FOREIGN TRADE? FOR NOW AFRICA IS NIGERIA'S BEST MARKET

According to latest foreign trade figures released by the National Bureau of statistics this week for the third quarter of this year, Africa remains the best continent for Nigeria to promote trade with for now.

According to the NBS, Nigeria exported to Africa within the period more than twice the value of what it imported from the continent.

Export to Africa in the third quarter was N190.3bn compared to N87.9bn worth of goods and services imported from it. Thus trade surplus in favour of Nigeria was about N120.4bn. The import  to Africa was 3.6% of total imports while the continent absorbed 16.1% of exports within the quarter.

In sharp contrast, export to Europe was N767.8bn or 33.3% of total exports for the quarter while imports from there accounted for 48% of total imports and led to a deficit trade balance for Nigeria of N390.8bn.

As for Asia, 29.1% of Nigeria's third quarter export or N672.8bn was absorbed but imports came to N843.27bn or 34.9% of total leading to trade deficit of N170.5bn.

In Asia, though India alone absorbed 25.4% of Nigerian exports although this grew by only 7% on 2015 third quarter level.

In the case of the Americas, it did not rank amongst Nigeria's export trade partners by continent within the quarter but 12.2% of imports or N294.5bn was from there.

Noteworthy though was the fact that exports to the United States of America accounted for 17.9% of total for the quarter and more significantly, represented 260% leap when compared to third quarter of 2015. Decoded: well nurtured, such continued recovery in exports could help Nigeria faster out of the foreign exchange stranglehold. But alas, Nigeria soon has to contend with Donald Trump and his America for Americans dream.

However, the 29.1% increase in exports in third quarter when compared to second quarter, was not due to "mindless exports of grains" as alleged by the Presidency in a recent alarm over looming food shortage in spite of gains in agricultural production.

According to the NBS, mineral products constituted 97.3% of total exports during the quarter followed by processed foods like beverages, spirit and tobacco (1.1%) vegetable products, live animals and base metals.

In other words, the "mindless" export of grains which the Presidency referred to was more of unreported trade or did not yet have significant value.

If unreported, then it behoves the presidency to ensure it is official and this will most likely push Africa's share to more realistic level.

Truly alarming was the 43% increase in imports year on year to N2.4tr. Yet the figure did not include the value of grains, vehicles, fruits and others smuggled into the country daily through numerous porous borders.

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