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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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IMF mission concludes 4th loan program assessment in Egypt

Published

7 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.