Nigeria’s export trade witnessed a marginal 3.2 percent quarter-on-quarter growth by the end of second quarter 2017.
This was higher than the level recorded in the first quarter this year, suggesting that more have to be done to sustain the recent exit from recession.
The second quarter 2017 growth in export trade was mostly accounted for by 111 percent increase in the export of energy goods, 32 percent increase in raw materials export, 12.5 percent increase in “other oil products”, and 2.04 percent rise in crude oil export.
Quarter-on-quarter, Nigeria realised N539.18 billion from the export of “other oil products” in second quarter 2017 as against N479.44 billion in first quarter 2017, representing additional earnings of N59.7 billion during the period.
Other oil products stand for oil extracts from agricultural produce such as palm kernel, soya beans, groundnuts, etc. Crude oil export in second quarter 2017 stood at N2.43 trillion compared with N2.38 trillion in first quarter. Also, raw materials export rose to N21.8 billion in second quarter from N16.5 billion in first quarter, and that amounted to additional N5.2 billion in foreign earnings. Similarly, total export trade in energy goods increased to N1.52 billion in first quarter from just N309 million in first quarter, 2017.
On the contrary, export of agricultural goods, solid minerals, and manufactured goods fell quarter on quarter. Agricultural goods export slightly declined by 1.03 percent to N29.71 billion in second quarter from N30.03 billion in first quarter. Solid mineral goods export were down by 27.6 percent to N3.07 billion from N4.23 billion in first quarter just as the export of manufactured goods declined by 17 percent to N81.6 billion in second quarter as against N98.2 billion in first quarter , 2017.
“The Central Bank of Nigeria (CBN) pumped more dollars into the market in the first half of 2017 leading to stability in the value of naira. This to some extent affected export of solid minerals and manufactured goods”, said Kayode Tinuoye, head, research department, United Capital Plc.
“That should have been compensated for with increased volume, but the capacity utilisation in the manufacturing sector was not that impressive”, Tinuoye added.
“The production level index for manufacturing sector grew for the fourth consecutive month in June 2017. The index at 58.2 points indicated an increase in production but at a slower rate, when compared to the level attained in the previous month”, according to CBN’s Purchasing Managers’ Index (PMI) Survey for June 2017.
Although the export trade in the second quarter compared with first quarter slightly went up, the analysis of cross-country transactions shows a lot of fluctuations between Nigeria and its trading partners. While trade with all the African countries rose by 23 percent, the increase was mostly accounted for by non-ECOWAS countries. Nigeria’s West African neighbours bought N158.14 billion goods from it in second quarter as against N251 billion imported from this country in first quarter 2017, representing 37 percent decline in international trade. On the other hand, trade with other African countries rose by 129 percent from N142.9 billion in first quarter to N327.3 billion in second quarter.
In addition, trade with North America declined 2 percent. The United States imported goods from Nigeria 24 percent less in second quarter than what it imported in first quarter. On the contrary, Brazil, Canada and others within the North America imported 125 percent, 114 percent and 34 percent more that what they bought from Nigeria in first quarter 2017. Trade with the European Union witnessed 16 percent increase quarter on quarter, and it was positive across board except for the Netherlands. Export to Germany rose by 36 percent; UK, 163 percent; Italy, 175 percent; France, 15 percent and Spain, 15 percent. Export to the Netherlands and other countries within the EU fell by 4 percent and 14 percent respectively.
More so, export to Asia declined by 15 percent and Japan, India and China were all responsible. Japan imported 81 percent less in second quarter than what they imported in first quarter. Within the same period, India and China imported 22.26 percent and 22.19 percent less than what they bought from Nigeria in first quarter 2017. And export to Oceania rose by 82 percent from N8.16 billion in first quarter to N14.9 billion in second quarter 2017.
By the end of the second quarter of 2017, trade with Africa accounted for 16 percent of Nigeria’s export; Americas, 16 percent; Europe, 39 percent; Asia, 28 percent while Oceania accounted for 0.5 percent . In particular, USA, Spain and India are the highest destinations of Nigeria’s exports accounting for 10 percent, 12 percent and 17 percent of the nation’s export trade as most of the goods were exported through the Apapa ports.