NBS says Nigeria trade deficit was recorded -N2.73 trillion in Q4 2020
The latest figures by the Nigerian Bureau of Statistics (NBS) have shown that Nigeria trade deficit was -N7.38 trillion in 2020 while the value of the total trade volume stood at N32.42 trillion.
In the fourth quarter of 2020, Nigeria’s total merchandise trade stood at N9.12 trillion in the fourth quarter 2020 representing 8.9 percent over the level recorded in the third quarter of 2020.
According to the bureau, in the foreign trade report released on Tuesday, during the fourth quarter of 2020, total imports were valued at N5.93 trillion accounting for 65 percent of total trade. This signifies a rise of 10.1 percent compared to Q3, 2020 and 10.8 percent compared to Q4, 2019.
On an annual basis, total trade was valued at N32.42 trillion in 2020, or 10.3 percent less than the value recorded in 2019 while on an annual basis, the value of imports rose to N19.9 trillion in 2020, which was 17.3 percent higher than in 2019 and more than twice its value in 2017. Total exports were valued at N12.52 trillion, or 34.8 percent less than in 2019.
The NBS report revealed that the export component of trade stood at N3.19 trillion, an increase of 6.7 percent over the preceding quarter but a drop of 33 percent over the previous year. Further, the share of exports in total trade declined to 35 percent in Q4 2020 from 47 percent a year earlier.
As the value of imports nearly doubled the value of exports, the trade deficit rose to its highest level and a fifth consecutive quarterly deficit at -N2.73 trillion, an increase of 14.30% percent compared to N2.39 trillion in the preceding quarter.
The value of imported Machinery stood at N2019.3 billion (or 34 percent of total imports) while Chemicals & related products recorded N1385.7billion (or 24 percent of total imports) and Mineral fuels recorded N821.1 billion (13.9 percent of total imports).
On an annual basis, total imports were valued at N19.89 billion in 2020, with Machinery and transport equipment accounting for 36.6 percent, Chemicals and related products, 18.2 percent, and Mineral fuels, 15.3 percent.
During the quarter, Nigeria imported goods mainly from Asia, valued at N2.85 billion or 48.06 percent of total imports. This was followed by Europe at N2.16 billion or 36.5 percent, America at N702.5 billion or 11.86 percent, Africa at N190.1 billion or 3.21 percent, and Oceania at N22.3 billion or 0.38 percent. Imports from ECOWAS countries accounted for N22.5 billion, or 0.4 percent of the value of total imports.
Similarly, on an annual basis, Asia also accounted for the largest imports to Nigeria, representing 49.3 percent of total imports, valued at N9.8 billion in 2020. This was followed by Europe with imports valued at N 6,626billion, or 33.3 percent of total imports, and America, which recorded N2.64 billion or 13.2 percent of total imports.
Exports by section revealed that Nigeria exported mainly mineral products, which amounted to 2.96 billion, or 92.7 percent of total export value. The second largest component was Vehicles, Aircraft and parts, which was valued at N111.3 billion (or 3.48 percentof the value of total exports) and vegetable products worth N39.9 billion (or 1.25 percent of the value of total exports).
In terms of regional trade, Nigeria exported most products to Asia, with goods valued at N1,158.9 billion or 36% of total exports, Europe (N1,071.4 billion, or 34 percent) and America (N376.4 billion, or 12%).The value of exports to Africa was N551.1 billion naira, out of which N144.8 billion worth of goods were exported to other ECOWAS countries.
India remained the top export destination for Nigeria during the quarter under review. The top five export destinations were India, Spain, South Africa, the Netherlands, and the U.S.A. with goods valued at N547 billion or 17.12 percent of the value of total exports, N313.4 billion or 9.8 percent, N256.7 billion or 8.03 percent, N194.5 billion or 6.09 percent, and N170.4 billion or 5.33 percent respectively. These five countries collectively accounted for 46.39 percent of the value of total exports in Q4 2020.