Nigeria’s foreign trade value has sustained growth for the sixth consecutive quarter at the Q3’17 to hit N5.82 trillion.
This is contained in the latest report on the country’s foreign trade, which indicates that the latest estimated trade value represents a 3.94 per cent Quarter on Quarter (QoQ) and 23.86 per cent Year on Year (YoY) growth.
The gradient recorded in the foreign trade balance in the between July and September this year was largely driven by noticeable improvement in exports.
Total exports value grew by 15.19 per cent QoQ and 53.85 per cent YoY to N3.57 trillion while total imports value declined 9.41 per cent QoQ and 4.47 per cent YoY to N2.35 trillion.
Bolster by a sustained growth in exports as well as declining imports, Q3’17 balance of trade remained favourable, climbing significantly by 141.8 per cent on quarterly basis to N1.2 trillion.
On a year-to-date basis, total trade value stood at N16.9 trillion, just 2.5 per cent shy of the total trade value for the year 2016 which stood at N17.4 trillion. This is a pointer to the fact that the Nigerian economy will maintain an improved posture at the end of this year.
Exports value appreciated by 57.2 per cent of year-to-date trade value, with a significant trade surplus of N2.5 trillion, compared to full year 2016 N290 billion trade deficit.
On what came into the country within the period, trade imports nosedived 9.5 per cent QoQ and 4.5 per cent YoY to N2.4 trillion.
According to the report as analysed by Proshare, importation of crude inedible materials slumped significantly by 82.6 per cent QoQ to N38.1 billion while importation of food and live animals also decreased by 20.2 per cent QoQ from N434.5 billion in the preceding quarter.
Meanwhile, there was a noticeable surge in importation of machinery and transport equipment by 20.6 per cent against Q2’17 record and 7.1 per cent to N648.8 billion compared to the value recorded in 2016.
Experts believe this to be possible hints to increased effort by the government to develop the local manufacturing sector, which has implied by the report now spends more manufacturer products rather than consumer goods.
Crude oil exports, being the dominant trade commodity, grew 22.5 per cent quarterly to N2.9 trillion.
This, largely supported by the rise in oil production volume as well as global oil price recovery, was more than double the figure in the corresponding quarter in 2016 when N1.9 trillion was recorded on crude export.
It will be noted that in 2017, Ytd average of crude production in Nigeria stands at 1.9mbpd against 2016 average of 1.8mbpd; and similarly, 2017 Ytd average oil price in the global market stands at $54.47/barrel compared with 2016 average of $44.86/barrel.
As a percentage of total exports, crude oil rose 500bps QoQ to 83.2 per cent signifying that it remains the key revenue generator, despite ongoing efforts to diversify the economy.
Overall, total oil-related exports grew by 17.4 per cent QoQ and 53.4 per cent YoY respectively to N3.5 trillion.
In contrast, non-oil exports declined by 23.3 per cent QoQ but grew by 68.5 per cent YoY to record at N126.5 billion with manufactured goods rising by up 39.6 per cent of all non-oil exports.
Agriculture exports declined for the third consecutive quarter to N21.5 billion from N29.7 billion in Q2’17 and N30.0 billion in Q1’17.
This represents 17 per cent of total non-oil exports and 0.60 per cent of total exports respectively.
On a year-to-date basis however, agriculture exports amounted to N81.2 billion, 33.8 per cent higher than the entire figure for 2016 which stood at N60.7 billion, signifying increased efforts to develop the sector.