Nigeria’s Commodity Imports Index Up By 0.13% in Q4 2020 – NBS

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The National Bureau of Statistics (NBS) says Nigeria’s commodity group import index rose by 0.13 in Q4 2020. The NBS disclosed this in its quarterly Commodity Price Indices and Terms of Trade (Q3 2020) published on its website. According to the report, the rise in commodity importation was driven by Base metals and articles of base metals, Boilers, machinery and appliances; parts thereof and Products of the chemical and allied industries.

The All-commodity group export index decreased by 0.25% due to declines in the prices of wood and articles of wood, wood charcoal and articles, Vehicles, aircraft and parts, Base metals and articles of base metals.

  • The All products terms of trade (TOT) index, on average, decreased by 0.39% as a result of declines in the prices of base metals and articles of base metals, wood and articles of wood, wood charcoal, products of the chemical and allied industries.
  • The all-region export index decreased by 0.25% due to declines in export prices to all All-regions except Asia
  • The All-region group import index rose 0.13% due to increases in import prices across All-regions except Africa and Europe
  • The All-region terms of trade on average declined by -0.39% due to unfavourable terms of trade across all regions.
  • The major export and import market of Nigeria in Q42020 were India, Spain, the Netherlands, the United States  and China.
  • The major export to these countries were  crude petroleum and natural gas.
  • The major imports from these countries were Motor spirits, Used vehicles, motor cycles and antibiotics.

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Terms of Trade

The terms of trade (TOT) represent the ratio between a country’s export prices and its import prices. The ratio is calculated by dividing the price of the exports by the price of the imports, usually in percentage terms.

An increase in the terms of trade between two periods (or when TOT is greater than 100%) means that the value of exports is increasing relative to the value of imports, and the country can afford more imports for the same value of exports.

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For example, an increase in the price of oil between two periods (with oil production remaining the same) is likely to increase or improve the terms of trade for Nigeria and vice versa. The TOT is recorded as an index and can be used as an indicator of an economy’s health. 

Commodity Price Index October To December 2020

All-commodity group import index

The All-commodity group import index increased by 0.13% between October and December 2020. This was driven mainly by an increase in the prices of Base metals and articles of base metals (1.0%), Boilers, machinery and appliances; parts thereof (1.03%), and Products of the chemical and allied industries (0.75%).

However, the index was negatively affected by animal and vegetable fats and oils and other cleavage prods. (-1.06%), Prepared foodstuffs; beverages, spirits and vinegar; tobacco (-0.66%) and Plastic, rubber and articles thereof (-0.37%).

Between October and November 2020, the All-commodity group import price index decreased by 0.23%. The index was driven by decreases in the import prices of Boilers, Machinery and Appliances (-1.77%), Prepared foodstuffs, Beverages, Spirits and Vinegar (-1.35%) and Animal and Vegetable fats and Oils (-1.20%).

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It was offset by an increase in the prices of Products of the chemical and allied industries (1.48%), Wood and articles of wood, wood charcoal and articles (1.18%) and Mineral products (0.49%).

Between November and December 2020, the All-commodity group import index grew by 0.36%, driven by an increase in import prices of Boilers, Machinery and Appliances (2.80%) as well as Base metals and Articles (1.91%). It was negatively affected by fall in prices for products of the chemical and Allied industries (-0.73%), mineral products (-0.71%) and Wood and Articles of wood, wood charcoal and Articles (-0.58%).

All-commodity group export index

The All-commodity group export index decreased by 0.25% between October and December 2020. This was due to decreases in the prices of wood and articles of wood, wood charcoal and Articles (-0.49%), Vehicles, Aircraft and Parts (-0.44%), Base Metals and Articles of Base Metals (-0.41). This was partly mitigated by a increase in the prices of boilers, Machinery and Appliances (0.66%).

Between October and November 2020, the All-commodity export price index fell by 0.49%. This was a result of decreases in the prices of wood and articles of wood, wood charcoal and articles (-0.98%), Vehicles, aircraft and parts (-0.88%) and Base metals and Articles of Base Metals (-0.83%). This was offset by the prices of prepared foodstuffs, beverages, spirits and vinegar (1.60%), Boilers, Machinery and Appliances (1.31%).

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Between November and December 2020, the All-commodity group export index rose by 0.23%. This was driven by increases in the prices of wood and articles of wood, wood charcoal and Articles (0.50%), Vehicles, Aircraft and parts (0.44%). However, the index was negatively affected by declines in the prices of Boilers, Machinery and Appliances (-0.65%), prepared foodstuffs, beverages, spirits and Vinegar (-1.88%) and Others.

Terms of trade by commodity (2018 Jan=100)

The All-commodity terms of trade for October, November and December 2020 stood at 100.43, 100.17 and 100.04.

The All-commodity group terms of trade fell 0.26% in November, 0.13% in December and on average by 0.39% between October and December 2020. The decline in terms of trade between October and December was driven by Base metals and articles of base metals (-1.42%), wood and articles of wood, wood charcoal (-1.05%), Products of the Chemical and Allied Industries (-0.93%). The decline was, however, mitigated by increases in the prices of Animal and Vegetable fats and oils and other cleavage products (0.90%), Prepared foodstuffs, beverages, spirits and vinegar (0.44%), as well as Plastic, Rubber and Articles thereof (0.16%).

Between October and November 2020, the All-commodity terms of trade decreased by 0.26%. The products responsible for the decrease were wood and articles of wood, wood Charcoal and articles (-2.14%), products of the Chemical and Allied Industries (-1.89%) and mineral products (-1.0%). This was offset by Boilers, Machinery and Chemical Appliances (3.14%), Prepared foodstuffs, beverages, spirits and vinegar (2.99%).

