China has topped the list of top exporting nations to Nigeria but does not appear on the list of top importing countries, widening both countries’ trade deficits.
According to data obtained from the National Bureau of Statistics (NBS) in the first quarter of 2022, Nigeria imported over N1.51 trillion worth of goods from China while exporting only N148bn.
This indicates a deficit gap of N1.36 trillion, a 51 per cent increase when compared to N900 billion recorded in the last quarter of 2021.
In the Q4, 2021 data Nigeria sold N739 billion worth of goods to the Chinese market while importing N1.65 trillion.
Commenting on the balance of trade position of Nigeria with China, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, stated: “It is true that Nigerian import from China has significantly increased in the last decade displacing the West.
“The reasons can be attributed to: The Chinese Government putting in place international trade policies that deliberately fund Chinese exports to third world countries, making their goods readily available and cheaper. Exporting from Nigeria is a tough venture considering the bottlenecks in the processes.
“This must be addressed to compete favourably; and some loans granted by China to Nigeria and other African countries are tied to projects that are executed using Chinese materials. All of these raise the Chinese exports to Africa”.
On what Nigeria needs to do to redress the situation, Almona said: “Nigeria must improve on its export infrastructure to boost exports and seek for cheaper sources of loans that are tied to boosting productive capacities in the country.
“Once we are able to produce more, and export processes are not cumbersome, Nigeria will record higher exports and lower imports towards balancing the trade between the two countries.”
On his part, Ugochukwu Uma an economist attributed the reduced export data of Nigeria to China to the Russia-Ukraine conflict.
He explained that Russia was selling crude to China at a cheaper rate and this he said has shifted the attention of the world’s largest importer of crude.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: How roadside foods endanger consumers’ life with trans fat in northern Nigeria
With an estimated 854,000 deaths in Nigeria, and 3,229 attributed to trans fatty acids (TFA) -related cardiovascular deaths, ADESOLA IKULAJOLU visited Nigeria’s...
INVESTIGATION: Untold story of Ondo oil producing communities battling poor health system
Access to quality healthcare is one of the nightmares of communities in Ilaje local government area of Ondo State. Despite...
FEATURE: Ogun residents, waste collectors trade blames, as refuse litter environment
TIJANI ABDULKABEER, a journalist from the University of Ibadan, during a recent trip to Sango Otta, Ogun State took a look...
INVESTIGATION: How online fraudsters siphon victims’ funds through ‘SportyBet’ platform
As Nigeria transits into a cashless society, the evolution also creates opportunities for internet scammers to take advantage of unsuspecting...
SPECIAL REPORT: Enugu govt watches as waste takes over state, threatens public health, environment
In this report, Arinze Chijioke looks at how delays in evacuation of waste in Enugu State encourages indiscriminate waste disposal, its health implications, and how...