Nigeria recorded a trade surplus of N6.95 trillion in the second quarter of 2024, a 6.60% increase from the N6.52 trillion surplus recorded in the previous quarter. This growth was largely driven by the country’s robust export performance, despite a slight decline in overall merchandise trade.
According to the report released by the National Bureau of Statistics (NBS) on Wednesday, Nigeria’s total merchandise trade for Q2 2024 stood at N31.89 trillion, representing a 3.76% decline compared to the first quarter. However, this still marked a 150.39% rise from the corresponding period in 2023, underlining a remarkable year-on-year improvement.
Exports Fuel Trade Surplus
Nigeria’s export sector continues to be the dominant driver of its trade surplus. In the second quarter of 2024, total exports amounted to N19.42 trillion, accounting for 60.89% of the country’s total trade. This marked a 1.31% increase from N19.17 trillion in Q1 2024 and a significant 201.76% surge from the N6.44 trillion recorded in Q2 2023.
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Crude oil remained the bedrock of Nigeria’s export sector, contributing N14.56 trillion, which represented 74.98% of total exports. Non-crude oil exports, valued at N4.86 trillion, made up 25.02% of the total export value, with non-oil products contributing N1.94 trillion.
The strength of the export sector ensured Nigeria maintained a favorable trade balance, with the country’s crude oil exports playing an indispensable role in driving the overall trade surplus.
Key Export Destinations
Nigeria’s top export destinations in Q2 2024 were primarily in Europe and North America. Spain emerged as the largest export partner, receiving goods valued at N2.01 trillion, which accounted for 10.34% of Nigeria’s total exports. The United States followed closely, importing N1.86 trillion worth of Nigerian goods, representing 9.56% of total exports, while France imported N1.82 trillion, accounting for 9.37%.
Other significant export partners included India with N1.65 trillion (8.50%) and the Netherlands with N1.38 trillion (7.10%). Together, these five countries contributed 44.87% of Nigeria’s total exports during the second quarter, reflecting Nigeria’s strong trade ties with these key global markets.
Imports Decline
While exports soared, Nigeria experienced a notable decline in imports during Q2 2024. The total value of imports stood at N12.47 trillion, accounting for 39.11% of the country’s merchandise trade. This represented a 10.71% decrease from the N13.97 trillion recorded in Q1 2024, although it still marked a 97.93% increase from the N6.30 trillion recorded in Q2 2023.
The reduction in imports contributed significantly to Nigeria’s trade surplus, underscoring the country’s growing export strength relative to its import demand.
Major Import Partners
Nigeria’s largest supplier of goods remained China, with imports valued at N3.03 trillion, accounting for 24.29% of Nigeria’s total imports. Belgium followed with N1.79 trillion (14.35%), while India contributed N1.06 trillion, making up 8.49% of total imports. The United States and the Netherlands were the fourth and fifth largest import partners, supplying goods valued at N917.84 billion (7.36%) and N585.30 billion (4.69%), respectively.
These countries primarily supplied mineral fuels, machinery, and transport equipment, which continue to form the bulk of Nigeria’s import needs.
Trade by Mode of Transport
The report from the NBS also highlighted Nigeria’s heavy reliance on maritime transport for its international trade. In Q2 2024, exports transported by sea accounted for N19.25 trillion, or 99.14% of total exports. By contrast, air transport played a minimal role, contributing N73.72 billion or 0.38%, while road transport accounted for N30.72 billion or 0.16%.
On the import side, maritime transport similarly dominated, accounting for N11.84 trillion, or 94.94% of total imports. Air transport contributed N531.38 billion (4.66%), while road transport accounted for just N49.97 billion (0.40%) of imports.
This uptick in maritime transport validates the emphasis by business leaders on the importance of Nigeria’s seaports in facilitating international trade. The emphasis has come with calls to revitalize effective shipping operations in other seaports across the country, to ease congestion as the volume of goods passing through Nigerian ports is expected to increase.
However, while Nigeria’s growing trade surplus reflects a healthy export sector, experts believe the slight decline in overall merchandise trade and the reduction in imports raise important questions about the balance of the country’s economic recovery. They note that while a trade surplus is generally a positive indicator, the decline in imports, particularly in capital goods, could point to a slowdown in industrial activity and domestic consumption.
This backdrop has attracted a warning that Nigeria’s reliance on crude oil exports, which make up the bulk of its trade, leaves the country vulnerable to global oil price fluctuations.