FOREIGN TRADE DOWN IN SPITE OF NAIRA DROP

In spite of the sharp depreciation of the Naira since June, Nigeria's foreign trade still dropped by 9.59% to N3942bn in the second quarter to June. That is, when compared to N4359.5bn in 2015 second quarter

According to the trade figures released by the National Bureau of statistics (NBS) it also confirms the decline that started after 2014 second quarter ended with a new four year high of N6659.4bn. Indeed, the 2016 second quarter figure was the lowest of second quarter figures since 2013.

Compared to 2013 second quarter it represented 40.8% decrease and 26.2% drop on 2013 second quarter's N5341.1bn.

The 2016 second quarter trade though, was a major improvement on N2.72tr recorded in the first quarter and shows more clearly the impact of the Naira value drop at the inter bank market introduced mid June.

Meaning that third quarter figures may be higher in view of the further naira depreciation since June but certainly, not likely because there is corresponding increase in volume as against value in Naira terms.

On interesting fact about the trade figures was the fact that Nigeria imported 23.9% of her needs from China but China is no where to be found amongst the top nations Nigeria exports to.

The top destination for Nigeria exports were India (21.1%) United States of America (12.5%), Spain (11.5%) and Netherlands with 7.1%.

On the other hand top for import nations were China, Netherlands (13.8%); USA (9.6%) and India with 6%.

Of the imports within the second quarter, Boilers, machinery and appliances accounted for 34.9% followed by mineral products (15.8%); vehicles,aircraft and parts (14.7%), chemical and allied products (7.6%) and 5.1% for base metals.

As for exports, mineral products still made up the bulk (92.9%) despite the down turn in crude oil exports and price followed by animal and vegetable fats and oils (3%), base metals (1.5%) and 0.9% for prepared foodstuff, beverages and tobacco.

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