Nigeria experienced a dramatic shift in its economic environment in the third quarter of 2023, which was typified by an astounding increase in overall merchandise trade. With a total trade value of ₦18,804.29 billion, exports skyrocketing to ₦10,346.60 billion and imports reaching ₦8,457.68 billion, the numbers paint a powerful picture. This spike shows a remarkable growth trend when compared to the same period in 2022, in addition to reflecting a significant increase from the previous quarter.
This extraordinary rise is mostly due to the significant increase in export and import activity, which has resulted in a favorable trade balance.
Nigeria’s Q3, 2023 Trade Overview
Nigeria’s significant participation in the global marketplace is demonstrated by the reported ₦18,804.29 billion in total merchandise trade in Q3, 2023. With a valuation of ₦10,346.60 billion, exports were the main attraction. This represents a strong growth of 60.78% over the previous quarter’s ₦6,435.13 billion. Additionally, the export increase demonstrated a remarkable 74.36% year-over-year growth (₦5,934.15 billion) when compared to Q3, 2022. The overall value of imports increased to ₦8,457.68 billion, a huge 33.33% increase from the same quarter of 2022 (₦6,343.53 billion) and a spectacular 47.70% increase from Q2, 2023 (₦5,726.25 billion). This spike highlights the increased level of economic activity and international trade.
Key Export Category Breakdown
- Agricultural Goods: ₦219.99 billion was exported of agricultural products in Q3, 2023, indicating a mixed pattern. Traded agricultural products includes Cocoa beans Sesamum seeds, Soya beans (excluding seeds), Cashew nuts In shell, Frozen shrimps and prawns.
- Raw Materials: The export value of commodities made from raw materials was ₦189.22 billion.
- Solid Minerals: At ₦41.61 billion, exports of solid minerals saw a significant increase of 22.07% from Q2, 2023 (₦34.09 billion) and an astounding 85.19%
- Energy Goods: ₦26.57 billion was the value of energy goods exported in Q3, 2023.
- Manufactured products: Exports of manufactured products, valued at ₦200.19 billion, showed a mixed pattern.
- Crude Oil: In Q3, 2023, crude oil—the gem in Nigeria’s export portfolio—commanded a valuation of ₦8,535.61 billion.
Key Import Category Breakdown
in Q3, 2023, the total value of imported agricultural commodities was ₦643.68 billion, or 7.61% of all imports. This is a rise of 25.50% over the value recorded in Q3, 2022 (₦512.91 billion) and 41.51% over the value recorded in Q2, 2023 (₦454.85 billion). In Q3, 2023, the two countries that imported the most agricultural goods were Poland (₦90.46 billion) and Canada (₦73.03 billion) with “Durum wheat (not in seeds)”. “Mackerel (Scombrus, australasicus, japonicus) meat, frozen.” from the Faroe Islands, valued at ₦16.35 billion, came next.
Conclusion
In summary, Nigeria’s strong trade growth in Q3 2023 is indicative of a dynamic economic environment influenced by a number of variables. The main forces behind this trade boom are outlined in this section, along with its potential effects on the Nigerian economy as a whole.
- Export Growth: A major factor in the overall trade boom was the notable rise in total exports, especially in petroleum and allied items.
- Diversification Efforts: A promising trend was demonstrated by the diversification of export goods and the formation of new trade alliances, particularly with nations like Spain, India, and the Netherlands.
- Increasing Import Demand: The significant increase in imports, particularly in areas like manufactured goods and other petroleum products, is indicative of a growth in consumer demand and economic activity. https://buyfromnigeria.com/realising-agribusiness-potential-investment-avenues-in-nigerias-food-industry/
