Nigeria’s rising import dependency again showcased in N1.98trn imports Q2

Nigeria’s rising import dependency was again showcased in the 2014 second quarter (Q2) imports which rose to about N1.98 trillion, some N431.8 billion or 27.9 percent above first quarter (Q1) level, according to National Bureau of Statistics (NBS) figures released on Monday.

The N1.98 trillion is equally above N1.598.2 trillion recorded in the corresponding quarter of last year by N379 billion or 23.7 percent.

Huge imports by the oil-rich nation including refined crude continue to put pressure on the naira and foreign reserves as the Central Bank of Nigeria (CBN) struggles to meet up with forex demands, particularly in the face of dwindling oil income.

The NBS said in its latest trade reports that

the import rise came largely from quarterly rises in mineral products, machinery and transport equipment; and food and live animals at N131.30 billion or 55.34 percent, N86.90 billion or 15.41 percent and N73.72 billion or 35.36 percent of total imports, respectively.

The total imports in the first half of 2014 were valued at N3.522.7 trillion.

At the product level, motor spirit recorded the greatest value of imports, accounting for N315.7 billion or 16 percent of the total imports for the second quarter of 2014.

Common wheat and meslin with N85.8 billion or 4.3 percent of the total followed, whilst machine tools for working stone,ceramics and concrete with N37.5 billion or 1.9 percent of the total imports for second quarter of 2014 ranked third, the NBS said.

Classified by section, the greatest values of imports in the second quarter of 2014 were recorded for boilers, machinery and appliances; mineral products;and vehicles  and aircraft and parts with N422.4 billion or 21.4 percent, N380.6 billion or 19.2 percent, and N232.8 billion or 11.8 percent of the total value of Q2 2014 imports, respectively.

Imports classified by broad economic category showed that the three greatest values of imports in second quarter of 2014 were recorded for industrial supplies, capital goods, and fuels and lubricants, which accounted for N536.8 billion or 27.2 percent, N396.7 billion or 20.1 percent and N343.6 billion or 17.4 percent of the total import value recorded for the second quarter of 2014, respectively.

Classified by continent, the greatest value of imports in the second quarter of 2014 came from Asia, with a value of N796.1 billion or 40.3 percent of the total. This was followed by Europe with N758.1 billion or 38.3 percent, the Americas with N316.1 billion or 16 percent, and Africa with N78.1 billion or 4 percent.

Of the value of total imports from Africa, ECOWAS contributed N12.2 billion or 5.7 percent. By country of origin, the value of goods imported to Nigeria were greatest from China, United States, Netherlands, Belgium and India with import values of N426.1 billion or 21.5 percent, N235.6 billion or 11.9 percent, N138.7 billion or 7 percent, N124.0 billion or 6.3 percent, and N117.1 billion or 5.9 percent of the total in the second quarter of 2014, respectively, as indicated by the Bureau’s figures.

Businessday