Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 23)

The value of total merchandise trade increased by 6.99 percent to N9,757.87 billion in the first quarter of 2021 when compared to the value recorded in preceding quarter.1 The increase can be attributed to 15.61 percent increase in import and an 8.99 percent decrease in export resulting to a trade deficit of N3,943.45 billion within the review period. Furthermore, export accounted for 29.79 percent while import accounted for 70.21 percent of total trade. Major import partners were China (29.34 percent), Netherlands (10.60 percent) and United States of America (8.88 percent). Major export partners include India (16.79 percent), Spain (9.88 percent), and China (6.54 percent). The economic implication of the trade deficit implies that there is an additional pressure on the naira, leading to situations that propel currency depreciation which is inflationary. The CBN would need to put more effort in defending the naira in the foreign exchange market.

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