External Trade in Goods slid to N6.2 trillion in Q2’2020; Trade deficit widened The value of Nigeria’s external trade fell by 27.9% to N6.2 trillion in Q2’2020 from N8.6 trillion in the corresponding period of 2019 (Q2’2019). This represents the largest decline in Nigeria’s external trade in recent years. Similarly, on a quarterly basis, the external trade for Q2’2020 represented a 27.9% decline when compared with its level in Q1’2020 (N8.6 trillion). This could be attributed to the coronavirus-induced lockdown restrictions and international travel bans implemented in the second quarter of 2020. In the first half of 2020, the value of external trade stood at N14.8 trillion, 11.9% below its level in the corresponding period of 2019 (N16.8 trillion).
Both Import and Export declined; trade deficit widened to N1.8 trillion Trade balance – the difference between exports and imports – remained in deficit at –N1.8 trillion in Q2’2020 compared with a trade surplus of N590.5 billion in Q2’2019. This represents the third consecutive trade deficit since Q4’2019. The trade deficit for Q2’2020 was four times larger than its level in Q4’2019 (-N421.3 billion). The worsening position of Nigeria’s trade balance was largely due to the faster decline in exports relative to imports arising from the spread of COVID-19 across world economies with an unprecedented negative impact on crude oil demand and global supply chains.
Export Earnings plunged in Q2’2020
The total value of goods exported dipped by 52.2% to N2.2 trillion in Q2’2020 from N4.6 trillion in the corresponding period of 2019. This could be attributed largely to a plunge in crude oil exports by 59%. Correspondingly, the contribution of crude oil exports to total exports fell to 70% in Q2’2020 from 86% in Q2’2019. The decline in global crude oil prices coupled with weak export demand
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