In 2023, imports of raw materials into Nigeria witnessed a substantial increase of 25%, totaling N3 trillion, as per data from the National Bureau of Statistics’ Foreign Trade Statistics.
Major imported raw materials during this period included cane sugar, lubricating oils for further mixing, milk preparations with vegetable fats and oils, odoriferous substance mixtures, and veneering sheets, among others. However, Nigeria’s exports of raw materials between 2022 and 2023 amounted to only N1.8 trillion, resulting in a significant trade imbalance of N3.6 trillion.
The CEO of the Centre for the Promotion of Private Enterprise, Muda Yusuf, attributed the surge in raw material imports to the depreciation of the naira. He explained that the depreciation led to higher costs in naira terms for imported goods, even if their dollar value remained the same or decreased.
Source: Punch