The National Bureau of Statistics (NBS) has released its foreign trade report for the first quarter of 2024, revealing a significant trade surplus of 6.5 trillion naira between January and March.
According to the report, Nigeria’s exports totaled N19.1 trillion while imports stood at N12.6 trillion, resulting in a trade surplus of N6.5 trillion. This positive trade balance contrasts with Nigeria’s usual trend of higher imports than exports, which has historically impacted economic development and the value of the naira.
Why It Matters
A positive trade balance is crucial for the valuation of the naira. A steady increase in export surplus offers hope for the Nigerian economy, which has been struggling with inflation. This growth suggests a potential turnaround despite the economic challenges faced in recent years.
What They Are Saying
The NBS indicated that Nigeria’s total merchandise trade stood at N31.8 trillion in Q1 2024. This represents a 46.27 percent increase over the previous quarter and a 145.58 percent rise compared to the same period in 2023. Data revealed that exports accounted for 60.25 percent of total trade in the reviewed quarter, valued at N19.1 trillion. This marks a 51 percent increase from Q4 2023 and a 195.47 percent rise from Q1 2023.
On the other hand, imports made up 39.75 percent of total trade, amounting to N12.6 trillion in Q1 2024. This value indicates a 39.65 percent increase from Q4 2023 and a 95.53 percent rise compared to Q1 2023.
The merchandise trade balance for Q1 2024 was positive at N6.5 trillion. Crude oil exports dominated the trade, valued at N15.48 trillion and accounting for 80.80 percent of total exports. Non-crude oil exports stood at N3.68 trillion, making up 19.20 percent of total exports, with non-oil products contributing N1.7 trillion or 9.28 percent of total exports.
Bottom Line
The first quarter of 2024 has brought a significant shift in Nigeria’s trade dynamics, showcasing a promising surplus that could bolster the naira and support economic recovery. Sustaining this positive trend will be key to achieving long-term stability and growth for the Nigerian economy.
