Manufacturing Trade Deficit Hits N2.6tn Despite Forex Shortage

The value of the manufactured goods trade deficit, according to data from the National Bureau of Statistics, hit N2.6tn in the fourth quarter of 2021.

The NBS, its ‘Foreign Trade in Goods Statistics’ for Q4 2021, disclosed that the total manufacturing import was about N3tn, while export was N395.48bn in Q4 2021.

Prime Business Africa is aware that the trade deficit occurs when a country’s imports exceed its exports in a particular period.

The analysis shows that Nigeria’s imports of manufactured goods exceeded the exports of such goods in Q4 2021.

In October 2021, the country’s import was N904.52bn while export was N184.55bn. By November 2021, the import was N1.03tn while export was N181.12bn

At the end of Q4 2021 in December, the import was N1.06tn while export was N29.81bn.

Generally, the NBS report revealed that the value of imported manufactured goods increased by 15.11 per cent while the value of exported manufactured goods dropped by 38.77 per cent.

The report read in part, “The value of imported manufactured goods grew by 15.11 per cent in Q4, 2021 against the value recorded in Q3, 2021 and it also increased by 49.46 per cent compared to the value recorded in Q4, 2020.”

It added, “The value of manufactured goods exports fell by 38.77 per cent in Q4 2021 when compared to the value recorded in Q3 2021. It also increased by 206.46 per cent compared to the value recorded in Q4, 2020.”

The NBS report further disclosed that the total value of manufactured goods traded in Q4 2021 was N3.4tn, which was 29.01 per cent of total trade for that quarter.

The report also noted that the major export goods in this quarter were floating or submersible drilling platforms exported to Namibia and Cameroon valued at N264.54bn and N0.79bn respectively.

In addition, unwrought aluminium alloys valued at N8.21bn and N8.16bn were exported to Japan and China respectively, and cigarettes containing tobacco were exported to Niger and Nauru valued at N4.29bn and N2.61bn respectively.

By region, manufactured goods were exported to Africa, Asia and Europe, valued at N302.04bn, N49.71bn and N31.57bn respectively.

For imports in Q4 2021, rolled iron/steel was imported from China worth N88.23bn.

There was also the importation of used vehicles from the United States, Italy and Canada valued at N70.48bn, N3.59bn and N2.05bn respectively.

Other goods imported were motorcycles from India valued at N39.92bn and some appliances and machines from China valued at N54.61bn.