Nigeria’s H1 2023 foreign trade data raises questions about economic balance

In the first half of 2023, Nigeria engaged in trade amounting to N24.79 trillion in goods and services with global partners, resulting in a N2.2 trillion trade surplus, as reported by the National Bureau of Statistics (NBS). While these figures indicate a -12.68% decline compared to the N28.39 trillion traded in the same period of 2022, they also signify a significant +258% year-on-year (Y-o-Y) increase in trade surplus, highlighting a potential enhancement in Nigeria’s international net trade. Total imports for H1 2023 amounted to N11 trillion, with total exports reaching N13.50 trillion, contributing N2.2 trillion to the country’s foreign exchange earnings. The data reveals that crude oil remains Nigeria’s dominant export product for H1 2023, constituting approximately 79.50% of exports, while other oil products make up 10.57%, manufacturing 2.54%, and agriculture 4.15%. This suggests that despite reduced crude oil production, oil still heavily influences the nation’s exports, indicating a lack of comparative advantage in non-oil products. In contrast, Nigeria’s imports for H1 2023 predominantly comprised manufactured products at 47.99%, oil products at 33.17%, agriculture at 8.21%, and raw materials at 9.95%. Analysts believe that due to substantial domestic productivity gaps, reliance on imported fuel is likely to continue undermining the country’s foreign exchange position. A breakdown of trading partners reveals that Nigeria’s largest trading partners are Europe (46% of total exports) and Asia (25%), while intra-African trade accounts for a modest 19%. Likewise, Nigeria’s primary sources of imports are Asia (42%) and Europe (38%), with other African nations contributing 15% to imports. The relatively limited trade relations with other African countries in favor of India (Asia), the Netherlands (Europe), and the United States (America) may restrict Nigeria’s ability to maximize the benefits of the African Continental Free Trade Agreement (AfCFTA). *Culled from Proshare

FG ready to tackle rejection of agric exports– NQC

Plans are on course by the Federal Government to address the constant rejection of Nigeria’s agricultural products at the international market. Chairman and Chief Executive of the National Quality Council (NQC), Osita Aboloma, who stated this Thursday in Abuja, explained that with the establishment of the National Quality Council (NQC), measures to promote enhanced development, harmonization and rationalization of Nigeria’s Quality Infrastructure have been put in place. Aboloma said the various legs of the quality infrastructure, namely standards development, metrology, conformity assessment and accreditation require urgent harmonization and rationalization have been put in place. These measures, according to the NQC helmsman, would ensure cost effectiveness and efficiency in support of the acceptance of Nigeria’s export products around the world. He said sanitary and phytosanitary requirements are some of the key issues that need to be addressed to avoid constant rejects. The SPS requirements include quarantine and biosecurity measures applied to protect human, animal and plant life or health risks arising from the introduction, establishment and spread of pests, diseases as well as from the use of additives, toxins and contaminants in food and feed. He stressed the need for greater synergy amongst organizations and institutions in the public and private sectors, hosting the National Quality Infrastructure as well as greater awareness creation for operators along the export value chain.