In recent years, Nigeria’s trade level has increased dramatically, rebounding rapidly from the devastating impact of the COVID-19 pandemic and other subsequent constraints. According to data issued by the National Bureau of Statistics (NBS), the trade surplus recorded in 2022 increased by 169 percent from the previous year, closing the gap considerably and bringing Nigeria’s yearly trade level near the positive threshold seen before the advent of COVID. In 2022, the nation’s goods trade surplus was N1.2 trillion, as reported by the NBS.
For the first time since the previous year, export bills of N26.8 trillion in 2020 outpaced import profits of N25.6 trillion (N2.23 trillion in 2019). In spite of this, the surplus in 2022 is 162% better than the goods trade deficit of N1.94 trillion in 2021. The value of Nigeria’s exports rose by 42% in 2022 to N26.8 trillion from N18.91 trillion in 2021, while the value of Nigeria’s overall goods trade rose to N52.4 trillion from N39.75 trillion.
Nigeria’s exports dropped from N19.19 trillion to N12.52 trillion.
The COVID-19 regulation, which restricts movement access worldwide, caused the country’s trade balance to plummet even more in the following year, causing it to drop from N5.37 trillion in 2018, when it was at its highest, to N2.23 trillion in 2019, when it was at its lowest. Consequently, Nigeria’s exports dropped by 35 percent, from N19.19 trillion to N12.52 trillion. Despite a similar decline in imports, the disparity in export figures induced by a reduction in oil prices was too high to be covered.
At the end of the year 2020, Nigeria’s trade balance, which had been in a position of surplus since the beginning of the year, swung into a deficit, totaling N178.26 billion. By 2021, this amount had ballooned to almost N2 trillion. A study in last week’s Cowry Weekly Financial Markets Review & Outlook (CWR) from experts, however, shows that the value of exports rose by N25.59 trillion while imports rose by just N25.59 trillion (23 percent higher than N20.84 trillion in 2021).
Gov’t maintained favorable trade balance despite challenges in the year.
During the fourth quarter, total trade dropped by 4.52% to N11.72 trillion from the third quarter’s N12.27 trillion as total exports outpaced total imports, according to the report. The government maintained a favorable trade balance despite the challenges faced during the year. Nevertheless, the difficulties have affected the market for consumer, intermediate, and investment products due to the falling value of the Naira, decreased demand for export commodities, and the effects of the Russia-Ukraine war.
According to the data included in the study, the value of other oil product imports was N1.9 trillion in Q4 2022. This is down 18.18 percent from the value recorded in the third quarter of 2022 (N2.3 trillion) but up 10.40 percent from the value recorded in the same quarter of 2021 (N1.7 trillion). China and Belgium were identified as Nigeria’s most significant trading partners in the assessment. Concurrently, high-quality cocoa beans and sesame seeds were the two most common agricultural exports to Spain and the Netherlands.
Total trade balance decline resulted from Naira devaluation strain.
Moreover, the analysis suggested that export promotion measures, particularly for non-oil exports, could improve Nigeria’s trade balance. The recent improvement in the trade balance shows that this is possible, provided FG establishes a favorable business climate to boost trade and exports. It also noted that the decline in Nigeria’s total trade balance resulted from the strain on the Naira from devaluation and increasing inflationary levels. The problem was exacerbated by the constraints encountered by world trade in 2022, which were the result of declining economies and supply chain bottlenecks across the world.
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Nigeria’s annual trade level increases – The value of Nigeria’s exports rose by 42% in 2022 to N26.8 trillion. – Express your point of view.
If this projection is maintain,it will do the country good in so many ways because the economy will be boosted and foreign exchange earnings will also increase.
Our trade levels absolutely increases when we increase production. It will lead to increase in exportation of goods abroad.
Export of our products should be considered. it will definitely bring good measures, boost the economy and improve the our trade balance.
Trade level increased we should keep up the good work and do the necessary thing for the trade level to keep increasing which will do good to our economy
Nigeria’s annual trade level increases. Nigeria is a big country with heavy potential when it comes to trade. Nigeria has one of the biggest market for trading. Individually we Nigerians are business trading mind set
We should keep our trade business high the trade level increased which will partake in doing good for the country and improving it more effort should put for trade level keep increasing
It’s great that Nigeria is getting involved in more trading activities because it will help boost the growth of the country and the citizens.
When the country trades well with other countries, it will help increase the value and strength of the naira, and that will be very good because it will help reduce the cost of things in the country.
I would absolutely encourage the government to be involving more trade with other countries because it will build their relationships and make already built relationships stronger.
Nigeria should maintain healthy relationships with major countries because it will really be helpful in the future if they need help, i hope the government knows this.
The rising trade level demonstrate a sign of progress in the country. Our economy will flourish from this greatly.
This marks a big turn around in our economy, hopefully we get to maintain this growth level.
The expansion of Nigeria’s commercial activities is encouraging because it will lead to greater prosperity for the country and its people.
With this information our export level is ona beneficial gain to the country. This kind of momentum is what we have been yearning for.
I’m hoping the leadership of Nigeria realizes the importance of keeping good relations with major countries in case they ever need assistance.
When production is increased, there’d be enough to go round locally and also to export. These international trading helps the growth of the economy.
The government should engage in more trade with other nations, as it will strengthen their partnerships already in place and help to forge new ones. Hopefully, we can continue to grow at this rate.
The increases seen in the volume of trade is an indication is beginning to do well in terms of exportation. It shouldn’t end there we need to begin to manufacture more things and export them too
This is a great significant improvement in the area of exportation.We need to grow from consuming country to a producing country. Our trade level has increased with over 100% the year 2022. It shows that we can do better.