Rising imports push Nigeria’s trade deficit to 10-year high

The foreign trade in goods statistics released by the National Bureau of Statistics (NBS) shows the total value of Nigeria’s merchandise trade stood at N9, 757.87 billion representing a 6.99 percent increase over the value recorded in the last three months (Q4) of 2020.

This is 14.13 percent compared to the first three months (Q1) of 2020.

The rise in total trade during the quarter was driven by an increase in imports (up 15.6% quarter on quarter to N6.9 trillion) while exports declined. Exports were down by 9 percent quarter on quarter to N2.9 trillion in Q1 2021.

The current total value of imports is the highest recorded quarterly in a decade. The export component of this trade stood at N2, 907.21 billion, representing 29.79 percent of the total trade while import was valued at N6, 850 billion representing 70.21 percent.

Consequently, the surge in imports compared with the decline in exports resulted in the sixth consecutive quarter of trade deficit in Q1 2021 (N3.9trn) and the highest trade deficit in a quarter since 2011.

The higher level of imports over exports resulted in a trade deficit (in goods) of -N3, 943.45 billion.

The value of crude oil export stood at N1, 929.83 billion representing 66.38 percent of the total export recorded in Q1, 2021, while non-crude oil export accounted for 33.62 percent of the total export.