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Nigeria’s trade surplus increased by 38% in Q2 2023— Report

Published

1 year ago

September 8, 2023

Nigeria’s National Bureau of Statistics (NBS) has revealed that the country recorded a N1.3 trillion trade surplus in the second quarter of 2023 (Q2’23).

The surplus represents a 38% rise when compared to N927.15 billion in Q1’23, although its Year-on-Year trade experienced a 7.6% decline from the 2022 figures of the period.

China (N1.26 trillion or 22.17%), the United States (N921.45 billion or 16.09%), Belgium (N460.43 billion or 8.04%), India (N417.77 billion or 7.3%), and The Netherlands (N369.69 billion or 6.46%) were Nigeria’s top five partner nations for imports, according to the Bureau.

In addition, the overall merchandise trade climbed QoQ by 5.7% to N12.7 trillion in Q2 23 from N12.04 trillion in Q1 23, according to the NBS Foreign Trade in Goods Statistics.

NBS report stated: “Nigeria’s total merchandise trade stood at N12.74 trillion in Q2’23, indicating an increase of 5.7% over the value recorded in Q1’23, but it declined by 7.6% when compared to the value recorded in Q2’22.

“The disaggregation of total trade into exports and imports shows that total exports stood at N7.02 trillion showing an increase of 8.15% over the value recorded in the preceding quarter and a decrease of 5.2% over the corresponding period in the preceding year.

“In addition, the data reveals that the share of exports in total trade stood at 55.06% in Q2’23.

“Exports trade in Q2′ 23 was dominated by crude oil exports valued at N5.58 trillion which accounted for 79.63% of total exports, while non-crude oil exports value stood at N1.43 trillion or 20.37% of total exports of which non-oil products contributed N688.68 billion representing 9.82% of total exports.

“On the other hand, total imports stood at N5.72 trillion in Q2′ 23, indicating an increase of 2.9% over the value recorded in the preceding quarter. The value of imports in the quarter under review fell by 10.37% compared to the value recorded in the corresponding period of 2022”.

A trade surplus is an economic indicator showing a favourable trade balance where a nation’s exports are more than its imports. It shows a net influx of home money from international markets. Nigeria’s economy is struggling, with its inflation rate hitting 24.08% in July amid rising cost of living after the removal of subsidies on petroleum products. The increase in Nigeria’a trade export might be connected to some pro-market policies by President Tinubu who was sworn in on May 29.

President Tinubu is currently in India, one of Nigeria’s top export destinations, with delegates mostly from the private sector for the G20 summit with a focus “on the urgent need to attract foreign direct investment.”

Related Topics:Featured inflation Nigeria Trade Surplus

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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”