Monday, December 18, 2017 /9:00 AM /FBNQuest Research

The latest datafrom the NBS in its Foreign Trade in Goods Statistics for Q3 2017 show thetotal value of trade as N5.92trn, representing an increase of 4% on thepreceding quarter. 

Compared with Q3,the total export value was 15% higher at N3.57trn, and the import value 10%lower at N2.35trn. Thus a surplus of N1.2trn (US$3.92bn) was achieved. Thesecustoms data may tell a different story to the BoP series from the CBN, whichis not yet available. 

Thedecline in the value of imported goods is partly due to improved localsubstitution (particularly for agro-related products). Furthermore, althoughthe economy has emerged from a recession, the recovery remains fragile andspending capacity of households as well as businesses remain subdued. 

However,based on the data, wheat, palm oil and mackerel accounted for 23%, 6% and 4%respectively of total agricultural imports valued at N232bn in Q3. 

Despitethe FGN’s economic diversification strategy, crude oil gulped the largest shareof exports again, representing 83% of total exports in the quarter. Since Q2,oil production and exports have increased. 



In thequarter under review, Nigeria exported goods (presumably non-oil products)valued at N367bn to other African countries; exports to ECOWAS countriesaccounted for less than half (31%) of this figure. 

Bolsteringlocal substitution to help reduce Nigeria’s import dependency remains a keyobjective of the government. It needs to stay the course, even though oilprices are firmer this year. 

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