Sectors Q4, 2018

Agricultural Goods Sector

The trade in agricultural goods in Q4, 2018 was valued at N316.5billion representing 3.7% of the total trade.  The Export component of this trade was valued at N97.7billion in Q4, an increase of 115.10% compared to N45.4billion recorded in the preceding quarter. Further analysis by economic regions showed that Nigeria’s agricultural exports had destinations in Asia and Europe with values recorded at N51.4billion and N41.1billion respectively. During the period under review, agricultural products were dominated by Sesamum seeds (whether or not broken), good fermented Nigerian cocoa beans, superior quality raw cocoa beans, and Cashew nuts (in shell) with values worth N33.9billion, N24.5billion, N9.6 billion and N5.8 billion respectively.

The direction of these transactions shows that Sesamum seeds were exported mainly to China and Japan in values worth N13.7billion and N5.9 billion. Good fermented Nigerian cocoa beans were exported to the Netherlands and Germany in values worth N15.3 billion and N3.8 billion. Superior quality raw cocoa beans were mainly exported to the Netherlands and Indonesia in values worth N7.1billion and N2.1 billion, while Cashew nuts (in shell) went to Vietnam and India at values of N3.7billion and N1.99 billion respectively.

On the import transactions side, agricultural goods recorded N218.8billion or 6.11% of the total imports during the period under review.  The most prominent item was Durum wheat (not in seeds) imported mainly from Russia and Canada at values of N35.7 billion and N14.7billion.   Other imports were Durum wheat (in seed) also imported from Russia, Canada and the United States at values of N20.6billion, N13.3billion and N8.3billion respectively, as well as Crude palm oil imported from Malaysia (N10.01billion), Colombia (N1.45billion) and the United States (N727billion).

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Figure 8: Agricultural exports

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Figure 9: Sesamum seeds exports by country


Solid Minerals Sector

Trade in solid minerals stood at N25.3billion in Q4, 2018 representing 0.29% of total trade.  The export component of solid minerals trade stood at N7.7billion while imports totaled N17.6 billion.  During the quarter, solid mineral exports declined by 20.6% against the level recorded in Q3 2018 while imports declined by 5.3%.  The major solid minerals export during the quarter was Cement (excluding White cement) which was exported to Niger and Togo in values worth N1.6 billion and N1.0 billion respectively. The other major solid minerals export was Lead ores and concentrates worth N0.9 billion exported to China. 

Analysis of solid mineral imports showed that Nigeria imported Crude salt worth N2.3billion and N2.2billion from Namibia and Brazil respectively. Also, Plasters of calcined gypsum or calcuim sulphate (whether or not coloured) was imported mainly from Turkey at a value of N2.1billion while Gypsum (anhydrite whether or not coloured) was imported mainly from Spain at a value of N1.3billion.

Other Solid minerals like Granite (cut into a square or rectangular shape) worth N1.6 billion were imported from China, while Other coal (whether or not pulverized but not agglomerated)  worth  N1.1billion was imported from South Africa  during the quarter.

 

Manufactured Goods Sector

Trade in manufactured goods stood at N2,279.7 billion, or 26.5% of total trade in Q4 2018. The export component was valued at N75.6 billion while imported manufactured goods stood at N2,204.1billion. During the quarter, imported manufactured goods decreased by 23.5% over the level recorded in Q3, 2018 while export of manufactured products was 14.97% higher. Among manufactured goods, Vessels and other floating structures for breaking up were exported to Namibia and Cameroun at values worth N9.98billion and N6.0 billion respectively.  Aluminum alloys (unwrought) were exported to Japan and India at values of N4.1billion and N1.0billion respectively while Dredgers worth N6.5billion was exported to the Netherlands. Cigarettes containing tobacco worth N1.6 billion was exported to Niger Republic while Other machines and mechanical appliances having individual functions, was exported to the United Arab Emirates at a value of N4.98billion.

In terms of imports, Nigeria imported Used Vehicles, with diesel or semi diesel engine, of cylinder capacity >2500cc mainly from the United States and Italy which were worth N105.5 billion and N7.0billion respectively. Furthermore, Motorcycles and cycles, were imported mainly from India and China at values of N66.5billion and N19.9 billion respectively. Machines for the reception, conversion & transmission or regeneration of voice were imported from China and Sweden at values worth N35.6billion and N6.4billion. Other parts of gas turbines (excluding of turbo-jets and turbo propellers) were imported mainly from the Netherlands at a value of N28.5billion while Machines for cleaning/sorting/grading seed, grain or dried vegetables worth N14.2billion were imported from China.


