Declining Naira value triggers 38.1% rise in Nigeria’s import

NBS

Nigeria’s import trade in the second quarter of 2016 rose by 38.1 per cent to ₦2.07 trillion, from ₦1.5 trillion in the preceding quarter as a result of a decline in Naira value, the National Bureau of Statistics, NBS, said.
The Naira closed at N314.20 on Monday, from N314.77 to the dollar it exchanged for at the interbank market on Friday.

The currency however, shed three points from N422 to the dollar on Friday to N425 at the parallel market, with Pound Sterling and the Euro trading for N537 and N465 respectively.

The Bureau said in the latest edition of its foreign trade statistics on Tuesday that the total value of the country’s merchandise trade in the quarter jumped by about 49 per cent, from ₦2.65 trillion in the first quarter to ₦3.94 trillion.

The report said the rise in exports value by ₦725.6 billion, or 63.3 per cent was largely due to exchange rate gains, combined with about ₦570.8 billion, or 38.1 per cent, rise in import value in the preceding quarter.

“The current trade position brought the country’s negative trade balance to ₦196.5 billion during the period under review,” the report said. “This shows a ₦154.8 billion reduction in the country’s trade deficit over the previous quarter.”

Mineral products dominated Nigeria’s exports, with ₦1.74 trillion or 92.7 per cent of the total export value. Animal and vegetable fats, oils and other cleavage took about ₦55.7 billion or 3 per cent. Other products exported include base metals and their articles, which accounted for ₦28.4 billion or 1.5 per cent; while prepared foodstuff, beverages, spirits and vinegar, as well as tobacco accounted for ₦16.2 billion or 0.9 per cent.

The bulk of the country’s exports mainly went to India (₦402.7 billion, or 21.5 per cent), United States (₦235 billion, or 12.5 per cent), Spain (₦215.2 billion, or 11.5 per cent), Netherlands (₦133.3 billion, or 7.1 per cent), and South Africa (₦119.9 billion, or 6.4 per cent).

Natural liquefied gas recorded ₦198.0 billion of the total export value during the period under review, the report said.

The country’s import trade was dominated by the imports of “boilers, machinery and appliances and spare parts, which accounted for 34.9 per cent of the total value, with mineral products accounting for about 15.8 per cent of other commodities’ value during the period.”

Vehicles, aircraft and parts, vessels constituted 14.7 per cent; products of the chemical and allied industries (7.6 per cent) and base metals and articles of base metals (5.1 per cent).

Capital goods and parts took the largest value of ₦663.6 billion, or 32.1 per cent; followed by industrial supplies (₦421.2 billion, or 20.4 per cent), and transport equipment and parts (₦356.1 billion, or 17.2 per cent). The value of motor spirit stood at ₦296.1 billion.

Nigeria’s imports came mostly from China (₦493.5 billion, or 23.9 per cent), Netherlands (₦285.7 billion or 13.8 per cent), United States (₦199.0 billion or 9.6 per cent), India (₦124.9 billion or 6 per cent), and the United Kingdom (₦119.3 billion or 5.8 per cent).

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  • Shehu K.

    APC is flooding the country with cheap substandard goods from China.
    Sad….