Tuesday, September 21, 2021
More

    Merchandise Trade Grew Stronger in Q2 2021 Due to Sharp Increase in Export

    Must read

    Naija247news Editorial Teamhttps://www.naija247news.com/
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    Total trade was 23.28% higher in q2,2021 compared to q1,2021 and 88.71% higher than the value recorded in q2, 2020.

    Imports
    The value of total imports rose by 1.45% in q2, 2021 compared to q1,2021 and 67.49% compared to q2,2020.

    Imported Agricultural products were 3.5% more in q2,2021 than in q1,2021 and 56.9% more compared to Q2, 2020.

    The value of Raw material imports increased by 25.6% in q2,2021 compared to q1, 2021 and 47.3% compared to q2, 2020.

    The value of Solid minerals imports was 21.4% higher in q2, 2021 than its value in Q1, 2021 and 68.3% more than its value in q2, 2020.

    The value of Energy goods imports decreased by 94.6% in q2, 2021 against the level recorded in Q1, 2021 and 88.7% compared to the corresponding quarter of 2020.

    The value of imported manufactured goods decreased by 5.1% in q2, 2021 against the value recorded in Q1, 2021 but increased 54.3% compared to Q2, 2020.

    The value of other oil products imported in q2, 2021 was 13.3% more than its value in Q1, 2021 and 218.5% higher than Q2, 2020.

    Exports

    The value of total exports in Q2, 2021 increased by 74.72% against the level recorded in Q1, 2021 and 128.29 % compared to Q2,2020.(This increase resulted mainly from the increase in export value of crude oil in Q2, 2021).
    The value of agricultural exports increased by 29.95% in Q2 2021 compared to Q1 2021 and 111.8% compared to Q2 2020.
    The value of Raw material goods exports in Q2,2021 was 49.98% more than the value in Q1,2021 and 326.6% more than the value recorded in Q2 2020.
    The value of Solid minerals exports increased by 60.10% in Q2,2021 against Q1 2021 and 852.9% against the corresponding quarter in 2020.
    The exports of Energy goods increased in value by 18.44% in Q2 2021 compared to Q1 2021 and 62.1% compared to Q2,2020.
    The value of Manufactured goods exports decreased by 15.45% in Q2 2021 compared to the value
    recorded in Q1 2021and 16.7% compared to Q2, 2020.
    The value of Crude oil exports in Q2 2021 increased by 111.32% compared to Q1,2021 and 162.4% compared to Q2,2020.
    The export value of Other oil products decreased by 0.66% in Q2 2021 compared to Q1 2021,
    but increased significantly by 69.3% compared to Q2 2020.

    Overview

    During quarter2, 2021 the total merchandise trade stood at N12,029.64billion representing 23.28% increase over the value (N9,757.87billion) recorded in Q1,2021 and 88.71% increase compared to Q2,2020.

    This increase resulted from the sharp increase in export value during the quarter under review. The export component of this trade was valued at N5,079.44 billion or 42.22% , the import was valued at N6,950.21billion or 57.78% while the trade balance stood at a deficit of N1,870.77billion.

    The crude oil which is the major component of export trade stood at N4,078.20 billion or 80.29% of total export.

    This further shows a sharp increase of 111.32% in Crude oil value in Q2, 2021 compared to (N1,929.83billion) recorded in Q1,2021 while the Non-crude oil export recorded N1001.23 billion or 19.71% of total export trade during Q2,2021.

    Imports Classified by Standard International Trade Classification and country of Origin

    During quarter 2, 2021 total import was valued at N6,950.21 billion representing 57.78% of the total trade. This value rose by 1.45% in q2, 2021 compared to q1,2021 and 67.49% compared to q2,2020. Imports by SITC revealed that Machinery & transport equipment accounted for N2,495.69billion or 35.91% of total import trade. This was followed by Chemicals & related products N1,274.59 billion or 18.34% , Mineral fuel N1,110.38 billion or 15.98%, Food and live animals N951.28billion or 13.69% and Manufactured goods N640.47 billion or 9.2% among others.

    Import trade classified by region showed Asia as the leading partner with a record of N3,469.6billion or 49.92%.The next leading partner was Europe with N2,304.6 billion or 33.16%.Others are America N869.1 billion or 12.50%, Africa N248.8billion or 3.58% and Oceania N58.1billion or 0.84%.Out of the value recorded for Africa, Import from ECOWAS countries accounted for N24.2billion .

