Nigeria’s shrinking imports data show policy gaining traction

Recent trends in Nigeria’s import trade dynamics have seen import values shrink since the last quarter of 2013, indicating that government’s policies to improve the country’s terms of trade are gaining traction.

These policies include the Agriculture Transformation Agenda, National Industrial Revolution Plan, backward integration programme, among others.

Imports into Nigeria have been falling for the two most recent quarters for which data are available (Q4 2013 and Q1 2014).

The National Bureau of Statistics’ (NBS) import figures for Q4 2013 show that imports fell by 19 percent from Q3 2013, recording a trade surplus of 20.3 percent for the period.

Nigerian exports in the first quarter of 2014 also rose by 14.2 percent from the previous quarter, while imports fell by 8.3 percent, resulting in a trade surplus of N2.4 trillion. Q1 2014 trade surplus rose to 35.4 percent, higher than the surplus for the previous quarter. Imports fell by 8.3 percent from Q4 2013, and 6.2 percent from the corresponding quarter of 2013.

Nigeria’s import figures have been falling markedly since the new Federal Government’s policy on rice, sugar (initiated in February 2013, but took effect in June 2013), fish, and most recently, the new automotive policy.

The policies, aimed at boosting the nation’s agric sector, have seen food imports fall by N2.5 billion in the last three years, according to Akinwumi Adesina, minister of agriculture and rural development, adding that Nigeria would surpass its target and produce 22 million tonnes of additional food by 2015.

“When we started in 2011, our aim was to produce additional 20 million tonnes of food to the existing production. As at the end of 2013, 17 million tonnes of additional food had been produced since 2011, and by 2015, 22 million tonnes of additional food would be produced,” said Adesina.

He said Nigeria was now the reference point for agriculture on the continent as the country was rapidly closing its food importation gap.

The new policies have seen a significant fall in the volume of those goods imported. Since the Federal Government imposed the new levy in addition to the import duty on rice imports, the Nigerian Customs’ rice-related annual revenues have fallen by at least 70 percent.

Prior to the implementation of the policy, rice imports accounted for between 70 percent to 90 percent of the Apapa Area One Customs Command’s monthly revenue.

Revenue generated from rice levies dipped by 90.6 percent, from N125.3 billion to N11.8 billion.

Charles Edike, Customs area controller, Apapa Area1 Command of the Nigeria Customs Service (NCS), said in an interview that the new import policy affected the revenue collection of the command.

“Fish, which used to be the second revenue source for the command, was also affected by the policy of government,” Edike said.

The NBS’ classification by section showed that the structure of Nigeria’s import trade was dominated by boilers, machinery and appliances (23.7 percent) mineral products (16 percent), vehicles, aircraft and parts (13 percent), base metals and articles of base metals (9.5 percent), and chemical and allied industries (8.5 percent).

At specific product level, motor spirit had the greatest value of imports, comprising 12.5 percent of total imports for Q1 2014, followed by spelt (common wheat) and meslin (a mixture of wheat/rye) at 3.5 percent, and machine tools at 3 percent of the total value of imports.

Wheat and wheat-related products, accounting for the second largest import commodity by value, highlights the degree of food dependency of the Nigerian economy.

This means that the Nigerian economy is still susceptible to fluctuations of food commodity prices on the international market. Increased wheat prices internationally will have knock-on effects for the FMCG industry and subsequently result in imported inflation.

Classification by broad economic categories showed that industrial supplies comprised 28.2 percent of total imports, followed by capital goods (22.3 percent) and transport equipment and parts (14.4 percent).

Nigeria’s trade surplus figures have acted as a boosting factor to the country’s macro-economic fundamentals. The value of the naira is expected to be stable in the near term, as demand for dollar eases, going by the analysis of the trade data. More accretion in the foreign reserves is also expected.

Businessday 21/08/2014


Edozie Ifebi

@ kmariko

If you read Punch and TheNation you'd be forgiven for thinking Nigeria was a lot poorer than Sao Tome and Principe, thanks for bringing Businessday to those who would rather not duel on reality.

