Monday, August 6, 2012

Economy: Non-oil Sector Exports Dropped by 27% in 2011

Efforts by the Federal Government to diversify the nation’s economy by encouraging investment in the non-oil sector of the economy appear not to be yielding any good fruits  as recent statistics by the National Bureau of Statistics (NBS) has revealed that contribution of the non-oil sector to exports dropped in the first and last two quarters of 2011.

Trade statistics published by the NBS on the Nigerian economy indicated that the non-oil exports decreased its contribution to the exports in second quarter (Q2) 2011, contributing just 16.23 per cent from 24.70 per cent recorded in the first quarter (Q1) 2011, and also from 34.87 per cent recorded in the corresponding period of 2010.

The NBS statistics further revealed that the value of oil exports went up by 23.55 per cent, from N2.42 trillion in Q1 2011 to N2.99 trillion in Q2 2011, 27.23 per cent lower than the figure of Q2 2010.

Non-oil exports, it said, recorded a decrease of 27.06 per cent, compared with Q1 2011, and a decrease of 53.85 per cent, compared with the corresponding period of 2010.

According to the NBS, the year-to-date total value of merchandise trade for 2011 stood at N13.22 trillion, “Imports accounted for 48.64 per cent (N6.43trillion) of the total, while exports accounted for 51.36 per cent (N6.79trillion) of the total figure.”

On a quarterly basis, the data from the NBS showed that Mineral Products led the sectoral contribution to exports in Q2 2011 with a contribution of 84.53 per cent (N3.04 trillion) of total exports.

Meanwhile, experts at FSDH Securities Limited have called on the Federal Government and the Central Bank of Nigeria (CBN) to intensify their efforts to ensure that the non-oil sector of the economy continues to grow in order to mitigate the impact of the volatility of oil price at the international market on Nigerian economy.

“As a major trade partner of Nigeria, the developments in Europe directly impact Nigerian economy. Thus home grown policies are required to reduce the impact of the crisis in the Euro area on Nigeria, “the experts said.

The NBS added: “Similarly, sectoral contribution to imports in Q2 2011 showed that mineral products (gasoline) made the greatest contribution of N822.32 billion (26.20 per cent) and was followed by Boilers, Machinery and Appliances of N367.3 billion or 15.20 per cent, Vehicles, Aircraft and Parts, with a contribution of N349.02bn or 11.3 per cent, Vegetable Products of N349.02 or 10.50 per cent, Plastic, Rubber and articles thereof, N342.36 billion (10.30 per cent), Base Metals and Articles of Base Metals, N189.76 billion (5.70 per cent) and Product of chemical and Allied Industries N139.15bn (4.20%).”

The NBS numbers also showed that total value of merchandise trade for the second quarter of 2011 stood at N6.89 trillion, representing an increase of 9.10 per cent, compared with N6.32 trillion recorded during the first quarter of 2011.

The NBS numbers showed that total trade increased by 42.9 per cent in Q2 2011, compared with the corresponding period of 2010, and by 211.7 per cent, compared with the corresponding period in 2009.

Exports, the foreign trade statistics showed, accounted for N3.57 trillion or 51.81 per cent, while imports accounted for N3.32 trillion or 48.19 per cent.

“Hence there was a trade surplus of N250 billion recorded in Q2 2011, representing a decrease of 89.50 per cent over the N2.38 trillion recorded in Q2 2010. Imports for the Q2 2011 stood at N3.32 trillion as against N3.10 trillion recorded in Q1 2011, representing an increase of 7 per cent and a rise of 175.50 per cent compared with Q2 2010, “said NBS.

A breakdown of available data between 2008 and 2010 showed that the highest value of exports was recorded in 2010 at N13.01trillion; the lowest value was recorded in 2009 at N7.43 trillion, while the average value of exports stood at N10 trillion during the period. Similarly, the highest value of imports during the period was recorded in 2010 at N6.65 trillion; the lowest value was recorded in 2008 at N3.30 trillion; average value for imports stood at N5 trillion during the period.

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