Good News as Nigeria records N6.52 trillion trade surplus in First Quarter of 2024

The National Bureau of Statistics (NBS) has released the Foreign Trade in Goods Statistics (Q1 2024), revealing that Nigeria has achieved a trade surplus of N6.52 trillion in the first quarter of 2024. This marks a significant improvement compared to the N3.63 trillion surplus in Q4 2023 and the N20.93 billion surplus in Q1 2023.

Nigeria’s total trade in Q1 2024 amounted to ₦31.81 trillion, indicating a 46.27 percent increase from the previous quarter’s value of N21.74 trillion and a remarkable 146 percent increase from the corresponding period in 2023, which stood at N12.95 trillion. The total value of exports reached N19.16 trillion, while imports amounted to N12.64 trillion.

Role of Exports in the Trade Surplus

Notably, exports experienced a higher growth rate of 51 percent compared to imports, which grew by 40 percent. Crude oil exports played a significant role in Nigeria’s trade performance and trade surplus, accounting for 81 percent of total exports and valued at ₦15.48 trillion in Q1 2024. Non-crude oil exports stood at ₦3.68 trillion, representing 19 percent of total exports.

It is crucial to approach the growth in trade cautiously due to currency depreciation over the past year. To reduce the Nigerian economy’s vulnerability to changes in commodity prices, particularly crude oil, it is imperative to diversify the export basket and increase the share of non-oil exports to over 50 percent. The government should evaluate and enhance its ongoing initiatives to promote non-oil exports, aiming to boost and diversify export earnings. SOURCE: CSEA Africa