Raw Material Goods Sector

The value of total trade in raw materials stood at N350.3billion, or 4.1% of total trade in Q4, 2018. During the quarter, raw materials export was valued at N40.7billion or 0.8% while imports accounted for N309.6 billion or 8.6% of the total import trade.

Raw materials exported during the quarter included Urea to Brazil worth N22.3billion and Leather (further prepared after tanning) worth N2.4 and N2.1billion exported to Italy and Spain respectively. Among others, prepared binders for foundry moulds, valued at N1.6billion, were exported to Belgium.

In terms of imports, Cane sugar, meant for sugar refinery worth N52.0billion was imported from Brazil, while Preparations for infant use, put up for retail sale were imported mainly from China and United Kingdom at values of N10.0billion and N7.96billion respectively. Mixtures of odoriferous substances of a kind used in the food or drink industry, worth N13.3billion and N3.6billion were also imported from Ireland and Swaziland respectively.


Trade Intensity in Q4 2018

Export Intensity Index with Five Major Trading Partners

During the quarter, Nigeria’s export intensity index for India, Spain, France, South Africa and the Netherlands was greater than 1 in all the months during the quarter, except for the Netherlands where there was a downturn in November and December. Nigeria registered export intensities of 3.4, 2.2 and 3.3 in its trade with India in October, November and December respectively. Similarly, export intensity index of 5.0, 1.4 and 2.9 were recorded for Spain during the period under review. Also export intensity index of 2.3, 1.0 and 1.5 were registered for France while export trade with South Africa registered intensity index of 7.8, 4.7 and 10.6 respectively. The Netherlands equally recorded high export intensity of 1.7 in October but a downturn of 0.9 and 0.4 was recorded in November and December.


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Figure 10: Export intensity


Import Intensity Index with five Major Trading Partners

During the quarter under review, Nigeria’s import trade with China recorded an intensity index of 1.4, 0.6 and 1.6 in October, November and December respectively. Although the United States has remained a major trading partner of Nigeria, the import intensity arising from this trade has remained very low, and this is shown in its muted import intensities of 0.9, 0.5 and 0.6. This can be attributed to the product mix imported from United States during the period under review. Nigeria’s import trade with the Netherlands was intense in the months of October and November with index of 2.6 and 1.1. Import trade with India also showed high intensity index in Oct (2.6), November (1.3) and December (2.5). Nigeria recorded high import intensity with Belgium in October (2.7) but this declined in November and December recording 0.7 and 0.5 respectively.

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Figure 10: Import intensity


Trade by Mode of Transport

In Q4, 2018, Nigeria’s major mode of transporting exports was the maritime mode, accounting for N4,989.6billion or 99.3% of total export. Goods exported by road accounted for N12.5 billion or 0.25%; Air accounted for N11.1 billion or 0.22%, while other modes of transport accounted for N10.4 billion or 0.21%.

With respect to imports, the maritime mode also dominated transportation modes accounting for N3,295.1billion or 91.98% of total imports.  During the quarter, air transport accounted for N268.3billion, or 7.5% while road transport accounted for N18.9 billion, or 0.5% of total imports.


Trade by Custom Ports and Post

The leading port of export operation during the quarter was Apapa port which accounted for N4,861.9 billion or 96.8 % of total export transaction. This was followed by Port Harcourt (3) through which goods worth N67.4billion were exported to partner countries. Goods worth N57.9billion exited the country through Tin Can Island.

In terms of imports, Apapa Port also maintained its dominant lead as major port of operation with transactions valued at N1,696.9 billion or 47.4%.  The next major port for imports was Tin Can Island which accounted for N753.8billion or 21.0%, while Port Harcourt (3) followed with transactions worth N276.5 billion or 7.7% of total imports during the quarter.


Click Here to Download Q4 2018 Foreign Trade Statistics PDF Report

 

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Latest 2019 NBS Reports 

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2.      1.67m Customers Metered As At Q4 2018 - NBS

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4.      Total Value of Credit Allocated By Banks Stood At N15.13trn As At Q4 2018 - NBS

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19.   Average Within City Bus Journey Fare Decreased By -5.64% MoM To N181.61

20.  Headline Inflation Increases By 11.44% YoY in December 2018; 0.16% Higher Than November 2018 Rate

21.   Average Prices of PMS, AGO, HHK and Cooking Gas – December 2018

 

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