Nigeria has reported a trade surplus of ₦6.95 trillion for the second quarter of 2024, according to the National Bureau of Statistics (NBS). This figure marks a 6.60% increase from the ₦6.52 trillion surplus recorded in the previous quarter.

The total merchandise trade for Q2 2024 stood at ₦31.89 trillion, reflecting a 3.76% decrease from Q1 2024 but an extraordinary 150.39% rise compared to the same period in 2023. This significant growth highlights Nigeria’s economic recovery and resilience in the face of global and local challenges.

Trade Figures in Detail

Imports
The value of total imports in Q2 2024 was ₦12.47 trillion, showing:
– A 10.71% decline from ₦13.97 trillion recorded in Q1 2024.
– A sharp 97.93% increase from the ₦6.30 trillion recorded in Q2 2023.

This decline in imports relative to the previous quarter suggests a possible shift towards more local production or reduced reliance on foreign goods.

Exports
Exports in Q2 2024 were valued at ₦19.42 trillion, which accounted for 60.89% of total trade. This represents:
– A marginal 1.31% increase from ₦19.17 trillion in Q1 2024.
– A staggering 201.76% growth from ₦6.44 trillion in Q2 2023.

Crude oil continued to dominate Nigeria’s export profile, with:
– Crude oil exports valued at ₦14.56 trillion, making up 74.98% of total exports.
– Non-crude oil exports contributing ₦4.86 trillion or 25.02% of total exports.
– Non-oil products accounting for ₦1.94 trillion or 10.01% of total exports.

The Broader Trade Picture

Nigeria’s trade performance in Q2 2024 reflects both challenges and opportunities:
– The total merchandise trade of ₦31.89 trillion represents a slight quarterly decline of 3.76%, likely due to the global economic slowdown.
– However, the annual rise of 150.39% highlights the country’s robust export performance and increasing dominance in international markets.

This positive trade balance underscores Nigeria’s strategic position as a major player in global trade, driven largely by its natural resources and the gradual diversification of its economy.

Key Takeaways

The trade figures for Q2 2024 demonstrate Nigeria’s potential for sustained economic growth:
– The rise in exports, particularly crude oil, continues to be the cornerstone of the country’s trade balance.
– Encouraging growth in non-crude and non-oil exports indicates progress towards a more diversified export portfolio.
– The decline in imports may signal growing local production capabilities or shifting consumption patterns.

As Nigeria builds on this momentum, fostering innovation in the non-oil sector and enhancing export diversification will be crucial to maintaining a resilient and inclusive economy.

Final Thoughts

The remarkable trade surplus and growth in exports in Q2 2024 reflect Nigeria’s resilience in navigating both domestic and international economic pressures. With continued efforts to diversify its economy, the country is well-positioned to strengthen its trade performance and achieve long-term economic stability.

Source: businessday