This is a good news in the midst of a recession and economic slump. Nigeria’s foreign trade surged by 49% as a result of currency devaluation.
According to the NBS, the total value of Nigeria’s merchandise trade in Q2, 2016 was NGN3,9 trillion. This was 49.0% more than the value of NGN2,6 trillion recorded in the preceding quarter.
This development arose from a rise of NGN725.6 billion or 63.3%, in the value of exports (largely due to exchange rate gains) combined with a rise of NGN570.8 billion or 38.1%, in the value of imports against the levels recorded in the preceding quarter.
The NBS said current trade position brought the Country’s negative trade balance to – NGN196.5 billion during the period under review. This shows a NGN154.8 billion reduction in the country’s trade deficit over the previous quarter.
According to the report, Nigeria’s major export trade partners are: India, US, Spain and the Netherlands.
It would be recalled that Central Bank of Nigeria, CBN removed the peg on the Naira and also launched a naira denominated OTC futures market for dealers to bid for Forex at the FMDQ OTC Exchange.