    Analysis of imports by Country of Origin showed that the majority of the goods imported during the quarter originated from China with Value (N2,078.59 billion or 29.91%) This was followed by India (N570.01 billion or 8.20%), Netherlands (N557.16 billion or 8.02%%) , United States (N526.92 billion or 7.58%) and others.

    Exports Classified by Standard International Trade Classification and Country of Destination

    During quarter 2, 2021 total export was valued at N5,079.44billion representing 42.22% of the total merchandise trade. This value rose by 74.72% in Q2, 2021 compared to Q1,2021 and 128.29% compared to q2,2020. Export by Section revealed that Mineral products accounted for N4,637.05billion or 91.29% of total export trade. This was followed by Vehicles, aircraft and parts; Vessels etc N141.73 billion or 2.79% , Vegetable products N92.80 billion or 1.83% among others.

    In terms of regional trade, Nigeria exported most products to Asia (N1,842.95 billion or 36.28%), Europe (N1,822.29 billion or 35.88%) America (N806.81billion or 15.88%) and Africa (N584.11 billion or 11.50%) while Oceania totaled N23.28 billion or 0.46%.. During the quarter goods worth N363.3billion was exported to ECOWAS.

    Analysis by Country export trade showed that most goods were exported to India (N949.05 billion or 18.7%), Spain (N524.49billion or 10.3%), Canada (N355.60 billion or 7.0%) and Netherlands (N298.29billion or 5,9%) and United States N256.63 billion or 5.1%.

    Agricultural Goods Sector

    The total value of trade in agricultural goods in Q2 2021 stood at N817.35billion.The export component of this trade totaled N165.27billion while the import was valued at N652.08billion..

    Top most of these exported Agricultural products were Good fermented Nigerian Cocoa beans exported mainly to Netherlands (N16.48 billion), Malaysia (N9.32billion) and united States (N8.41billion).The next leading product was Cashew nuts ,in shell exported to Vietnam (N33.54billion) and India (N3.24billion) .

    Other major exports under this sector includes Sesamum seeds whether or not broken exported to Japan in the value worth N7.28billion , China N7.14billion and Coconuts N9.94billion respectively .

    However, there was importation of Durum wheat (not in seed) worth N70.37 billion from United States,.Durum wheat also came from Canada (N54.48billion), Argentina (N35.04billion) ,Lithuania N32.24billion and Latvia N25.91billion..

    The next product imported under this category was Blue whitings from Russia (N27.23 billion) and Netherlands (N13.41billion).

    During the quarter, mackerel worth N9.61billion was imported from Netherlands and N4.91billion from Japan.There was also importation of Malt,not roasted from Belgium (N21.42 billion) and France (N4.48billion).Other major importation was Crude palm oil from Singapore in the value worth N15.09billion and India N11.68billion).

    Solid Minerals Sector

    The total value of trade in solid mineral goods in Q2,2021 stood at N63.68billion.The export component of this trade stood at N14.93 billion while the import was valued at N48.75billion.The leading exported mineral products were Other cement exported to Niger Republic and Togo in values worth N3.12billion and N2.32billion.

    Another product under this sector was Zinc ores and Concentrates exported to China in the value worth N4.15 billion.

    In terms of imports, Plasters of Calcined Gypsum was imported from Turkey and Egypt in values worth N8.35billion and N3.69 billion.During the period under review, there was importation of Gypsum anhydrite worth N7.78billion from Spain and Turkey N5.22billion. Others were other salt (including Crude Salt) worth N6.04 billion imported from Brazil .

    There was importation of Salt for human consumption (including table salt) from Namibia in the value worth N2.52billion and Granite, cut into a square or rectangular shape from China (N2.25billion).

    Manufactured Goods Sector

    The value of manufactured goods trade in Q2, 2021 stood at N4,511.18billion representing 37.50% of total trade. Out of this, the export component accounted for N211.67billion while the import component was valued at N4,299.51billion

    The products that drove up Manufactured products were Vessels and other floating structures for breaking up, which was exported to Cameroon in the value worth N71.90billion.

    Vessels and other floating structures for breaking up were also exported to Spain and Equatorial guinea in values worth N18.34billion and N6.26billion.

    Other products under this group were Aluminium alloys,Unwrought exported to Japan in the value worth N10.85billion and China (N3.63billion)

    There were Aeroplanes and other aircraft of an unladen weight worth N16.65billion exported to Ghana and Cruise ships and similar Vessels for the transport of persons or goods worth N10.59 billion exported to Cameroon during the period under review.

