Nigeria’s trade surplus ticks up 47% in Q3 2023
By Jeph Ajobaju, Chief Copy Editor
Nigeria’s trade surplus grew in the third quarter ending in September (Q3 2023), up 47 per cent quarter-on-quarter (QoQ) from N1.28 trillion in Q2 2023 to N1.88 trillion.
The National Bureau of Statistics (NBS) Foreign Trade Goods report for Q3 2023 shows the improvement follows a 54.62 per cent QoQ increase in total trade from N12.74 trillion in Q2 2023.to N18.8 trillion in Q3 2023.
Increase in total trade was driven by a 70.52 per cent QoQ increase in crude oil exports which rose from N5 trillion in Q2 2023 to N8,535.61 billion in Q3 2023.
“Nigeria’s total merchandise trade stood at ₦18.8 trillion in Q3, 2023. The value indicates an increase of 54.62% over the amount recorded in Q2, 2023 as well as by 53.16% when compared to the value recorded in Q3 2022,” the NBS said.
“Total exports accounted for 55.02% of total trade in the reviewed quarter with a value of N10.345 trillion showing an increase of 60.78% and 74.36% over the value recorded in the preceding and corresponding quarters respectively.
“Exports trade in the third quarter of 2023 was dominated by crude oil exports valued at N8.535 trillion representing 82.50% of total exports while the value of non-crude oil exports stood at N1.810 trillion accounting for 17.50% of total exports; of which non-oil products contributed ₦677.57 billion or 6.55% of total exports.
“On the other hand, the share of total imports accounted for 44.98% of total trade in the third quarter of 2023 with the value of imports amounting to N8.457 trillion in Q3, 2023.
“This value indicates an increase of 47.70% and 33.33% respectively over the value (₦5.726 trillion) and (₦6.343 trillion) recorded in the preceding and the corresponding quarters of 2022.”
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“The significant rise in exports and imports in the third quarter of 2023 compared to the preceding and corresponding quarters was largely driven by a considerable increase in trade activities within the period,” the NBS added, per Vanguard.
“The value of re-export stood at ₦35.95 billion representing 0.35% of total exports in Q3, 2023.
“The top ranked re-exported commodity was ‘Parts suitable for use solely or principally other’ with ₦10.19 billion, followed by ‘Vessels and other floating structures for breaking up’ valued at ₦10.04 billion, ‘Lightvessels, fire floats, floating cranes, and other vessels not specified in 8905’ amounting to ₦5.77 billion, ‘Aluminium waste and scrap’ valued at ₦1.50 billion, and ‘Parts of other gas turbines not specified’ valued at ₦1.12 billion.
“Ivory Coast, Gabon, Ghana, Cameroon, and South Korea were the top five re-export destinations respectively.
“Analysis by trading partners in Q3, 2023, shows that Spain recorded the highest exports from Nigeria with a value of ₦1,274.07 billion or 12.31% of the country’s total exports, this was followed by India with ₦1,015.13 billion or 9.81%, The Netherlands with ₦988.66 billion or 9.56%, Indonesia with ₦758.59 billion or 7.33%, France with ₦720.45 billion or 6.96% of total exports. Altogether, exports to the top five countries amounted to 45.98% of the total value of exports.
“However, analysis by traded products shows that the largest export value in the third quarter of 2023 remained ‘Petroleum oils and oils obtained from bituminous minerals, crude’ with ₦8,535.61 billion representing 82.50% this was followed by ‘Natural gas, liquefied’ with ₦1,016.45 billion accounting for 9.82%, and ‘Urea, whether or not in aqueous solution’ with ₦109.68 billion or 1.06% of total exports.
“Data on Imports in the third quarter of 2023 reveals that the top five partner countries of origin for imports to Nigeria was China (₦1,973.34 billion or 23.33%), this was followed by imports from Belgium with ₦996.65 billion or 11.78%, India with ₦802.07 billion or 9.48%, Malta with ₦561.37 billion or 6.64% and the United States of America with ₦502.92 billion or 5.95% of total imports.
“The values of imports from the top five countries amounted to ₦4,836.36 billion representing a share of 57.18% of total imports.
“The commodities with the largest values of imported products were ‘Motor Spirit Ordinary’ valued at ₦1,921.03 billion or 22.71%, ‘Gas oil’ with ₦736.66 billion or 8.71% and ‘Durum wheat (not in seeds)’ with value amounting to ₦331.76 billion or 3.92% of total imports.”