BUSINESS
Nigeria’s Imports Exceed Exports by N1.94trn in 2021- NBS
By Joseph Amah, Abuja
Nigeria recorded N1.94 trillion foreign trade deficit in 2021, according to a report by the National Bureau of Statistics (NBS).
This implies a negative trade balance as the Nigerian economy is still import-driven and depends largely on exports of petroleum and some agricultural products to meet foreign exchange earnings.
In 2020, the country recorded its first annual trade deficit in four years as imports exceeded exports by N7. 37 trillion.
In its report, “Foreign Trade in Goods Statistics (Q4 2021),” released on Tuesday, the NBS revealed that the country’s total merchandise trade stood at N11,707.20 billion, an increase of 11.79 percent over the value recorded in the Q3, 2021 and 74.71 percent higher compared to the Q4 2020.
The report further shows that total export for 2021 stood at N18.91 trillion while total imports stood at N20.84tn, leaving a trade deficit of N1.94 trillion.
“In 2021, the value of total trade stood at N39.75 trillion, which is 57.60 per cent higher than the value recorded in 2020,” the report reads.
“The value of total imports in 2021 stood at N20.84 trillion, which is 64.11 percent higher than the value recorded in 2020, while total exports were valued at N18.91 trillion, showing an increase of 50.99 percent than the value recorded in 2020. Overall in 2021, merchandise trade recorded a deficit of N1.94 trillion.”
The report shows that imports stood at N5.94 trillion in the fourth quarter of 2021 while export was N5.77 trillion.
“Export in the fourth quarter of 2021 was still oil-dependent. Crude oil exports recorded N4.27 trillion, and it remained the major product in total exports (74.04 percent), while non-crude oil was valued at N1.49 trillion or 25.96 percent of total exports of which non-oil products contributed N810.88 billion, representing 14.06 percent of total exports during the quarter under review,” it added.
The top three countries that accounted for the highest share in Nigeria’s total exports in Q4 2021 were India (15.17 percent), Spain (13.69 percent) and France (8.42 percent).
China (27.8 percent), Belgium (10.3 percent) and India (7.24 percent) were the countries Nigeria imported the most goods from during the period.
The International Monetary Fund (IMF) had advised Nigeria to diversify its exports, as doing so would be beneficial to its economy.
In its latest ‘Nigeria: Selected Issues Paper’ report, IMF said Nigeria had not implemented much export diversification over the years.
“Nigeria has achieved little export diversification over the past decades. Diversification can be attained by including new commodities in the export portfolio (extensive margin) and changing the share of existing commodities (intensive margin),” the report read.
“Over the past decades, Nigeria failed to diversify exports at the extensive margin, nor did it add new sub-products within the oil and the few commodities that it exports to achieve a more balanced mix of exports.”
The report said Nigeria added only 47 new products to the export portfolio between 1990 and 2020, unlike many other countries.
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)
Arewa Youths Initiative for Energy Reforms (AYIFER), has urged Nigeria National Petroleum Corporation Limited (NNPCL) to do everything possible to bring Kaduna Refinery back into operation.
National Coordinator of the group, Mr Bashir Al’Amin, stated this in a statement issued on Friday in Abuja.
Al’Amin specifically called on the Chief Executive Officer of NNPCL, Mallam Mele Kyari, to do all within his powers to rejuvenate the refinery and bring it up to global standard.
He said that having delivered the Port Harcourt refinery, coupled with the establishment of Dangote Refinery in Lagos, attention should be shifted to Kaduna refinery for easy spread of petroleum products.
“We are calling on Malam Mele Kyari to expedite action on Kaduna refinery so we can be at par with other regions in the country.
“We equally beg the NNPCL to do professional work in rehabilitating the old refinery and deliver a standard and functional petrochemical refinery and not a blending plant.
“Kyari should resist any temptation that could make him do something that can jeopardise his good image,” he said.
Al’Amin said that since the extinction of groundnut pyramid and textiles in Kano State as well as PAN in Kaduna State and with the Kaduna refinery getting moribund, a lot of youths had lost their jobs.
According to him, all their hopes in the north are tied to the legacy refinery, expressing the hope that God would use Kyari to deliver it well and on time.
He said that the group was solidly behind NNPCL in prayer and would be ready to celebrate the company if its expectations were met. (NAN)
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