Nigeria’s foreign trade rose Month-on-Month (M-o-M) by three per cent to $7.76 billion in November 2020 from $7.53 billion in October 2020.
The slight increase in trade was driven by a six per cent increase in exports, which exceeded the 1.2 per cent growth in imports.
Consequently, the country’s trade deficit fell 5.02 per cent (M-o-M) to $2.08 billion in November 2020 from $2.19 billion in October 2020.
The Central Bank of Nigeria (CBN) disclosed this in its Economic Report for November 2020.
The apex bank stated: “On M-o-M basis, the value of aggregate external trade increased by 3.1 per cent to $7.76 billion in November 2020 compared with $7.53 billion in October 2020.
“The development reflected increased export of goods and higher demand for import, particularly raw materials, as economic activities continued to rebound. However, when compared with the corresponding period of 2019, it indicated a 23 per cent decline.
“Aggregate export increased by six per cent to $2.84 billion in the review period, above $2.67 billion in the previous period, due largely to increase in the export of crude oil but moderated by the decline in other non-oil products.
“Available data showed that the value of crude oil export increased by 9.0 per cent to $2.31 billion in November 2020, above $2.13 billion in October 2020. This was, however, 38 per cent below the $3.72 billion in the corresponding period of 2019.
“Gas export, on the other hand, decreased by 3.1 per cent to $0.31 billion in November 2020, relative to the $0.32 billion in October 2020.
“Crude oil and gas components remained dominant and accounted for 94 per cent of total export.”
On import it stated: “Merchandise import also increased by 1.2 per cent to $4.92 billion in November 2020, above $4.86 billion in October 2020, due to increase in the importation of raw materials for domestic production.
“Consequently, a lower trade deficit of $2.08 billion was recorded in November 2020, relative to $2.19 billion in October 2020.
“The gradual pick-up in economic activities resulted in higher imports for industrial uses and infrastructural upgrade. Thus, the rising importation of raw materials during the review period resulted in a M-o-M increase in non-oil import.”