Post by Ismail AbdulAzeez on Mar 7, 2022 17:22:53 GMT 1
Nigeria Records $1.10 Billion Foreign Trade Surplus In Last Quarter Of 2021 - Export Value Surpassed Import Bill For The First Time Since Q3 of 2019: According To Central Bank Of Nigeria (CBN)
Nigeria’s foreign trade balance went from recurring deficits for over eight (8) quarters to leapfrog to a surplus of $1.10 billion in the last quarter of 2021. During this period, export value surpassed import bill for the first time since Q3 of 2019. This trend represents eight (8) consecutive quarters of negative trade balance in the economy of this nation.
This information is according to data obtained from the Central Bank of Nigeria (CBN) on foreign trade.
The data shows that Nigerian international trade balance significantly increased from a deficit of $327 million recorded in the previous quarter to a surplus of $1.1 billion in Q4 of 2021.
When compared with the corresponding period of last year, Nigeria trade balance increased by 115% from $7.57 billion deficit recorded in Q4 of 2020.
However, the country is still in the negative if you take the aggregate trade balance for the entire year of 2021. The negative value is $6.49 billion which is better than the $21.37 billion negative balance recorded in the previous year.
More data from the CBN shows that export earnings dropped slightly by 3.5% from $13.42 billion recorded in Q3 of 2021 to $12.95 billion in Q4 2021. Import bill reduced by 13.8% from $13.74 billion to $11.85 billion in the period under review.
The analysis shows that the positive trade balance came mainly from the decline of the import bill rather than increase in export value.
Things to take note of in the report:
The nation’s aggregate foreign trade declined by 8.7% in Q4 of 2021, declining from $27.16 billion in the previous quarter to $24.8 billion.
When we compare activities to the corresponding period in 2020, we discover that total merchandise trade appreciated marginally by 1.4% from $24.45 billion recorded in Q4 of 2020.
Analyzing on annual basis, our total trade increased by 7.1% in 2021 from $93.26 billion in the previous year to $99.86 billion.
Towards the end of 2019, when the price of crude oil was below $60 per barrel, the country fell into great trade deficit. Towards 2020, the price of Brent Crude fell to as low as $15.17 per barrel in April 2020, it however picked up later in the year.
Why Our Trade Position Continues To Weaken:
The country’s continued reliance on imported items without exporting equal amount of products to other countries continues to have negative trade impact on the country’s economy. This continues to put heavy pressure on the foreign exchange rate of the country.
The country’s woes continue to increase due to the nation’s dependence on crude oil exports for more than 90% of its foreign exchange earnings. The oil export has been greatly affected by negative market forces and cut in OPEC quota has worsened the situation.
According to National Bureau of Statistics (NBS), Nigeria’s crude oil production declined from 1.57 million barrels per day to 1.5 million barrels per day in Q4 of 2021.
Nigeria’s penchant for imported foreign goods to meet local demand has made it difficult for the nation to maintain a robust and a healthy foreign trade balance.
The country via the CBN has spent a considerable sum of money on the agricultural sector in recent years, though the country has not started reaping the fruit from the agricultural value chain, but I believe that if the action is continued the country will better off in due course.
Our company is one of the best companies in importation business in Nigeria today, we train individuals and corporate organizations on how to do Major and Mini Importation business the right way; if you are interested, please contact the admin of this forum now.
Nigeria’s foreign trade balance went from recurring deficits for over eight (8) quarters to leapfrog to a surplus of $1.10 billion in the last quarter of 2021. During this period, export value surpassed import bill for the first time since Q3 of 2019. This trend represents eight (8) consecutive quarters of negative trade balance in the economy of this nation.
This information is according to data obtained from the Central Bank of Nigeria (CBN) on foreign trade.
The data shows that Nigerian international trade balance significantly increased from a deficit of $327 million recorded in the previous quarter to a surplus of $1.1 billion in Q4 of 2021.
When compared with the corresponding period of last year, Nigeria trade balance increased by 115% from $7.57 billion deficit recorded in Q4 of 2020.
However, the country is still in the negative if you take the aggregate trade balance for the entire year of 2021. The negative value is $6.49 billion which is better than the $21.37 billion negative balance recorded in the previous year.
More data from the CBN shows that export earnings dropped slightly by 3.5% from $13.42 billion recorded in Q3 of 2021 to $12.95 billion in Q4 2021. Import bill reduced by 13.8% from $13.74 billion to $11.85 billion in the period under review.
The analysis shows that the positive trade balance came mainly from the decline of the import bill rather than increase in export value.
Things to take note of in the report:
The nation’s aggregate foreign trade declined by 8.7% in Q4 of 2021, declining from $27.16 billion in the previous quarter to $24.8 billion.
When we compare activities to the corresponding period in 2020, we discover that total merchandise trade appreciated marginally by 1.4% from $24.45 billion recorded in Q4 of 2020.
Analyzing on annual basis, our total trade increased by 7.1% in 2021 from $93.26 billion in the previous year to $99.86 billion.
Towards the end of 2019, when the price of crude oil was below $60 per barrel, the country fell into great trade deficit. Towards 2020, the price of Brent Crude fell to as low as $15.17 per barrel in April 2020, it however picked up later in the year.
Why Our Trade Position Continues To Weaken:
The country’s continued reliance on imported items without exporting equal amount of products to other countries continues to have negative trade impact on the country’s economy. This continues to put heavy pressure on the foreign exchange rate of the country.
The country’s woes continue to increase due to the nation’s dependence on crude oil exports for more than 90% of its foreign exchange earnings. The oil export has been greatly affected by negative market forces and cut in OPEC quota has worsened the situation.
According to National Bureau of Statistics (NBS), Nigeria’s crude oil production declined from 1.57 million barrels per day to 1.5 million barrels per day in Q4 of 2021.
Nigeria’s penchant for imported foreign goods to meet local demand has made it difficult for the nation to maintain a robust and a healthy foreign trade balance.
The country via the CBN has spent a considerable sum of money on the agricultural sector in recent years, though the country has not started reaping the fruit from the agricultural value chain, but I believe that if the action is continued the country will better off in due course.
Our company is one of the best companies in importation business in Nigeria today, we train individuals and corporate organizations on how to do Major and Mini Importation business the right way; if you are interested, please contact the admin of this forum now.