M0GIDI: @ kmariko

If you read Punch and TheNation you'd be forgiven for thinking Nigeria was a lot poorer than Sao Tome and Principe, thanks for bringing Businessday to those who would rather not duel on reality.

Thank you for believing in this good country

Dats a good one.

Trade "surplus"?? Op are you alright??

A country is sad to have trade surplus when it exports more than it imports!! The last time we had trade surplus in this country was in the 60s!!

I suggest you fix your title to say trade deficit.

That aside, all our lofty economic indices since Jonathan became the president seem to begin and end on the pages of papers!! On ground, things seem to heading the opposite direction!!

#Fact!

omenka: Trade "surplus"?? Op are you alright??

A country is sad to have trade surplus when it exports more than it imports!! The last time we had trade surplus in this country was in the 60s!!

I suggest you fix your title to say trade deficit.

That aside, all our lofty economic indices since Jonathan became the president seem to begin and end on the pages of papers!! On ground, things seem to heading the opposite direction!!

#Fact!

Nigeria actually has a surplus balance of trade. It is not on paper, it is a fact. That indicates an improving Nigeria as against your wishes and prayers of a failing Nigeria aimed at having something to complain about. The same data that identifies US as the biggest economy in the world and Lagos as the commercial hub of Nigeria (which you celebrate) also shows that Nigeria has a trade surplus with a fast expanding middle class.

What do you really have against this country and her hardworking people?

http://www.tradingeconomics.com/nigeria/balance-of-trade

FrankC3:

Nigeria actually has a surplus balance of trade. It is not on paper, it is a fact. That indicates an improving Nigeria as against your wishes and prayers of a failing Nigeria aimed at having something to complain about. The same data that identifies US as the biggest economy in the world and Lagos as the commercial hub of Nigeria (which you celebrate) also shows that Nigeria has a trade surplus with a fast expanding middle class.

What do you really have against this country and her hardworking people?

http://www.tradingeconomics.com/nigeria/balance-of-trade

My friend you are a lying preeeeeeek. Nigeria CANNOT have Trade surplus because her imports Overwhelms her export. It's a very simple economics, one doesn't need to be an economic guru to understand this. Nigeria is on Trade Deficit!!!!!!!!!!

Lemme even ask, What and what is Nigeria Exporting and what and what is Nigeria Importing?

omenka: Trade "surplus"?? Op are you alright??

A country is sad to have trade surplus when it exports more than it imports!! The last time we had trade surplus in this country was in the 60s!!

I suggest you fix your title to say trade deficit.

That aside, all our lofty economic indices since Jonathan became the president seem to begin and end on the pages of papers!! On ground, things seem to heading the opposite direction!!

#Fact!

Don't mind Jonathan and his team. They think all Nigerians are dunces. That NOI is just an overrated economist with no idea on basic economics. How can Nigeria or any country be on Trade Surplus when its export is FAAAARRRRR less than its import.
We are on Trade Deficit

Falling imports is not necessarily a good thing as it may signal weaker consumer demand and or increased smuggling. In the latter case, goods may be smuggled through the borders to avoid punitive import tariffs.

barcanista: My friend you are a lying preeeeeeek. Nigeria CANNOT have Trade deficit because her imports Overwhelms her export. It's a very simple economics, one doesn't need to be an economic guru to understand this. Nigeria is on Trade Deficit!!!!!!!!!!

Lemme even ask, What is Nigeria Exporting and what is Nigeria Importing?

I don't curse or insult on internet, it is childish. I may disagree with you but I think it is petty calling someone names on an anonymous internet forum. We can have a decent discussion devoid of insults if you wish, but I you continue along that line, I will be forced not to respond.

@points raised, you seem to have made some typo up there. Correct the type and cite proper data to support your position. I will be happy to learn from you.

4Play: Falling imports is not necessarily a good thing as it may signal weaker consumer demand and or increased smuggling. In the latter case, goods may be smuggled through the borders to avoid punitive import tariffs.

I agree with you on the bolded, especially when it is not supported by increased local production and export. That seem not to be the case.

omenka: Trade "surplus"?? Op are you alright??

A country is sad to have trade surplus when it exports more than it imports!! The last time we had trade surplus in this country was in the 60s!!

