Total Nigeria merchandising trade stood at N9.12 trillion in the fourth quarter of 2020, representing an 8.9 percent increase relative to the preceding quarter and a 9.9 percent decrease relative to the corresponding quarter of 2019.1 For the fifth consecutive quarter, Nigeria recorded a negative balance of trade with the import component of trade accounting for 65 percent while export component of trade accounted for 35 percent. Crude oil accounted for 78.93 percent of Nigeria’s export while manufactured goods accounted for 64.56 percent of total imports. Nigeria’s major export trading partner is India (17.12 percent) while China (28.28 percent) accounted for most import to Nigeria. Improvements in foreign trade is expected to continue as economic activities in our major trading partner countries increase. However, diversifying the export base to include other goods such as agricultural commodities, textiles, and manufactured goods is pertinent. To achieve this, ensuring standardization of commodities and setting competitive freight charges will unlock the opportunities in external trade.
March 24, 2021
Nigeria Economic Update (Issue 11)
Power sector statistics show a significant increase in power generated from August 12 to August 19, 2016. Precisely, power generated increased by 2.2 percent to 3953.6MW(a 4-month high). Increased water reserves in dams for hydro generating plants occasioned by seasonal adjustments (rainy season), led to improved power generation. Additionally, in a bid to further improve and sustain power generation, the federal government received a $100 million credit facility from India. However, consistent power supply could be jeopardized if the development is not aided by improved distribution by DISCOs.
Power sector analysis shows a decline in power generated by 15.07 percent from a peak of 3,424 mw to 2,908 mw between May 8, 2016 and May 15, 20169. The declining power supply is attributable to vandalism of pipelines and gas shortages, which has a debilitating effect on power generation. As part of the efforts by the Federal Government to improve power supply in the country, the Bank of Industry (BoI) is currently funding intervention projects to provide alternative source of energy (solar) in rural areas across the country10. Since the major problem facing power generation in the country is gas shortages, the government should make concerted efforts to combat vandalism.