First quarter merchandise trade deficits hit N1.8bn

The merchandise trade data released by the Nigerian Bureau of Statistic showed a trade deficit of N1.8billion (US$5.6m), representing a 23 per cent decrease from the previous quarter of 2016.

The steep decline in exports contributed to the total trade deficit recorded. Given the oil production losses due to pipeline vandalism in the Niger Delta, export of crude oil fell in the quarter under review.

According to the NBS, the crude oil exports declined by 47 per cent when compared with the level recorded in fourth quarter 2015. Nigeria’s import trade stood at N1.5trillion (US$4.7billion) in Q1. This is 8.0 per cent lower than the value recorded in Q4 2015.

Nigeria’s import trade which is structured in the SITC model shows the import of machinery, mineral fuel and chemicals as the dominant import products for Q1, accounting for 35 per cent, 17 per cent and 15 per cent respectively.

Meanwhile commodities such as oils, fats and waxes as well as beverages and tobacco contributed the least to total imports, equating to 0.8 per cent and 0.6 per cent respectively.

The bulk of imported goods in Q1 was from China, with an import value of N346billion (US$1.1billion) thus, contributing 24 per cent to total imports.