Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 50)

The total value of Nigeria’s merchandise trade grew in 2019Q3 by 6.8% to ₦9,187 billion, when compared to 2019Q2. The growth translated to a 1.33% rise relative to 2018Q3. Exports grew quarter-on-quarter by 15% to ₦5,288.5 billion, contrastingly imports decreased by 2.70% to ₦3,899.1 billion3. The imports decline was driven by a fall in the value of imported agricultural products (-4.01%), raw material imports ( -4.64%), and solid material import (-31.73%) while the export growth was largely driven by a rise in manufactured goods (839.44%). The increase in balance of trade surplus could be linked to the government’s policies: Nigeria-Benin border closure; prohibition of imports and ineligibility for foreign exchange at CBN’s official window; and enforcing the patronage of Made in Nigeria products. This trade surplus implies that there is surplus foreign exchange which could improve the value of the Naira in the global markets and there is a higher demand for local goods which should increase domestic employment. However, improvements in the competitiveness of export sectors, through improving infrastructure, curbing multiple taxation, and cutting down on bureaucratic bottlenecks, will lead to a less artificial and more sustainable increase in the balance of trade surplus.

Download Label
March 13, 2018 - 4:00 am
363.24 kB
v.1.7 (stable)