December 27, 2023/FBNQuest Research
Today, we take a closer look at the National Bureau of Statistics (NBS) Q3 ’23 foreign trade report to examine Nigeria’s external trade patterns in agriculture. As highlighted in our initial publication (Good Morning Nigeria 06 December 2023), Nigeria’s merchandise trade was up by 55% q/q to NGN18.8trn. The trade value comprises of an export trade figure of NGN10.4trn and an import trade value of NGN8.5trn. Consequently, the net trade position resulted in a higher net trade surplus of NGN1.9trn, compared with a revised surplus of NGN708.9bn in Q1 ’23.
Nigeria’s agricultural exports more than doubled y/y to NGN220.0bn. However, on a q/q basis, it declined -22% q/q. Consequently, its share of contribution to the country’s exports was reduced to a paltry c.2.1% from c.4.4% in the previous quarter.
Despite the government’s sustained efforts in ramping up domestic food production and substituting imports, the quarterly drop in exports volume suggests that the country is still far off from achieving self-sufficiency.
The top three export products during the quarter were superior quality cocoa beans, other cut flower and flower buds and sesamum seeds with values of NGN42.2bn, NGN36.3bn and NGN23.2bn respectively.
The top destinations for Nigeria’s agricultural exports were Asia (NGN122.5bn), Europe (NGN60.0bn) and America (NGN33.3bn).
Specifically, export destinations for ‘superior quality cocoa beans’ were Indonesia (NGN15.1bn) and Netherlands (NGN12.1bn).
With respect to imports, the value of agricultural products increased by 42% q/q and 25% y/y to NGN643.7bn.
Durum wheat (not in seeds), mackerel and hydrogenated vegetable fats were the three most agricultural products imported into the country.
Additionally, imports were mostly sourced from Europe (NGN360.1bn), America (NGN153.8bn) and Asia (NGN110.7bn).
As shown by our chart, the nation’s external trade position in agriculture has always resulted in trade deficits to as far back as we can track. In line with this trend, the latest foreign trade report shows a trade deficit of -NGN423.7bn.
