Post by Ismail AbdulAzeez on Jun 30, 2021 0:57:24 GMT 1
Nigeria’s Import Bill Shoots up To Highest Level in over 12 Years
Nigeria’s import bill increased by more than 54% year-on-year to N6.85 trillion in the 1st quarter of 2021 from N4.44 trillion it was in the corresponding quarter of 2020.
These details were contained in the report released by the National Bureau of Statistics (NBS). The report also shows that there was an increase in imports of 15.6% when compared toN5.93 trillion as recorded in the previous quarter.
The total trade in the period under consideration stood at N9.76 trillion; 14% higher than N8.55 trillion recorded in Q1 of 2020.
The report shows that Nigeria recorded its highest quarterly import in over 12 years; shooting the country’s trade deficit to the highest level ever.
The following is the breakdown of the import:
The value of imported agricultural products increased by 18.37% in quarter 1 of 2021 compared to the previous quarter; and 140.47% year-on-year. This means that the country’s import bill for agricultural products in the 1st quarter of 2021 increased by 140.47% over the value of the 1st quarter of 2020.
The value of raw materials import fell by 6.5% in Q1 of 2021 as compared to Q4 of 2020; but increased by 109.29% when compared to Q1 of 2020.
The value of other oil products imported into the country in Q1 of 2021 increased by 19.02% over the value of Q4 2020, but by 15.76% less than the corresponding Quarter of 2020.
The import value of manufactured goods rose by 18.47% in Q1 of 2021 as against the value recorded in Q4 of 2020, and 69.70% against its value in Q1 of 2020.
The import value of solid minerals imported into the country was 36.97% higher in Quarter 1 of 2021 than Q4 of 2020; and 59.26% more than its value in the corresponding period of 2020.
The huge increase in the value of imports can be largely attributed to the increase in petrol imports.
The country imported petrol valued at N687.74 billion in the period under review. This represents an increase of 19.88% compared to N573.69 billion inQ4 of 2020.
It is still disheartening that after spending so much investment in the agricultural sector, the Federal Government of Nigeria is still spending so much in importing agricultural products.
Presently, food sustenance in Nigeria is looking like a mirage. According to the report, agricultural products importation gulped N636.2 billion during the period under review.
Meanwhile, crude oil exports that account for most of the country’s export earnings reduced from N2.52 trillion recorded in Q4 of 2020 to N1.93 trillion in Q1 of 2021.
The authorities explained that this was caused by the decline of India’s importation due to the resurgence of Covid-19 in their country.
Diminishing Reserves
The country’s Foreign Reserves have continued to reduce in recent times losing over $1 billion year-to-date despite rise prices in the global oil market.
A careful look at the data shows that Nigeria has been recording trade deficit for six consecutive quarters since Q4 of 2019.
The exchange rate of the Naira against the dollar is currently about N502, while the official exchange rate is about N410.
The country’s Foreign Reserve stands at $34.19 billion as at 3rd June, 2021.
The countries Nigeria imports goods from; the top ten of them accounted for 72.88% of the total imports recorded during the period under review.
China: N2.01 trillion
Netherlands: N726 billion
USA: N608.1 billion
India: N589.1 billion
Belgium: N238.5 billion
Germany: N190.1 billion
Russia: N189.6 billion
Italy: N178.3 billion
UK: N133.4 billion
South Korea: N129.6 billion
What really is responsible for this huge deficit Nigeria is experiencing in its balance of trade?
From elementary economics, a current account deficit occurs when a country’s foreign liabilities are more than its foreign assets. It is more severe when the country imports more than it exports.
The CBN said that the reason for this was the return of the country to commercial activities after the Covid-19 lockdown. This brought about increase in demand for goods and services putting pressure on Nigeria’s import bill.
Specifically, the apex bank cited import of petroleum products as a major contributory factor to the ballooning of the current account deficit.
To solve this problem, the apex bank is doing all it can to attract foreign exchange into the country to help shore up the value of the Naira against other currencies.
The global demand for Nigeria’s agricultural products is increasing daily; people are crying about unemployment, the government is heavily investing in agriculture; why is this problem still increasing?
The solution is in our hands. Attend training in agricultural and export business with us today and become a rallying point in Nigeria to save the economy from collapse.
