Economy
Nigeria’s 2020 Trades Drop 10.5% Despite Improvement in Q4
By Adedapo Adesanya
Despite an increase in trade activities in the final quarter of last year, Nigeria’s total trade dropped 10.5 per cent in 2020, data from the National Bureau of Statistics (NBS) has revealed.
In the Foreign Trade in Good Statistics for the fourth quarter released on Tuesday by the agency, it was disclosed that the country recorded a total of N32.4 trillion in both its import and export for the year compared to N36.2 trillion in 2019.
An analysis of the report by Business Post showed that Nigeria recorded higher imports than exports in the year due to the impact of the COVID-19 pandemic.
The value of total imports in 2020 stood at N19.9 trillion, 17.8 per cent higher than N16.9 trillion in 2019, while total exports dropped by 34.9 per cent to N12.5 trillion from N19.2 trillion in the previous period.
This brought about a trade deficit of N7.4 trillion in the year under review.
However, as earlier stated, in the fourth quarter of the year, the value of trade was the highest recorded over the past year as total merchandise trade stood at N9.1 trillion, representing an increase of 8.9 per cent over the level recorded in the third quarter of 2020 but was 9.9 lower when compared to the fourth quarter of 2019.
The export component of trade stood at N3.2 trillion, an increase of 6.7 per cent over the preceding quarter but a drop of 33 per cent over the previous year. Further, the share of exports in total trade declined to 35 per cent in Q4 2020 from 47 per cent a year earlier.
On the other hand, total imports reached a record high at N5.9 trillion in Q4 2020, an increase of 10.1 per cent over the preceding quarter, and 10.8 per cent over the preceding year. Imports also accounted for 65 per cent of total trade in Q4 2020, compared to 53 per cent the previous year.
As the value of imports nearly doubled the value of exports, the trade deficit rose to its highest level and a fifth consecutive quarterly deficit at N2.7 trillion, signifying an increase of 14.3 per cent compared to the preceding quarter.
In a breakdown of the import figures during the whole year, machinery and transport equipment accounted for 36.6 per cent, chemicals and related products recorded 18.2 per cent while mineral fuels followed with 15.3 per cent.
By destination, Asia also accounted for the largest imports to Nigeria, representing 49.3 per cent of total imports during the period, this was valued at N9.8 trillion in 2020.
This was followed by Europe with imports valued at N6.6 trillion, equivalent to 33.3 per cent of total imports, while America, recorded N2.6 trillion or 13.2 per cent of total imports for the period.
By country of origin for the full year, imported goods originated mainly from China and were valued at N1.7 trillion representing 28.3 per cent of total imports. This was followed by India (N506 billion or 8.5 per cent), the United States (N408.6 billion or 7.6 per cent), the Netherlands (N424.5 billion, or 7.2 per cent) and Denmark (N319.9 billion, or 5.4 per cent).
During the period, there were declines in agricultural, solid minerals, energy goods, manufactured, crude and other oil exports.
Crude oil exports accounted for the chunk of Nigeria’s exports as 75.2 per cent of the total figure was gotten from the black gold. This amounted to N9.4 trillion for the year under review while non-crude oil exports accounted for N3.1 trillion (24.8 per cent) of the export figure in the year.
The stats office said in the fourth quarter of last year, India was the major country Nigeria exported its products to, accounting for 17.1 per cent. Spain followed with 9.8 per cent, South Africa accounted for 8.0 per cent, The Netherlands accounted for 6.1 per cent, while the United States contributed 5.3 per cent.
By Modupe Gbadeyanka
The Dangote Refinery located in the Lekki area of Lagos State has been described as a game-changer for Nigeria’s economy because of its significance to the country’s sustainable growth.
This was the view of the Ogun State Chamber of Commerce, Industry, Mines, and Agriculture (OGUNCCIMA) through its president, Mr Niyi Oshiyemi.
“The Dangote Refinery is a game-changer for Nigeria’s economy. With a capacity to refine 650,000 barrels of crude oil daily, it has reduced Nigeria’s reliance on imported petroleum products, conserved foreign exchange, and fortified our energy security.
“This milestone reinforces the critical role the private sector plays in national development,” Mr Oshinyemi said, noting that, “The refinery’s operations have created employment for Nigerians at all levels while fostering technology transfer and skills acquisition. This has strengthened local businesses and equipped them with the tools to compete in domestic and global markets.”
The emphasis on local content has been a cornerstone of Dangote Refinery’s strategy. By sourcing materials locally and partnering with indigenous companies, the refinery has supported the growth of Nigerian enterprises and encouraged investments in infrastructure, engineering, and technology.
