Spain takes over from India as Nigeria’s top export destination
- 3rd September 2020
- Posted by: Hakeem
- Category: Economics
Spain took over from India as Nigeria’s top export destination in the second quarter (Q2) of 2020. The European nation got 14% (N310.7 billion) of the total export trade of Nigeria in Q2 as against the 9.87% (N402.93 billion) recorded in Q1 2020.
Next is the Netherlands with 10.98% (N243.6 billion), up from 9.72% recorded in Q1 2020. While China received 9.93% share (N220.35 billion), India got 8.81% (N195.5 billion), down from the 15.61% (N637.53 billion) seen in Q1. South Africa got 7.76% (N172.19 billion) share within the same quarter.
These were disclosed in the latest foreign trade report, released by the National Bureau of Statistics on Wednesday.
The report also stated that crude oil exports accounted for 70% (N1.55 trillion) of the total value of exports in Q2 2020. However, crude oil exports decreased in value by 47.2% in Q2 2020 compared to Q1 2020 and 60.5% year-on-year.
Further checks by Nairametrics, shows that the latest crude oil export is the lowest recorded in the past four years. The last time a lower value was recorded was in Q2 2016 (N1.49 trillion).
Back story: Nairametrics had reported on Tuesday when the NBS revealed that Nigeria’s total foreign trade (import and export) dropped by 27.46% year on year in Q2 2020, when compared to N8.61 trillion recorded in the corresponding quarter (Q2) of 2019. This is according to the latest foreign trade report, released by the National Bureau of Statistics.
According to the report, Nigeria’s total export during the quarter nosedived by 51.7% to stand at N2.22 trillion, a significant fall when compared to N4.59 trillion recorded in Q2 2019 and N4.08 trillion recorded in the previous quarter.
The report also showed that Nigeria’s total foreign trade recorded a decrease of 27.3% when compared to N8.59 trillion recorded in the previous quarter (Q1 2020). The decline is a reflection of the disruptions caused by the COVID-19 pandemic.
Why the twist?
Expectedly, Nigeria’s crude oil earnings from India, the world’s third-largest importer of crude, dropped after the latter recorded its lowest oil imports in 10 years in the month of June 2020.
According to Reuters, India’s oil imports dropped in the month of June as its refineries reduced demand due to maintenance and turnarounds.
India reportedly imported 3.2 million barrels per day in June, the lowest since October 2011 and a 0.4% decline from May and 28.5% lower than the same period in 2019.
The report also indicates that July was not any better due to weak demand as a result of the effects of the coronavirus pandemic.
Nigeria is India’s 13th largest country of import behind other crude oil exporters such as the US, Iraq, Saudi Arabia, and UAE. In contrast, India is Nigeria’s largest export destination.
India replaced the US as Nigeria’s largest export destination for crude, as the demand increased in the second-most populous country in the world.
India has been one of the fastest-growing economies in the world, with industrialization widening its appetite for crude. However, the impact of COVID-19 has halted economic growth in India. The country is now next to the US and Brazil in countries with the most cases of COVID-19. India has over 3.84 million confirmed cases and 67,486 reported deaths.