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Nigeria posts N2.38 trln trade deficits in Q3, widest since 2017~NBS

By on December 8, 2020 0 92 Views

By Oludare Mayowa

Nigeria recorded a total trade balance deficit of N2.38 trillion in the third quarter of 2020, though better than the N1.80 trillion posted for the second quarter, it represents the widest merchandise trade deficit since 2017.

According to the latest Foreign Trade in Goods statistics by the National Bureau of Statistics (NBS), the third quarter deficit rose by 32.45 percent

“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 percent,” the NBS stated in its report.

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The import component was valued at N5.38 trillion representing an increase of 33.77 percent in the third quarter of 2020, while the export component accounted for N2.99 trillion of the total trade in the third quarter of 2020.

Also, the country’s merchandise trade grew 34.15 percent in the third quarter of 2020, compared with the second quarter of the year, but declined 8.85 percent against the corresponding period of last year.

The data showed that merchandise trade grew sharply in the third quarter due to faster increase in imports but slower recovery in exports.

This translates to mean that Nigeria spent more foreign currencies in importing goods and services in the period that the country earned from exports.

The value of the country’s merchandise trade stood at N8.37 trillion in the third quarter, according to the data with total trade year to date amounted to N23.20 trillion.

The import component was valued at N5.38 trillion representing an increase of 33.77 percent in the third quarter of 2020, compared with the level recorded in the second quarter of the year.

“The value of imports in Q3 2020 represented the highest level for any quarter since 2017,” according to the NBS.

The report showed that “the export component accounted for N2.99 trillion of the total trade in Q3,2020 indicating an increase of 34.85 percent compared to the value recorded in Q2, 2020 but a decrease of 43.41 percent compared to Q3, 2019.”

The report noted that aside from the second quarter of 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 N2.38 trillion during the third quarter. This also represents the widest merchandise trade deficit since 2017.

“When compared to the deficit of N1.80 trillion recorded in the second quarter, the third quarter deficit rose by 32.45 percent,” the NBS stated in the report.

The predominant export remained crude oil, which was valued at N2.42 trillion, representing 81.02 percent of total exports while non-crude oil was valued at N568.2 billion, or 18.98 percent of total export during the review period.

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