    In terms of Manufactured imports, Used Vehicles were mainly imported from United States and Italy in values worth N33.78billion and N5.74billion.During the quarter, Machine for reception,Conversion and transmission were imported from China,Sweden and Hongkong in values worth N118.69billion, N8.98billion and 5.22billion.

    .Motorcycles worth N32.72billion and N61.80 billion were imported from china and India.There were also other Herbicides worth N81.17billion imported from China and Polypropylene imported from South Africa, Saudi Arabia and South Korea in values worth N35.75billion, N15.46 billion and N9.47billion.

    Raw Material Goods Sector

    The value of total trade in raw material stood at N904.51billion. The import component was valued at N840.50billion while the export component stood at N64.01billion.During the quarter, Urea whether or not in aqueous solution worth N30.74billion was exported to Brazil and Leather further prepared after tanning worth N5.77billion was exported to Spain.

    There was also exportation of Non-wired unworked sheets of float worth N3.44billion to China and Cotton, not Carded or Combed worth N3.0billion exported to Pakistan during Q2,2021.

    In terms of imports, Cane sugar worth N113.71billion was imported from Brazil and Diammonium hydrogen valued at N35.82 billion was imported from Morocco.

    Milk preparations valued at N25.03 billion and N3.35 billion were imported from Ireland and Malaysia Other products imported under this sector were.Mixtures of Odoriferous substances worth N13.05billion , N9.43billion and N3.40billion imported from Ireland ,Swaziland and Spain during the period under review.

    Export Intensity Index with Five Major Trading Partners

    The export intensity index compares the share of exports to each country in Nigeria’s total exports, with the share of world exports going to that country, and therefore gives a measure of the importance of that country to Nigeria as an export destination.

    A higher number denotes a stronger relationship, and an index of one indicates that exports to that country are what would be expected given global trade patterns.

    During the months of the Second quarter 2021 (April, May and June), Nigeria had intense export trade with India (6.52, 6.25, 6.89),Spain (4.55, 3.74, 4.30) and Canada (2.35, 2.56, 1.94).This is shown by the higher index recorded during the quarter.

    However, the available record showed lower export intensities for United States (0.26, 0.54, 0.06). During the quarter , Netherlands registered higher export intensities for April (2.0) and June (1.79) but a lower export intensity for May (0.18)

    Import Intensity Index with five Major Trading Partners

    During the quarter, the import intensity of Nigeria with the top importing partners (China , India, Netherlands and Russia) were higher in all the months .

    China recorded (1.75, 1.12 and 1.23) in April, May and June. Higher index was also recorded for India ( 5.17, 3.34 and 2.76 for April , May and June 2021) and Netherlands ( 1.60 and 1.36) in May and June but 0.86 in April.

    Other major trading partners were Russia which recorded ( 1.68, 1.22, and 1.20 for April, May and June) while United States recorded lower import intensities of 0.51, 0.46 and 0.52 during the months of Q2, 2021.

    Trade by Mode of Transport

    The majority of commodity exported out of Nigeria were transported via water This was reflected in the value of exports by water in Q2,2021. Water transport accounted for N5,033.37billion or 99.09% of total exports. Air transport contributed N31.71billion or 0.62% .Road transport was valued at N14.36billion or 0.28% .

    Similarly for imports, most goods brought into the country arrived via water transportation means. Water transport accounted for N6,508.63billion or 93.65% of the value of total imports. Another mode of transport used were Air and road valued at N359.70billion or 5.18% and N81.87billion or 1.18%

    Trade by Custom Ports and Post

    In Q2, 2021, the bulk of export transactions was conducted through Apapa port, valued at N4,727.95billion or 93.08% of total exports, followed by PortHarcourt (3) which recorded N165.85billion or 3.27%. while Tin Can Island recorded N123.49 billion or 2.43%.

    In terms of imports, Apapa Port also recorded the highest transactions valued at N3,598.68billion or 51.78% of total imports. This was followed by Tin Can Island N1,202.55billion or 17.30% , PortHarcourt (3) N686.43billion or 9.88% While Tincan bonded warehouse recorded N429.96billion or 6.19%.

    - Advertisement -spot_img

    More articles

    - Advertisement -spot_img

    Latest article

    WP to LinkedIn Auto Publish Powered By : XYZScripts.com