The total trade deficit grows by 10.43% to N13.3trn in Q3 of 2021. In the third quarter of 2021, Q3’2021. Nigeria records a deficit of N3.023 trillion with her trading partners worldwide while total merchandise trade amounts to N13.284 trillion.
In a press conference yesterday in Abuja. Statistician-General and CEO of the National Bureau of Statistics, Dr Simon Harry, reports that total trade grew by 10.43 percent over the N12.029 trillion recorded in Q2 2021.
According to Harry, the negative trade balance was primarily due to the importation of refined petroleum products, motorcycles, and cycles.
Trade Balance Negative due to Increased Imports
As stated by the NBS boss, the adverse trade balance was the result of a surge in imported refined petroleum products and imported motorcycles and cycles.
“I wish to inform you that total trade between Nigeria and her trading partners amounted to N13,284.09 billion in third-quarter.
Out of which exports were N5,130.30 billion and imports were N8,153.79 billion. It is resulting in a negative trade balance of N3,023.50 billion.”
“The increase in imports is mainly the result of a rise in imports of motor spirits, which rose from N782.46 billion to N1,052.50 billion.
Whereas gas oil increases from N152.53 billion to N225.63 billion, and imports of motorcycles and cycles.
As well as imports of CKD from renown manufacturers, which accounts for N116.34 billion, N94.79 billion, representing 34.51 percent, 47.93 percent, and 22.73 percent respectively over the preceding quarter,” he further adds.
The bulk of the trade balance was a deficit of 61.62 percent from N1,870.77 billion in Q2, 2021. It represents a decline from N12,029.64 billion in the 3rd quarter to N5,079.44 billion in the 2nd quarter, 2021. Export trade was up by 1.00 percent to N5,079.44 billion.
But import trade was up by 17.32 percent to N6,950.21 billion in Q2, 2021.
According to Harry, crude oil dominates Nigerian export trade. It accounts for N4,026.18 billion (78.47 percent) of total exports during the third quarter.
“The liquefied natural gas closely with N487.49 billion (9.50 percent), drilling platforms, whether submersible or floating. It comes with N163.70 billion (3.19 percent), and urea, whether in aqueous solution or not, with N107.17 billion (2.08 percent).”
Furthermore, motor spirits values at N 1,052.5 billion (12.91 percent), durum wheat at N 315.17 billion (3.87 percent). Whereas gas oil at N225.63 billion (2.77 percent), and used vehicles at N185.41 billion (2.27 percent) also account for the imports.
Top Five Trading Partners During Third Quarter
Dr. Simon Harry says the following regarding trading partners. “The top five major trading partners in export trade in Q3’2021 are India ($758.1 billion), Spain ($627.01 billion), Italy ($446.04 billion), France ($363.23 billion), and the Netherlands ($242.49 billion).”
In conclusion, “Like China, India, United States, Netherlands, and Belgium were among the top five import trading partners in the period under review with N2,441.79 billion, N710.35 billion, N599.12 billion, and N434.12 billion.”