Nigeria’s foreign trade reached a major milestone in 2024, with total merchandise trade growing by a remarkable 106.6%, amounting to N138.03 trillion. This surge, driven largely by the devaluation of the Naira, marked a significant rise from the previous year’s N66.83 trillion. The growth was further fueled by a notable increase in exports, which totaled N77.4 trillion, surpassing imports of N60.6 trillion. Consequently, Nigeria’s trade balance saw a substantial improvement of 230.5%, increasing from N5.10 trillion in 2023 to N16.85 trillion in 2024.
The key driver behind the growth was the devaluation of the Naira, which made Nigerian exports more competitive on the global market. Exports saw an impressive rise, while crude oil production and exportation continued to play a critical role in the economy. Despite the positive shift in the trade balance, analysts warned that the volatility in foreign exchange rates posed risks, especially in widening the services account, which could offset some of the gains made in other areas.
In the final quarter of 2024, Nigeria’s merchandise trade reached N36.60 trillion, reflecting a 68.32% increase compared to the same period in 2023. Exports accounted for a significant portion of this trade, amounting to N20.01 trillion in Q4, a 57.67% rise year-on-year. The data also revealed that China remained Nigeria’s largest source of imports, followed by India, Belgium, the United States, and France.
Looking ahead, analysts expect the trade surplus to continue growing as export volumes, particularly in crude oil, rise with expanding refining capacities. However, they cautioned that increasing import volumes, driven by better access to foreign currency, could reduce the trade surplus, potentially affecting Nigeria’s balance of payments and current account.
SOURCE: LEADERSHIP