Key Highlights from the NESG Foreign Trade Alert for 2023Q2
Nigeria’s value of external trade in goods dropped by 8 percent (year-on-year) to N12.7 trillion in the second quarter of 2023. This, however, represents a 5.8 percent rise relative to its level in 2023Q1 (N12 trillion).
The value of exports declined by 5.4 percent (year-on-year) to N7 trillion in 2023Q2. This is attributable to the fall in oil exports to N6.3 trillion, whereas non-oil exports rose to N688.7 billion in the quarter.
The value of imports fell by 10.9 percent (year-on-year) to N5.7 trillion in 2023Q2, due to lower import bills on tradable items except machinery and equipment. The most significant drop was reported for mineral fuel.
The country posted a third consecutive trade surplus at N1.3 trillion in 2023Q2, supported by elevated global oil prices amidst the persistent shortfall in domestic crude oil production via-á-vis the OPEC output quota.
The Netherlands remained Nigeria’s largest export trading partner, closely followed by the United States in 2023Q2. In addition, the bulk of goods exported in the quarter was crude oil.
China remained Nigeria’s largest import trading partner, closely followed by the United States in 2023Q2. Accordingly, Nigeria maintained a trade deficit with the United States in the quarter.
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The Nigerian Economic Summit Group is a non-profit, non-partisan private-sector led think tank with a mandate to promote and champion the reform of the Nigerian economy into a modern globally competitive, sustainable, inclusive, open economy.