Home Business Exports surge from weak naira, hitting 14-year high trade surplus

Exports surge from weak naira, hitting 14-year high trade surplus

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Exports surge from weak naira, hitting 14-year high trade surplus.

  • Trade Surplus:
    • Q1 2024: N6.52 trillion.
    • Increase: 79.1% from Q4 2023 (N3.64 trillion).
    • Year-on-Year: From N20.9 billion to N6.52 trillion.
  • Total Trade:
    • Q1 2024: N31.8 trillion.
    • Increase: 46.3% from Q4 2023.
    • Year-on-Year: 145.6% increase.
  • Exports:
    • Q1 2024: N19.2 trillion (60.3% of total trade).
    • Increase: 51% from Q4 2023 (N12.7 trillion).
    • Year-on-Year: 195.5% increase from Q1 2023 (N6.48 trillion).
    • Crude oil: N15.4 trillion (80.8% of total exports).
    • Non-crude oil: N3.68 trillion (19.20% of total exports).
  • Imports:
    • Q1 2024: N12.6 trillion (39.7% of total trade).
    • Increase: 39.6% from Q4 2023 (N9.05 trillion).
    • Year-on-Year: 95.5% increase from Q1 2023 (N6.47 trillion).
  • Currency Impact:
    • Naira devaluation (30% this year, 40% last June) increased export value in naira terms.
    • Official exchange rate: N1.483.9/$ (up from N463.38/$).
    • Parallel market rate: N1.495/$ (up from N762/$).
  • Key Insights:
    • The weak naira boosts export revenues.
    • Positive trade surplus strengthens current account balance, reducing external pressure.
    • Increased export demand reflects economic competitiveness.
  • Top Trading Partners (Imports):
    • China, India, USA, Belgium, The Netherlands.
  • Main Imported Commodities:
    • Motor spirit ordinary, Gas oil, Durum wheat, Cane sugar for refinery, Liquefied petroleum gases.
  • Analyst Comments:
    • Exchange rate devaluation linked to higher trade surplus.
    • A positive trade surplus aids the current account and may appreciate the currency.
  • Current Account Balance:

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