Data released yesterday by the National Bureau of Statistics (NBS) revealed that Nigeria’s import and export trade year-on-year contracted by 1.38 percent, showing 5.79 percent points lower than the rate recorded the same period in the previous year, which also was 1.35 percent points lower than in the preceding quarter.
According to report, the quarter-on-quarter growth stood at 1.62 percent in the third quarter of 2016.
This shows that international trade contribution to the Gross Domestic Product (GDP) was 16.39 percent in the third quarter of 2016, marginally higher than the 16.24 percent it represented in the previous year, but lower than the 17.57 percent recorded in 2016 second quarter.
Tony Anakebe, managing director of Gold-Link Investment Limited, a clearing and forwarding company, who wasn’t surprised by the GDP contraction, blamed scarcity of foreign exchange caused by the sliding price of crude oil in the international market as well as the Central Bank of Nigeria’s (CBN) policy ban on 41 selected items from accessing forex from the official window, for the sharp decline in trade volume.
Anakebe, who stated that the 60 percent drop in oil prices instigated the devaluation of naira that has created a ripple adverse effect on the volume of imported commodities, added that the implementation of the Federal Government automotive policy has also reduced the volume of imported vehicles through the nation’s seaports by 67 percent from 2014 till date.
While stating that Nigerian importers now prefer to bring in the vehicles through the neighbouring Cotonou port, where it is cheaper to import vehicles and bring into Nigeria through the land border, Anakabe called for the review of automotive and FX policies for economic rebound.
“For Nigeria to be sufficient in vehicle assembling and production there is need for the country to have a well knitted plan. We need to protect our cargo through consistent policy and well followed development plan because the Federal Government, currently loses over N600 million annually to the diversion of Nigerian bound vehicles to Cotonou and Lome seaports,” said Jonathan Nicole, president of Shippers Association of Lagos State.
AMAKA ANAGOR-EWUZIE
