Economy
Crude Oil Accounts for 74.45% of Nigeria’s Exports in Q1 2019
By Dipo Olowookere
It seems efforts by the administration of President Muhammadu Buhari to diversify the nation’s economy so as to stop the heavy reliance on crude oil as Nigeria’s major exports are not yielding any meaningful results.
This is because the commodity is still the main driver of the economy despite attempts to make the non-oil industry contribute significantly to revenue generated.
Last week, the National Bureau of Statistics (NBS) released the Foreign Trade in Goods Statistics for the first quarter of 2019, but the figures showed that much of the trades carried out by the Africa’s largest economy was still in the oil sector.
According to the stats office, Nigeria’s export in the first quarter of this year was still oil dependent, with exports trade dominated by crude oil exports, which contributed N3.377 trillion or 74.45 percent to the value of total exports in Q1, 2019.
However, the non-oil products accounted for 25.55 percent of total exports in the quarter under review.
In Q1 2019, Nigeria exported most products to Europe, Asia and Africa equivalent to N1.833 trillion or 40.43 percent of total exports, N1.325 trillion or 29.2 percent and N936.8 billion or 20.67 percent respectively.
Furthermore, Nigeria exported goods worth N405.8 billion or 8.95 percent to the Americas and N34.5 billion or 0.76 percent to Oceania.
Within Africa, Nigeria exported goods valued at N300.6 billion to ECOWAS member states, representing 32.08 percent of total merchandise exports to Africa.
By country of destination, Nigeria exported goods mainly to India, Spain, Netherlands, South Africa and France, valued at N745.0 billion or 16.43 percent, N487.1 billion or 10.74 percent, N405.4 billion or 8.9 percent, N325.5 billion or 7.2 percent and N302.3 billion or 6.7 percent respectively.
In the report, the NBS said the total trade recorded in Nigeria in the first quarter of 2019 grew by 2.50 percent when compared with what was achieved in the fourth quarter of and by 7.52 percent as against the corresponding quarter in 2018.
In the period under consideration, the country’s total exports was recorded at N4.535 trillion, which represents a 1.78 percent rise compared with the fourth quarter of 2018 but a 3.9 percent fall compared to the first quarter of 2018.
Similarly, the value of total imports increased to N3.704 trillion, representing an increase of 3.39 percent relative to Q4 2018 and 29.84 percent compared with Q1 2018.
It further stated that the trade balance of Nigeria remained positive at N831.6 billion in the first quarter of this year, boosted by increase in both exports and imports, with the boost also helped total trade increase to N8.239 trillion.
A breakdown of the imports showed that imported agricultural products were 7.98 percent higher in value than in Q4 2018, and 28.1 percent higher than in Q1, 2018, while the value of raw material imports grew 6.62 percent more than the value recorded in Q4, 2018 and 20.76 percent more than the value recorded in Q1 2018.
Also, the value of solid minerals imports was 1.26 percent more than the value of imports in Q4, 2018 and 35.90 percent higher than the value recorded in Q1 2018, while the value of energy goods imports was 20.28 percent lower than in Q4, 2018. Compared with the corresponding quarter of 2018, a decrease of 0.94 percent was recorded.
In the report analysed by Business Post, the stats office said the value of imported manufactured goods increased by 25.81 percent in Q1, 2019 against the value recorded in Q4, 2018 and rose by 130.7 percent against its value in Q1, 2018. The increase in value of imported manufactured goods was partly as a result of the importation of hygienic/ pharmaceutical product for humanitarian purposes during the quarter.
In addition, the value of other oil products imported was 58.4 percent lower than in Q4, 2018 and 72.71 percent lower than the corresponding quarter of 2018.
For the exports, the value of agricultural exports in Q1 2019 was 11.89 percent lower than in Q4, 2018 but 17.5 percent higher than Q1 2018.
The value of raw material exports in Q1, 2019 was 10.67 percent lower than the value in Q4, 2018 but 11.57 percent higher than in Q1 2018.
The value of solid minerals exports increased by 16.88 percent relative to Q4 2018 but decreased by 66.6 percent compared to the corresponding quarter in 2018.
The exports of energy goods decreased in value by 1.3 percent compared to Q4, 2018 but increased by 2.17 percent when compared with Q1 2018.
The value of manufactured goods exports rose by 511.19 percent in Q1 2019 when compared with the value recorded in Q4 2018 and 6.43 percent compared to the corresponding quarter in 2018. The increase in export during the quarter was due to the re-export of vessels and other floating structures during the quarter, amongst other high value re-exports.
The value of crude oil exports in Q1 2019 was 7.78 percent lower than in Q4 2018 and 5.67 percent lower than in Q1 2018.
The value of other oil products exports decreased by 1.42 percent compared to Q4 2018, and 1.44 percent compared to Q1 2018.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 17, by N1.35 or 0.07 per cent to N1,380.18/$1 from N1,381.53/$1.
It also improved its value against the Pound Sterling in the same market segment during the session by N11.75 to trade at N1,854.42/£1 compared with the previous day’s N1,866.17/£1, and gained N5.69 against the Euro to sell at N1,576.99/€1 versus Thursday’s closing price of N1,582.68/€1.
In the same vein, the Naira chalked up N1 against the United States currency yesterday at the GTBank forex desk to quote at N1,388/$1, in contrast to the preceding day’s N1,389/$1, but closed flat at the black market at N1,405/$1.
The appreciation of the Nigerian currency on Friday came amid fresh signals that Nigeria is building its external reserves for protection against shocks and excessive currency volatility.
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said the country’s gross reserves had risen above approximately $52 billion by 15 July, while net reserves had increased from about $3 billion when the current CBN leadership took office to more than $40 billion.
Mr Cardoso linked the increase in reserves to reforms that had restored greater confidence in the foreign exchange system. He also pointed to efforts to diversify foreign currency inflows, including policies designed to increase remittances through official channels.
He noted that monthly diaspora remittances had risen above $600 million and the CBN expected them to reach approximately $1 billion by the end of 2026. The target is part of a broader effort to grow reserves through recurring inflows rather than temporary measures.
The improvement, he argued, had strengthened Nigeria’s capacity to respond when unexpected events threatened market stability.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
As for the crypto market, prices were up as markets overlooked geopolitical developments and macro forces weighing on the whole market ecosystem rather than anything crypto-specific, with Cardano (ADA) up by 4.6 per cent to $0.1661.
Bitcoin (BTC) jumped by 1.8 per cent to $63,968.32, Ethereum (ETH) improved by 0.9 per cent to $1,843.88, Dogecoin (DOGE) also rose by 0.9 per cent to $0.0723, Solana (SOL) soared by 0.6 per cent to $74.90, Ripple (XRP) also appreciated by 0.6 per cent to $1.08, and Binance Coin (BNB) advanced by 0.1 per cent to $567.32.
However, TRON (TRX) depreciated by 0.2 per cent to close at $0.3218, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
