Nigeria Records Strong Trade Surplus in Q1 ’24 as Exports Surge by 51%

Nigeria achieved a notable trade surplus in the first quarter of 2024, driven by a significant increase in exports.

According to the latest report from the National Bureau of Statistics (NBS), the total trade value surged by 146% year-on-year to N31.8 trillion in Q1 ’24. On a quarterly basis, the trade value rose by 46%.

The export sector experienced a substantial boost, with total exports increasing by 51% quarter-on-quarter to N19.2 trillion, compared to N12.6 trillion in Q4 ’23.

Imports also saw an increase, rising by 39.6% quarter-on-quarter to N12.6 trillion from N9.1 trillion in the previous quarter. This resulted in a trade surplus of N6.5 trillion in Q1 ’24, a significant increase from the N3.6 trillion recorded in Q4 ’23.

Also, the total trade as a percentage of nominal GDP stood at 54% in Q1 ’24, up from 33% in Q4 ’23.

China was Nigeria’s largest import partner, accounting for N2.9 trillion (23.2% of total imports). Other key import partners included India (N1.1 trillion), the USA (N1.0 trillion), Belgium (N955.9 billion), and the Netherlands (N591.5 billion).

Collectively, these countries represented 52% of Nigeria’s total imports in Q1 ’24. Imports from ECOWAS countries totaled N113 billion, making up 28% of total African imports.

Manufacturing goods led the import categories, representing 45.4% of total imports. Other significant import sectors included oil products (35.2%), raw materials (11.6%), and agriculture (7.3%).

The solid minerals sector, though accounting for just 0.5% of imports, saw a notable year-on-year growth of 59.2%, reaching N71.4 billion in Q1 ’24.

France emerged as Nigeria’s top export destination in Q1 ’24, with exports valued at N2.1 trillion (11.1% of total exports).

Other leading export partners included Spain (N2 trillion), the Netherlands (N1.7 trillion), India (N1.6 trillion), and the United States (N1.3 trillion). Together, these countries accounted for 45.7% of Nigeria’s total exports in the quarter.

Crude oil remained Nigeria’s dominant export, comprising 81% of total exports. The value of crude oil exports grew by 50% quarter-on-quarter to N15.4 trillion, up from N10.3 trillion in Q4 ’23.

According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), average crude oil production, including condensates, was 1.54 million barrels per day (mbpd) in Q1 ’24, a slight increase from 1.53 mbpd in Q4 ’23.

Non-oil exports also performed strongly, rising by 54% year-on-year to N3.6 trillion and accounting for 19.2% of total exports.

Key agricultural export commodities included sesamum seeds, superior quality cocoa beans, soybeans, and cashew nuts.

Nigeria’s exports to ECOWAS countries were valued at N1.2 trillion in Q1 ’24, up from N686.7 billion in Q4 ’23, representing 56% of total African exports.

The Apapa Port was the primary hub for exports, with goods worth N18.1 trillion passing through, accounting for 94.3% of total exports. Other significant ports included Tin Can Island (N708.8 billion) and Port Harcourt (N270.9 billion).

The strong trade performance in Q1 ’24 highlights Nigeria’s growing export capabilities and the positive impact of strategic trade partnerships.

The substantial increase in both crude oil and non-oil exports indicates a positive trend for Nigeria’s economy.

Moving forward, a continued focus on diversifying export commodities and strengthening trade relations will be crucial to maintaining this upward trajectory.