Nigeria’s trade position weakened in July as rising import bills and softer export earnings pulled the country’s monthly surplus down to 1.39 billion dollars, a 35 percent drop from the 2.14 billion dollars recorded in June.
The latest data from the Central Bank of Nigeria, contained in its July Monthly Economic Report, showed that export revenue slipped slightly while imports rose sharply, tightening the margin between what the country sells abroad and what it brings in.
According to the report, “the trade surplus narrowed to 1.39 billion dollars, from 2.14 billion dollars in the preceding period, reflecting both marginal decline in export performance and higher import bills.”
Export receipts fell by 0.8 percent to 4.93 billion dollars. The report traced the dip to lower earnings from crude oil and refined petroleum products, which remain the backbone of Nigeria’s export portfolio.
“Export receipts fell by 0.80 percent to 4.93 billion dollars, largely on account of lower earnings from the export of crude oil products,” the document stated.
Crude oil, gas and refined petroleum products accounted for 84.88 percent of total exports, while non-oil goods made up the rest. Although overall oil-linked earnings slipped, gas exports recorded a boost.
Total receipts from crude oil, gas and refined petroleum products dropped to 4.18 billion dollars from 4.29 billion dollars in June. Crude oil earnings fell to 2.55 billion dollars, down from 2.74 billion dollars, while revenue from refined products fell from 0.95 billion dollars to 0.53 billion dollars. Gas exports, however, rose to 1.10 billion dollars following firmer international prices and increased demand in Europe during colder-than-average temperatures.
On the non-oil side, earnings improved due to better performance from mineral products. Non-oil export receipts rose from 0.68 billion dollars in June to 0.75 billion dollars in July.
Imports, on the other hand, surged significantly. Total import bills climbed by 25.09 percent to 3.54 billion dollars, up from 2.83 billion dollars in June, driven by both oil and non-oil purchases.
The report noted that “merchandise imports rose, due to increase in the importation of both oil and non-oil products.”
Non-oil imports increased by 23.30 percent to 2.64 billion dollars, while petroleum product imports jumped from 0.69 billion dollars to 0.90 billion dollars.
The surge in import spending outweighed the slight strengthening from non-oil exports, tightening the country’s trade balance for the month.
Nigeria’s trade performance continues to mirror global market conditions, domestic demand patterns and the country’s heavy reliance on oil-linked income. The July data underscores how fluctuations in the global energy market and shifts in import dependence can shape the country’s monthly external position.
