Agric import hits N960bn in Q2 on lower naira – Businessday

Nigeria’s agric import hits a total of N960 billion in the second quarter of 2016 after a fall in the value of the local currency, the naira against the US dollar which has shoot up the cost of imported items, data obtained from the National Bureau of Statistics (NBS) shows.
The value of agricultural import increased by N360 billion or 60 percent from N600 billion in Q1 2016 to N960 billion in Q2 2016 on quarter on quarter basis.
“Increase in import value can be traced   to a decline in the value of the naira,” the foreign trade report states.
The naira has weakened by about 40 percent to N315.25 against the dollar on the official market; while it trades at about N425 in the black market after the central bank remove currency peg of 197-199 on June 20 in a move to end dollar scarcity.
According to the report, boilers, machinery and appliances; parts thereof recorded the highest agricultural import products with N722.4 billion followed by vegetable products with N95 billion for the period.
The total value of Nigeria’s imports is N2.1 trillion in Q2 2016, showing an increase of 38 percent from the value ₦1.5 billion recorded in the preceding quarter.
                              
Nigeria mainly imports goods mostly from China, Netherlands, United States, India and the United Kingdom, which respectively accounted for N493.5 billion or 23.9 percent, N285.7 billion or 13.8 percent, N199.0 billion or 9.6 percent, N124.9 billion or 6 percent, and N119.3 billion or 5.8 percent of the total value of goods imported during the quarter.
A total of N92.3 billion worth of agricultural products was exported into the country in the second quarter 2016.
The value of agricultural export increased by N36 billion or 44 percent from N81 billion in Q4 2015 to N117 billion in Q1 2016 quarter on quarter basis.
On year-on-year basis, the value of the country’s agric export increased by N11.3 billion from N105.5 billion in Q4 2015 to N117 billion in Q1 2016.
Nigeria’s export trade stood at N1.9 trillion, at the end of Q2 2016 showing an increase of N726 or 63 percent over the value recorded in the preceding quarter.
The total value of Nigeria’s merchandise trade in Q2, 2016 was N3.9 trillion at the end of Q2 2016. This was 49 percent more than the value of N2.6  trillion recorded in the preceding quarter.
Despite economic numbers showing recession, the agricultural sector grew by 13 .2 percent year –on- year in nominal terms.