Trade Surplus Declines Quarter-on-Quarter
Nigeria achieved a trade surplus of N5.81 trillion in the third quarter of 2024, driven by strong export performance, according to the National Bureau of Statistics (NBS). While impressive, the surplus represents a decline compared to the N6.95 trillion recorded in the previous quarter. This dip follows the ongoing fluctuation in global commodity prices and import demands.
Merchandise Trade Surges Annually
The NBS report revealed that Nigeria’s total merchandise trade in Q3 2024 was valued at N35.16 trillion, an 81.35% increase compared to Q3 2023. This figure also marked a 13.26% rise from the preceding quarter. Total exports surged to N20.49 trillion, reflecting a 98% year-on-year growth and a 16.76% increase quarter-on-quarter.
Oil Exports Drive Growth
Crude oil and natural gas remained the backbone of Nigeria’s export earnings, with crude oil exports alone valued at N13.41 trillion, a 57.06% rise from Q3 2023. Exports of liquefied natural gas and petroleum gases soared by 303.93%, reaching N4.58 trillion. Agricultural exports also grew significantly, totalling N884.07 billion, marking a 301.87% increase year-on-year despite a slight quarterly decline.
Key Trade Partners Identified
Spain emerged as Nigeria’s largest export destination in Q3 2024, followed by the United States, France, the Netherlands, and Italy. These countries accounted for the bulk of Nigeria’s crude oil and natural gas exports. Meanwhile, China remained the dominant source of imports into Nigeria, alongside India, Belgium, the United States, and Malta.
Imports Continue to Rise
Nigeria’s total imports stood at N14.67 trillion in Q3 2024, up by 62.30% compared to Q3 2023 and 8.71% from Q2 2024. The rise in imports was largely attributed to manufactured goods, valued at N6.98 trillion, and raw materials, which increased by 66.11% to N1.58 trillion. Other notable imports included agricultural products worth N882.24 billion.
Outlook on Trade Performance
The trade surplus underscores Nigeria’s continued reliance on oil and gas exports, despite efforts to diversify the economy. The substantial rise in agricultural and manufactured goods exports highlights potential growth areas. However, the increasing import bill, driven by essential goods, poses challenges to the country’s trade balance in the long term.
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