Nigeria’s Trade Balance Declines By 86%
Nigeria has recorded a negative trade balance quarter-on-quarter, QoQ, as export declined by 19.8 percent to N5.93 trillion in the third quarter of 2022, Q3’22, from N7.4 trillion in Q2’22, while import bill rose 4.2 percent to N5.66 trillion from N5.43 trillion.
Fidel Info reports that as a result of the negative development in the export sector the total foreign trade recorded a 10 percent decline to N11.59 trillion in Q3’22 from N12.84 trillion in Q2’22, while the trade balance fell quarter-on-quarter (QoQ) by 86 percent to N269.3 billion in the Q3’22 from N1.97 trillion in Q2’22.
These were contained in the National Bureau of Statistics, NBS, Foreign Trade in Goods Statistics report for Q3’22 released yesterday.
The report stated: “In the third quarter of 2022, Nigeria’s total trade stood at ¦ 11.59 trillion, this was lower than the value recorded in Q’22 (¦ 12.84 trillion) but was higher than the value recorded in the corresponding period of 2021 which stood at ¦ 10.47 trillion. Total exports stood at ¦ 5.93 trillion of which re-exports were ¦ 25.04 billion, while total imports stood at ¦ 5.66 trillion.
“In the quarter under review, total exports declined by 19.89 when compared to Q3’22 (¦ 7.4 trillion) but it increased by 15.5 percent of the value recorded n Q3’21 (¦ 5.13 trillion).
“On the other hand, total imports increased by 4.2 percent in Q3’22 when compared to the value recorded in Q2’22 (¦ 5.43 trillion) and also grew by 6.16 percent when compared to the value recorded in the corresponding quarter of 2021 (¦ 5.33 trillion).
“The balance of trade in the period under review stood at ¦ 269.34 billion.
BREAKING: “Fuel Subsidy Is Gone” – Tinubu Declares After Inauguration
President Bola Tinubu has declared that fuel subsidy is now a thing of the past under his administration.
POLITICS NIGERIA reports that the president made the declaration during his inaugural speech at Eagle Square on Monday.
Furthermore, President Tinubu vowed to address concerns regarding multiple taxations, a move aimed at stimulating the economy and attracting investments.
Setting ambitious targets, the president articulated his administration’s goal of achieving a minimum Gross Domestic Profit growth rate of 6%.
Radiating unwavering confidence in the Nigerian people, Tinubu pledged to embrace the sacred mandate bestowed upon him, underscoring the nation’s exceptionalism and indomitable resolve to fulfil its destined path.
Despite enduring formidable challenges that would have tested the mettle of any nation, Tinubu extolled Nigeria’s resilience and urged the preservation and advancement of the progress made by preceding generations.
“We must never allow the sacrifices of our predecessors to be in vain,” affirmed Tinubu. “Instead, let us nurture their legacy and strive to forge a brighter and more prosperous reality for our beloved nation.”
Shettima reveals two decisions Tinubu will make when he becomes president
The vice president-elect, Kashim Shettima, has said removing petrol subsidy and removing multiple exchange rate systems are two challenges that will pose an initial challenge to the incoming administration.
Shettima stated this while speaking at the public lecture and Juma’at prayer on Friday held at the National Mosque in Abuja.
He warned that the take-off point of Bola Tinubu’s administration might be rough.
“Be rest assured that in the fullness of time, Nigeria will pay glowing tributes to us. The starting point might not be rosy, let me be very honest with you.
“Oil subsidy is an albatross on our neck, the multiple exchange rate system is a drain on the national economy.
“There are certain decisions the president-elect will take, but in the fullness of time, Nigerians will not only appreciate, but also celebrate us,” Shettima said
Naira faces downside risks, slumps to N760/$ at black market
Four days before the inauguration of a new administration, naira seems to have lost its long-standing N750/$ resistance as it dipped to N760/$ yesterday.
The market may have started pricing in uncertainty risk that comes with a change of national economic managers. Some dealers told The Guardian yesterday that there has been a surge in the demand for foreign exchange (FX) since the beginning of the week, though they could not justify the sudden spike.
But further market intelligence suggests a comeback of high-ticket transactions to the black market. Sources linked the surge to next week’s inaugurations across the country.
The Guardian, however, could not independently confirm that the large volume of transactions is coming from the political circle. Previously, past governors and lawmakers had allegedly fled the country with ill-gotten wealth immediately after the end of their tenures for fear of being arrested by anti-corruption agencies.
President Muhammadu Buhari will leave office on Monday alongside 44 ministers and retinue of aides who have held on to power in the past eight years.
Across the country, 18 governors will also hand over the batons of the political leadership of their states beginning next week as their successors take the oaths of office.
Members of the National Assembly and 36 parliaments will also be inaugurated days after the executives take over the reins of office. Some of the outgoing public officials (some of who are covered by the immunity clause), The Guardian was informed, are on the watch of the Economic and Financial Crimes Commission (EFCC).
A source privy to details of some of the investigations said the EFCC is reviewing dossiers of petitions, some of which may be politically motivated, and that some governors may have been under close watch.
“Whether there are petitions is not a question but how many of them are viable? If you understand the number of public officials that are leaving office soon, you will be surprised that there is so much jittery in the political space,” the source said.
Dating back to the pre-election era, the pages of newspapers are rife with accusations and counter-accusations of fraud and misappropriation of public resources. Different officials have also been involved in phony projects to have been conduits of siphoning state resources.
This is not the first time naira would lose its hold ahead of the inauguration. The 2015 foreign exchange rate crisis pre-dated the general elections but spiked weeks before the inauguration of the Buhari administration, raising concern about the correlation between dollar scarcity and the winding down of subsisting administration.
On Monday morning, naira traded around N735/$ but started loosening its hold at the close of the day. As of press time, it had lost close to four per cent week-to-date (WTD). Except for the growing demand ease, the local currency faces more downside risk
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