Writing in the Vanguard newspaper, Omoh Gabriel, Business Editor, says “Nigerians have continued to spend the nation’s foreign reserves in the importation of finished consumer products that could be sourced locally if efforts are made to patronize made in Nigeria products.”
He quotes from a Bureau of Statistics report showing that Nigeria’s import of finished goods it could produce locally have remained high, though there have been declines in some categories. Also, 95% of exports are of crude oil. Ironically, because of low refining capacity, the oil-rich country imports of its needs in processed petroleum products.
According to the trading pattern report, most food and food-related import categories witnessed sharp declines during the period (2010-2011).Imports of live animals and animal products; vegetable products; animal and vegetable fats and oils, all declined year-on-year by 69.03 per cent, 48.655 per cent and 55.62 per cent respectively. Imports of wood and articles of wood declined by 58.74 per cent on a year-on-year basis.
However, imports of prepared foodstuff, beverages etc. grew by 36.7 per cent on a year-on-year basis.
According to the trade statistics, while the United States of America, China, Italy, Germany and France in that order, were Nigeria’s largest trading partners in terms of imports during the period with N740.3 billion, N375.85 billion, N189.04 billion, N186.52 billion and N186.42 billion respectively, the trade between Nigeria and other African countries remained very low. Total imports year-to-date to African countries stood at N882.8 billion by the end of the quarter.
The U.S. has been Nigeria’s largest import destination at N2.94 trillion (USA-N1.81tn) closely followed by Asia (especially China) at N2.78 trillion and Europe at N2.76 trillion. Total imports year-to-date to African countries stood at N882.8 billion by the end of third quarter of 2011.
China’s Deputy Minister for Commerce, Mr. Chen Jian, disclosed late last year that the trade volume between Nigeria and China will hit $10 billion by the end of 2011.
But African countries need to boost regional trade and investment to keep pace with growth in other emerging economies that have large consumer bases, such as India and China.
South African Trade and Industry Minister Rob Davies has said, “The fact of the matter is we don’t, as single countries, begin to touch the sizes of the domestic market of China and India, but as a grouping from Cape to Cairo, we do start to hit that league.”
Africa boasts of some 30 regional trade arrangements, but the continent receives less than 4 per cent of global foreign direct investment, in part because small markets often cannot attract big money and because onerous bureaucratic requirements tend to discourage foreign business.
Nigerian exports to other African countries stood at N509.03 billion or 17 per cent of total Nigerian exports, with the ECOWAS region representing N81.83 billion or 16 per cent of total exports to African countries and 2 per cent of total Nigerian exports.
Exports to Nigeria’s largest destination for its (African) exports, Algeria, represented 58 per cent of total exports to Africa. On a year-to-date basis, the Americas’ N5.70t rillion especially USA’s N1.33 trillion remains Nigeria’s largest export destination, followed by Europe with N2.6 trillion and Asia with N2.01 trillion.
According to the Nigeria Bureau of Statistics report, Nigeria’s total exports in the nine months starting from January 2011 to October stood at N10.66 trillion, while total imports stood at N9.31 trillion resulting in a balance of trade of N1.34 trillion year-to- date compared to the N6.36 trillion for full year 2010.
Nigeria’s export of non-oil products is still very low.
According to figures released by Bureau of statistics, total imports in the third quarter of 2011 stood at N2.88 trillion as against N3.32 trillion in the second quarter of 2011, a decrease of N440.6 billion or 13.3 per cent. This development when compared with the third quarter of 2010 showed Nigerians’ propensity to consume foreign products rose as imports increased by N721.1 billion, or 33.0 per cent.
Further analysis of the nation’s trade data revealed that imports of boiler, machinery and appliances parts thereof, represented the highest contribution of N882.26 billion or 22.8 per cent. This was followed by vehicles, aircraft etc. with N800.4 billion or 20.4 per cent;
plastic/rubber imports with N357.3 billion or 6.6 per cent; and base metal and articles of base metal with N208.3 billion or 5.4 per cent.
Continuing, the report said: “The total value of merchandise trade in the third quarter of 2011 stood at N6.75 trillion compared to N6.89 trillion in the second quarter of 2011. This represents a decrease of N140.7 billion or -2.04 per cent in the third quarter of 2011 over the previous quarter.
