Tony Chukwunyem 
Analysts at CSL Research have high – lighted the impact of the devaluation of the naira on the latest foreign trade report released by the National Bureau of Statistics (NBS).
Commenting on the report in a note released on Monday, the analysts stated that the devaluation of the naira on the official market “contributed to increased export values, driving export activities and making imports more expensive.”
The analysts said: “Nigeria’s foreign trade report by the National Bureau of Statistics (NBS) showed a trade surplus of N5.81 trillion in the third quarter (Q3) of 2024.
Total merchandise trade was N35.16 trillion, an increase of 13.3 per cent over the value recorded in Q2’24 and up significantly by 81.4 per cent compared to the value recorded in Q3’23.
“Total exports grew to N20.49 trn, representing 58.3 per cent of total trade and an increase of 16.8 per cent and 98 per cent from N17.55 trillion & N10.35 trillion recorded in Q2’24 & Q3’23, respectively.
Total imports amounted to N14.67 trillion, up 8.71 per cent & 62.3 per cent compared to N13.49 trillion & N9.04 trillion recorded in Q2’24 & Q3’23, accounting for 41.7 per cent of total trade.”
They further stated: “Looking at the export breakdown, of the N20.49 trillion total exports, crude oil export contributed 65.4 per cent (N13.41 trn).
Noncrude oil exports added about 34.56 per cent (N7.08 trn), of which non-oil products from agricultural goods, solid mineral, manufactured goods, and raw materials goods sectors contributed only N2.5 trillion, i.e., only 12.2 per cent of the total exports.”
Noting that “the Balance of Trade (BoT) remains in surplus,” the analysts said: “The devaluation of the local currency in the official market has contributed to increased export values, driving export activities and making imports more expensive.”
They, however, pointed out that while the contribution of crude oil to total exports is declining gradually, “the figures still highlight heavy reliance on crude oil for export earnings.”
“Agricultural products such as cocoa beans, cashew, and rubber are trading at higher prices, presenting an opportunity for the country to capitalise on its vast and fertile arable lands.
Strategic agricultural investment could significantly enhance non-oil export contributions and strengthen economic resilience,” the analysts added.
