Nigeria-China trade deficit widens as imports surge
The National Bureau of Statistics has revealed a significant increase in the trade deficit between Nigeria and China, with figures reaching a staggering N7.54 trillion in the first nine months of 2023.
The data indicates a growing imbalance, heavily tilted in China’s favour, as Nigeria’s imports from the Asian giant continue to climb.
In a detailed breakdown of the foreign trade statistics, it was reported that Nigeria’s imports from China amounted to N8.4 trillion from January to September 2023.
The quarterly figures show a sharp increase, with imports starting at N1.29 trillion in the first quarter, escalating to N2.56 trillion in the second, and peaking at N4.53 trillion in the third quarter.
Conversely, Nigeria’s exports to China present a stark contrast. The first quarter saw exports valued at N126.61 billion, which rose to N251.8 billion in the second quarter and further to N482.4 billion in the third quarter.
The cumulative export value for the nine-month period stood at N860.82 billion, underlining a substantial trade deficit.
Nigeria’s export portfolio to China is diverse, comprising minerals, metals, various agricultural products, and crude oil.
However, the burgeoning deficit underscores the challenges facing Nigeria’s trade balance and the need for strategies to boost exports and reduce reliance on imports from China.
In 2021, a report by obtained from China’s Custom agency stated that Nigeria topped the chart amongst African countries importing from China with imported goods valued at $23 billion (about N9.6 trillion) or 16 percent of total continent’s imports from China.
But the country didn’t feature on the top five African countries in exports to China in the same period, as it recorded only $3 billion (about N1.3 trillion) exports in the year.
Experts say the recurring trade deficit speaks to the persistent weak production capacity and competitiveness of Nigerian firms.
Last week, the Minister of Industry, Trade and Commerce, Doris Aniete, came under scrutiny when she appeared before some senators to defend her ministry’s budget and was asked where the country’s balance of trade stood, especially with China.
“What is our balance of trade, especially with China? Those countries importing things to Nigeria are expected to build factories in Nigeria,” the Senator representing Edo North, Adams Oshiomhole, queried.
“We have to take advantage of our population to grow our industries.”
However, the Minister told the joint panel that her ministry had yet to get such record.
“Sir, I regret to say that we seem to have no record of our balance of trade or at least it does not exist in the ministry and that is why we initiated a new unit called the trade intelligence unit to ensure that such data are generated and stored,” Uzoka said
