NIGERIA'S INTERNATIONAL TRADE A REACH N13 TRILLION IN THE FIRST QUARTER OF 2022.

The increase in crude oil export receipts propels Nigeria's international trade to N13 trillion in the first quarter of 2022.

Nigeria's international trade increased to N13 trillion in the first quarter of 2022, up 11.1 percent from N11.7 trillion in the previous quarter and 65.4 percent from N7.86 trillion in Q1 2021.

This is stated in the National Bureau of Statistics recently issued international trade report for Q1 2022. (NBS).

According to the study, the increase in Nigeria's goods trade was caused by an increase in crude oil export receipts during the quarter under review. Nigeria's crude oil profits increased by 31.66 percent quarter on quarter to N5.62 trillion in Q1 2022.

As a result, overall export profits increased by 23.13 percent from N5.77 trillion in Q4 2021 to N7.1 trillion in Q1 2022, while import bill decreased by 0.67 percent to N5.9 trillion in the same period. This resulted in the first positive trade balance since Q2 2021, amounting to N1.19 trillion.

Highlight

· Total imports in Q1 2022 were N5.9 trillion, a 0.67 percent decrease from Q4 2021 (N5.94 trillion), but a 21.04 percent increase from the figure reported in the same quarter of 2021. (N4.88 trillion).

· Nigeria's export income in Q1 2022 was N7.1 trillion, a 23.1 percent and 137.9 percent rise from N5.77 trillion and N2.98 trillion in Q1 and Q4 2021, respectively.

· Re-exports in the first quarter of 2022 totaled N115.8 billion, a 6.2 percent decline from the same quarter in 2021 (N123.46 billion) and a 59.3 percent decrease from Q4 2021 (N284.54 billion).

· In terms of imports, China, the Netherlands, Belgium, India, and the United States were the top five countries of origin of imports to Nigeria in the first quarter of 2022.

· The value of imports from the top five nations was N3.44 trillion, accounting for 58.34 percent of overall import value.

· The top five export destinations in the first quarter of 2022, on the other hand, were India (16.57 percent), Spain (9.54 percent), The Netherlands (9.30 percent), Indonesia (6.68 percent), and the United States (5.25 percent).

THE TRADE BALANCE OF NIGERIA INCREASES AS A RESULT OF OIL EXPORTS.

· Crude oil prices climbed dramatically in the first quarter of this year after Russian President Vladimir Putin ordered his troops to invade Ukraine in February.

· Notably, crude oil receipts surged by 175 percent year on year to N5.62 trillion in the first quarter of 2021, up from N2.04 trillion in the previous quarter.

· Crude oil export revenues made up 79.16 percent of overall export earnings in the period under review. As a result, Nigeria's trade balance improved in the first quarter of 2022, with a N1.12 trillion foreign trade surplus. Nigeria has generated its greatest quarterly trade surplus since the third quarter of 2019.

Why is this important？

When Nigeria desperately needs forex revenues, the country would strive to improve its performance in the coming quarters to compensate for the N1.9 trillion trade prior year's deficit was reported.