Nigeria’s Foreign Trade rises to N9.12 trillion in the 4th Quarter of 2020 despite the pandemic

According to the foreign trade report recently released by the National Bureau of Statistics (NBS), #Nigeria’s total foreign trade for the fourth quarter (Q4) of 2020 rose to N9.12 trillion which represents an 8.88% increase compared to N8.38 trillion recorded in the previous quarter (Q3).

According to the report, total imports stood at N5.93 trillion, a 10.1% increase compared to N5.38 trillion recorded in Q3 2020, while total export rose by 6.72% from N2.99 trillion to N3.19 trillion.

Although Nigeria’s total foreign trade in Q4 2020 was the highest in 2020, the economy reached another highest trade deficit in Q4 2020 (-N2. 73 trillion) since it came out of recession due to the faster growth in its imports than exports. Thus making its trade balance to plunge by 14.3%.

The top trade destinations in the fourth quarter are as follows: Nigeria’s major export trading partners were India, Spain, South Africa, Netherlands, and United States; while its major import trading partners were China, India, United States, Netherlands, and Denmark.

Down to the Implications of this report on the Nigerian economy: The growth in Nigeria’s total trade in Q4 2020, the economy sank deeper in trade deficit which signals the country’s inability to finance her foreign spending with its foreign earnings.

Also, although oil prices have recovered in recent weeks, the value of Nigeria’s total exports is still largely determined by oil which means the stability of Nigeria’s foreign reserve will still be largely determined by the volatility of the oil prices. Likewise, the value of agricultural exports increased by 19.2% which is in line with the 16.73% annual growth rate seen in the agricultural sector in 2020, indicating the growth in the Nigerian agricultural sector.