I suggest you fix your title to say trade deficit.

That aside, all our lofty economic indices since Jonathan became the president seem to begin and end on the pages of papers!! On ground, things seem to heading the opposite direction!!

#Fact!

Can you point to data or any source that support your contention that Nigeria runs a trade deficit? You paid agents don't know how to make informed arguments and by adopting an absurd and unsubstantiated view, you expose your own side to ridicule.

FrankC3:

I don't curse or insult on internet, it is childish. I may disagree with you but I think it is petty calling someone names on an anonymous internet forum. We can have a decent discussion devoid of insults if you wish, but I you continue along that line, I will be forced not to respond.

@points raised, you seem to have made some typo up there. Correct the type and cite proper data to support your position. I will be happy to learn from you.

I have corrected the typo... I insist that Nigeria is on DEFICIT not surplus. come on with your fact and lemme give you mine.

4Play:

Can you point to data or any source that support your contention that Nigeria runs a trade deficit? You paid agents don't know how to make informed arguments and by adopting an absurd and unsubstantiated view, you expose your own side to ridicule.

The streets and our ports are my sources. Deal with it.

4Play:

Can you point to data or any source that support your contention that Nigeria runs a trade deficit? You paid agents don't know how to make informed arguments and by adopting an absurd and unsubstantiated view, you expose your own side to ridicule.

You are the liar and myopic poster not the poster you quoted. WHy not post your own fact and let him post his? Go to Ministry of Finance and CBN websites to find your info while do source ours. If you agree... Then We av a deal. Other than that, no one will argue blindly with yu

omenka: The streets and our ports are my sources. Deal with it.

These people are pathetic, they post gibberish without any backup, when you counter they ask you for backup to prove YOUR point instead of bringing theirs. But I am ready for them. Just waiting for their "Facts" before dishing out mine. Their propaganda is so annoying, playing with ones intelligence

barcanista: You are the liar and myopic poster not the poster you quoted. WHy not post your own fact and let him post his? Go to Ministry of Finance and CBN websites to find your info while do source ours. If you agree... Then We av a deal. Other than that, no one will argue blindly with yu

FrabkC3 has already posted the trading economics source. The only posters who have no supporting evidence for their uninformed rants are you and the other mercenary - Omenka.

http://mobile.bloomberg.com/news/2013-03-11/nigeria-2012-trade-surplus-widens-76-statistics-agency-says.html

Can you please post your source you ignorant charlatan.

4Play:

Can you point to data or any source that support your contention that Nigeria runs a trade deficit? You paid agents don't know how to make informed arguments and by adopting an absurd and unsubstantiated view, you expose your own side to ridicule.

Facts and data are alien to Tinubu dogs. They'r highly emotive and sentimental, and are driven by either tribal bigotry or stomach infrastructure.

4Play:

FrabkC3 has already posted the trading economics source. The only posters who have no supporting evidence for their uninformed rants are you and the other mercenary - Omenka.

http://mobile.bloomberg.com/news/2013-03-11/nigeria-2012-trade-surplus-widens-76-statistics-agency-says.html

Can you please post your source you ignorant charlatan.

See what is in the article....

[b]Nigeria’s trade surplus grew 76 percent in 2012 from a year earlier to 16.8 trillion naira ($106 billion), the National Bureau of Statistics said.

[s]Exports rose 15 percent from 2011 to 22.4[/s] trillion naira, the Abuja-based agency said late yesterday on its website. The fourth-quarter surplus contracted 0.8 percent from the previous three months and 20 percent from a year earlier to 4.6 trillion naira.

Nigeria, Africa’s largest crude producer and sub-Saharan Africa’s second-largest economy, relies on oil for more than two-thirds of exports. Crude sales increased 11 percent last year, the statistics agency said. The country’s main market was Europe, which took 37 percent of exports.

Imports were led by machinery, with 41 percent of goods coming from Asia and China the largest supplier, according to the agency.

To contact the reporter on this story: Maram Mazen in Abuja at mmazen@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net [/b]


That rubbush cannot stand for fact!!!!

omenka: The streets and our ports are my sources. Deal with it.

