By Olamilekan Alani
Nigeria has recorded a total trade deficit of N138.98 billion between January and March 2020 according to figures from the National Bureau of Statistics (NBS) on Tuesday morning.
This was a total foreign trade value in quarter one of 2010 surpassed that of the comparative period of 2019 by 0.80 per cent.
However, the N8.3 trillion total foreign trade value at the end of March 2020 was 17.94 per cent lower than the value recorded in the last quarter of 2019.
Import component of this trade stood at N4,221.9billion or 50.8 per cent while the export component totalled N4,082.9 billion indicating 49.2 percent of the total trade.
The trade deficit of N138.98billion during the quarter made it two consecutive quarters of the negative balance of trade, as the value of imports surpassed exports.
“It is worth noting that the consecutive quarters of negative trade balances (and lower imports and exports) occurred against the backdrop of a global slowdown in economic activity as a result of the COVID-19 pandemic.
“The global health crisis resulted in several countries implementing varying degrees of restrictions with respect to international trade, travel and tourism.”
NBS analysis showed that when compared with the preceding quarter, the Q1 2020 deficit represented an improvement by 76 per cent.
“On a year-on-year basis, however, the deficit was lower by 116.71%.
Crude oil, Nigeria’s dominant export, accounted for N2,944.6billion representing 72.12 per cent of total exports in Q1,2020.
The value of crude oil export was 18.86 per cent less than the value recorded in Q4, 2019 and 12.80 per cent lower than the value recorded in the corresponding quarter of 2019.
Non-crude oil exports were valued at N1,138.3billion representing 27.9 per cent of total exports during the period under review.
Total imports stood at N4,221.9 billion indicating a decline of 21.08 per cent in Q1, 2020 over the value recorded in Q4, 2019, but an increase of 13.99% when compared with Q1, 2019.
The drop in the value of imports in Q1,2020 which stood at N1,746.0 billion can be attributed to decreases in the value of Machinery and transport equipment, which represents 35.5 per cent less than the N2,708.98 recorded in Q4 2019.
Value of chemicals and related products at N398.7billion represented a decrease of 30.5 per cent over N573.98billion recorded in Q4,2019 and crude inedible materials of N43.5 billion representing 22.2 per cent less than N55.9billion recorded in Q4,2019.
