Nigeria’s agric import hits N606bn in Q4 on forex crisis

A total of N603 billion worth of agricultural products was imported into the country in the fourth quarter 2015, according to the National Bureau of Statistics (NBS) in its recent foreign trade reports.

Agricultural imports decreased by N143 billion or 19.2 percent on a quarter on quarter basis from N746 billion in Q3 2015 to N606 billion in Q4 2015. On year on year basis, the value of the country’s agric imports decreases by N300 billion or 10 percent from N2.7 trillion in 2015 to N3 trillion in 2014.

Analyst attributed the decline in agric imports Q4 on forex crisis. According to the analyst, manufacturing industries are now looking inwards and investing more on backward integration.

The Central Bank of Nigeria (CBN) in June, 2015 imposed currency control to support the naira and the Nigeria ailing economy when it restricted some 41 items from forex.

A situation that has sustained scarcity of foreign exchange in the market as well as the high exchange rate above N300 per dollar which is above the official rate of N197 per dollar.

According to the report, boilers, machinery and appliances recorded the highest import value in the agricultural products with N366.7 billion followed by prepared food; beverages, spirits and vinegar; tobacco with a value of N88.4 billion for the period.

The value of Nigeria’s imports stood at N1.6 trillion at the end of Q4, 2015. This was 6.6 percent less than the value of N1.7 trillion recorded in the preceding quarter of 2015.

“The structure of Nigeria’s imports according to the Standard International Trade Classification (SITC) was dominated by the imports of machinery and transport equipment, mineral fuel, and food and live animals, which accounted for 32.4 percent, 18.5 percent, and 15 percent respectively in 2015,” the report states.

Nigeria imported goods, mostly from China, United States, Belgium, Netherlands and India.

The value of the nation’s exports totalled N2.1 trillion in Q4, 2015, showing a decrease of N257 billion, or 11 percent, over the value recorded in the preceding quarter.

The total value of Nigeria’s merchandise trade during the fourth Quarter of 2015 stood at N3.7 trillion, 9.2 percent lower than the value of N4 trillion recorded in the preceding quarter.

A total of N81.2 billion of agricultural products was exported in first quarter 2015.

Despite that the country is gradually diversifying away from oil, agriculture has failed to still live up to its expectation as in the 60’s and 70’s when it was the country’s major foreign earner.

Josephine Okojie