Lame response as ever . . .

4Play:

FrabkC3 has already posted the trading economics source. The only posters who have no supporting evidence for their uninformed rants are you and the other mercenary - Omenka.

http://mobile.bloomberg.com/news/2013-03-11/nigeria-2012-trade-surplus-widens-76-statistics-agency-says.html

Can you please post your source you ignorant charlatan.

Nigeria’s international trade remains at 92% import, 8% export in six months
September 11, 2013

As an import-dependent economy, Nigeria’s international trade has remained unbalanced as the volume of import continues to surpass that of export. This is as the container market in Nigeria in the last six months has been strongly dominated by imports.

Since the last six months, Nigeria’s import and export ratio has remained at 92 percent import to 8 percent export, said Jan Thorhauge, managing director, Maersk Nigeria Limited (MNL) and head of the Central West Africa Cluster, in a trade report released by Maersk Nigeria Limited.

The containerised import market to Nigeria is estimated to have ended at about 159,000 forty foot equivalent units (FFE) compared to 155,000 FFE recorded within the same period in 2012. The report shows that most of Nigeria’s laden containers come from the Far East, mostly China, while the export commodities have been going into Europe.

“Major products coming from the Middle East are industrial raw materials, chemicals, electronics, iron and steel and tyres, while industrial raw materials, frozen fish and cars are the goods that come mainly from Europe,” he said.

There was an increase in sourcing pattern, which was attributed to better pricing from these regions, increase in the age limits of imported automobiles from five to 10 years, increased construction as well as growing demands for finished products by Nigerian populace.

Charcoal and agricultural produce including cocoa, sesame, cashew nuts and cotton were the commodities mostly exported out of the country in the first half of the year. According to the report, charcoal export rose by 76 percent when compared to the volume in the same period in 2012. The report attributed the rise in volume to the longer winter season experienced in Europe.

On the other hand, finished products exported out of the country within the period experienced 39 percent growth because major manufacturing firms made Nigeria their production hub for the West African region.

Nigeria’s export ratio can be improved, the Maersk boss said, if government improves on infrastructure such as power supply, road network and rail services.

The dominant items imported into the country include cars, electronics, construction materials, food items, chemicals, electrical fittings, machinery and paper, among other goods covering industrial as well as private needs.

www.businessdayonline.com/2013/09/nigerias-international-trade-remains-at-92-import-8-export-in-six-months/

Double . . . . .

barcanista: These people are pathetic, they post gibberish without any backup, when you counter they ask you for backup to prove YOUR point instead of bringing theirs. But I am ready for them. Just waiting for their "Facts" before dishing out mine. Their propaganda is so annoying, playing with ones intelligence

Ahap. I certainly don't have time to entertain them with such responses my brother.

Ngozi and co keep feeding the people with lies, telling tales of lofty economic progress when harsh realities on the streets keep hitting hustlers, like those poster, hard on the face like a slap from the Great Khali of WWE!!

Let them keep bumping my mentions, their business.

Nigeria Imports 2002-2014

Imports in Nigeria increased to 524521.20 Millions Nigerian Naira in March of 2014 from 487553.30 Millions Nigerian Naira in February of 2014. Imports in Nigeria averaged 356608.53 Millions Nigerian Naira from 2002 until 2014, reaching an all time high of 1554732.90 Millions Nigerian Naira in March of 2011 and a record low of 59635.15 Millions Nigerian Naira in December of 2002. Imports in Nigeria is reported by the National Bureau of Statistics, Nigeria.




Nigeria Imports


Actual Previous Highest Lowest Dates Unit Frequency
524521.20 487553.30 1554732.90 59635.15 2002 - 2014 Millions Nigerian Naira Monthly

Nigeria imports mainly: industrial supplies (32% of total), transport equipment and parts (23%), capital goods (24%), food and beverage (11%) and consumer goods. Main import partners are: China (17% of total), Albania (11.3%), United States (7.5%), France and Belgium. This page provides - Nigeria Imports - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - Nigeria Imports - was last refreshed on Friday, August 22, 2014.

