Adedapo Adesanya
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.
