Research Document: NESG 2023 Q2 Foreign Trade Alert

Posted Tue, Sep 12, 2023 12:14 PM

Key Highlights from the NESG Foreign Trade Alert for 2023Q2

• Nigeria’s value of external trade in goods dropped by 8 percent (year-on-year) to N12.7 trillion in the second quarter of 2023. This, however, represents a 5.8 percent rise relative to its level in 2023Q1 (N12 trillion).

• The value of exports declined by 5.4 percent (year-on-year) to N7 trillion in 2023Q2. This is attributable to the fall in oil exports to N6.3 trillion, whereas non-oil exports rose to N688.7 billion in the quarter. 

• The value of imports fell by 10.9 percent (year-on-year) to N5.7 trillion in 2023Q2, due to lower import bills on tradable items except machinery and equipment. The most significant drop was reported for mineral fuel.

• The country posted a third consecutive trade surplus at N1.3 trillion in 2023Q2, supported by elevated global oil prices amidst the persistent shortfall in domestic crude oil production via-á-vis the OPEC output quota.

• The Netherlands remained Nigeria’s largest export trading partner, closely followed by the United States in 2023Q2. In addition, the bulk of goods exported in the quarter was crude oil. 

• China remained Nigeria’s largest import trading partner, closely followed by the United States in 2023Q2. Accordingly, Nigeria maintained a trade deficit with the United States in the quarter.