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

Toyota to begin production of longer-lasting EV batteries by 2026

Toyota has announced exciting advancements in batteries for electric vehicles (EVs), which are pointing to longer battery life by as early as 2026. The breakthrough occurred on two fronts: increased optimization of lithium-ion batteries and advancements in solid-state batteries for EVs. Findings for lithium-ion batteries will result in increased battery life and shorter charging time, common concerns among prospective EV buyers. Current EVs allow for approximately 330 miles on one charge, while the updated battery could handle up to 621 miles. Solid-state batteries would take that even further, allowing for approximately 745 miles on one charge. Created for items like pacemakers and smartwatches, they are similar in structure to lithium-ion batteries but historically have not been durable enough to support EVs. Toyota’s new breakthrough could put EVs with solid-state batteries on the market by 2027, and they have mentioned zeroing in on a more affordable manufacturing process — leaning more on automated processing than human labor on an assembly line. Currently, it costs about half as much to power an electric car as it does a gasoline-powered vehicle. Public charging costs are expensed by the minute — meaning that with the breakthroughs in battery life, owning an EV will become even more affordable. On top of that, there are federal and local monetary incentives depending on where you live, and EVs require less maintenance overall. EVs also leave a much smaller impact on the environment. Just one electric car on the road can save 1.6 tons of pollution annually, while gas-powered vehicles produce, on average, over 10,000 pounds of harmful gases per year.