Total trade declined by 17.94 percent to ₦8.304 billion in Q12020 compared to Q420191. The decline was driven by a drop in both total imports and export value which fell by 21.08 percent and 14.42 percent quarter on quarter, recording a deficit of ₦138.98 billion. A decline in total trade was recorded in energy and manufactured goods. While the value of agricultural goods exported grew by 85.36 percent quarter on quarter, and the value of agricultural imports by 12.02 percent concurrently. Trade in Q12020, although marginally higher than Q12019 total trade, reflects the lower economic activity experienced during the quarter. The volume of trade is expected to continue to decline as economies across the world turn inwards due the pandemic. However, the private sector can leverage on the pandemic to boost trade in services such as ICT services, as well as professional, scientific, and technical services which is more resistant to political and economic forces that threaten trade in goods. Given the large wage differentials in the service industry across countries, Nigeria stands to benefit from a service-based global integration.
July 14, 2020
Nigeria Economic Update (Issue 24)
Recent data by the CBN shows a decline in manufacturing capacity utilization by 2.0 percentage points to 50.7 percent in 2016Q2. Foreign exchange challenges in addition to cash squeeze in the review quarter, led to the decline in capacity utilization. This has hindered activities in the sector while impacting negatively on business confidence. Nonetheless, the CBN recently directed authorized FX dealers to dedicate 60 percent of FX purchases to manufacturers. This policy measure is therefore expected to meet the sectors critical FX need for the purchase of imported raw material and other machineries, while boosting the potential for economic growth in the long term.
Tax Collected: Tax revenue which has relatively maintained an upward trend, fell considerably in 2015 and dipped significantly in early 2016 on the account of economic downturn, as many businesses sev