Nigeria trade deficit hits N1.9 trillion

0
801

According to the statistics released by the National Bureau of Statistics (NBS) for February 2022, Nigeria’s trade balance has worsened to N1.9 trillion, the worse since NBS started tracking trade performance 12 years ago.

Imports stood at N20.8 trillion as at end of 2021, dwarfing exports that stood at N18.9 trillion.

However, in terms of quarterly performance, the trade deficit reduced in the fourth quarter of 2021 following a 12.3 per cent quarter-on-quarter (q/q) upsurge in export earnings to N5.8 trillion compared to the 11.3 per cent q/q growth in import bills to N5.9 trillion.

Consequently, the trade deficit declined 12.7 per cent q/q to N174.0 billion (0.9 per cent of Gross Domestic Product (GDP)) relative to the N199.3 billion recorded for third quarter of 2021.

The trend may continue with global inflation on the up tick. Already, the United States (US) Fed has hiked rate in response to rising inflation.

  • Analysts say, the continuous rise in the number of COVID-19 case will further disrupt supply chains and cause further inflation.