Fuel, Foods Lead As Imports Hit N12tn- NBS
Refined petroleum products and agricultural food imports constituted the major items imported by Nigerians into the country in the first quarter of 2024, the National Bureau of Statistics has stated in a new report.
This was as total imports for Q1 2024 stood at N12.64tn representing a 39.65 per cent increase from N9.05tn in Q4 2023 and a 95.53 per cent rise from N6.47tn in Q1 2023.
While the import of raw materials by manufacturers gulped N1.5tn, citizens spent N920.54bn to bring in agricultural goods, the NBS in its Foreign Trade Statistics disclosed on Sunday.
“The share of total imports accounted for 39.75 per cent of total trade in the first quarter of 2024 with the value of imports amounting to N12.64tn in Q1, 2024. This value indicates an increase of 39.65 per cent over the value recorded in Q4 2023 (N9.05tn) and rose by 95.53 per cent compared to the value recorded in Q1 2023 (N6.46tn). The merchandise trade balance for Q1 2024 stood positive at N6.5tn,” the NBS report stated in part.
The NBS said China was Nigeria’s top trading partner on the import side, contributing 23.18 per cent to the total imports. Other significant import partners included India (8.46 per cent), the United States (7.98 per cent), Belgium (7.56 per cent), and the Netherlands (4.68 per cent).
It said agricultural goods imported were valued at N920.54bn, reflecting a 29.45 per cent increase compared to N711.14bn in Q4 2023 and a 95.28 per cent rise compared to N471.39bn in Q1 2023.
Similarly, raw material imports by manufacturers stood at N1.47tn, a 51.78 per cent increase from N966.80bn in Q4 2023 and a 164.18 per cent rise from N555.47bn in Q1 2023.
Key imported commodities included motor spirit ordinary, gas oil, durum wheat, cane sugar meant for sugar refinery, and other liquefied petroleum gases.
The report added, “In the first quarter of 2024, China ranked highest among the top trading partners on the import side, followed by India, United States of America, Belgium, and The Netherlands. The most traded commodities were motor spirit ordinary, gas oil, durum wheat (Not in seeds), cane sugar meant for sugar refinery, and other liquefied petroleum gases and other gaseous hydrocarbons.
“The value of agricultural goods imported in Q1 2024 was N920.54bn, reflecting an increase of 29.45 per cent when compared to N711.14bn in Q4 2023, and a 95.28 per cent rise compared to N471.39bn in Q1 2023.
“In Q1 2024, raw material imports were valued at N1,467.41 billion. This represents a 51.78 per cent increase from N966.80 billion in Q4 2023 and a significant rise of 164.18 per cent from N555.47bn in Q1 2023.
“In the first quarter of 2024, solid mineral imports were valued at N71.38bn. This represents a 21.15 per cent increase from N58.92bn in Q4 2023 and a 59.23 per cent increase from N44.83bn in Q1 2023.”
In the recent past, there have conflicting and contrary views by various stakeholders to open the border for the import of food products as a measure to curb surging inflation.
Although President Bola Tinubu has refuted plans to permit food imports from neighbouring countries, the government has set in motion a plan to suspend the payment of import duties on staple food items, drugs, and other essential items for an initial period of six months as a measure to curb inflation, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele informed Journalists last week.
In Nigeria, a food crisis looms large, challenging the nation’s stability. Food prices have surged, with food inflation reaching 40.5 per cent.
Among the hardest-hit commodities is rice, a dietary staple. In the past year alone, rice prices have skyrocketed by 169 per cent, reaching nearly N90,000 per bag in March and April. This sharp increase in food costs is placing immense strain on households across the country, exacerbating an already fragile economy.
It’s estimated that around 31 million Nigerians may face severe food shortages by August this year.
Based on international standard classification, the statistics agency said that the top-ranked group import was “mineral fuels” with N4.436tn representing 35.09 per cent of total imports; this was followed by “machinery and transport equipment” with N3.17tn (25.08 per cent of total imports) and “Chemicals & related products” with N1.786tn (14.13 per cent of total imports).
“On the other hand, total imports of agricultural goods in Q1, 2024 stood at N920.54bn or 7.28 per cent of total imports.
The major agriculture goods imported in Q1, 2024 included ‘Durum wheat (not in seeds)’ from Canada with N130.26bn and Lithuania with N98.63bn. This was followed by ‘Blue whitings (Micromesistius potassium, Micromesistius australis) meat, frozen.’ from the Netherlands valued at N16.67bn.
Meanwhile, Nigeria’s foreign exchange earnings grew in the first three months of 2024 as the foreign trade surplus rose to N6.52tn due to naira devaluation.
According to new data from the National Bureau of Statistics, Nigeria’s total import bill stood at N12.64tn, while total exports amounted to N19.17tn, indicating that the country was able to earn N6.52tn worth of foreign exchange in the process.
This figure is a significant recovery from the N1.41tn trade deficit recorded in the previous quarter (Q4 2023) and the N927.2 billion in the same period (Q1) of 2023.
The first quarter trade surplus marks a historic peak, surpassing previous records dating back to 2009, with the closest figure being N5.74 trillion in Q4 2011.
The record data is also fueled by exchange rate depreciation which means the trade surplus when converted to Naira will be higher than in any other period in history.
The report stated that total exports for Q1 2024 were valued at N19.17tn, representing a 51 per cent increase from the previous quarter’s N12.69tn and a 195.47 per cent rise from N6.49tn recorded in Q1 2023.
France emerged as the leading destination for Nigerian exports, accounting for 11.09 per cent of the total export value, followed by Spain (10.56 per cent), the Netherlands (8.85 per cent), India (8.41 per cent), and the United States (6.84 per cent).
The statistics agency added that major export commodities included crude oil, liquefied natural gas, sesamum seeds, urea, and superior-quality cocoa beans.
Crude oil exports accounted for 80.80 per cent of total exports with a value of N15.49tn, representing a 50.20 per cent increase from N10.31tn in Q4 2023 and a remarkable 200.79 per cent rise from N5.15tn in Q1 2023.
Revenue from agricultural exports also saw significant growth, amounting to N1.04tn, up by 123.08 per cent from N463.97bn in Q4 2023 and by 270.13 per cent from N279.64bn in Q1 2023.
The report read, “Total exports in Q1 2024 we’re valued at N19.17tn, reflecting a 51.00 per cent increase compared to N12.69tn in Q4 2023 and a 195.47 per cent rise compared to N6.49tn in Q1 2023.
“In Q1 2024, the top trading export partners were France, Spain, the Netherlands, India, and the United States of America. The most exported m commodities included crude oil, liquefied natural gas, sesamum seeds, urea (whether or not in aqueous solution), and superior-quality cocoa beans.
“Exports of agricultural goods in Q1 2024 amounted to N1.04tn, a 123.08 per cent increase from N463.97bn in Q4 2023 and a 270.13 per cent rise from N279.64bn in Q1 2023.
“The value of manufactured goods exports in Q1 2024 was N268.70bn, reflecting a 14.36 per cent increase from N234.96bn in Q4 2023 and a 104.88 per cent increase from N131.15bn in Q1 2023.
“Crude oil exports in Q1 2024 were valued at N15.49tn, a rise of 50.20 per cent from N10.31tn in Q4 2023 and by 200.7 per cent from N5.15tn in Q1 2023.”
The FX reform implemented last June as part of the Federal Government’s measures to revive the economy has led to a large devaluation of the naira.
While the naira has continued to depreciate, the West African CFA franc, a legal tender in Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo, has appreciated.
This made some goods produced in Nigeria cheaper than other African countries.
