BY WILLIAM ANAEBONAM
Nigeria has reported a N3.94 trillion trade deficit in the first quarter of 2021.
The National Bureau of Statistics made the revelation in its report, “Foreign Trade in Goods Statistics (Q1 2021),” released recently.
The report shows a negative balance of trade with the Nigerian economy still import-driven, and largely dependent on exports of petroleum and some agricultural products to meet foreign exchange earnings needs.
Recall that in 2020, the country recorded its first annual trade deficit in four years as imports exceeded exports by N7.37 trillion.
In the report, the NBS revealed that the country’s total merchandise trade stood at N9.76 trillion, an increase of 6.99 per cent over the value recorded in Q4, 2020 and 14.13 per cent compared to Q1, 2020.
The report also stated that Asia, led by China, dominated the foreign trade in the first quarter, with a record of N3.3 trillion, representing 48.45 percent, during the period.
Asia is followed by Europe with N2.4 trillion, representing 36.08 per cent, America N827.8 billion, 12.08 per cent; while imports from African nations stood at N183.4billion, 2.68 per cent, and Oceania N48.5billion, 0.71 per cent.
A further breakdown shows that goods imported from China in Q1 2021 were valued at over N2 trillion, or 29.34 percent. China was followed by the Netherlands, which exported goods worth N726.09 billion or 10.60 per cent; and then the third United States, from where Nigeria imported goods worth N608.12 or 8.88 per cent.
Out of the value recorded for Africa, the report indicated that imports from ECOWAS, countries accounted for only N20.8 billion.
“The export component of this trade stood at N2.9 trillion, representing 29.79 per cent of the total trade; while import was valued at N6.9 trillion, representing 70.21 percent,” the report stated.
“The higher level of imports over exports resulted in a trade deficit (in goods) of -N3.9 trillion. The value of crude oil export stood at N1.9 trillion representing 66.38 percent of the total export recorded in Q1, 2021; while non – crude oil export accounted for 33.62 percent of the total export.”