The drop in trade volume during the period over the second quarter of 2011 was due to a larger drop in the value of imports in the third quarter of 2011 relative to the rise in exports experienced over the same period.
“The rise in exports was actually due to increase in crude oil and mineral products exports as most non-mineral products/crude oil exports declined both between the second quarter of 2011 and third quarter and on a year-on-year basis. At the same time, the value of imports declined largely due to significant decreases in imports of food-related items as well as wood and articles of wood imports.”
Further analysis revealed that on a year-on-year basis, “total trade grew by 32.09 per cent in third quarter of 2011, relative to the corresponding period in 2010 (N5.11 trillion in third quarter of 2010). The Balance of Trade, however, grew strongly at N989.1 billion in the third quarter of 2011.
This showed an increase of N740.6 billion or 298.1 per cent over the previous quarter. Based on year-on-year comparison, the total trade balance rose to N199.5 billion or 25.3 per cent. On a year-to-date basis, total merchandise trade stood at N19.98 trillion at the end of third quarter of 2011 compared to N19.65 trillion for full year in 2010.
“Total exports during the period were valued at N3.87 trillion .This showed an increase of N300 billion or 8.4 per cent over that of the second quarter of 2011. On a year-on-year basis, exports in the third quarter of 2011 increased by N920.7 billion or 31.2 per cent over the figure in third quarter of 2010.
The value of crude oil exports was N3.69 trillion, a difference of N698.6 billion or 23.3 per cent over figures of second quarter in 2011. The value of non-oil exports on the other hand, declined sharply to N181.3 billion from N579.8 billion recorded in the second quarter representing a decrease of N398.5 billion or 68.73 per cent.
Further analysis reveals that mineral exports continue to be Nigeria’s largest export component under SITC at N3.69 trillion in third quarter of 2011 out of which crude oil exports contributed 95.3 per cent of total exports.
Other exports from Nigeria during the period under review included plastic/rubber and articles, footwear, head gear, umbrellas etc, prepared foodstuff, beverages, spirits and vinegar and raw hides and skin, leather, fur skins etc., with N48.4 billion or 1.2 per cent, N29.5 billion or 0.8 per cent, N22.6 billion or 0.6 per cent and N14.9 billion or 0.4 per cent respectively.
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* The author is giving Nigerian leaeders too much credit. The country IMPORTS PETROLEUM products from other African countries and you are talking about finished goods. For starters, we do not have the basis for INDUSTRIAL REVOLUTION, that is ELECTRICITY. And most of all we do not have leaders who have foresight to lay the foundation for industrial growth. Bill Gates has visited Nigeria at least once. I suspect that it was for business partnership. But look at the whole country. There are no roads, electricity and basic amenities and of course, political stability to encourage foreigners to INVEST in the country. So banning these products will only create unnecessary hardship on the average Nigerian.
* Nigeria has become the dumping ground for finished goods and used
goods and obviously this is killing the home based industries. Anyone that travells around the World will know that traveling Nigerians usually carry more bags than average European travellers. A check on Nigerianas' loads will show clothes, used or unused,
electronics, chocolates, buiscuits, gifts of different kinds. Such travellers are from different cadre in the society including government functionaries, they all want to use imported goods. There are many private schools in Nigeria that source or buy their school
uniforms from abroad even though such uniforms were sown in third world countries like Bangladesh, India, Pakistan, China, Kenya etc, before being shipped to the West, Nigerians still fall for them, to Nigerians, they are still imported goods from abroad. Local businesses are dieing, unemployment is in multiple of millions and yet, all Nigerians want imported biscuits and sweets despite that they have green grass land to plant sugar canes that will be imported and converted to sugar and resent back to Nigeria as finished products, even crude petroleum products are shipped abroad for refining and leading before they are brought back to Nigeria as a finished products that will qualify for subsidy and rebate therefore killing the local refineries, It will take ages before the
mentality of Nigerians is changed. May God save Nigeria from ENEMIES
WITHIN.
The Vanguard
* 1US$ = 158 Nairas
