External Trade in Goods slid to N6.2 trillion in Q2’2020:Trade deficit widened,The Nigerian Economic Summit Group, The NESG, think-tank, think, tank, nigeria, policy, nesg, africa, number one think in africa, best think in nigeria, the best think tank in africa, top 10 think tanks in nigeria, think tank nigeria, economy, business, PPD, public, private, dialogue, Nigeria, Nigeria PPD, NIGERIA, PPD, The Nigerian Economic Summit Group
Sep 2020

External Trade in Goods slid to N6.2 trillion in Q2’2020; Trade deficit widened The value of Nigeria’s external trade fell by 27.9% to N6.2 trillion in Q2’2020 from N8.6 trillion in the corresponding period of 2019 (Q2’2019). This represents the largest decline in Nigeria’s external trade in recent years. Similarly, on a quarterly basis, the external trade for Q2’2020 represented a 27.9% decline when compared with its level in Q1’2020 (N8.6 trillion). This could be attributed to the coronavirus-induced lockdown restrictions and international travel bans implemented in the second quarter of 2020. In the first half of 2020, the value of external trade stood at N14.8 trillion, 11.9% below its level in the corresponding period of 2019 (N16.8 trillion).

Both Import and Export declined; trade deficit widened to N1.8 trillion Trade balance – the difference between exports and imports – remained in deficit at –N1.8 trillion in Q2’2020 compared with a trade surplus of N590.5 billion in Q2’2019. This represents the third consecutive trade deficit since Q4’2019. The trade deficit for Q2’2020 was four times larger than its level in Q4’2019 (-N421.3 billion). The worsening position of Nigeria’s trade balance was largely due to the faster decline in exports relative to imports arising from the spread of COVID-19 across world economies with an unprecedented negative impact on crude oil demand and global supply chains.

Export Earnings plunged in Q2’2020

The total value of goods exported dipped by 52.2% to N2.2 trillion in Q2’2020 from N4.6 trillion in the corresponding period of 2019. This could be attributed largely to a plunge in crude oil exports by 59%. Correspondingly, the contribution of crude oil exports to total exports fell to 70% in Q2’2020 from 86% in Q2’2019. The decline in global crude oil prices coupled with weak export demand

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