DUE TO A LACK OF FOREIGN CURRENCY, INTERNATIONAL TRADE FALLS BY N2.6 TRILLION, ACCORDING TO NBS

According to research, the value of international commerce has decreased overall by N2.55 trillion as a result of decreasing exports from Nigeria over the past year.

According to the National Bureau of Statistics' latest report on foreign trade statistics, the overall value of trade dropped from N14.6 trillion in the first quarter of 2022 to N12.05 trillion in Q1 2023.

Nigeria imported $5.56 trillion and exported $6.49 trillion in Q1 2023, demonstrating a trade surplus of $930 billion, the research states.

The report stated, “The value of total imports stood at N5.56tn in the first quarter of 2023, this represents a 3.67 per cent rise when compared with the value recorded in Q4, 2022 (N5.36tn), but declined by 25.83 per cent compared to the value recorded in the corresponding quarter of 2022 (N7.5tn).”

The value of imports and exports decreased, according to the data.

Exports dropped from N7.1 trillion in Q1 2022 to N6.49 trillion in Q1 2023, an 8.66% reduction in value.

As stated in the study, “The value of total exports in Q1, 2023 stood at N6.49tn indicating an increase of 2.00 per cent when compared with the value of exports in Q4, 2022 (N6.36tn), but decreased by 8.66 per cent when compared with the first quarter of 2022 (N7.10tn).”

Additionally, it was revealed that exports of manufactured goods, crude oil, oil products, energy goods, and raw materials items decreased in the first quarter of 2023.

Only the export of solid minerals and agricultural products saw growth, at 38.72 and 32.17 percent, respectively.

“The value of agricultural goods exports stood at N279.64 billion in Q1, 2023,” the report stated. “This shows an increase of 63.92 percent and 38.72 percent compared to the value recorded in Q4, 2022 (N170.59 billion) and Q1, 2022 (N201.59 billion),” it continued.

“The value of solid minerals exports in Q1 2023 was valued at N26.02 billion, indicating an increase of 23.73 percent and 32.17 percent compared to the value recorded in Q4 2022 (N21.03 billion) and in the corresponding quarter in 2022 (N19.69 billion), respectively,” it continued.

Forex shortage is to blame

The lack of access to foreign currency, the scarcity of local raw materials, and rising energy costs are just a few of the many difficulties local manufacturers face, according to Gabriel Idahosa, the deputy president of the Lagos Chamber of Commerce and Industry, which has played a significant role in preventing the manufacturing sector from reaching its full potential.

According to Idahosa, The manufacturing sector's performance is being impacted by a number of significant driving forces. Our manufacturing is heavily reliant on the importation of raw materials. Many of them struggle with more than just normal FX access. Since many of them are among the 41 commodities that CBN has blacklisted, they are completely dependent on the parallel market, where, as you are aware, the cost of foreign exchange is rising.

Similar concerns were repeated by Olusola Obadimu, Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture. He claims that despite the struggling status of the industrial sector, the statistics body's data looks to be somewhat erroneous due to the large number of unauthorized exports that go unrecorded.

In a similar vein, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, highlighted that exports of manufactured goods to other nations have remained historically low as a result of the deluge of problems plaguing the manufacturing industry.