Nigeria’s international trade remains at 92% import, 8% export in six months

As an import-dependent economy, Nigeria’s international trade has remained unbalanced as the volume of import continues to surpass that of export. This is as the container market in Nigeria in the last six months has been strongly dominated by imports.

Since the last six months, Nigeria’s import and export ratio has remained at 92 percent import to 8 percent export, said Jan Thorhauge, managing director, Maersk Nigeria Limited (MNL) and head of the Central West Africa Cluster, in a trade report released by Maersk Nigeria Limited.

The containerised import market to Nigeria is estimated to have ended at about 159,000 forty foot equivalent units (FFE) compared to 155,000 FFE recorded within the same period in 2012. The report shows that most of Nigeria’s laden containers come from the Far East, mostly China, while the export commodities have been going into Europe.

“Major products coming from the Middle East are industrial raw materials, chemicals, electronics, iron and steel and tyres, while industrial raw materials, frozen fish and cars are the goods that come mainly from Europe,” he said.

There was an increase in sourcing pattern, which was attributed to better pricing from these regions, increase in the age limits of imported automobiles from five to 10 years, increased construction as well as growing demands for finished products by Nigerian populace.

Charcoal and agricultural produce including cocoa, sesame, cashew nuts and cotton were the commodities mostly exported out of the country in the first half of the year. According to the report, charcoal export rose by 76 percent when compared to the volume in the same period in 2012. The report attributed the rise in volume to the longer winter season experienced in Europe.

On the other hand, finished products exported out of the country within the period experienced 39 percent growth because major manufacturing firms made Nigeria their production hub for the West African region.

Nigeria’s export ratio can be improved, the Maersk boss said, if government improves on infrastructure such as power supply, road network and rail services.

The dominant items imported into the country include cars, electronics, construction materials, food items, chemicals, electrical fittings, machinery and paper, among other goods covering industrial as well as private needs.