Nigeria’s Q3 Foreign Trade Soars By 53.16% As Crude Oil Revenue Surges By 83.23% – NBS

Nigeria’s foreign trade rose by 53.16% year-on-year, hitting N18.80 trillion in the third quarter of 2023.

The National Bureau of Statistics (NBS)  revealed this in its ‘Foreign Trade in Goods Statistics (Q3 2023)’ report on Monday.

According to the report, the upsurge was fueled by 83.23% increase in crude oil revenue. Hence, it rose to N8.54 trillion during the quarter under review, compared to N4.66 trillion recorded in the same period last year.

The National Bureau of Statistics stated in a statement to our news desk, “Nigeria’s total merchandise trade stood at N18.80 trillion in Q3, 2023, marking a noteworthy increase of 54.62% from Q2, 2023, and a significant 53.16% leap compared to Q3, 2022.”

READ ALSO: Nigerians’ Household Spending Surges To N61.07 Trillion Despite Soaring Inflation- NBS

The report further indicated that exports surged by 60.78% to N10.35 trillion during this period, with crude oil dominating at N8,535.61 billion, accounting for 82.50% of total exports.

Top officials commented on these numbers. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, expressed optimism about the steady increase in oil production.

He said: “We are already increasing production steadily. As of August, it was about 1.1mbpd, but as of today, it has increased to between 1.3 and 1.4mbpd exclusive of condensates. If you include condensates, it will be about 1.7mbpd.”

However, the report also suggested that this increase in exports may be linked to the devaluation of the naira. Earlier in the year, JP Morgan pointed out that, “A weaker exchange rate means the government would receive higher naira revenues from oil and gas exports.”

Furthermore, the statistics indicated that Nigeria’s trade balance stood at N1.89 trillion, showcasing a robust performance in the global market.

The country exported to countries like Spain, India, The Netherlands, Indonesia, and France, while major imports were from China, Belgium, India, Malta, and the United States of America.

Despite these figures, concerns linger about the country’s oil production falling below its targeted levels. The World Bank highlighted the subdued nature of Nigeria’s oil production, urging the government to address the challenges plaguing the sector.

The surge in Nigeria’s foreign trade demonstrates the country’s resilience in the global market, driven predominantly by the impressive performance of its crude oil exports amidst various challenges faced by the sector.