By Nse Anthony-Uko
(Sundiata Post) –Nigeria’s trade surplus hit the N1.2 trillion mark in the third quarter of 2017 for the first time since 2014, buoyed by oil price recoveries since the beginning of the year, the National Bureau of Statistics (NBS) said Monday.
Nigeria’s oil exports rose by 99.13 per cent year on year jump, as the economy gradually recovers from its worst economic slump in almost three decades, recorded a trade surplus of N1.2 trillion in the period under review, as the value of exports rose 54 per cent from last year to N3.5 trillion while imports declined 4.5 per cent to N2.3 trillion.
On a quarterly basis, exports rose 15 per cent while imports fell 9 per cent.
The trade surplus in Q3 is the third straight surplus this year, having been followed by N719 billion and N506 billion trade surpluses in the first and second quarters respectively, according to data compiled by BusinessDay.
While the trend in the country’s trade flows is positive, it mirrors the slow progress being made by government to break its over-dependence on crude oil.
“The data shows we are not making progress in terms of economic diversification,” said Muda Yusuf, director-general of trade advocacy group, the Lagos Chamber of Commerce.
“Oil is still at the centre of everything and that’s worrying,” Yusuf said by phone.
Crude oil exports value was N2.97 trillion in the third quarter and it remained the majority of total exports at 83.17 per cent.
Non-oil products only contributed 3.54 per cent to total exports in the quarter, according to NBS data.
Hammered by the slump in oil prices and militant attacks that sent oil production to a near two-decade low, Africa’s largest oil producer posted a trade deficit of N290 billion in 2016, for the first time in at least five years, according to data compiled by BusinessDay.
It however looks as though Nigeria has put the worst of its afflictions behind it this year, after exiting recession in the second quarter which was soon followed by another expansion in the third quarter (1.4 per cent) to put an end to five straight quarters of GDP contraction.
The oil price rebound and reduced militant attacks on oil infrastructure are helping the economy find its feet again.
Oil sold for $64.5 per barrel Monday, according to Bloomberg data, that’s a more than 130 percent rise compared to oil prices of as low as $28 last January. Oil production has also gained some 500 thousand barrels to 1.7 million daily from 1.2 million last year.
These factors have showed up in Nigeria’s external reserves, which have gained over $5 billion this year alone to hit $35 billion as December 12, according to data obtained from the Central Bank of Nigeria’s website.
Meanwhile, Nigeria’s import trade stood at N2.3 trillion in the third quarter of 2017, among which N648.83 billion of imports were Machinery and transport equipment (27.63% of total import) and N602.89 billion-naira of Mineral fuel imports (25.67%).
Nigeria’s import trade by direction showed that the country imported goods mostly from China, USA, Netherland, India and UK, which respectively accounted for 22.26% (N522.84 billion), 7.98% (N187.43 billion), 7.64% (N179.45 billion), 5.08% (N119.33 billion) and 4.11% (N96.63 billion).
China remained the top importing partner while U.S.A. replaced Belgium to be the second largest importing partner for Nigeria in Q3.
Import from Africa accounted for N103.10 billion or 4.39 per cent of the total value an import from Economic Community of West African States (ECOWAS) accounted for N28.60 billion or 1.22 per cent of the total value.
Exports by section revealed that Nigeria exported mainly mineral products, which accounted for ₦ 3,475.01 billion or 97.2% of the total export value.
The second largest component was “Prepared foodstuffs; beverages, spirits and vinegar; tobacco” which contributed to 25.81 billion naira or 0.7percent of the total exports.
In the third quarter, Nigeria exported most products to Europe (N1.29 trillion), Asia (N1.034 trillion naira) and America (N826.98 billion). Value of Exports to Africa was N367.28 billion, among which N114.93 billion of goods were exported to ECOWAS countries.