Nigeria recorded a positive trade balance in the first quarter (Q1) of 2022; the first since Q2 2021 and the highest since Q3 2019. This was revealed in the latest Foreign Trade Statistics report published by the National Bureau of Statistics (NBS).
A positive trade balance refers to a trade surplus and in the first quarter of the year, Nigeria’s total trade closed at N13 trillion. Of this figure, total imports stood at N5.9 trillion (45.4%), while exports were N7.1 trillion (54.6%).
The value of exports exceeds imports, resulting in a N1.2 trillion trade surplus in the first quarter of the year, the highest trade surplus the country has recorded since Q3 of 2019.
Compared to Q4 2021 when total trade was N11.7 trillion, the country’s total trade increased by 11.05%, while year-on-year, total trade rose by 65.41%.
Total imports in Q4 2021 were N5.94 trillion while exports were N5.77 trillion, showing a 0.67% drop in imports and a 23.13% increase in exports compared to Q1 2022.
The increase recorded in exports and the country’s overall trade in Q1 was largely attributed to the increases in crude oil export receipts, the NBS report noted.
Crude oil accounted for N5.62 trillion (79.16%) of Nigeria’s N7.1 trillion export value in Q1. Natural gas and Urea followed with 9.24% and 2.93%, respectively.
The majority of Nigeria’s exports in Q1 went to India — 16% of its total share of export. Spain and Netherlands came next with 9.54% and 9.3% respectively, making these three countries Nigeria’s best business partners as they accounted for 35.41% of Nigeria’s shares of total export at the end of Q1.
Except for the Netherlands, the other 2 countries were also Nigeria’s best business partners in Q4 2021.
On the import side, Nigeria spent N1.51 trillion on petrol in Q1; which is 25% of the country’s total imports in the first quarter. The sum of N292.56 billion was spent on imports of kerosene type jet fuel.
China accounted for 25.55% of Nigeria’s total imports making it the top country Nigeria imported from in Q1 2022. The Netherlands came second with 10.49%.
In the previous quarter, China was also Nigeria’s top import destination. The only difference in Q1 this year was that the total share of imports from China fell to 25.55% from the 27.82% recorded in Q4 2021.