Nigeria’s agric export increases 44% in Q1 2016 despite ban

The latest foreign trade report released by the National bureau of Statistics (NBS) has shown the country’s agric export increased by 43 percent in Q1 2016 despite the ban placed by the European Union (EU) on some agric commodities.

A total of N117 billion worth of agricultural products was exported out of the country in the first quarter in 2016, according to data obtained from the latest foreign trade report.

The value of agricultural export increased by N36 billion or 44 percent from N81 billion in Q4 2015 to N117 billion in Q1 2016 quarter on quarter basis. On year-on-year basis, the value of the country’s agric export increased by N11.3 billion from N105.5 billion in Q4 2015 to N117 billion in Q1 2016.

Analysts attributed it to the increase in the export of other agro commodities that are not under the EU banned. They stated that the drop in beans export is covered by the increase in our commodities.

The EU last year banned some food exports from Nigeria for not meeting with standards until June 2016. The food items include beans, sesame seeds, melon seeds, dried fish and meat, peanut chips and palm oil.

All other banned for other commodities have been lifted expect for beans, which the EU recently said it might extend its ban if the country fails to meet the specified global standards for export.

According to the report, prepared foodstuffs; beverages, spirits and vinegar; tobacco, recorded the highest agricultural export products with N64 billion followed by boilers, machinery and chemical appliances; parts thereof with N15 billion.

Nigeria recorded its first quarterly trade deficit in at least seven years in the three months through March.

The total value of Nigeria’s export totalled N1.3 trillion in Q1 2016, showing a decrease of N671.1 billion or 34.6 percent, over the value recorded in the preceding quarter.

Year-on-year analysis shows that the country’s exports dropped by N1.4 trillion or 52.3 percent against the export value recorded in the corresponding quarter of 2015.

“The steep decline in exports brought the country’s trade balance down to N184.1 billion or N548.7bilIion less than in the preceding quarter,” the report states.

The country’s export declined as value of shipments of crude oil, which usually accounts for over 90 percent of the foreign earnings fell by almost half from the preceding quarter.

The value of crude oil exports declined to N821.8 billion in the three months through March, from N1.5 trillion in the previous quarter, according to the statistics office. Non-crude oil shipments increased to N448 billion from N402 billion.

                              

Nigeria mainly exports goods to India, United States, Spain, Netherlands and France.

A total of N600 billion worth of agricultural products was imported into the country in the first quarter 2015.

Agricultural imports decreased by N147 billion or 20 percent on a year on year basis from N738 billion in Q1 2015 to N600 billion in Q1 2016.

On quarter on quarter basis, the value of the country’s agric imports decreased by N6 billion from N606 billion in Q4 2015 to N600 billion in Q1 2016.

Nigeria’s import trade stood at N1.5 trillion, at the end of Q1 2016. This was 7.8 percent less than the value recorded in the preceding quarter N1.6 trillion. Further comparison with the corresponding quarter of last year, showed a decrease of N273.7 billion or 15.8 percent.