Nigeria’s total trade with the United Kingdom fell by 25% in the first quarter of 2024 despite the higher value realized from the devaluation of the naira.
The total trade between Nigeria and the UK plummeted from N602.36 billion in Q1 2023 to N451.45 billion in Q1 2024, according to the National Bureau of Statistics.
This figure shows a significant decrease of 25% on a year-on-year (Y-o-Y) When compared to the previous quarter (Q4 2023), where the total trade was N522.79 billion.
The dip in trade between Nigeria and the UK has raised concerns.
In general, a depreciating naira would theoretically increase trade figures by making Nigerian exports more affordable and competitive abroad. On the other hand, the data suggests that the decline is probably caused by other reasons.
A thorough analysis of the data reveals a reduction in both imports and exports. Nigeria’s imports from the UK fell by 2% quarter over quarter, from N186.99 billion in Q4 2023 to N183.34 billion in Q1 2024. Nonetheless, imports rose by 25% year over year from N146.88 billion in the first quarter of 2023.
There was a more significant decline in exports, which reduced the overall trade figures.
The export value decreased by 20% on a quarter-over-quarter basis, from N335.8 billion in Q4 2023 to N268.11 billion in Q1 2024. Exports fell by 41% year over year from N455.48 billion in the first quarter of 2023.
According to NBS statistics, re-exports to the UK totaled N43.49 million interchangeable tools, N2 million iron/steel articles, N1.97 billion for metal treatment, N2.18 million voice, image, or data devices, and N1.45 million home items in Q1 2024.
Additionally, N1.8 billion worth of food preparation products were shipped to the UK during this quarter.
Heat exchange units valued at N15.93 billion and granite valued at N11.77 million were among the goods imported from the UK in the first quarter of 2024.
The United Kingdom had intended to form new trade and economic alliances with Nigeria during the quarter under review.
To create new opportunities in industries like energy, law, and finance services, to create new opportunities in industries like energy and finance services.
This was also around the time the UK was battling to exit a recession that hit the economy, as its Gross Domestic Product (GDP) declined by 0.3% in Q4 2023.
The UK government recently introduced higher education reforms that will crack down on “rip-off” degrees and ensure student visas are used for education rather than immigration.
