Nigeria’s trade value plunged in the first quarter of the year to N2,72tn from N3,51tn recorded in the preceding quarter, this was 22.6 percent less than what was obtained in the final quarter of 2015, National Bureau of Statistic (NBS) reported on Tuesday.

According to the NBS report, this development was as a result of a sharp decline in both exports and imports goods, exports reportedly declined 34.6 percent quarter-on-quarter and 52.3 percent year-on-year, while imports dropped by 7.8 percent in the first quarter and 15.8 percent year-on-year. This abrupt decline in the export value plunged the country’s trade balance to deficit of N184.1bn in the first quarter of the year, making it the first trade deficit in seven years.

The NBS report also shows imports are mainly from Asia, with 23.8 percent of the total imports coming from China. This further affirmed the imperative of Nigeria-China trade agreement if well implemented, it would ease foreign exchange pressure on the US dollar and help attack surging inflation.

The President of National Association of Nigerian Traders, Ken Ukaoha, said other factors also contributed to the development.

“We have for so long remained import-dependent; we have also continued to cultivate a mono product economy, which is oil, and our earnings from oil is presently disappointing. Apart from the fact that the price of oil is depreciating, you also find out that the quantity of our export is going so terribly low as a result of vandalism.” Ukaoha said.

He further stated “We are talking about import substitution, but all the strategies needed there are not in place. Also, the delay in the passage of the budget made all the private sector operators who are major players in exports to relax waiting for the budget passage in order to know the next line of action.”

While other economists said the negative balance of trade would impacts other areas of the economy as external reserves would deplete further.

“The implication of a negative trade balance for a country that does not have invisible imports is that we are going to have a severe negative balance of payment; the implication of this is that our external reserves will deplete further because we will need to use much of it to pay for imports,” said Johnson Chukwu, the Chief Executive Officer, Cowry Asset Management Limited.

http://investorsking.com/nigeria-trade-deficit-rises-to-n184-1-billion-in-q1/

This brain dead psycho has just been destroying the little he met with his outdated 1984 imported policy.

When imports exceed exports, definitely, there will be deficit/unfavorable balance of his trade, which of course leads to deficit/unfavorable balance of payment. The implication of this is that the money that goes out of the country is more than the money that comes into the country. If this persists, our reserves will be depleting, if not controlled on time, economic recession sets it.

This is the situation we have now found ourselves, because we all know that our imports has always been greater than our exports, and we're not ready to stop yet, We've been greatly obsessed of imported products and services.

I hope this stops soonest, or else, we're just starting.

The future of this country is sinking. It's now left to us if we will fold our hands and let it totally sink.

When you fail to plan, you plan to fail. When buhari was playing chess with economy, what does he expect?

God please help my dear country

This abrupt decline in the export value plunged the country’s trade balance to deficit of N184.1bn in the first quarter of the year, making it the first trade deficit in seven years.

First deficit in 7yrs, facts are stubborn you know.

jk

Dear oh dear there was a country

Am coming.

bubu is a dullard

WHY LIE

PMB IS A FAILURE!!!

sai baba

Buhari deserves to go.


Only paid zombies will dispute this suggestion.

This change is hard on commoners

buhari must die.

When a government is only desperate for power, but not ready to lead... this is what you get....

Economy is sinking, Bubu will surely collect his salary and allocations, but citizen will suffer.

Stale news.

Buhari Pls keep on running the economy aground. I want to see how long it will take the last Zombie to wise up....

The most interesting part is watching them defend the indefensible

Only God knows the best not even Bihari or apc

First trade deficit in 7 years


Y'all should let that sink in. Digest it, embrace it.





Bullhari is simply playing ludo with 170million++ people's lives. The idiot should step down! he is a colossal failure!

Please do we have a minister for Agriculture cause I am yet to here him say anything about what his ministry is doing,

Saibaba

Gbese re owa gbawa o....

We shall overcome! It would get better!

We are fighting corruption, we are blocking all lope holes, we are recovering loots, yet the country is sinking, things are becoming harder for the masses yet Zombies kept claiming he is working. What a pity

I knw wat am saying wit my signature

CHAYEE

watch modath and omenka skip this thread
****

Now that the budget has been passed we should be hearing good news. Hopefully this 2nd quarter experience great boom.

GEJ wasted Forex on importation of tootpicks yet we had a heathy Balance Of Payment.

Statistics must tell.

CharleyCharley:
First trade deficit in 7 years


Y'all should let that sink in. Digest it, embrace it.





Bullhari is simply playing ludo with 170million++ people's lives. The idiot should step down! he is a colossal failure!

Step down for who, may be you can do a better job?