Nigeria Achieves N6.9 Trillion Trade Surplus in Q2 2024 as Imports Decline and Exports Surge

Nigeria’s trade balance soared to a record surplus of N6.9 trillion in the second quarter of 2024, according to the latest data from the National Bureau of Statistics (NBS). This represents a 6.60% increase from Q1 2024, where the surplus stood at N6.52 trillion. Despite a 3.76% drop in total merchandise trade from the first quarter, exports surged by over 201%, dominating the trade landscape.

A Surge in Exports Propelled by Crude Oil

In Q2 2024, Nigeria’s total exports were valued at N19.4 trillion, accounting for 60.89% of total trade. The sharp rise in exports was largely driven by crude oil, which made up 74.98% of total exports, amounting to N14.5 trillion. However, this figure marks a 5.99% decrease from the previous quarter’s crude oil exports, which stood at N15.4 trillion.

Non-crude oil exports, though much smaller in comparison, still contributed a significant N4.8 trillion, representing 25.02% of total exports. Non-oil products, which accounted for 10.01% of total exports, were valued at N1.9 trillion.

Decline in Imports as Trade Deficit Shrinks

On the import side, Nigeria recorded a significant drop in Q2 2024. Imports fell by 10.71% from N13.97 trillion in Q1 to N12.47 trillion in Q2, showing a more balanced trade profile. Despite this decline, the value of imports was still nearly double that of Q2 2023, reflecting ongoing macroeconomic challenges and changing global trade dynamics.

Tax Collection Surges to N2.47 Trillion

Another standout figure in the report was Nigeria’s Company Income Tax (CIT) collection, which surged by 150% in Q2 2024 to hit N2.47 trillion. This marks a significant increase from the N984.61 billion collected in Q1. The rise in tax collection was largely driven by a surge in foreign CIT payments, which jumped by 87.24% compared to Q1 2024.

The agriculture, forestry, and fishing sectors led the growth, with a remarkable increase of 474.50%, followed closely by financial and insurance activities, which grew by 429.76%. The manufacturing sector also saw significant growth, rising by 414.15%.

Despite the macroeconomic headwinds, Nigeria’s trade performance in Q2 2024 showcases the resilience of its export sector, particularly crude oil. The surge in tax revenues also reflects a robust fiscal response. As the nation continues to navigate economic challenges, these figures highlight the importance of balancing imports and exports while strengthening tax collection mechanisms.