Nigerians Demand Evidence of Export Surge Impact on Daily Livelihood as Upbeat in Exports Pushes Nigeria’s Trade Surplus to N12.1 Trillion in H1 2024
Thank you for reading this post, don't forget to subscribe!Nigeria’s trade surplus surged to N12.14 trillion in the first half of 2024, driven by a significant rise in exports, according to the latest foreign trade report from the National Bureau of Statistics (NBS). Total merchandise trade jumped by 153% year-on-year, reaching N65.03 trillion, with exports alone increasing by 199% to N38.59 trillion. This expansion is largely attributed to increased crude oil and non-oil exports during this period.
The country’s import bill, however, stood at N26.44 trillion, reflecting the impact of the naira’s depreciation, which made imports more expensive and exports more competitive. As a result, Nigeria’s trade balance saw a monumental improvement, growing by 7,779% from N154.12 billion in the first half of 2023 to N12.14 trillion in H1 2024.
Despite this impressive trade surplus, many Nigerians have raised concerns, questioning the direct benefits of this export surge on their daily lives. With the rise in export figures, citizens are calling for more evidence that the nation’s growing trade numbers are translating into better economic conditions for ordinary Nigerians, especially as inflation and currency devaluation continue to squeeze household incomes.
Trade Surplus Driven by Crude Oil and Non-Oil Exports
The report highlighted that the export boom was supported by both the devaluation of the naira and a broadening of Nigeria’s exportable products. Crude oil exports, valued at N14.6 trillion, continued to dominate, while non-crude oil exports reached N4.9 trillion. Non-oil exports, although accounting for just over 10% of total exports, have shown significant promise, particularly in sectors such as agriculture and manufacturing.
On a quarterly basis, Q2 2024 saw total trade amount to N31.89 trillion, a 150.4% increase from N12.74 trillion in Q2 2023, although this represented a slight decline of 3.76% from Q1 2024. Exports in Q2 were valued at N19.42 trillion, making up 60.9% of total trade.
Nigerians Question Benefits of Export Growth
While the increase in exports is a positive sign for Nigeria’s overall economy, many Nigerians are demanding to know how this growth is improving their quality of life. “We hear about these huge trade surpluses, but when will it start reflecting on the price of goods and services, especially food?” asked one Lagos resident. The sharp rise in export revenues has yet to translate into tangible improvements for many Nigerians who continue to face rising living costs.
Key Imports and Exports
The NBS report shows that Nigeria’s exports in Q2 2024 were primarily made up of mineral products valued at N17.59 trillion, or 90.62% of the total export value. On the import side, the largest category was mineral fuels, amounting to N4.42 trillion, followed by machinery, transport equipment, and chemicals.
Agricultural exports fell by 5.93% to N973.69 billion in Q2 from N1.04 trillion in Q1 2024, though this still represented a sharp 246.67% rise from Q2 2023. In contrast, imports of agricultural goods decreased slightly but saw a 96.38% year-on-year increase, highlighting the continued reliance on imported foodstuffs.
Expansion in Trade Relations with Global Partners
Nigeria’s export destinations in Q2 2024 were led by Europe, with 41.6% of exports going to the region, followed by Asia and America. On the import side, Asia accounted for the largest share, at 44.74%. Regional trade within Africa also grew, with N1.6 trillion worth of exports going to ECOWAS countries.
Looking ahead, economic analysts at Cowry Research believe that Nigeria’s trade sector will continue to benefit from stronger global partnerships. However, they caution that foreign exchange volatility and inflationary pressures from advanced economies could present risks to sustained trade growth.
Nigerians are optimistic that with a more diversified export base and improvements in local production, the benefits of trade surpluses will begin to have a more noticeable impact on everyday life. For now, the call remains for more transparency and policies that ensure these economic gains trickle down to the average Nigerian household.
