Nigeria’s trade balance experienced a minor setback in the first quarter of 2023, with a decline of 6.98 percent, amounting to N927.16 billion compared to N996.8 billion in the previous quarter, Q4’22. The trade balance had turned positive in Q4’22 after a negative performance of -N409.4 billion in the third quarter. Throughout 2022, the quarterly trade balance fluctuated, with a significant decline in Q1’22, followed by a substantial increase in Q2’22, and another decline in Q3’22.
The first quarter of 2023 marked the first consecutive two-quarter increase in trade balance over the past two years, providing a sense of stability for the nation. The National Bureau of Statistics (NBS) released its Foreign Trade Statistics report for Q1’23, revealing that Nigeria’s total merchandise trade reached N12,046.92 billion during the period. This indicates a 2.77 percent increase compared to Q4’22, but a 17.5 percent decline when compared to Q1’22.
Further analysis of the trade data shows that total exports in Q1’23 amounted to N6,487.04 billion, reflecting a two percent increase compared to the previous quarter. However, exports decreased by 8.7 percent compared to the corresponding period in the previous year. The share of exports in total trade stood at 53.8 percent during Q1’23. Crude oil exports dominated the export market, amounting to ¦ 5.15 trillion, accounting for 79.4 percent of total exports. Non-crude oil exports, valued at ¦ 1.34 trillion, accounted for 20.63 percent of total exports, with non-oil products contributing ¦ 652.29 billion, representing 10.06 percent of total exports.
On the import side, total imports in Q1’23 were valued at ¦ 5.6 trillion, indicating a 3.7 percent increase compared to the previous quarter. However, imports fell by 25.8 percent compared to the corresponding period in 2022. Imports accounted for 46.15 percent of total trade during the first quarter of 2022, resulting in a trade balance of ¦ 927.16 billion.
Despite the slight decline in the trade balance, the overall stability witnessed in the first quarter of 2023 provides a hopeful outlook for Nigeria’s trade sector.
