The all-commodity group import index rose by 0.52 percent between July and September 2021, according to the National Bureau of Statistics (NBS).
According to NBS Commodity Price Indices and Terms of Trade report for Quarter Three, 2021, released on Tuesday the marginal rise was due to rising prices of products of the chemical and allied industries.
Others are wood and articles of wood, wood charcoal and articles, Paper making material; paper and paperboard.
Part of the report reads: “The All commodity group import index on average increased 0.52 percent.This was led by rising prices of products of the chemical and allied industries , wood and articles of wood, wood charcoal and articles , Paper making material; paper and paperboard.”
“Between August and September, 2021, the all commodity group import index grew by 0.49 percent .This was led by increases in the prices of Mineral products (+0.54), Animal and Vegetable fats and oils and other cleavage products (+0.53), Live animals; animal products
(+0.5) and Base metals and articles of base metals (+0.49)”.
NBS also noted that the All commodity group export price index averagely declined 2.33 percent due to decreases in the prices of mineral products, Animal and vegetable fats and oils and other cleavage products and vehicles; aircraft and parts thereof; vessels
“The All products terms of trade (TOT) index on average fell 2.85% as a result of decreases in the prices of mineral products, Animal and vegetable fats and oil and other cleavage products, Vehicles, aircraft and parts thereof; vessels.”
The Bureau further noted that all region group export index decreased by 2.33 percent mainly due to lower prices for export to all the region.
“The All region group import index increased by 0.52 percent due to marginal increases in import prices from all the region.
“The All region terms of trade on average decreased by 2.85 percent due to lower export prices to all the regions with rising import prices from all the regions.
“The major export and import market of Nigeria in Q3,2021 were India, Spain, Italy, France and China.
“The major export to these countries were crude petroleum and natural gas liquefied. The major imports from these countries were Motorcycles, Vehicles with petrol fuel engine, motor spirits, Polyethylene and instruments, appliances and machines for measuring.
What this means
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 peri-ods (or when TOT is greater than 100 percent ) means that the value of exports is increasing rela-tive to the value of imports, and the country can afford more imports for the same value of exports.
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.
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