Trade Imbalance Widens As Nigeria's Imports From China Soar To N7.54 Trillion In 2023

In a significant development, it was discovered that the trade balance between Nigeria and China has surged to N7.54 trillion in the first nine months of 2023. An analysis of data from the National Bureau of Statistics indicates a widening bilateral trade deficit in favor of China, marked by a consistent rise in Nigeria's imports from the Asian giant over the past year.

Data from the Bureau discloses that Nigeria imported goods worth N8.4 trillion from China between January and September 2023. A detailed breakdown reveals imports of N1.29 trillion in Q1, N2.56 trillion in Q2, and a staggering N4.53 trillion in Q3.

Contrastingly, exports from Nigeria to China totaled N860.82 billion during the same period. The breakdown shows values of N126.61 billion in Q1, N251.8 billion in Q2, and N482.4 billion in Q3. This highlights a substantial trade deficit and underscores the challenges faced by Nigeria in balancing its trade relationship with China.

Nigeria's primary exports to China encompass minerals, metals, agricultural products, and crude oil. Despite being a top importer from China, Nigeria did not feature among the top five African countries exporting to China in 2021, recording only $3 billion in exports.

Analysts attribute the persistent trade deficit to the weakened production capacity and competitiveness of Nigerian firms. The situation has drawn attention, with Minister of Industry, Trade and Commerce, Doris Aniete, facing scrutiny from senators last week during a budget defense session. Senator Adams Oshiomhole raised concerns about the country's balance of trade, emphasizing the need for countries importing goods into Nigeria to invest in local manufacturing.

In response, Minister Aniete admitted the lack of a comprehensive record of Nigeria's balance of trade and highlighted the initiation of a new unit, the Trade Intelligence Unit, to generate and store such critical data. The widening trade gap raises questions about Nigeria's economic strategy and its ability to leverage its population for industrial growth.