Total trade rises by 8.66% in Q1 2023, as products tax jumps to N3.03trn – NBS report

Data released by the National Bureau of Statistics (NBS) indicates an 8.66 per cent increase in Nigeria’s total merchandise trade recorded in the first quarter of 2023, which the agency has attributed to the marginal increase in import and export trade, which brought about a positive trade balance.

NBS’s freshly released Foreign Trade in Goods Statistics (Q1, 2023) report further indicates that in the first quarter of 2023, the country’s total trade stood at N12,046.92 billion of which total exports stood at N6,487.04 billion and total imports amounted to N5.559.88 billion.

Total exports increased in the first quarter by 2.00% but declined by 8.66% when compared to the amount recorded in the fourth quarter of 2022 (N6,359.61billion) and the corresponding quarter in 2022 (N7,102.11 billion) respectively.

“In the same vein, total imports increased by 3.67% in the first quarter of 2023 compared to the value recorded in the fourth quarter of 2022 (N5,362.83 billion) but then again declined by 25.83% when compared to the value recorded in the corresponding quarter of 2022 (N7,495.67 billion).

“The value of Re-exports in the quarter under review stood at N32.17 billion representing 0.50% of total exports.”

The NBS added that data available shows that the top five re-export destinations were Cameroun, Ghana, Equatorial Guinea, United Kingdom and Liberia while the most re-exported commodity was ‘Vessels and other floating structures for breaking up with N21.07 billion.

“This was followed by ‘Light vessels, fire floats, floating cranes, and other vessels not specified in 8905’ valued at N4.71 billion.

“Other instruments and appliances for Surveying not specified in 9015’ amounting to N0.93 billion and Parts of work-truck of the type used in factories, warehouses, dock areas or airports valued at N0.85billion,” the report added.

In addition, the top five export destinations in the first quarter of 2023 were the Netherlands with N837.65 billion or 12.91%, the United States of America with N579.35 billion or 8.93%, Spain with N488.17 billion or 7.53%, France with N487.34 billion or 7.51% and India with N456.69 billion or 7.04% of total exports. Altogether, exports to the top five countries amounted to 43.92% of the total value of exports.

“Petroleum oils and oils obtained from bituminous minerals, crude with N5,148.58 billion representing 79.37% remains the commodity with the largest export values in the period under review, followed by ‘Natural gas, liquefied’ with N622.36 billion accounting for 9.59%, and ‘Urea, whether or not in aqueous solution’ with N146.79 billion or 2.26% of total exports.

Meanwhile, in terms of Imports (CIF), China, The Netherlands, Belgium, India, and the United States of America were the top five countries of origin of imports to Nigeria in the first quarter of 2023, according to the report.

The values of imports from the top five countries amounted to N3,101.42 billion representing a share of 55.78% of the total value of imports.

The commodities with the largest values of imported products were ‘Motor Spirit Ordinary’ (N1,492.28 billion or 26.84%), ‘Gas Oil’ (N472.40 billion or 8.50% and ‘Durum Wheat (Not in seeds)’ (N249.22 billion or 4.48%).

In a related report, the NBS has said total taxes on products in the Nigerian economy rose by 112.02 percent from N1.43 trillion in 2019, to N3.03trillion in 2022, coinciding with a Value Added Tax hike from five percent in 2020 to 7.5 percent in 2022.

The NBS ‘Nigerian Gross Domestic Product Report (Expenditure and Income Approach)’ report for the years under review, showed.

The NBS defines net taxes on products as the “total taxes payable on products, minus any subsidies received for the product.”

Prior to the implementation of the new VAT regime, net taxes on products totalled N1.43tn in 2019.

By 2020 (when the new VAT regime began), taxes rose by 34.97 percent to 1.93tn in 2020.

It further rose by another 32.13 percent to N2.55tn in 2021 and rose by 18.88 percent to N3.03tn in 2022.

“On a year-on-year basis, Net Taxes on Products grew in real terms by 10.30 percent in Q3 of 2022, and 11.18 percent in Q4 of 2022 compared to 6.22 percent and 67.99 percent in Q3, and Q4 of 2021.

“On an annual basis, 2022 grew by 14.19 per cent, lower than 25.81 per cent in 2021. In nominal terms, the growth rate of Net Taxes on Products was 24.95 per cent in Q3 of 2022, and 23.71 per cent in Q4 of 2022,” the NBS report said.