Nigeria recorded a trade surplus of N6.95 trillion in the second quarter of 2024, reflecting the country’s strong export performance amidst a slight decline in overall merchandise trade.
This surplus marks a 6.60% increase from the previous quarter, which recorded a surplus of N6.52 trillion.
Nigeria’s total merchandise trade in Q2 2024 stood at N31.89 trillion, representing a 3.76% decline compared to the preceding quarter (Q1 2024) but marking a 150.39% rise from the corresponding period in 2023.
This is according to a report, released by the National Bureau of Statistics (NBS) on Wednesday, which shows a decline in Nigeria’s import.
Exports drive trade surplus
Nigeria’s export sector continues to be the primary driver of its trade surplus. In Q2 2024, total exports stood at N19.42 trillion, accounting for 60.89% of the country’s total trade.
This represents a 1.31% increase from N19.17 trillion in the first quarter and a 201.76% surge from N6.44 trillion recorded in Q2 2023.
The dominance of crude oil exports remains a key factor in this performance, contributing N14.56 trillion, or 74.98% of total exports.
Non-crude oil exports, valued at N4.86 trillion, made up 25.02% of the total export value, with non-oil products contributing N1.94 trillion.
The strong export performance, particularly in crude oil, ensured that Nigeria maintained a favourable trade balance.
In Q2 2024, Nigeria’s top export destinations were dominated by European and American countries. Spain emerged as the largest export partner, receiving goods valued at N2.01 trillion, accounting for 10.34% of Nigeria’s total exports.
The United States followed closely with N1.86 trillion (9.56%), while France imported N1.82 trillion worth of Nigerian goods, representing 9.37% of total exports.
Other significant export partners include India (N1.65 trillion or 8.50%) and the Netherlands (N1.38 trillion or 7.10%).
Collectively, these top five export partners contributed 44.87% of Nigeria’s total exports during the second quarter of 2024.
Imports decline in Q2 2024
While exports surged, imports in Q2 2024 experienced a notable decline. The total value of imports stood at N12.47 trillion, accounting for 39.11% of the country’s merchandise trade.
This marked a 10.71% decrease from the N13.97 trillion recorded in Q1 2024 but still showed a 97.93% increase from the N6.30 trillion recorded in Q2 2023.
The reduction in imports further contributed to the significant trade surplus, highlighting Nigeria’s growing export strength relative to its import demand.
China maintained its position as Nigeria’s largest supplier of goods, with imports valued at N3.03 trillion, representing 24.29% of Nigeria’s total imports.
Belgium followed, supplying goods worth N1.79 trillion (14.35%), while India contributed N1.06 trillion, accounting for 8.49% of total imports. The United States was the fourth-largest import partner with N917.84 billion (7.36%), and the Netherlands rounded out the top five with N585.30 billion (4.69%) of total imports.
These countries were responsible for a significant portion of Nigeria’s imports, mainly supplying mineral fuels, machinery, and transport equipment.
Trade by mode of transport
- In Q2 2024, the bulk of Nigeria’s trade was conducted via maritime transport. Exports transported by sea accounted for N19.25 trillion, or 99.14% of total exports.
- Air transport played a minimal role in the export sector, contributing N73.72 billion or 0.38%, while road transport accounted for N30.72 billion or 0.16% of exports. Other transport methods, including pipelines, contributed N63.28 billion or 0.33%.
- On the import side, maritime transport also dominated, accounting for N11.84 trillion or 94.94% of total imports. Air transport contributed N531.38 billion (4.66%), while road transport accounted for only N49.97 billion (0.40%) of imports.
- The heavy reliance on maritime transport highlights the importance of Nigeria’s seaports in facilitating international trade.
