Nigeria enjoyed a robust trade surplus in the third quarter of 2024, exporting goods valued at N24.5 trillion in a total merchandise trade of N35.16 trillion.
The N35.16 trillion represents a remarkable 81.35 per cent increase compared to the same period in 2023 and a 13.26 per cent rise from the preceding quarter.
The galloping surge in exports was mostly as a result of increased trade in the oil and gas sector, driving the overall trade surplus.
Total exports climbed by 98.00 per cent to N20.49 trillion in the third quarter of 2024, up from N10.35 trillion in the third quarter of 2023.
This marks a 16.76 per cent increase from the N17.55 trillion recorded in the second quarter of 2024. The substantial growth in export earnings was primarily driven by Nigeria’s oil and gas sector, with crude oil exports alone soaring by 57.06% to N13.41 trillion, compared to N8.54 trillion in Q3 2023.
Exports of liquefied natural gas (LNG) and petroleum gases experienced an extraordinary rise of 303.93%, totaling N4.58 trillion.
Meanwhile, agricultural exports saw an unprecedented surge of 301.87 per cent, reaching N884.07 billion, though slightly lower than the previous quarter’s performance.
“Despite global economic challenges, Nigeria’s export performance remains strong, particularly in the oil and agricultural sectors. These exports have become crucial in boosting the country’s foreign exchange reserves,” noted an NBS report.
On the import side, Nigeria’s total imports for Q3 2024 increased by 62.30% to N14.67 trillion, up from N9.04 trillion in the third quarter of 2023.
The rise in imports was largely driven by manufactured goods, which rose by 76.44 per cent to N6.98 trillion, and raw materials, which grew by 66.11 per cent to N1.58 trillion.
China maintained its dominance as Nigeria’s largest import partner, followed by India, Belgium, the United States, and Malta. Key imports included motor spirit, gas oil, durum wheat, and used vehicles.
Despite the higher import costs, Nigeria’s impressive export growth has reinforced its position as a major player in global trade, especially in the oil and gas sector.
Spain emerged as the largest destination for Nigerian exports, followed by the United States, France, the Netherlands, and Italy.
The Nigerian telecommunications sector witnessed a staggering 87 per cent decline in foreign investments during the third quarter of 2024, signaling a sharp downturn in capital inflow.
According to the National Bureau of Statistics (NBS), the sector attracted just $14.4 million in the third quarter, a significant drop from the $113.42 million recorded in the second quarter.
Year-on-year, this figure represents a 77 per cent decline compared to $64.05 million in the third quarter of 2023.
Despite the current downturn, the sector had shown promise earlier in the year. In Q1 2024, telecoms attracted $191.5 million in foreign investments, a 769 per cent increase compared to $22.05 million in the first quarter of 2023.
This remarkable growth in the first quarter surpassed the total foreign investments recorded for the entire year of 2023, which stood at $134.75 million.
However, the drop in the third quarter highlights the sector’s ongoing struggles.
The first quarter’s performance marked a rebound from years of declining investment levels, driven by an urgent need to address the sector’s substantial infrastructure deficit. Yet, the third quarter’s underperformance threatens to stall this progress.
Experts attribute the decline in foreign investment to several systemic challenges.
The Executive Secretary of the Association of Licensed Telecommunications Companies of Nigeria (ALTON), Mr. Gbolahan Awonuga, identified forex instability, high Right of Way (RoW) charges, and multiple taxation as primary barriers to investment.
“We may not see steady growth in investments until these challenges are effectively addressed,” Awonuga emphasized.
Adding to this, Engr. Ikechukwu Nnamani, CEO of Digital Reality and former ATCON President, called for a more stable and conducive business environment.
“The inconsistency in government policies and instability in the forex market are major disincentives for foreign investors who would otherwise find the Nigerian telecoms industry attractive,” Nnamani explained.
