Surge in Imports
In the first quarter of 2024, Nigeria’s import bill soared to N12.64tn, driven primarily by refined petroleum products and agricultural goods. The National Bureau of Statistics (NBS) reported a significant 39.65% increase from N9.05tn in Q4 2023 and a staggering 95.53% rise from N6.47tn in Q1 2023.
Breakdown of Imports
According to the NBS, manufacturers imported raw materials worth N1.5tn, while agricultural imports totalled N920.54bn. Imports accounted for 39.75% of total trade in Q1 2024, the report highlighted. China emerged as Nigeria’s top trading partner, contributing 23.18%.
Significant Agricultural Imports
Agricultural imports in Q1 2024 were N920.54bn, up 29.45% from Q4 2023’s N711.14bn and 95.28% from Q1 2023. Furthermore, major imported commodities included motor spirit, gas oil, durum wheat, cane sugar, and other liquefied petroleum gases.
Raw Material Imports Spike
Raw material imports by manufacturers reached N1.47tn, reflecting a 51.78% increase from N966.80bn in Q4 2023 and a 164.18% rise from N555.47bn in Q1 2023. This substantial increase underscores the growing demand for raw materials in Nigeria’s manufacturing sector.
Government’s Response to Food Crisis
Amid surging inflation, the Nigerian government plans to suspend import duties on essential items like staple foods and drugs for six months. Consequently, this measure aims to curb inflation and ease the economic strain on households, which are struggling with skyrocketing food prices.
Trade Surplus Boosts Foreign Exchange
Nigeria’s foreign trade surplus rose to N6.52tn in Q1 2024, driven by a devaluation of the naira. Consequently, the total export value was N19.17tn, representing a 51% increase from N12.69tn in Q4 2023 and a 195.47% rise from N6.49tn in Q1 2023. Additionally, major export destinations included France, Spain, the Netherlands, India, and the United States.
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