President Bola Tinubu has welcomed the new report by the National Bureau of Statistics (NBS) on the country's trade balance.
According to the report, Nigeria recorded another trade surplus in the second quarter of 2024, reaching N6.95 trillion. The current surplus is 6.60 percent higher than the N6.52 trillion surplus recorded in the first quarter.
Coming just days after the country recorded a nearly 100 per cent oversubscription of its first domestic bond of $500 million and half-year inflows of N9.1 trillion, the latest report underscores the growing positive changes in the economy over the past year.
President Tinubu expressed confidence in the reforms his administration is carrying out and believes they will create a more robust economy that will usher in a new era of prosperity for Nigerians.
The NBS report reflects the country's strong export performance in the second quarter.
Although total merchandise trade in the second quarter of 2024 stood at N31.89 trillion, a decrease of 3.76 percent compared to the previous quarter (Q1 of 2024), it marked an increase of 150.39 percent from the corresponding period in 2023.
The NBS reported that the second-quarter surplus was driven mainly by exports to Europe, the United States and Asia.
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Total exports amounted to N19.42 trillion, representing 60.89 percent of the country's total trade. This represents an increase of 1.31 percent from N19.17 trillion in the first quarter and an increase of 201.76 percent from N6.44 trillion recorded in the second quarter of 2023.
The dominance of crude oil exports remains a key factor in this performance, contributing N14.56 trillion, or 74.98 percent of total exports.
Non-crude petroleum exports, valued at N4.86 trillion, accounted for 25.02 percent of the total export value, with non-oil products contributing N1.94 trillion.
Strong export performance, particularly of crude oil, enabled Nigeria to maintain a favourable trade balance.
In the second quarter of 2024, European and American countries dominated Nigeria’s major export destinations. Spain emerged as the largest export partner, receiving goods worth N2.01 trillion, accounting for 10.34 percent of Nigeria’s total exports.
The United States followed closely with N1.86 trillion (9.56%), while France imported N1.82 trillion worth of Nigerian products, accounting for 9.37% of total exports.
Other major export partners of Nigeria are India (N1.65 trillion or 8.50%) and the Netherlands (N1.38 trillion).
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Overall, economic indicators, which were very low when President Tinubu took office last year, are turning positive.
The government will continue to consolidate reform achievements as further fiscal and tax policy reforms already undertaken by the administration bear fruit.
President Tinubu said he is determined to address the inhibitions that have hindered the growth and development needed to unleash the country’s full potential.
Onanuga Bay
Special Advisor to the President
(Information and Strategy)