Forex pressure worsens as manufactured goods imports rise 39% to N3.96trn
•Import bills on used vehicles up 273% to N952.85bn
•As official exchange rate of naira to dollar spikes
•Analysts project decline in earnings from manufactured goods in Q4’23
By Nkiruka Nnorom & Elizabeth Adegbesan
Nigeria’s dependence on importation has continued to mount pressure on the country’s foreign exchange and foreign reserves as the value of imported manufactured goods rose to N3.96 trillion in the third quarter ended September 30, 2023 (Q3’23) .
This is also coming against the backdrop of increased importation of used vehicles in preparation for the yuletide season.
A review of the Report by Vanguard on the Foreign Trade in Goods Statistics for Q3’23 by the National Bureau of Statistics (NBS)Q3’23 showed a 38.84 percent Year-on-Year (YoY) increase, compared to N2.85 trillion recorded in the corresponding period in 2022 and represents 46.8 percent of total imports (N8.46 trillion) for the period.
This also represents a 31.03 percent Quarter-on-Quarter (QoQ) increase against the value recorded in the second quarter of the year (Q3’22), which stood at N3.02 trillion.
Naira fell to N1,035/$
Meanwhile, the pressure on imported goods has further contributed to the fall in the value of Naira. The Naira fell to N1,035/$ as at the close of trading on Wednesday, January 3, 2024. This is even as the external reserve recorded a drop by 0.17 percent or $57.18 million to $32.91 billion in December 2023 from $32.96 billion in November 2023 due to the lingering foreign exchange instability in the country.
Figures released by the Central Bank of Nigeria, CBN, showed that Nigeria’s external reserve stood at $32.912 billion as at December 29, 2024. The liquid portion was $32.185 billion, while $727.06 million was not available for use.The report on foreign trade in goods statistics for Q3’23 indicates that the value of manufactured goods represented the highest import during the period, followed by other oil products and raw materials imports with a total value of N2.85 trillion and N950.93 billion respectively.
Analysis of the data showed that “used vehicles with diesel or semi-diesel engine, of cylinder capacity 2500cc, topped the list of manufactured goods imported into the country during the period at N149.45 billion (mainly from the United states of America and United Arab Emirates), followed by ‘machines for reception, conversion and transmission of voice, images or data.’ imported from China, valued at N68.11 billion.