N3trn foreign trade deficit: Nigeria import hits N8.2trn, rises by 60.78 per cent against N5.1trn export
…India, Spain, others lead export trade
…Importation of petroleum products, price we pay for not reforming oil, gas sector —Former LCCI DG
By Ogaga Ariemu
The National Bureau of Statistics (NBS) has revealed that Nigeria recorded N3 trillion deficit foreign trade in the Third Quarter (Q3) of 2021 as total import hits N8.2 trillion against N5.1 trillion in the period under review. This represents a difference of 60 per cent.
The Statistician General of the Federation and Chief Executive Officer of National Bureau of Statistics, Dr Simon Harry, made this disclosure to NewsDirect during a press briefing in Abuja on Monday.
He disclosed that Nigerian export trade was mainly dominated by Crude Oil which amounted to N4 trillion Naira.
Meanwhile, Premium Motor Spirit (PMS) valued at N1.05 trillion topped Nigeria’s import trade.
According to Dr Harry, “In terms of exports, Nigerian Export trade was mainly dominated by Crude Oil which amounted to N4trillion (78.47%) of total export in the Third Quarter. This was followed by Natural gas, liquefied with 487.49billion (9.50‡), floating of submersible drilling platforms with N163.70billion (3.19%) and Urea, whether or not in aqueous solution with 107.17billion(2.08%).
“On the other hand, imports were mainly premium motor spirit valued at N1.1trillion(12.91%), Dur wheat valued at 315.17billiom(3.87%), Gas Oil with N225.63billion (2.77%), Used Vehicles N185.41billion (2.27%).
“In terms of trading partners, the top five major trading partners in export trade during the 3rd Quarter, 2021 were India with N758.1billion, Spain with N627.01 billion, Italy with N446.04 billion, France with N363.23 billion and Netherlands with N242.49 billion.
“Similarly, the top import trading partners in the period under review were China with N2,441.79 billion, India with 710.35billion, United States with 599.12billion, Netherlands with N554 billion and Belgium with N434.12 billion”, the statistician general stated.
International trade is an exchange or trade of goods between different nations which cut across international borders or territories.
NBS stated that collation of data is majorly from secondary data sources such as the Nigeria Customs Service (NSC), Nigeria National Petroleum Corporation (NNPC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA), Central Bank of Nigeria (CBN), Nigerian Export Processing Zone Agency (NEPZA), Nigeria Liquified Natural Gas Limited (NLNG), Nereli Technology Limited, Gojopal Nigeria Limited, Anglia International Limited, Oil and Gas Free Zone Agency (OGFZE), Nigeria Electricity Regulatory Commission (NERC), Federal Airports Authority of Nigeria (FAAN), Nigeria Civil Aviation (NCAA), Nigeria Port Authority, among others.
Importation of petroleum products is the price we pay for not reforming oil, gas sector – Former LCCI DG
While reacting to the development in an interview with Nigerian NewsDirect on Monday, the CEO, Centre for Promotion of Private Enterprise (CPPE) and former
Director General, Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf said the Nigerian international trade’s story presented a paradox.
He equally noted that importation of petroleum products is a sad commentary for Nigeria, an oil producing country.
Dr. Yusuf disclosed that the Nigerian economy is diversified structurally but not in sectoral and foreign exchange earninigs.
He also averred that the creation of an enabling environment for manufacturing would be valuable for import substitution.
According to him, “Our biggest export is crude oil. And our highest import bill is coming from importation of petroleum products.
“The Nigerian economy is diversified in structure, but not diversified in sectoral earnings, especially foreign exchange earnings. Close to 90 per cent of our foreign exchange earnings come from oil and gas.
“This speaks to the productivity, and competitiveness of the non oil economy. We are not sufficiently addressing competitiveness issues in the Nigeria economy.
“Without a competitive non oil sector, it would be difficult to boost non oil exports. This is why our balance of trade would continue to be in bad shape.”
The former LCCI Boss further noted that “Importation of petroleum products continues to dominate our import bill. This is of course a sad commentary for an economy that is an oil producing country. This is the price we are paying for not instituting reforms in the oil and gas sector over the past five decades.
“The creation of an enabling environment for manufacturing would also be valuable for import substitution. These are the factors to address if we must correct our balance of trade position,” he added.
