The total value of Nigeria’s imports rose to N35.9tn in 2023, up from N25.5tn in 2022 representing an increase of N10.4tr. This increase was brought about by the devaluation in the Nigerian currency.
The breakdown of the data indicates that imports totaled N6.4tn in the first and second quarters of 2023, increasing to N9tn in the third quarter and further to N14tn in the fourth quarter.
In terms of volume, manufactured imports were the highest at N18.3tn, followed by agric imports at N2.2tn and raw materials at N3tn.
On the export front, Nigeria managed to export goods worth N35.9tn, with crude oil dominating at N29tn and other oil products at N3.5tn.
Agricultural exports accounted for N1.2tn, while manufactured goods exported totaled N778bn.
This resulted in a trade deficit of -N1tn in the agricultural sector and a significant -N17.5tn deficit in the manufacturing sector.
Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise, attributed the sharp rise in exports to naira depreciation.
He explained, “The increase in import costs is due to naira depreciation. For instance, if you previously imported goods worth $1m at an exchange rate of N450, and now the rate is N1,500, the cost triples in naira terms, even if the value in dollars remains the same. This is a crucial factor to consider.”
The surge in exports comes as President Bola Tinubu pushes for increased non-oil exports to diversify the economy from its heavy reliance on crude oil revenue.