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)
A recent report by the National Bureau of Statistics (NBS) indicates that Internally Generated Revenue (IGR) at the subnational level decreased slightly between 2014 and 2015. Specifically, the report shows that on the average, the IGR of all 36 states declined by 3.6 per cent from N707.9 billion in 2014 to N683.6 billion in 20157. A further disaggregation reveals that while IGR in 11 states improved in 2015 compared to 2014, IGR in 24 states were below their 2014 levels. As expected, Lagos state generated the most IGR during the period. Given that domestic resource mobilization is the most viable alternative to complement the shortfalls (driven by lower oil prices) in budgetary allocations to states from the federal government, state governments need to do more to improve the effectiveness and efficiency of revenue collection.
This report provides an evidence-based analysis of the state of the Nigerian economy in a bid to inform economic policies in Nigeria. The report presents some analyses of significant economic events in Nigeria within the period, and provides an outlook on what policymakers, businesses, and individuals should expect in subsequent quarters of 2016. It also provides valuable insights into potential drivers of the economic trends and outlines expectations for subsequent quarters of the year. The area of focus are Global Economic Performance, Domestic Economic Performance, External Sector Performance, and Sectoral Performance.