December 9, 2024/CSL Research
Based on the recent foreign trade statistics report from the National Bureau of Statistics (NBS), Nigeria recorded a trade surplus of N5.81trn in the third quarter (Q3) of 2024. Total merchandise trade was N35.16trn, an increase of 13.3% over the value recorded in Q2 2024 and up significantly by 81.4% when compared to the value recorded in Q3 2023. Total exports grew to N20.49trn, representing 58.3% of total trade and an increase of 16.8% & 98% from N17.55trn & N10.35trn recorded in Q2 2024 & Q3 2023 respectively. Total imports amounted to N14.67trn, up 8.71% & 62.3% compared to N13.49trn & N9.04trn recorded in Q2 2024 & Q3 2023 respectively and accounted for 41.7% of total trade.
Looking at the exports breakdown, of the N20.49trn total exports, crude oil export contributed 65.4% (N13.41trn) and non-crude oil exports added about 34.56% (N7.08trn) of which non-oil products from agricultural goods, solid mineral, manufactured goods, and raw materials goods sectors contributed only N2.5trn i.e., only 12.2% of the total exports.
Nigeria’s major export destinations included Spain, the United States, France, Netherlands, Italy, and India, which together accounted for 46.6% of total exports. On the import side, key trading partners such as China, India, Belgium, the United States, Malta, and the UAE were responsible for 61.1% of the nation’s imports.
Despite strategic policy actions by the Federal Government to increase the importation of key food staples to address food inflation during the quarter, the bulk of imports included items such as motor spirit, gas oil, cane sugar, and used vehicles. Nevertheless, the balance of trade (BoT) remains in surplus. The devaluation of the local currency in the official market has contributed to increased export values, driving export activities and has also made imports more expensive. Though the contribution of crude oil to total exports is declining gradually, the figures still highlight heavy reliance on crude oil for export earnings.
Agricultural products such as cocoa beans, cashew, and rubber are trading at higher price levels, presenting an opportunity for the country to capitalize on its vast and fertile arable lands. Strategic investment in agriculture could significantly enhance non-oil export contributions and strengthen economic resilience.
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