Imports decline as Nigeria records N6.9trn trade surplus in Q2, 2024

…Exports rise by 201% in one year as crude oil dominates

…Tax collection hits N2.47trn, up 150 percent in Q2, 2024

By Seun Ibiyemi

Nigeria recorded a trade surplus of N6.95 trillion in the second quarter of 2024, according to a report released by the National Bureau of Statistics (NBS) on Wednesday.

This surplus marks a 6.60 percent  increase from the previous quarter, which recorded a surplus of N6.52 trillion.

Nigeria’s total merchandise trade in Q2 2024 stood at N31.89 trillion, representing a 3.76 percent  decline compared to the preceding quarter (Q1 2024) but marking a 150.39 percent  rise from the corresponding period in 2023.

“The value of total imports stood at  N12,473.53 billion in the second quarter of 2024, representing a decrease of 10.71 percent  compared with the value recorded in Q1, 2024 ( N13.970.05 billion) and a rise of 97.93 percent  from the value recorded in the corresponding quarter of 2023 ( N6,301.95 billion).

“Total exports in Q2 2024 were valued at  N19,418.93 billion, reflecting a 1.31 percent  increase compared to  N19,167.36 billion in Q1 2024 and a 201.76 percent rise compared to N6,435.13 billion in Q2 2023.

“Nigeria’s total merchandise trade stood at N31,892.46 billion in Q2, 2024 representing a decrease of 3.76 percent  over the value recorded in the preceding quarter and a rise of 150.39 percent  compared to the value recorded in the corresponding period of 2023.

“In the quarter under review, exports accounted for 60.89 percent  of total trade with a value of  N19,418.93 billion, showing a marginal increase of 1.31 percent  compared to the value recorded in Q1 2024 ( N19,167.36) and a 201.76 percent  rise over the value recorded in the second quarter of 2023 ( N6,435.13).

…Exports rise by 201%  in one year, as crude oil dominates

Meanwhile, Nigeria’s total exports surged by 201.75 percent in one year, mostly driven by exports of crude oil, a new report has shown.

According to the “Foreign trade in goods statistics” report released by the National Bureau of Statistics (NBS) on Wednesday, exports amounted to N19.4 trillion on a quarter basis, representing 60.89 percent of total trade.

“In the quarter under review, exports accounted for 60.89 percent  of total trade with a value of N19,418.93 trillion, showing a marginal increase of 1.31 percent  compared to the value recorded in Q1 2024 (N19,167.36) and a 201.76 percent  rise over the value recorded in the second quarter of 2023 (N6,435.13),” NBS said.

Nigeria’s exports trade continued to be dominated by crude oil exports as it was valued at N14.5 trillion even as it dropped by 5.99 percent compared to N15.4 trillion recorded in the previous quarter.

Crude oil export represents a massive 74.98 percent of total exports between April to June 2024. But the value of the non-crude oil stood at a staggering N4.8 trillion.

The non-crude exports accounted for a paltry 25.02 percent of total exports while non-oil products contributed N1.9 trillion or 10.01 percent of total exports.

…Tax collection hits N2.47trn, up 150 percent  in Q2 2024

Also, data published has revealed that the federal government’s Company Income Tax (CIT) collection in the second quarter of 2024 increased by 150.83 per cent to N2.47 trillion.

In the first quarter of the year, company income tax collection stood at N984.61 billion.

According to the NBS, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion.

On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50 per cent, followed by financial and insurance activities at 429.76 per cent, and manufacturing at 414.15 percent.

On the other hand, the lowest growth rate was observed in household activities as employers and undifferentiated goods- and services-producing activities for own use, which recorded a decline of –30.22 percent, followed by extraterritorial organisations and bodies with a decrease of –15.67 percent.

In Q2 2024, the top three sectors contributing the largest shares were financial and insurance activities at 15.53 percent, manufacturing at 8.99 per cent, and information and communication at 7.84 percent.

Contrarily, household activities as employers and undifferentiated goods- and services-producing activities for own use had the smallest share at 0.00 per cent, followed by water supply, sewerage, waste management, and remediation activities at 0.02 per cent, and extraterritorial organisations and bodies at 0.03 per cent.

On a year-on-year basis, CIT collections in Q2 2024 rose by 59.52 percent compared to the N1.55 trillion recorded in Q2 2023.

In the first quarter of the year, CIT collection declined by 12.87 percent when compared to the fourth quarter of 2023.

Analysts have attributed the decline to the nation’s ongoing macroeconomic challenges, including high inflation, exchange rate instability, rising input costs, and other related factors.

However, the spike in CIT collection in Q2 was mainly propelled by a rise in foreign Company Income Tax payment which increased by 87.24 percent to N1.11 trillion when compared to Q1, 2024 and more than doubled when compared to the corresponding period of last year.

However, it has been observed that there has been a consistent rise in CIT collection in the second quarter of the year dating back to Q2, 2021.