The ripple effects of the Dangote Refinery extend beyond the energy sector. Its presence has catalyzed industrialization by attracting investments in related sectors such as petrochemicals, manufacturing, and transportation. This multiplier effect has significantly expanded Nigeria’s industrial base and enhanced the nation’s economic competitiveness.
“This refinery is a shining example of what can be achieved through visionary leadership and investment in strategic sectors. It demonstrates Africa’s potential to compete globally and foster regional integration,” Mr Oshiyemi remarked.
In addition to its economic contributions, Dangote Refinery has maintained a strong commitment to corporate social responsibility. The Dangote Group’s investments in education, healthcare, and infrastructure have improved the quality of life for many Nigerians and strengthened community resilience.
“Dangote Refinery exemplifies the role of private sector enterprises in driving social progress alongside economic development. Its initiatives in healthcare and education are building a brighter future for Nigerians,” the OGUNCCIMA chief noted.
He urged stakeholders across public and private sectors to emulate the Dangote Refinery’s innovative approach to development. By fostering partnerships and investing in transformative projects, Nigeria can achieve sustainable economic growth and reduce its reliance on external resources.
“This refinery stands as a model for what is possible when the private sector leads with vision and commitment. We call on all stakeholders to collaborate and replicate such success stories to build a resilient, self-reliant, and prosperous Nigeria,” Mr Oshiyemi concluded.
By Adedapo Adesanya
The House of Representatives on Wednesday passed the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the next three years (2025-2027).
In passing the MTEF, the lower chamber’s committees on Finance, Petroleum Upstream, and Petroleum Downstream were tasked to investigate reports from the Revenue Mobilization, Allocation, and Fiscal Responsibility Commission (RMAFC) alleging that the Nigerian National Petroleum Company (NNPC) Limited’s withheld N8.48 trillion as claimed subsidies for petrol.
Additionally, the investigation will address the Nigeria Extractive Industries Transparency Initiative (NEITI) report that claimed the NNPC failed to remit $2 billion (N3.6 trillion) in taxes to the federal government.
The committees were further directed to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit (PMS) by the NNPC between 2020 and 2023.
Some of the recommendations in the MTEF as adopted by the house are; that the projected oil benchmark prices are $75, $76.2 and $75.3 per barrel in 2025, 2026 and 2027, respectively.
Three-year projections for domestic crude oil production are 2.06 million barrels per day, 2.10 million barrels per day and 2.35 million barrels per day for the subsequent years of 2025, 2026 and 2027.
The country’s economic growth rate forecast, measured by the gross domestic product (GDP) was put at 4.6 per cent, 4.4 per cent and 5.5 per cent for the years 2025, 2026 and 2027, respectively.
By Adedapo Adesanya
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said the price of Premium Motor Spirit, also known as petrol, being sold by the old Port Harcourt Refinery, which resumed production on Tuesday, is N75 per litre higher than that sold by the Dangote Refinery.
This was revealed by the association’s Public Relations Officer, Mr Joseph Obele, during the official reopening ceremony of the refinery, which is now operating at a capacity of 60,000 barrels per day.
Business Post reports that the lifting price of Dangote’s petrol product is N990 per litre. However, the refinery announced a N20 discount on Sunday, which is only available to marketers buying a minimum of 2 million litres of the fuel.
Mr Obele, a former chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) at the Port Harcourt Deport who initially applauded the federal government for revitalising the old refinery, expressed concern over the pricing disparity between petrol supplied by the Nigerian National Petroleum Company (NNPC) Limited and the Dangote Refinery.
According to him, while Dangote Refinery sells petrol to marketers at N970 per litre, NNPC’s price stands at N1,045, a difference of N75 per litre.
He said the N75 price differential is a steep margin for businesses, particularly for an industry where profitability hinges on competitive pricing.
However, Mr Obele described the refinery’s restoration as a significant step in reducing Nigeria’s dependence on imported petroleum products.
He revealed that the Group Chief Executive Officer of NNPC Limited, Mr Mele Kyari, has promised to address the issue and harmonise prices to mitigate the impact on marketers and consumers.
The reopening of the Port Harcourt Refinery I is expected to enhance local production capacity and reduce reliance on imports, a move welcomed by stakeholders across the sector.
However, concerns over pricing disparities underscore the need for continuous reforms to stabilise the downstream sector of the petroleum industry.
The reopening has also sparked anticipation for the rehabilitation of other state-owned refineries including the second refinery in Port Harcourt as well as the Warri and Kaduna structures.
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