Nigeria has recorded a trade deficit of N1.8 trillion in the second quarter of 2021 (Q2’21) as imports bills rose by 23 percent to N12 trillion from N9.8 trillion.
According to data released by the National Bureau of Statistics (NBS), the latest deficit represents an improvement of 52.6% compared to the Q1:2021 goods trade deficit of N3.9tr.
The report from NBS stated, “The crude oil which is the major component of export trade stood at N4.07 trillion or 80.3 per cent of total export. This further shows a sharp increase of 111 per cent in crude oil value in Q2’21 compared to N1.9 trillion recorded in Q1’21 while the Non-crude oil export recorded N1 trillion or 20 per cent of total export trade during Q2’21.
“Export by section revealed that mineral products accounted for N4.6 trillion or 91 per cent of total export trade. This was followed by vehicles, aircraft and parts; vessels etc N141.73 billion or 3.0 percent, vegetable products N92.80 billion or 1.8 per cent among others.”
Taking a closer look, the export earnings improved by 74.7% q/q to N5.1trillion, while import bills only grew by 1.5%.
The high record of N3.9tr trade deficit recorded in Q1:2021 and the 14.2% devaluation of the naira between H1:2020 (N360.00/$1.00) and H1:2021 (N411.50/$1.00) is linked to the latest outcome of situation.
