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Nigeria Records N1.87tn Trade Deficit Amid Rising Crude Exports

Nigeria recorded a trade deficit of N1.87tn in the second quarter of the year despite recording 111.32 per cent in crude oil exports.

However, statistics released by the National Bureau of Statistics in Abuja on Wednesday showed that the country’s deficit improved within the period.

In the first quarter of the year, the country’s trade deficit stood at N3.94tn.

The Foreign Trade in Goods Statistics report for Q2 2021 by the NBS showed that crude oil, Nigeria’s largest export, rose to N4.08tn from N1.93tn in the first quarter of the year.

According to the NBS, crude exports constituted 80.29 per cent of the country’s total exports, higher than 66.38 per cent in Q1, while non-crude exports represented 19.71 per cent during the same period, lower than 33.62 per cent it occupied in Q1.

In the second quarter, the total merchandise trade stood at N12.03tn representing a 23.28 per cent increase over the N9.76tn recorded in the first quarter and an 88.71 per cent increase compared to Q2,2020.

“This increase resulted from the sharp increase in export value during the quarter under review,” the NBS stated.

The export component of this trade was valued at N5.08tn or 42.22 per cent; the import component was valued at N6.95tn or 57.78 per cent.

The value of total exports in Q2 increased by 74.72 per cent against the level recorded in Q1and 128.29 per cent compared to Q2, 2020.

The NBS said, “This increase resulted mainly from the increase in export value of crude oil in Q2, 2021.”

Nigeria’s agricultural exports saw significant improvements as it increased by 111.8 per cent from its tally in Q2 2020, hitting N165.27bn in the second quarter of 2021.

However, the country imported more agricultural goods as its import bill rose to N652.08bn, up 56.9 per cent from Q2 2020 and 3.5 per cent from Q1 2021.

Some of the exported agricultural goods were cocoa beans, cashew nuts, sesamum seeds, among others. Meanwhile, Durum wheat was the most imported produce.

NBS said, “The value of manufactured goods exports decreased by 15.45 per cent in Q2 2021 compared to the value recorded in Q1 2021 and 16.7 per cent compared to Q2, 2020.

“The value of imported manufactured goods decreased by 5.1 per cent in Q2, 2021 against the value recorded in Q1, 2021 but increased 54.3 per cent compared to Q2, 2020.”

By country, India retained its position as the major destination of Nigerian goods at 19.7 per cent, while China stood as the largest exporter to Nigeria at 29.91 per cent in Q2 2021.

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