Contact our admin for more information on the training.
Nigeria’s import bill increased by more than 54% year-on-year to N6.85 trillion in the 1st quarter of 2021 from N4.44 trillion it was in the corresponding quarter of 2020.
These details were contained in the report released by the National Bureau of Statistics (NBS). The report also shows that there was an increase in imports of 15.6% when compared toN5.93 trillion as recorded in the previous quarter.
The total trade in the period under consideration stood at N9.76 trillion; 14% higher than N8.55 trillion recorded in Q1 of 2020.
The report shows that Nigeria recorded its highest quarterly import in over 12 years; shooting the country’s trade deficit to the highest level ever.
The following is the breakdown of the import:
The value of imported agricultural products increased by 18.37% in quarter 1 of 2021 compared to the previous quarter; and 140.47% year-on-year. This means that the country’s import bill for agricultural products in the 1st quarter of 2021 increased by 140.47% over the value of the 1st quarter of 2020.
The value of raw materials import fell by 6.5% in Q1 of 2021 as compared to Q4 of 2020; but increased by 109.29% when compared to Q1 of 2020.
The value of other oil products imported into the country in Q1 of 2021 increased by 19.02% over the value of Q4 2020, but by 15.76% less than the corresponding Quarter of 2020.
The import value of manufactured goods rose by 18.47% in Q1 of 2021 as against the value recorded in Q4 of 2020, and 69.70% against its value in Q1 of 2020.
The import value of solid minerals imported into the country was 36.97% higher in Quarter 1 of 2021 than Q4 of 2020; and 59.26% more than its value in the corresponding period of 2020.
The huge increase in the value of imports can be largely attributed to the increase in petrol imports.
The country imported petrol valued at N687.74 billion in the period under review. This represents an increase of 19.88% compared to N573.69 billion inQ4 of 2020.
It is still disheartening that after spending so much investment in the agricultural sector, the Federal Government of Nigeria is still spending so much in importing agricultural products.
Presently, food sustenance in Nigeria is looking like a mirage. According to the report, agricultural products importation gulped N636.2 billion during the period under review.
Meanwhile, crude oil exports that account for most of the country’s export earnings reduced from N2.52 trillion recorded in Q4 of 2020 to N1.93 trillion in Q1 of 2021.
The authorities explained that this was caused by the decline of India’s importation due to the resurgence of Covid-19 in their country.
Diminishing Reserves
The country’s Foreign Reserves have continued to reduce in recent times losing over $1 billion year-to-date despite rise prices in the global oil market.
A careful look at the data shows that Nigeria has been recording trade deficit for six consecutive quarters since Q4 of 2019.
The exchange rate of the Naira against the dollar is currently about N502, while the official exchange rate is about N410.
The country’s Foreign Reserve stands at $34.19 billion as at 3rd June, 2021.
The countries Nigeria imports goods from; the top ten of them accounted for 72.88% of the total imports recorded during the period under review.
China: N2.01 trillion
Netherlands: N726 billion
USA: N608.1 billion
India: N589.1 billion
Belgium: N238.5 billion
Germany: N190.1 billion
Russia: N189.6 billion
Italy: N178.3 billion
UK: N133.4 billion
South Korea: N129.6 billion
What really is responsible for this huge deficit Nigeria is experiencing in its balance of trade?
From elementary economics, a current account deficit occurs when a country’s foreign liabilities are more than its foreign assets. It is more severe when the country imports more than it exports.
The CBN said that the reason for this was the return of the country to commercial activities after the Covid-19 lockdown. This brought about increase in demand for goods and services putting pressure on Nigeria’s import bill.
Specifically, the apex bank cited import of petroleum products as a major contributory factor to the ballooning of the current account deficit.
To solve this problem, the apex bank is doing all it can to attract foreign exchange into the country to help shore up the value of the Naira against other currencies.
The global demand for Nigeria’s agricultural products is increasing daily; people are crying about unemployment, the government is heavily investing in agriculture; why is this problem still increasing?
The solution is in our hands. Attend training in agricultural and export business with us today and become a rallying point in Nigeria to save the economy from collapse.
Contact our admin for more information on the training.