Research Document: Foreign Trade Alert 2023 Q3

Posted Fri, Dec 8, 2023 6:25 PM

Key Highlights from the NESG Foreign Trade Alert for 2023Q3

• Nigeria’s value of external trade in goods surged by 52.8 percent to N18.8 trillion in 2023Q3 from N12.3 trillion in 2022Q3. Exports grew faster than imports, resulting in a trade surplus of N1.8 trillion in 2023Q3, which is a significant improvement compared with a trade deficit of N409.4 billion in 2022Q3.

• The value of exports rose sharply by 74.6 percent (year-on-year) to N10.3 trillion in 2023Q3. This is attributable to the increase in oil exports – accounting for 93.4 percent of total exports - to N9.7 trillion in 2023Q3 from N5.5 trillion in 2022Q3.

• The value of imported commodities jumped by 34.9 percent (year-on-year) to N8.5 trillion in 2023Q3. The higher import value is primarily driven by the rapid exchange rate depreciation arising from the unification of the multiple official exchange rates in June 2023.

• Spain leapfrogged the Netherlands as Nigeria’s largest export trading partner, closely followed by India in 2023Q3. In addition, the bulk of goods exported in the quarter was crude oil.

• China remained Nigeria’s largest import trading partner, closely followed by Belgium and India in 2023Q3. Accordingly, Nigeria maintained a trade surplus with India in the quarter.