Nigeria records N1.8 trillion Trade Surplus in third quarter of 2023

Nigeria reported a N1.8 trillion trade surplus in Q3 2023. The National Bureau of Statistics’ (NBS) most recent Foreign Trade in Goods Statistics report made this clear.

Nigeria’s total trade with the rest of the world was N18.8 trillion in Q3 2023, up 54.62% from N12.2 trillion in Q2 2023, according to the report.

Given the devaluation that was noted during the time, care should be taken when interpreting the increase in overall trade. With N10.3 trillion in total exports and N8.5 trillion in imports, there was a N1.8 trillion trade surplus.

With N10.3 trillion in total exports and N8.5 trillion in imports, there was a N1.8 trillion trade surplus. Total exports and imports saw a massive increase in Q3 2023 compared to their figures in the previous quarter: exports increased by 60.78% and imports increased by 47.70%.

Due to the large increase in crude oil exports, which made up 82.5% of all exports and were a reflection of the high demand and prices for oil on the international market, there was a trade surplus for the quarter. Nigeria’s trade surplus, while beneficial to the country’s economy, remains heavily reliant on oil. The share of the manufacturing sector in total exports was only 1.93%. The importance of increasing the share of manufactured goods in exports has grown

Making improvements to the business environment will help achieve this. Manufacturing companies’ cost of production rises as a result of the current power situation and high borrowing costs, which reduces their ability to compete on the world market.