Read More Here http://www.tradingeconomics.com/nigeria/imports

omenka: Ahap. I certainly don't have time to entertain them with such responses my brother.

Ngozi and co keep feeding the people with lies, telling tales of lofty economic progress when harsh realities on the streets keep hitting hustlers, like those poster, hard on the face like a slap from the Great Khali of WWE!!

Let them keep bumping my mentions, their business.

Don't mind them. Posting Bogus surplus deceiving themselves

barcanista:

Nigeria’s international trade remains at 92% import, 8% export in six months
September 11, 2013

As an import-dependent economy, Nigeria’s international trade has remained unbalanced as the volume of import continues to surpass that of export. This is as the container market in Nigeria in the last six months has been strongly dominated by imports.

Since the last six months, Nigeria’s import and export ratio has remained at 92 percent import to 8 percent export, said Jan Thorhauge, managing director, Maersk Nigeria Limited (MNL) and head of the Central West Africa Cluster, in a trade report released by Maersk Nigeria Limited.

The containerised import market to Nigeria is estimated to have ended at about 159,000 forty foot equivalent units (FFE) compared to 155,000 FFE recorded within the same period in 2012. The report shows that most of Nigeria’s laden containers come from the Far East, mostly China, while the export commodities have been going into Europe.

“Major products coming from the Middle East are industrial raw materials, chemicals, electronics, iron and steel and tyres, while industrial raw materials, frozen fish and cars are the goods that come mainly from Europe,” he said.

There was an increase in sourcing pattern, which was attributed to better pricing from these regions, increase in the age limits of imported automobiles from five to 10 years, increased construction as well as growing demands for finished products by Nigerian populace.

Charcoal and agricultural produce including cocoa, sesame, cashew nuts and cotton were the commodities mostly exported out of the country in the first half of the year. According to the report, charcoal export rose by 76 percent when compared to the volume in the same period in 2012. The report attributed the rise in volume to the longer winter season experienced in Europe.

On the other hand, finished products exported out of the country within the period experienced 39 percent growth because major manufacturing firms made Nigeria their production hub for the West African region.

Nigeria’s export ratio can be improved, the Maersk boss said, if government improves on infrastructure such as power supply, road network and rail services.

The dominant items imported into the country include cars, electronics, construction materials, food items, chemicals, electrical fittings, machinery and paper, among other goods covering industrial as well as private needs.

www.businessdayonline.com/2013/09/nigerias-international-trade-remains-at-92-import-8-export-in-six-months/

It's even far worse than I thought!! Smh.

Basic knowledge of economics gives one the understanding that there can be no trade surplus without a very vibrant manufacturing/industrial sector!!

What does Nigeria manufacture?? What do we export?? You don't keep exporting raw materials and import finished products while expecting a healthy trade balance sheet.

That aint rocket science, it is basic economics!

Hahahaha I just played a fast one on Jonathanians wanting to test their level of Intelligence and understanding. Obviously you guys don't understand macro economics and you follow what you NBC gives you without understanding the Nitty Gritty.
Actually Nigeria is on Trade surplus of N759465.90 Millions. Our Trade surplus is Due to the increased oil cost per barrel.

However, Our Import -Export ratio is going down by the day under this administration.

Lesson To Learn:
Get Your Fact Before Making an Argument

barcanista: Hahahaha I just played a fast one on Jonathanians wanting to test their level of Intelligence and understanding. Obviously you guys don't understand macro economics and you follow what you NBC gives you without understanding the Nitty Gritty.
Actually Nigeria is on Trade surplus of N759465.90 Millions. Our Trade surplus is Due to the increased oil cost per barrel.

However, Our Import -Export ratio is going down by the day under this administration.

Lesson To Learn:
Get Your Fact Before Making an Argument

You are just indicting yourself after your initial outburst, I wonder what Omenka will say now after you have left him in the cold . . . .

omenka: It's even far worse than I thought!! Smh.

Our Import and Export ratio is going down, thanks to Okonjonomics with her BIG BIG paper figures. Nigeria economy isn't showing any sign of Growth despite the BIG BIG figures. Our Gross National Income per capita is just so pathetic.