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China’s 2024 Import of $2.59 trillion Shows That Naira’s Problem Is Not Due to Nigeria Imports

China’s 2024 Import of $2.59 trillion Shows That Naira’s Problem Is Not Due to Nigeria Imports

Good People, see trade surplus in China’s style: “China’s trade sector closed 2024 on a high note, with December figures showing a notable surge in both exports and imports. Exports grew 5.9 percent year on year to $3.58 trillion, according to customs data released on Monday. The Asian giant recorded an import rise of 1.1 percent to $2.59 trillion year-on-year, leading to a trade surplus of $992.2 billion.”

A depreciating yuan played a significant role by making Chinese goods cheaper and more competitive in global markets. This currency-driven advantage allowed manufacturers to find buyers overseas, compensating for subdued domestic demand. Analysts noted that exporters used this opportunity to continually reduce prices, maintaining a foothold in global markets.

China also saw increased stockpiling of key commodities like copper and iron ore in December. This aligns with its strategy of “buying low” during periods of reduced commodity prices. As the world’s largest iron ore importer, China’s shipments rose for a second consecutive year in 2024, with lower prices encouraging purchases despite lingering challenges in its real estate sector.

But get where I am focusing: China imported $2.59 trillion worth of items. So, import is not bad. What is bad is importing the wrong things. As I have noted here, Nigeria does not import a lot and we need to import more, and import the right things.

It goes beyond China. In 2022, South Korea’s total imports were $808.09 billion while Nigeria did about $60.35 billion for goods; South Korea is about 25% of Nigeria’s population. But if you check, South Korea imports were largely machinery, equipment, etc for production, while Nigeria’s were for finished goods. Also, in 2022, goods worth around $136.21 billion were imported to South Africa, with many of those industrial equipment. Check – more imports have not destroyed South Africa and South Korea’s currencies!

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Good People, making Naira stronger will actually require Nigeria to import MORE, but not of course finished goods, but critical machinery and raw materials to drive a production future.


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