Trade Grew in Q3 2020 Due to Faster Increase in Imports But Slower Recovery in Exports

The value of Nigeria’s merchandise trade stood at N8,374.4billion in Q3 2020. This represents an increase of 34.15% in Q3, 2020 compared to Q2, 2020 but a decline of 8.85% compared to Q3, 2019. Total trade year to date amounted to N23,203.9billion.

 The import component was valued at N5,381.4billion representing an increase of 33.77% in Q3, 2020 against the level recorded in Q2,2020 and 38.02% compared to Q3, 2019. The value of imports in Q3 2020 represented the highest level for any quarter since 2017.

 The export component accounted for N2,993 billion of the total trade in Q3,2020 indicating an increase of 34.85% compared to the value recorded in Q2, 2020 but a decrease of 43.41% compared to Q3, 2019. Aside from Q2 2020, the value of exports in Q3 2020 represented the lowest level of any quarter since 2017. Due to lower exports and higher imports compared to 2019, the trade balance recorded a deficit of N2,388.5billion during the third quarter. This also represents the widest merchandise trade deficit since 2017. When compared to the deficit of N1,803.3 billion recorded in Q2, the Q3 deficit rose by 32.45%.

The predominant export remained crude oil, which was valued at N2,424.8billion, representing 81.02% of total exports while non-crude oil was valued at N568.2billion, or 18.98% of total export during the review period.     

Total imports amounted to N5,381.4billion in Q3, 2020 compared to N4,022.9billion recorded in Q2 2020, indicating an increase of 33.77%, and an increase of 38.02%. when compared with Q3, 2019. The year to date value of imports stood at N13,908.5. The increase  in the value of imports in Q3, 2020 can be attributed to the increases in the value of mineral fuels (N484.4billion or 219%), Machinery & transport equipment (N314.9billion or 20%) and chemicals and related products (N261.0billion or 34%) against their respective values in Q2,2020.

 During the quarter, Nigeria imported goods mainly from Asia, valued at N2,587.3billion Other major imports originated from Europe, valued at N1,805.0billion while imports from America and Africa amounted to N746.4billion  and N175.4billion respectively. Import from Oceania stood at N532.4billion while goods valued at N12.5billion originated from ECOWAS.

Nigeria’s imports, by country of origin, shows goods were imported mainly from China (N1,641.87billion or 30.51%), United States (N482.3billion or 8.96%), The Netherlands (N443.5billion or 8.24%) and India (N354.1billion or 6.58%) respectively

The value of exports in Q3, 2020 stood at N2,993billion, showing an increase of 34.85% compared to Q2, 2020 but a decrease of 43.41% compared to Q3, 2019. Year to date, value of total export amounted to N9,295.4billion.

 Exports by section revealed that mineral products accounted for the largest proportion of exports, amounting to N2,788.3billion or 93.1%. This was due to the crude oil component of this section. This was followed by Vehicles aircraft and parts (N103.4billion or 3.5%) and others.  Analysis of export by region revealed that Nigeria exported mostly to Europe (N1,236 billion or 41.3%), followed by Asia N1,119.3billion or 37%), Africa (N442.3billion or 15%), and America (N150.86billion or 5%). Within Africa, goods worth N182.4billion was exported to ECOWAS member states.Exports by Country of destination showed that Nigeria exported goods to India valued at N500.6billion (or  16.73%), Spain (N328.5billion or 10.97%), The Netherlands (N227.8billion or 7.61%) , and South Africa (N203.9 or 6.81%)