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Between November and December 2020 the All-commodity terms of trade fell by 0.13%. This was as a result of declines in the prices of Boilers, Machinery and Chemical Appliances (-3.36%), Prepared foodstuffs, Beverages (-2.55%) and Base metals and Articles (-1.46%). The decline was offset by increases in the process of wood and articles of wood, wood charcoal and articles (1.09%) and Mineral products (0.97%).

All-region Group export index

The all-region export index decreased by 0.25% between October and December 2020 due to declines in export prices to All-regions except for Asia (Africa -1.18%, Europe -0.27%, America -0.19 % and Oceania-0.17%).

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During the quarter, exports to Asia recorded an increase of 0.16%. The month –on-month changes show a decrease of 0.49% in November and a slight increase of 0.23% in December.

The monthly percentage change between October and November 2020 was due to decreases in the prices of exports to all All-regions except Asia (which increased by 0.33%).

The monthly change between November and December 2020 stood at 0.23%. This was a result of higher export prices to All-regions with the exception of Asia (-0.17%). 

All-region Group import index 

The All-region group import index rose 0.13% between October and December 2020 due to increases in import prices across all All-regions except for Africa and Europe (Oceania 0.75%, Asia 0.59% and America 0.53%). Africa and Europe recorded price declines of 0.22% and 0.24% respectively.

The monthly percentage change showed a decrease of 0.23% in November but an increase of 0.36% in December.

Between October and November 2020, the All-region import index declined by 0.23% due to decreases in the import prices from Asia (-1.25%) and Africa (-0.44%). This was offset by higher import prices from Oceania (1.47%), America (1.04%) and Europe (0.21%).

 Between November and December 2020, the All-region group import index recorded an increase of 0.36%. This was driven by Asia (1.84%) and Africa (0.22%) but offset by Oceania (-0.73%), America (-0.52%) and Europe (-0.45%). 

Terms of Trade by Country Regions [2018 Jan=100]

The All-region group terms of trade index stood at 100.43 in October, 100.17 in November and 100.04 in December.

The terms of trade by region declined by 0.26% in November and 0.13% in December. The All-region terms of trade on average declined by -0.39% due to unfavourable terms of trade across all regions.

Merchandise Trade By Top Five Partners And By Major Commodities (N’million) Q4, 2020

INDIA

Total exports to India in Q4 was valued at N547.02 billion or 17.12% of total export. The largest export commodity to India was Petroleum oils and oils obtained from bituminous minerals, crude valued at N516.82 billion, followed by Natural gas liquefied and Leather further prepared after tanning/crusting,incl. parchment-dressed leather of sheep/lam valued at N26.66billion and (N2.13billion) respectively.

On the other hand, the value of import trade from India was valued at N506.00 billion, accounting for 8.54% of total imports. The import trade was dominated by imported motorcycles and cycles, imported CKD by established manufacturers >50cc<=250cc, valued at N87.95 billion, followed by Gas Oil (N55.97 billion) and Other Antibiotics (N40.30billion). 

SPAIN

The value of total exports to Spain stood at N313.38billion or 9.81% of total export. The dominant export product was Petroleum oils and oils obtained from bituminous minerals, crude valued at N243.02billion accounting for 77.54% of total export.

This was followed by Natural liquefied gas worth N63.81 billion and Leather further prepared after tanning/crusting without wool on goats or kids valued at N3.02 billion. However, the value of imports during the quarter stood at N84.90billion.

Motor Spirit ordinary billion ranked at the top of imports, valued at N29.05billion, followed by Mixed alkylbenzenes & mixed alkyl naphthalenes, valued at N15.74billion and Gypsum; anhydrite whether or not coloured, with/without small quantities of accelerators, worth N5.61billion. 

THE NETHERLANDS

Nigeria’s export trade with the Netherlands in Q4 2020 was valued at N194.50 billion or 6.09% of total exports. Major export products were: Petroleum oils and oils obtained from bituminous minerals, crude valued at N190.74 billion, followed by Superior quality raw cocoa beans, and Good Fermented Nigerian Cocoa Beans valued at N1.93 billion and N1.38 billion respectively.

However, the value of imports stood at N424.49, with the main commodities imported being Motor Spirit ordinary, which amounted to N165.50 billion, Other Antibiotics (N108.78billion) and Gas oils (N47.12 billion).

THE UNITED STATES

In Q4 2020, Nigeria’s export trade with the United States was valued at N170.36 billion accounting for 5.33% of total exports. The major commodities exported during the period were Petroleum oils and oils obtained from bituminous minerals, crude; Other petroleum gases etc in a gaseous state and Natural gas, liquefied, valued at N142.60 billion, N22.92 billion and N2.58 billion respectively.

On the import side, the value of imports amounted to N448.64billion, with the main commodities imported being Used Vehicles, with diesel or semidiesel engine, of cylinder capacity >2500cc, amounting to N155.13billion. Other products imported were Other Durum wheat (Not in seeds) (N54.61 billion) and Used Vehicles, with diesel or semidiesel engine, of cylinder capacity >1500=<2500c (N 35.12 billion).

CHINA 

Exports to China were valued at N156.78billion or 4.91% of total exports during the period. This was largely dominated by Crude (N57.5billion), Natural Gas liquefied (N45.83billion) and Sesamum seeds, whether or not broken (N18.13billion). On the other hand, the value of imports from China stood at N1,675.55 billion representing 28.28% of total imports.

The largest import commodity from China was Machines 4 the reception, conversion & transmission or regeneration of voice, images or…; Bending, folding… machines (incl. presses), numerically controlled; and Air conditioning machine, Window/wall types, self-contained/split system, presented CKD valued at N53.13 billion, N41.08billion and N35.14 billion respectively.

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