Nigeria records decline of
N793.5bn in merchandise trade
– Nigeria recorded a decline of
N793.5bn in the first quarter
merchandise trade to close at N2.72tn
from N3.51tn in the fourth quarter of
2015.
– Recall that the Nigerian stock market
crashed by N1.732 trillion as against
the N11.658 trillion market
capitalization was as at May 28, 2015
in just one year of the President
Muhammadu Buhari administration
– Nigeria experienced a decline of
N671.1bn, in the value of exports,
imports also dropped by N122.4bn
– Nigeria recorded a negative trade
balance of N184.1bn in the first
quarter
Statistician General of the Federation and Chief
Executive Officer National Bureau of Statistics
Dr.Yemi-Kale
For the first time in seven years, Nigeria recorded a
decline of N793.5bn in the first quarter
merchandise trade to close at N2.72tn from
N3.51tn in the fourth quarter of 2015.
Recall that the Nigerian stock market crashed by
N1.732 trillion as against the N11.658 trillion
market capitalization was as at May 28, 2015 in
just one year of the President Muhammadu Buhari
administration. In the first quarter of 2016, the
All-Share Index also crashed to 28,902.25 basis
points from 34,310.37 basis points as the equity
category lost over N1.053tn in the first quarter of
2016.
According to a report released by the National
Bureau of Statistics (NBS), the drop in the first
quarter trade represented a decline of about 22.6%
and attributed the decline in the first quarter trade
to a sharp drop in both import and export trade.
The report stated that while the country
experienced a decline of N671.1bn, representing
34.6 per cent, in the value of exports, imports also
dropped by N122.4bn or 7.8 per cent.
The report noted that the difference between the
country’s total exports, which was put at N1.269tn,
and total imports of N1.454tn made Nigeria to
record a negative trade balance of N184.1bn in the
first quarter.
“The total value of Nigeria’s merchandise
trade at the end of Q1 2016 stood at
N2.72tn. From the preceding quarter’s
value of N3.51tn, this was N793.5bn or
22.6 per cent. This development arose
due to a sharp decline in both imports
and exports. Exports saw a decline of
N671.1bn or 34.6 per cent, while imports
declined by N122.4bn or 7.8 per cent
“The steep decline in exports brought the
country’s trade balance down to -
N184.1bn, or N548.7bn less than in the
preceding quarter.
“The crude oil component of the total
trade decreased by N716.7bn or 46.6 per
cent against the level recorded in Q4
2015,” the report read in part.
The highest export product for Nigeria in the first
quarter was mineral products, which accounted for
N1.05tn or 83 per cent of the total export
earnings.
Nigeria mainly exported goods to Europe and Asia,
which accounted for N467.1bn or 36.8% and
N360.6bn or 28.4%, respectively while Nigeria
exported goods valued at N161.3bn to the continent
of Africa, while that of the Economic Community of
West African States was put at N50.4bn.
Financial analysts blamed the negative trade
balance recorded in the first quarter of 2016 on
the country’s inability to formulate an effective
strategy to boost exports.
They also said the inability of exporters to know
the economic direction of the government owing to
the delayed passage of the 2016 budget as well
as over dependence on revenue from oil were some
of the major reasons for the decline in merchandise
trade.
Commenting on the negative trade balance recorded
at the end of the first quarter of 2016, the Head,
Banking and Finance Department, Nasarawa State
University, Uche Uwaleke said the fact that a
significant proportion of the exports were mineral
products underscored the need to diversify the
export base.
