September 15, (THEWILL) – Nigeria’s export of agricultural products rose to N2 trillion in the first half of 2024, as the naira remained weakened since devaluation in June 2023. The value represents a 258.3 percent increase compared to N560.5 billion achieved in the equivalent period of 2023.
Data from the National Bureau of Statistics (NBS) showed that export of agric products valued at N973.69 billion in the review period was a decline of 5.93 percent over N1.035 trillion recorded in Q1 2024.
However, the figure represents an increase of 246.67 percent compared to N280.87 billion recorded in Q2 2023. The data showed that agricultural commodities exported to Asia were valued at N592.99 billion, followed by exports to Europe at N310.26 billion.
The NBS revealed in its ‘Foreign Trade in Goods Statistics’ report for Q2 2024 that export of agricultural products was dominated by ‘Superior quality cocoa beans’, with N268.92 billion, ‘Cashew nuts In shell’ valued at N209.80 billion, and ‘Standard quality cocoa beans’ with N107.27 billion.
The report further stated that ‘Superior quality cocoa beans’ worth N131.24 billion and N108.17 billion were exported to Malaysia and Netherlands, respectively; while ‘Cashew nuts in shell,’ worth N157.40 billion and N48.06 billion were exported to Vietnam, Soc Republic and India respectively.
Also, ‘Standard quality Cocoa beans’ worth N36.53 billion and N22.92 billion were exported to Malaysia and Turkey, respectively.
On the other hand, total imports of agricultural goods in
The first six months of 2024 rose to N1.81 trillion from N929.24 billion in the corresponding period of 2023 representing an increase of 95 percent.
Agric products imported in Q2, 2024 stood at N893.25 billion . This is a decrease of 2.96 percent when compared to the value of N920.54 billion recorded in Q1, 2024, and rose 96.38 percent when compared to N454.85 billion recorded in Q2, 2023.
According to the report, the major agricultural goods imported in Q2, 2024 included ‘Durum wheat’ from Poland valued at N155.32 billion and Lithuania with N76.89 billion. This was followed by ‘Blue whitings (Micromesistius poutassou, Micromesistius australis) meat, frozen.’ from Faroe Islands valued at N31.78 billion.
The NBS report further revealed that the total merchandise trade (exports and imports) in the first half of 2024 was N3.82 trillion compared to N1.48 trillion in the corresponding period of the preceding year, constituting an increase of 156.6 percent.
The transactions occurred on the heels of the devaluation of the naira in June 2023.
The Naira traded at N1,546.41 to the dollar on Friday, September, 13 – on the Nigerian Foreign Exchange Market (NAFEM) according to data from the FMDQ website – pointing to the massive depreciation of the local currency which traded at N471.67 to the dollar on June 13, 2023 before the devaluation of the naira on June 14, 2023.
Economics experts identify export boom as a major benefit of a weak currency as it encourages export against imports. Nigeria has witnessed significant trade surplus since the devaluation of the currency mid-June 2023
The country’s foreign trade statistics for the first quarter of 2024 revealed a record-breaking trade surplus of N6.52 trillion, a stunning reversal from the trade deficit of N1.41 trillion in the previous quarter (Q4 2023) and the N927.2 billion deficit in Q1 2023.
The NBS data indicates that total exports for Q1 2024 were valued at N19.17 trillion, a 51 percent increase from the previous quarter’s N12.69 trillion and a staggering 195.47 percent rise from N6.49 trillion recorded in Q1 2023.
Using the exchange rates of N1,309/$1 in March 2024, N907/$1 in December 2023, and N460/$1 in March 2023, exports amount to $14.6 billion, $13.4 billion, and $14.1 billion, respectively. Nigeria hasn’t seen trade figures this favourable in years, even if this is in Naira terms.
Imports rose from N6.4 trillion and N9 trillion in the first and last quarter of 2023 to N12.6 trillion in the first quarter of 2024.
As exports rose, imports also did but at a slower pace leaving the country with a robust balance of trade.
For the second quarter, the total trade surplus expanded by 6.5 percent quarter-on-quarter. It increased from N6.52 trillion in Q1 to N6.94 trillion in Q2 2024. Total exports stood at N19.41 trillion while total imports stood at N12.47 trillion in Q2 2024.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
