Nigeria’s Trade Surplus Hits N6.5tr
Nigeria’s economy is showing strong signs of recovery, as evidenced by a significant trade surplus of N6.5 trillion reported for the first quarter of 2024. According to the latest economic report from the National Bureau of Statistics (NBS), Nigeria’s foreign trades increased by 145.6% to N31.8 trillion in Q1 2024, compared to N12.6 trillion in Q1 2023. This also marks a 46.3% rise from Q4 2023.
A breakdown of the trade data reveals that Nigeria’s total imports stood at N12 trillion, while exports reached N19.1 trillion, resulting in a positive trade balance. Crude oil exports dominated, accounting for N15.4 trillion, or 80.8% of total exports, while non-crude oil exports were valued at N3.68 trillion, making up 19.2% of the total. Within the non-crude category, non-oil products contributed N1.78 trillion.
The report highlights that exports represented 60.25% of total trade in Q1 2024, with a value of N19.17 trillion, a 51% increase from N12.69 trillion in Q4 2023 and a staggering 195.47% increase from N6.49 trillion in Q1 2023.
Imports also saw a significant component of N2.6 trillion spent on Premium Motor Spirit (PMS), commonly known as petrol, which constituted 20.84% of the total imported goods.
Experts have noted that while the government led by President Bola Tinubu has implemented necessary macroeconomic reforms, challenges remain. Despite initial positive impacts, such as addressing fiscal constraints and reforming the foreign exchange market and oil subsidy regime, some experts believe the government must maintain its reform momentum to ensure long-term sustainable growth.
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Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise emphasized the importance of context in evaluating the administration’s performance, highlighting the significant legacy issues it inherited. These included a tight fiscal space, heavy reliance on Central Bank financing, a dysfunctional foreign exchange market, and an unsustainable fuel subsidy regime, all contributing to economic distortions and corruption.
Overall, while the current administration has made strides in laying a foundation for economic recovery, experts call for sustained efforts and patience as the long-term benefits of these reforms take effect.
