FRI, SEPT 07 2018-theG&BJournal-Nigeria’s foreign trade contracted 8.9% in Q2-18 to stand N6,569.98 billion in Q2, the National Bureau of Statistics (NBS) reported on September 6 2018.
The NBS report also confirms adjustments in balance of payment, with exports down 4.9% at N4,463.3 billion and import sharply down 16.3% on a quarter on quarter basis, and -19.9% year on year.
The Trade balance in Q2, 2018 was N2,356.6 billion, which increased by 8.36% from Q1 2018 and 399.82% over the same quarter in 2017. The quarter and quarter increase of trade balance in the reviewing quarter was driven by the slower decline in exports compared to a higher decline in imports, NBS said.
According to analysts who spoke to TheG&BJournal, for the export to turn faster, there needs to be a much more credible policy response, and perhaps additional external support to boost export. As usual exports in the first quarter of 2018 was still dominated by Crude oil (N3,728.5 billion of 83.5%).
The total value of imports into Nigeria in the second quarter stood at N2,106.7 billion, of which N426.9 billion imports were mineral fuel (20.26% of the total import) and N600.6 billion were machinery and transport equipment (28.5% of the total import), while Chemical and Related Product imports accounted for 7.7% of total imports.
Asia, Europe and America continued to dominate as import destination into Nigeria in the reviewing quarter, accounting for 44.4%, 38.3% and 10.5% respectively, according to NBS.
Nigeria exported goods at N265.1 to ECOWAS member states represents 41.5% of the total export trade to Africa.
The total trade value in Q2, 2018 also shows a 14.56% growth compared to the amount of N5,734.80 billion recorded in same quarter last year.
In the second quarter, the top five import destination for Nigeria was China, Netherlands, Belgium, India and United States which respectively accounted for N531.6 billion or 25.2%, N181 billion or 8.6%, N170.9 billion or 8.1%, N145.0 billion or 6.9% and N141.5 billion or 6.7%. Import trade from African Countries stood at N109.1 billion or 5.2% while imports from the region of ECOWAS amounted to N14.2 billion or 0.4% of total imports.
The second largest component of export in Q2 2018 were vegetable products, which recorded N65.45 billion or 1.5% of the total export in the reviewing quarter.
Exports by country of destination showed that Nigeria exported goods in Q2 2018 mainly to India,
Netherlands, Spain, South Africa and United States valued at N722.6 billion or 16.2%, N457.6 billion or 10.3%, N426.1 billion or 9.6%, N359.8 billion or 8.1% and N306.5 billion or 6.9% respectively. These five countries accounted for 50.9% of the total exports in Q2, 2018.
The total trade of agricultural goods in Q2, 2018 stood at N310.4 billion (4.72% of total trade), in which exports and imports recorded N85.9 billion (1.92% of total exports) and N224.5 billion (10.66% of total imports) respectively. Exports of agricultural products in the second quarter grew strongly by 17.3% compared to N73.2 billion recorded in Q1 2018, while imports in the reviewing quarter increased by 21.7% compared to N224.50 billion recorded in the previous quarter.
Agricultural products in the quarter under review, were mainly exported to Asia (N64.6 billion) and Europe (N15.3 billion).
The major exported agricultural products in Q2, 2018 were Cashew nuts (N38.4 billion), Sesamum seeds (N19.4 billion), Raw Cocoa beans (N6.8 billion), Fermented cocoa beans (N4.6 billion), Frozen Shrimps and Prawns (N3.1 billion). Specifically, N26.6 billion worth of cashew nuts were exported to Vietnam, N10.01 billion to India, N665.1 million to UAE. The second primary exported agricultural product in Q2 2018 was Sesamum seeds. This product was exported mainly to Turkey (N4.7 billion), Japan (N4.1 billion) and China (N3.3 billion).
Other major agricultural products include superior quality raw cocoa beans which were exported to Malaysia (N472.9 million) and Netherlands (N3.1 billion) and Frozen shrimp and prawns which were mainly exported to The Netherlands (N1.9 billion) and USA (N511.4 million).
In terms of imports, Agricultural products with a total value of N224.5 billion were imported into Nigeria in Q2, 2018, which was an increase of 21.7% compared to N184.4 billion imported in Q1, 2018.
The total value of solid minerals trade recorded in Q2, 2018 was N37.2 billion, accounting for 0.57% of the total trade. The value of exported solid minerals stood at N19.9 billion while the value of imported solid minerals stood at N17.2 billion.
In the second quarter 2018, Nigeria exported N9.2 billion of Naphthalene to the Netherlands. This was followed by Cement (excluding white cement) of N2.4 billion to Togo and N2.1 billion to Niger. Zinc ores and concentrates were exported to China to the tune of N2.9 billion.
During the second quarter of 2018, Crude salt was imported mainly from Brazil and Namibia with values in the second quarter of N2.9 billion and N2.1 billion from the two respective countries. Plasters of calcined gypsum or calcium sulphate whether or not colored were imported from Turkey, Tunisia and Egypt, with values worth N1.7 billion, N592.9 million and N467.8 million respectively. Gypsum; anhydrite whether or not colored, with/without small quantities of accelerators were imported from Spain, Switzerland and China, with values worth N2.3 billion, N261.2 million and N34.2 million respectively
