Nigeria’s Foreign Trade Surges to N138trn amid Naira Devaluation, Export Growth

Nigeria’s latest foreign trade statistics, published by the National Bureau of Statistics (NBS), reveal a remarkable 106.6% year-on-year increase in total merchandise trade, reaching N138.03 trillion in 2024 from N66.83 trillion the previous year.

This surge was primarily driven by the devaluation of the naira and the expansion of exports, which stood at N77.4 trillion, surpassing total imports of N60.6 trillion. As a result, the trade balance improved significantly by 230.5% year on-year, rising to N16.85 trillion from N5.10 trillion in 2023.

The substantial improvement in the trade balance can be attributed to robust export growth, bolstered by the weakened naira and an increase in exportable goods.

This aligns with expectations that a larger trade surplus will contribute to a healthier current account balance in 2024, with crude oil production and exports continuing to play a crucial role in Nigeria’s economy.

However, persistent foreign exchange pressures pose a downside risk, particularly concerning the services account, which may continue to widen. In 2024, heightened volatility in the foreign exchange market led to a depreciation of the naira by over 41%, enhancing the competitiveness and attractiveness of Nigerian exports on the global stage.

A quarterly analysis of the NBS report indicates that Nigeria’s total merchandise trade stood at N36.60 trillion in Q4 2024, reflecting a 68.32% increase compared to the N21.75 trillion recorded in the corresponding period of 2023 and a 2.20% rise over the N35.82 trillion recorded in the preceding quarter.

In this period, exports accounted for 54.68% of total trade, amounting to N20.01 trillion, representing a 57.67% increase over the N12.69 trillion recorded in Q4 2023, though slightly lower by 2.55% compared to Q3 2024 (N20.54 trillion).

Crude oil exports continued to dominate, accounting for N13.78 trillion or 68.87% of total exports, while non crude oil exports stood at N6.23 trillion, making up 31.13% of total exports. Of this, non-oil products contributed N2.84 trillion, constituting 14.20% of total exports.